HUD Illegally Terminated HAP Contract

Facts: HUD terminated the housing assistance plan (HAP) contract of a Section 8 site in Western Pennsylvania and foreclosed on the property, which was then transferred to a purchaser.

Residents of the site sued HUD in federal district court, arguing that the agency had illegally foreclosed on the property. Specifically, the residents asserted that HUD did not comply with Section 311, because it did not make a proper determination that the site was not feasible for continued assistance.

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