DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Section 1

Citation
Section 1
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... ↗

Other Sections in This Document (1123)

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Third, it is undisputed that all of the money received by the owners in rent payments and HUD subsidies was applied to the mortgage and/or the upkeep of the project from 1998 onward. Since HUD policies governed both the amount of rent charged to the tenants and the amount of monthly subsidies, HUD determined the ultimate quality of the project. In this case — where there is no evidence of the owners’ misapplication of funds or mismanagement — if the project was not decent, safe and sanitary, HUD’s control of the pursestrings led to that result. The owners were not required to invest their capital in the project. Christopher Vill., Ltd. P’ship v. Retsinas, 190 F.3d 310 316 (5th Cir.1999). Consequently, HUD’s funding actions determined whether the owners’ certifications were material.