Judge delays sale of East Hills project
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.