Prepayment Restrictions Constituted taking, Court Rules; Damages Estimated at $2 Million to $13 Million

摘要

The U.S. Court of Federal Claims found that the owners of eight low-income housing projects suffered a temporary taking from mortgage prepayment restrictions and estimated damages ranging from about $2 million to $13 million for individual projects. (Cienega Gardens v. U.S., Chancellor Manor y. U.S., Nos. 94-1C, 94-10004C, 94-10009C, 94-10013C, 94-10029C, 98-39C, 98-3911C, 98-3912C, 2005 WL 2082851 (Fed.Cl.), August 29, 2005) The prepayment cases were tried on remand from the U.S. Court of Appeals for the Federal Circuit, which reversed previous claims court rulings for the government in the Cienega Gardens and Chancellor Manor litigation. (For background, see Current Developments, Vol. 31, No. CD-13, p. 385.) The appellate court also concluded that a previous trial for four model plaintiffs had developed a sufficient record to show that a temporary regulatory taking occurred and to reinstate the original judgment for damages. It remanded the cases of the other plaintiffs for trial to determine liability and damages under the Emergency Low-Income Housing Preservation Act (ELIHPA) and the Low-Income Housing Preservation and Resident Hpmeownership Act (LIHPRHA).