HUD Didn't Breach Contract by Refusing to Approve Requests for Release of Funds from Reserve Fund

摘要

HUD did not breach the implied covenant of good faith and fair dealing in refusing to approve a request for release of funds from the reserve fund for an FHA-financed nursing home, the U.S. District Court for the Northern District of Ohio, Eastern Division ruled. (Willowood Care Center of Brunswick, Inc., v. Donovan, No. 1:09 CV 2782, 2011 WL 2149354 (N.D. Ohio), May 31, 2011; for background, see Current Developments, Vol. 38, No. CD-22, p. 698.) Plaintiff Willowood Care Center of Brunswick, Inc. brought an action against HUD Secretary Shaun Donovan in his individual capacity, alleging he breached his obligations under the regulatory agreement for the Section 232 mortgage.