September 28, 2008

Judge Dismisses Suit Against East Hills Housing Sale

A federal judge Friday dismissed a lawsuit filed by residents of an East Hills housing project who have been fighting for two years to keep the U.S. Department of Housing and Urban Development from holding a foreclosure sale.

Eight shareholder-residents of Third East Hills Park filed a lawsuit in 2006, claiming that HUD's plan to evict residents of the federally assisted housing development violated federal law, including the Fair Housing Act and Uniform Relocation Act.

HUD planned to sell the property for $1 to the Urban Redevelopment Authority and give the authority a $3 million grant to raze and redevelop the property, which would then be sold to a national development company that owns neighboring Second East Hills Park, according to the lawsuit.

Originally published by The Tribune-Review.

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