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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The Hillvale Apartment complex where plaintiffs reside was built during 1967 and 1968 and was not eligible for mortgage prepayment without HUD's approval until September 1988. Passage of the Preservation Act in 1987, however, made unilateral prepayment in September 1988 impossible. Believing that mortgage insurance termination was not covered by the Preservation Act, Hillvale and Southern Commercial Bank presented HUD with a request to terminate the mortgage insurance contract on the Hillvale Apartment complex pursuant to 12 U.S.C. Sec. 1715t. The request was made in April 1988. In July, HUD, which likewise interpreted the Preservation Act as applying only to mortgage prepayment and requests for additional financial incentives, approved Hillvale's request for termination pursuant to 24 C.F.R. Sec. 207.253(b) thereby releasing Hillvale from the restrictions on rent increases and other tenant protections contained in the regulatory agreement.

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