Franconia Associates v. United States

OPINION

REGINALD W. GIBSON, Senior Judge.

INTRODUCTION

In this case, property owners who received low interest loans from the Farmers’ Home Administration, in exchange for providing low-income rental housing in rural areas, have filed suit against the government alleging that the government breached the loan agreements and, as a result, took their property without just compensation. These wrongs allegedly occurred when Congress passed legislation (i.e., 1988 and 1992) that made prepayment of their loans significantly more difficult, whereas their original loan agreements had granted borrowers an…