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![handle is hein.gao/gaobadkru0001 and id is 1 raw text is:
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W W AS --t NOTON,. D.C. 2C:5 4
FILE: B-202
MATTER C
OIGEST:
-083
DATE: October 28, 1982
.F: S.S. Silberblatt, Inc. v. East Harlem Pilot
Block--Payment of Judgrent
Secretary of Housing and Urban Development (HUD)
provided building mortgage insurance on ;o pro-
jects under authority of section 236 of the National
Housing Act, 12 U.S.C. 9 1715z-1 (1976). In one
case, the Secretary agreed to make payments to
plaintiff construction contractor in settlement of
lawsuit after court had ruled that the contractor
had cause of action aga-nsL the Secretary on the
theory of quantum meruit. In thne second case, simi1-
lar payment was directed ];_A court judgment. The
pennent inefinite apprcpriation established by
31 U.S.C. § 724a is not available in either case.
The permanent appropriation may be used to pay a
judgmaent or comprmoinse settlem',ent only if no other
funds are available for that purpose. The Spe-
cial Risk Insurnce E.nd, a revolving fund created
by 12 U.S.C. § 1715z-3(b), is available for the
paxents to contractors for copletion of projects
for which FID has provided mortgage insurance under
section 236.
The issue h-as arisen of whether the co.;,,prccise settlment in
S.S. Silberblatt, Inc. v. East Harlem Pilot Block, et al., and the
judg.ent in Bzo.son and Poli, Inc. v. noc! Star Restoration ;us-
ina Develo= nt ri'nd Co., -c., are payable from the pe=anent in-
definite appropriation established by 31 U.S.C. § 724a or from funds
available to the Departm:-ent of Housing and Urban Development (h1).
Trhe question of the proper source of fuJnds first arose when thle
Silberblatt settlement was subiutted to this Office for certifica-
tion for payment under 31 U.S.C. § 724a in September 1980. At that
tiie, in view of the substantial legal issues involved, we agreed
to certify the settlement for payment under 31 U.S.C. § 724a and
HUD agreed to rei:-burse the appropriation if we later decided that
it was not available. Subsequently, the judgment in Bronson, a case
very similar to Silberlatt, was subritted. Our agreement with hED
was extended to cover Bronson, and we certified that judgment for
paymnt on the sure basis.](ViewImageLocal?handle=hein.gao/gaobadkru0001&div=1&collection=&method=preview&ext=.png&size=3)