Thursday, January 7, 2021

HUD Lien on Utica Section 8 Apartment Is Discovered and Triggers Lawsuit in SDNY

By Matthew Russell Lee, Patreon

BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Jan 7 – Blue Angel Realty bought an apartment complex in Utica, New York - then found that a HUD lien on it made its resale impossible.

 It sued On January 6, U.S. District Court for the Southern District of New York Judge Katherine Polk Failla held a proceeding. Inner City Press covered it.  

The buildings are known as the Blandina Street Apartments, and they were rehabilitated in 1996, resulting in the HUD lien.

Later they were seized for back taxes, but the lien remained. Now Blue Angel wants to extinguish it.  

 HUD wants to move to dismiss, but Blue Angel says it has made a claim within the confines of the Federal Tort Claims Act, and that no motion to dismiss should be allowed at this point.

 The case is Blue Angel Realty, Inc. v. USA et al., 20-cv-8220 (Failla)

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