Pictured above on the left is the late Ron Brown of Patton Boggs, and Blow. He was retained as Mourad's attorney and secured a commitment letter of over $7.5 million from Suburban Mortgage Company for Mourad. Pictured on the right is former HUD Secretary Henry Cisneros.

V&M Management v. Cisneros, Federal District Court

This complaint, filed on January 13, 1995, alleges that since 1981, when you purchased the property, HUD has engaged in a continuous course of conduct that was intended to deprive you of your rights under the Section 8 contract, and eventually, to make it financially impossible to operate the Mandela Apartments. The complaint alleges that HUD officials made false and misleading statements about your tax status, set rental levels significantly below fair market rents, refused to provide adequate replacement reserves, arbitrarily denied rent increases, arbitrarily denied your refinancing applications, and willfully and deliberately obstructed your business operations. The lawsuit claims $12,000,000 in damages, which not only arises from the millions of dollars you have spent litigating to protect the complex, but which also includes lost rent, and interest payments on money you have been forced to borrow at exorbitant rates in order to keep the project functioning and to make repairs, and the mental suffering you have undergone as a result of HUD's actions.

Estimated cost of litigation: $50,000

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