Northridge Cooperative Section No. 1, Inc. v. 32nd Avenue Construction Corp.

This action was instituted to recover the so-called “ windfall ” profits resulting from construction of plaintiff’s apartment building for a sum less than the mortgage placed thereon.

The complaint reveals that the two dominating individual defendants acquired, either directly or through a controlled corporation, a parcel of land, leased same to a co-operative corporation of which these individuals or their nominees were the original stockholders, directors and officers, caused the co-operative to obtain a so-called section 213 mortgage (National Housing Act, U. S. Code, tit. 12, §§ 1713,…