Government Liable for Breach of Annual Contributions Contracts

Facts: In a consolidated lawsuit, over 300 PHAs sued the United States for breach of contract. They claimed that HUD breached their Annual Contributions Contracts (ACC) in 2012 when it didn’t comply with the rules set forth at Title 24 of the Code of Federal Regulations that govern the allocation of operating subsidies when funds are not available to pay them in full.

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