Court Orders HUD to Pay $8.8 Million

Federal court orders Department of Housing and Urban Development to pay $8.8 Million in damages for canceling a contract with Energy Capital Partners, a firm that was to have administered "up to $200 million in loans to help HUD-assisted housingdevelopers create more energy-efficient units." HUD admits that canceling the program was a breach of contract but claims that "improper circumstances" and "political pressure" lead to the deal. A HUD spokesperson said, "HUD was sued only for acting quickly to prevent the agency from being saddled with a bad deal."