Opinion ID: 794551
Heading Depth: 2
Heading Rank: 3

Heading: HUD's Acquisition and Disposition of Certain Mortgaged Properties

Text: 9 At some unspecified point after Boccagna approached the government, eighty-eight of the 162 fraudulently acquired properties were in foreclosure proceedings. As guarantor of the 203(k) mortgage loans, HUD eventually acquired title to fifty-three of these properties (the foreclosure properties) by paying down the accelerated loan balances, as well as outstanding taxes, maintenance fees, and associated expenses. This resulting out-of-pocket loss to HUD totaled $20,609,746. 10 To dispose of the foreclosure properties in a manner consistent with its mission, HUD, in January 2002, entered into a Memorandum of Understanding with the New York City Department of Housing Preservation and Development (HPD) whereby HPD agreed to purchase the foreclosure properties for what the government concedes were essentially nominal prices ranging from $1 to $120,000, for a total of $1,980,030. It was further agreed that HUD and HPD would jointly undertake to repair a total of 2,200 dwelling units in the foreclosure properties. HUD would pay relocation expenses for families that had to move during the renovation. Meanwhile, HPD agreed to afford all existing tenants in the foreclosure properties the opportunity to purchase renovated dwelling units at affordable prices and/or to provide federally funded rental assistance to qualifying tenants.