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Judge delays sale of East Hills project |

Judge delays sale of East Hills project

| Friday, July 28, 2006 12:00 a.m

A federal judge issued a temporary restraining order Thursday, prohibiting the U.S. Department of Housing and Urban Development from holding a foreclosure sale of an East Hills housing project.

U.S. District Judge Donetta W. Ambrose stopped the sale, scheduled for yesterday, and set a hearing for Aug. 4.

Eight shareholder-residents of Third East Hills Park filed a lawsuit Wednesday seeking class-action status. The lawsuit claims HUD’s plans to remove the residents of the federally assisted housing development, one of four in the East Hills, violates a number of federal laws, including the Fair Housing Act and Uniform Relocation Act.

The lawsuit states HUD plans to sell the property to the Urban Redevelopment Authority for $1, then give the Authority a $3 million grant to demolish and redevelop the property. The Authority then would sell the property for $1 to the Telesis Corp. — a national development company that already owns Second East Hills Park, a neighboring housing project.

is a former freelancer.

Categories: News
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