Louisiana Record

Sunday, September 22, 2019

Real estate investors sue sellers of Marrero apartment complex over alleged HUD violations

By The Louisiana Record | May 20, 2015

NEW ORLEANS – A California corporation and a Mississippi partnership brought a lawsuit against a Jefferson Parish company on alleged breach of duty in a 2014 matter.

Apartment Rental Assistance II Inc. (ARA), of Los Angeles, and Jefferson Place LP (JP), of Mississippi, filed a complaint against Le Place, of Jefferson, and Le Place Housing Foundation LLC on May 11 in the U.S. District Court of the Eastern District of Louisiana, citing negligence in a November 2014 contractual matter.

The plaintiffs are in the business of buying and selling real estate. The lawsuit states that Le Place had initially acquired Jefferson Place Apartments in Marrero from Jefferson Parish in November 1998. HUD signed a contract with Le Place in May 2000, requiring the property to maintain a certain number of units as affordable until Jan. 31, 2016.

ARA and JP entered into an agreement with Le Place to purchase the property Nov. 11, 2014. ARA allegedly discovered that loans, improvements and other actions had been taken with respect to the property in violation of the HUD deed during Le Place’s ownership.

According to the complaint, the plaintiffs amended the Dec. 2 purchase agreement on Dec. 3 to reflect that transfer of ownership requires HUD approval. The filing states that the plaintiffs applied to HUD for approval on Feb. 3, 2015, requesting Le Place’s cooperation in providing HUD with documentation for improvements made.

The plaintiffs, who were unable to complete the transaction, cite the defendant for breach of agreement by failing to abide by HUD regulations in their property improvements; and neglecting to cooperate with the documentation request.

Requesting monetary damages, attorneys' fees, expenses and court costs, the plaintiffs are represented by Edward Wegmann and Graham Ryan of Jones Walker, New Orleans.

U.S. District Court of the Eastern District of Louisiana case no. 2:15-cv-01540-ILRL-JCW.

Want to get notified whenever we write about ?

Sign-up Next time we write about , we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

More News