Sale Didn't Eliminate Affordable Housing Restriction on Property Because of Lack of Notice to County

摘要

A 1992 bankruptcy sale did not eliminate an affordable housing restriction on the property because the county which imposed the restriction in connection with development permits wasn't given notice of the sale, the U.S. Bankruptcy Court for the Northern District of California ruled. (In re Metzger, Bankruptcy No. 03-54106-ASW, Adversary No. 03-5482, 2006 WL 2242728 (Bankr.N.D.Cal.), August 2, 2006) The restriction was imposed through a 1985 participation agreement between Santa Cruz County and Aptos Courtside Affair, L.P. After Courtside filed for bankruptcy under Chapter 11, the property was sold in 1992 to Nusan Development Company, with an assignment of the par-ticipation agreement.