Harsh Investment Corp. v. State Ex Rel. State Housing Division

The State Housing Division (the Division) appeals from a judgment for plaintiffs in this action for breach of an alleged contract to make a construction loan. It asserts that it was without authority to enter into a contract on the terms that plaintiffs allege that it did and that plaintiffs, therefore, may not seek damages for any breach. We agree and reverse.

The 1977 legislature proposed a constitutional amendment to authorize the sale of general obligation bonds to finance housing for low-income, elderly and disabled persons. It also adopted enabling legislation, which was to be effective…