District Court Dismisses Claims For Damages in Foreclosure For Lack of Jurisdiction

摘要

The U.S District Court for the Northern District of Ohio, Eastern Division, ruled it had no jurisdiction to hear claims by the owner of a foreclosed FHA-insured Section 8 project owner that sought monetary damages against HUD for breach of contract and an allegedly unconstitutional taking. (Capitol Park Limited Dividend Housing Association v. Jackson, No. 1:04 CV 1408, 2005 WL 1966123 (N.D. Ohio), August 12, 2005) Capitol Park Limited Dividend Housing Association owned and Millennia Housing Management Limited operated the Porter, a 98-unit complex occupied primarily by individuals over the age of 62 and disabled individuals of any age. In 2002, HUD told Capitol that it was going to include the Porter in its mark-to-market program. HUD would require Capitol to lower its rents to market rates, and it would adjust the project's Section 221(d)(4) mortgage of about $4 million to compensate for the reduced rental income. Even if Capitol refused to negotiate, the rents would be reduced.