New York State Mortgage Loan Enforcement & Administration Corp. v. Syracuse Intown Houses, Inc.

OPINION OF THE COURT

John R. Tenney, J.

The New York State Urban Development Corporation (UDC) seeks to foreclose its mortgage on the Townsend Tower Project because it is in default for nonpayment.

The defendant raises several affirmative defenses and counterclaims. Among others is the argument that UDC has controlled the project from its inception and, therefore, has the power to create the default position by refusing to authorize increased rentals. It further contends that UDC designed the project and permitted the use of certain materials which decrease the marketability of the project.

Defend…