Reading Room Document

Request by HHFA for an opinion on security of certain loan notes issued under Public Housing and Urban Renewal programs.

The document is a response to an inquiry about the security of certain notes issued under the Public Housing and Urban Renewal programs. The conclusion reached is that section 302 of the Housing Act of 1961 provides protection and makes the United States unreservedly liable on the notes, even in situations where lawsuits have been filed. The document presents the question of whether the United States is liable on the notes when there is pending litigation related to the issuer of the notes or the project being financed. It also raises the issue of whether issuing an Attorney General's opinion will facilitate public marketing and produce savings in interest costs to local housing and urban renewal agencies. The document recommends that HFA transmit an opinion prepared by its General Counsel, along with any other available material, for referral to the Attorney General.

April 19, 1965