Last March, Russ Klemm, Partner & Litigation Manager, tried a case before the 11th Circuit of the US Court of Appeals for our client, Affordable Housing Group vs. Florida Housing Affordability and the FDIC. This was a hard-fought case in which Russ’ legal expertise came through big time for our client and resulting in benefiting thousands of people across the country. Congratulations Russ and Affordable Housing Group on the win!
Background: C&M’s client in this Appeal had filed suit in Circuit Court, to enforce a Land Use Restriction Agreement (“LURA”), which is the ultimate “Covenant Enforcement” case. Appellant bought its Property at a highly reduced rate, in exchange for agreeing to said LURA, thus committing (1) to rent a percentage of units to Low- and Very-Low-Income families at a below market rate; (2) to regularly report as to occupancy and rental rates at the Property, to ensure compliance; and (3) to pay certain reporting fees to the enforcing agency (our client, on behalf of the FDIC). When Appellant stopped doing any of these things, suit was filed to enforce the LURA.
Appellant then filed a Counterclaim, at which point, the FDIC stepped in (“intervened”) and removed the case to Federal Court. Federal Court dismissed the Counterclaim, but Appellant then Appealed to the 11th Circuit Court of Appeals (one step removed from the U.S. Supreme Court).
Russ argued before the 11th Circuit in Atlanta last March, alongside Co-counsel for the FDIC. In publishing its precedent-setting Opinion affirming the Federal Court’s ruling yesterday, the Appellate Court came down hard in support of the LURA remaining in full force and effect, despite Appellant’s claims that changes in the law had rendered such Agreements unenforceable. Had that claim prevailed, hundreds of such Agreements across the country would have been rendered null and void, allowing rents to skyrocket, and putting potentially thousands of Low- and Very-Low-Income families out on the streets. Russ’s victory thus benefits thousands of people across the country! CM is very proud of Russ’s victory in this case.
To read about the case, please click on this link.