CCA Assocs. v. United States, No. 10-5100 (Fed. Cir. 2011)
Annotate this Case
Incentives under the National Housing Act, to encourage private developers to meet the needs of moderate income families, included below-market 40-year mortgages, with an option to prepay after 20 years. Restrictions, for example, on rent increases, were in effect until the mortgage was paid off. The prepayment option gave developers an opportunity to convert to market rate housing. To avoid a shortage of affordable housing, Congress enacted Emergency Low Income Housing Preservation Act, 101 Stat. 1877 (1988), and Low-Income Housing Preservation and Resident Homeownership Act, 104 Stat. 4249 (1990) under which an owner needed HUD approval to prepay or to go through regulatory hoops. In 1996 Congress restored prepayment rights. Plaintiff was prohibited from prepayment for five years, 10 days. The Court of Federal Claims held that the restriction of prepayment rights constituted a taking but did not constitute a breach of contract, because there was no privity between HUD and plaintiff. The Federal Circuit affirmed on the contract claim, but reversed with respect to temporary taking. The evidence did not demonstrate that plaintiff's investment backed expectations were objectively reasonable in light of industry practice,
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.