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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Alexander v. United States Department of Housing & Urban Development, 441 U.S. 39 (1979)

Citation
Alexander v. United States Department of Housing & Urban Development, 441 U.S. 39 (1979)
Parent Document
Alexander v. United States Department of Housing & Urban Development, 441 U.S. 39 (1979)
Effective Date
1979-04-17

Other Sections in This Document (175)

Full Text

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The tenants in No. 77-1463 formerly occupied the Sky Tower apartment complex built in Washington, D. C., during the 1950’s. A nonprofit corporation purchased Sky Tower in 1970, intending to convert a number of its small “garden” apartments into larger units for low- and moderate-income families. HUD agreed to assist in the rehabilitation by insuring the corporation’s mortgage on the complex and subsidizing its interest payments, pursuant to § 236 of the National Housing Act, 82 Stat. 498, as amended, 12 U. S. C. § 1715z 1. Difficulties with two successive general contractors eventually prevented the corporate sponsor from making interest payments on its loan. As a result, the mortgagee declared the sponsor in default, foreclosed on the mortgage, and conveyed title to HUD in exchange for the statutory mortgage insurance benefits. See 12 U. S. C. §§ 1713 (g), (k).