Johnson v. United States Department of Housing and Urban Development (Hud), 911 F.2d 1302 (1990)

Citation: Johnson v. United States Department of Housing and Urban Development (Hud), 911 F.2d 1302 (1990)
Parent Document: Johnson v. United States Department of Housing and Urban Development (Hud), 911 F.2d 1302 (1990)
Jurisdiction: United States (federal)
Effective Date: 1990-10-29
Original Source: https://www.courtlistener.com/opinion/546951/johnson-v-united-states-departme... ↗

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Plaintiffs, low income tenants in the Hillvale Apartment complex in St. Louis, Missouri, appeal from an order entered by the District Court for the Eastern District of Missouri granting summary judgment in favor of the owners of the apartment complex, the manager, the mortgagee and the United States Department of Housing and Urban Development (HUD). The controversy surrounds the correct interpretation of the Emergency Low Income Housing Preservation Act of 1987, Pub.L. No. 100-242, 101 Stat. 1877 (1988) (codified at 12 U.S.C. Sec. 1715l note), which governs the method by which private owners of housing financed under Sec. 221(d)(3) of the National Housing Act, 12 U.S.C. Sec. 1715l (d)(3) (1988), may terminate their obligation to provide low and moderate income housing. The precise question presented is whether the Preservation Act of 1987 covers termination by way of a mutual agreement between the owner of the property and the mortgagee to terminate federal mortgage insurance. We hold that the Preservation Act as originally enacted in 1987 applies to voluntary mortgage insurance termination, and therefore reverse the judgment entered by the district court and order that summary judgment be granted in favor of the plaintiffs. However, because our holding raises the issue of whether the Preservation Act infringes on Hillvale's rights under the fifth amendment of the United States Constitution, see infra Part III, we remand the case to the district court for resolution of that issue. I.

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