Henry Barracks Housing Corporation v. United States

DURFEE, Judge. *

This case presents the court with the problem of what liability, if any, the Government has to the operator of a Wherry Housing project who defaults on his mortgage payments because the project is not occupied by the number of tenants who were originally determined to be necessary to insure profitable operation.

Plaintiff is a Puerto Rican corporation which, in the latter part of 1953, communicated a desire to the Department of the Army Corps of Engineers to be considered as a prospective sponsor for a housing project at Cayey, Puerto Rico, which would be occupied by the…