BANKING/LENDING – City Line Joint Venture, which developed a multi-family rental housing project with a HUD-insured loan, claimed that enactment of the Low-Income Housing Preservation and Resident Homeownership Act violated its contractual right to prepay its mortgage after 20 years and exit the program. The Federal Circuit found that the trial court improperly dismissed the government’s breach of contract claim based on the sovereign acts doctrine. The Act was aimed at nullifying contract rights, and where the Act occurred in the takings context, its effects have equal relevance to the application of the doctrine. City Line Joint Venture v. U.S.
- U.S. Courts of Appeal