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ARTICLE · 21 MARCH 2003

Developers Attack "NIMBYism" - Using the Fair Housing Act as a Sword

United StatesCorporate/Commercial Law
Christopher Hanback
Christopher Hanback

You have spent months planning a quality apartment community that will utilize the federal low income tax credit for part of the financing. You have obtained control of the site. Utilities and roads are adequate and in place. You have lined-up investors and financing. You have completed a marketing plan that confirms the need and profitability of the project and have signed up a quality property management company. The next step is to obtain the usual approvals from local government routinely available for any development. But the approvals do not come.

Unexpectedly, there are new concerns about the adequacy of local schools. Novel zoning issues arise. The usual loans, financial assistance and accommodations to developers suddenly disappear for your project. A local official publicly opposes your "gated" housing community by stating that the fence "protects the residents inside the property but does not protect the neighbors outside from the residents in the community." The official

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