[WSBARP] HUD Demands to Discontinue Permanent Housing

[Katie Smith Patel]

I wish I knew more about how these deeds work and the contractual and regulatory restrictions on the funding.  I can't imagine the deeds would automatically change.  Hopefully someone with more knowledge in this area can help enlighten us.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Jeff at bellanddavispllc.com
Sent: Friday, January 30, 2026 10:27 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] HUD Demands to Discontinue Permanent Housing

Thank you Katie,

I looked at the suits that have been filed.  What if it goes in favor of HUD, does that automatically remove the restrictive clauses in the deed?  I realize the federal government has no constitutional protections against itself; but what about the contract clause that should protect the housing provider?

Jeff

W. Jeff Davis
BELL & DAVIS PLLC
Attorneys at Law
P.O. Box 510
720 E. Washington Street, Suite 105
Sequim WA 98382
Phone: (360) 683.1129
Fax: (360) 683.1258
email: jeff at bellanddavispllc.com<mailto:jeff at bellanddavispllc.com>
www.bellanddavispllc.com<http://www.bellanddavispllc.com/>

The information contained in this e-mail message may be privileged, confidential, and protected from disclosure. If you are not the intended recipient, any dissemination, distribution, or copying is strictly prohibited. If you think that you have received this e-mail message in error, please e-mail the sender at info at bellanddavispllc.com<mailto:info at bellanddavispllc.com>  or call 360.683.1129.


From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Katie Smith Patel
Sent: Friday, January 30, 2026 10:19 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] HUD Demands to Discontinue Permanent Housing

I haven't been following this issue, but it appears a large group of states have sued, the permanent housing restrictions have been blocked, and the case is not yet resolved.  I'm not sure what you could do if it resolves in favor of HUD and the funding for permanent housing is gone.  In terms of arguments, here is what the attorneys general had to say:
https://agportal-s3bucket.s3.us-west-2.amazonaws.com/Federal%20Litigation/001_Cmplt.pdf?VersionId=JKUhjvMsyB6bjnUlfA_9_ULQ5ktRIF8t

Status of motions looks like this:
https://dockets.justia.com/docket/rhode-island/ridce/1:2025cv00626/60953


Katie Patel
Paraclete Estate Planning, LLC
(541) 499-9085 (direct)
112 Genessee Street
Medford, OR 97504



From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Jeff at bellanddavispllc.com<mailto:Jeff at bellanddavispllc.com>
Sent: Friday, January 30, 2026 6:48 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>; ll_atty at googlegroups.com<mailto:ll_atty at googlegroups.com>
Subject: [WSBARP] HUD Demands to Discontinue Permanent Housing

I know this is not a LL problem, but you are all real estate lawyers so your input is important.  Housing Authority has purchased property with funds from a Housing Trust funded with federal money that were designated permanent housing  (as apposed to temporary).  The deed restrictions require these properties stay in the same classification until 2050.  HUD has now demanded that Housing Authority terminate virtually all permanent housing and covert them to temporary.  If the conversion is made all current permanent residence would have to be evicted  (and become homeless), and then requalify for temporary housing.

Client wants to push back.  What are the arguments against this government strong arm?

Jeff Davis

W. Jeff Davis
BELL & DAVIS PLLC
Attorneys at Law
P.O. Box 510
720 E. Washington Street, Suite 105
Sequim WA 98382
Phone: (360) 683.1129
Fax: (360) 683.1258
email: jeff at bellanddavispllc.com<mailto:jeff at bellanddavispllc.com>
www.bellanddavispllc.com<http://www.bellanddavispllc.com/>

The information contained in this e-mail message may be privileged, confidential, and protected from disclosure. If you are not the intended recipient, any dissemination, distribution, or copying is strictly prohibited. If you think that you have received this e-mail message in error, please e-mail the sender at info at bellanddavispllc.com<mailto:info at bellanddavispllc.com>  or call 360.683.1129.


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