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SAHNI v. HUD

March 6, 1979

Ranbir S. SAHNI et al., Plaintiffs,
v.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT et al., Defendants.



The opinion of the court was delivered by: ROBINSON, JR.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

The Court hereby makes the following findings of fact and conclusions of law:

 PROCEEDINGS BEFORE THE COURT

 This matter came before this Court, on plaintiffs' motion for a temporary restraining order, on February 15, 1979. The Court denied the motion. A hearing on the issues of Preliminary and Final Injunctive Relief was held on February 22, 1979. Defendant was granted permission to file additional authorities before February 26, 1979.

 The Court has before it the transcript of the administrative suspension proceeding, the determination of the Administrative Law Judge in that proceeding, affidavits filed by the parties, and legal memoranda in support of their contentions.

 Plaintiffs seek to compel defendants to vacate a suspension of Plaintiffs from participation in programs of the defendant Department of Housing and Urban Development ("HUD") Plaintiffs claim they have been denied due process as a result of an administrative withhold of participation in HUD programs; and a suspension from participation without adequate investigation or hearing. Plaintiffs further claim that the evidence presented at the hearing was inadequate to sustain the suspension.

 Defendants contend that plaintiffs have not been effectively precluded from participating in HUD programs since February 1978 and have been suspended only since December 1978; that the administrative law judge acted within his discretion in refusing to allow testimony on behalf of plaintiffs prior to the debarment hearing; and that the hearing fully comported with all legal requirements.

 FINDINGS OF FACT

 1. Plaintiff Ranbir S. Sahni (Individual plaintiff) is engaged in real estate development and participates in numerous programs of HUD. Individual plaintiff was the sponsor of a multifamily apartment project in Fort Collins, Colorado, (Windmill Project) developed pursuant to a HUD mortgage insurance program. Individual plaintiff is now the general partner of Windmill Apartments Limited Partnership ("Owner"), which owns the Windmill Project. Individual plaintiff is president of plaintiff American Development Corp. ("ADC").

 2. Plaintiff ADC is a corporation engaged in the housing service business and through its employees provided services for the sponsor and Owner in connection with the development of the Windmill Project.

 3. Defendant Department of Housing and Urban Development is an agency of the United States Government.

 4. Defendant Patricia R. Harris is Secretary of HUD.

 5. Defendant Lawrence B. Simons is Assistant Secretary for Housing, HUD.

 6. During February of 1977 the Owner initially closed a mortgage loan for the construction of the Windmill Project. HUD insured the repayment of the loan to the Mortgagee, and received certain rights from the Owner to ...


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