DeROSA v. U.S. DEPT. OF HOUSING & URBAN DEV.

No. 632, Docket 85-6304.

787 F.2d 840 (1986)

Guerino R. DeROSA, R. David Duncan, Lillian Langlie, and Opportunities For Broome, Inc., Appellants, v. UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; Samuel Pierce, in his official capacity as Secretary of the United States Department of Housing and Urban Development; Joseph Lynch, in his official capacity as Area Manager of the Buffalo Area Office of the United States Department of Housing and Urban Development; City of Binghamton, a municipal corporation; and Juanita M. Crabb, in her official capacity as Mayor of the City of Binghamton, Appellees.

United States Court of Appeals, Second Circuit.

Decided April 11, 1986.


Attorney(s) appearing for the Case

James C. Gocker, Harris, Beach, Wilcox, Rubin & Levey, Rochester, N.Y. (James M. Quinn, on brief), for appellants.

David Deutsch, Trial Atty. Dept. of Housing and Urban Development, Washington, D.C. (Salvatore R. Martoche, U.S. Atty., W.D.N.Y., Rosemary Roberts, Asst. U.S. Atty., Gershon M. Ratner, Associate General Counsel for Litigation, and Carolyn B. Lieberman, Asst. General Counsel for Litigation, of counsel), for Federal appellees.

Kenneth Auerbach, Corp. Counsel, Binghamton, N.Y., for appellee City of Binghamton.

Before OAKES, KEARSE and PIERCE, Circuit Judges.


OAKES, Circuit Judge:

A hotel of over 200 rooms, to be operated under a Sheraton franchise, is being built in Binghamton, New York (City), by a private developer with $1.8 million of private equity investment and with the assistance of $3.3 million granted by the federal government to the City on the $12.4 million project. The grant to the City was made under the Urban Development Action Grant (UDAG) program, 42 U.S.C. § 5318 (1982); 24 C.F.R. §§ 570...

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