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United States v. Southland Management Corp., 326 F.3d 669 (2002)

Citation
United States v. Southland Management Corp., 326 F.3d 669 (2002)
Parent Document
United States v. Southland Management Corp., 326 F.3d 669 (2002)
Effective Date
2002-05-22
Original Source
https://www.courtlistener.com/opinion/27565/united-states-v-southland-managem... ↗

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In 1980, Defendants-Appellees W. Thad McLaurin, Charles C. Taylor Jr., and Arthur W. Doty (“the Owners”) executed an agreement called the “Regulatory Agreement for Insured Multi-Family Housing Projects (With Section 8 Housing Assistance Payment Contracts)” (“the Regulatory Agreement”). Under this agreement, HUD promised to guarantee the Owners’ obligation under the mortgage used to purchase an abandoned apartment complex— the Jackson Apartments — and also to subsidize tenants’ rent payments in accordance with a subsequently-executed HAP Contract. The Owners, in turn, agreed to substantially rehabilitate the property and to keep it “in good repair and condition.” The property was rehabilitated using the proceeds of a $2.4 million nonrecourse mortgage loan guaranteed by the United States. The Owners invested $190,000 of their own funds in the project.