CHFA–Small Properties, Inc. v. Elazazy

CourtConnecticut Appellate Court
DecidedMay 5, 2015
DocketAC36409
StatusPublished

This text of CHFA–Small Properties, Inc. v. Elazazy (CHFA–Small Properties, Inc. v. Elazazy) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CHFA–Small Properties, Inc. v. Elazazy, (Colo. Ct. App. 2015).

Opinion

****************************************************** The ‘‘officially released’’ date that appears near the beginning of each opinion is the date the opinion will be published in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the beginning of all time periods for filing postopinion motions and petitions for certification is the ‘‘officially released’’ date appearing in the opinion. In no event will any such motions be accepted before the ‘‘officially released’’ date. All opinions are subject to modification and technical correction prior to official publication in the Connecti- cut Reports and Connecticut Appellate Reports. In the event of discrepancies between the electronic version of an opinion and the print version appearing in the Connecticut Law Journal and subsequently in the Con- necticut Reports or Connecticut Appellate Reports, the latest print version is to be considered authoritative. The syllabus and procedural history accompanying the opinion as it appears on the Commission on Official Legal Publications Electronic Bulletin Board Service and in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be repro- duced and distributed without the express written per- mission of the Commission on Official Legal Publications, Judicial Branch, State of Connecticut. ****************************************************** CHFA–SMALL PROPERTIES, INC. v. HUSSEIN ELAZAZY ET AL. (AC 36409) Gruendel, Beach and Bear, Js. Argued January 7—officially released May 5, 2015

(Appeal from Superior Court, judicial district of Hartford, Sheridan, J.) John L. Giulietti, with whom was Corey A. Heiks, for the appellants-appellees (defendants). Joshua A. Hawks-Ladds, with whom were Jonathan A. Kaplan and, on the brief, Zachary D. Schurin, for the appellee-appeallant (plaintiff). Opinion

GRUENDEL, J. The defendants, Hussein Elazazy, Fathia Rassyoun, Rafi Khan (also known as M. Rafi Khan), Farhana Khan, Melissa Torriero, Janusz Stolarc- zyk, Razin Syed (also known as Razin Syad), Rizuana Afag, and Eno Farm Tenant Association, Inc., appeal from the judgment of the trial court in favor of the plaintiff, CHFA–Small Properties, Inc., in its action to quiet title and for injunctive relief. The defendants claim that the court (1) improperly rejected their claim of ownership in real property known as Eno Farms and located at 1602 Hopmeadow Street in Simsbury (prop- erty), (2) lacked subject matter jurisdiction over the plaintiff’s request to quiet title, and (3) improperly failed to conclude that certain attorneys violated rule 3.3 of the Rules of Professional Conduct. The plaintiff cross appeals, claiming that the court improperly determined that it had failed to establish its claims for slander of title. We affirm the judgment of the trial court. The facts underlying this litigation largely are undis- puted. In its comprehensive memorandum of decision, the court found: ‘‘[T]he property [at issue] has been the subject of much litigation. . . . In 1883, Amos Eno conveyed to the town of Simsbury [town] a 140 acre parcel of undeveloped land, with the requirement that the parcel be ‘used for the occupation, maintenance and support of the town poor . . . and for no other purpose whatsoever.’ In June, 1991, the [town] set aside approximately ten acres of the land donated by Eno to be used for low and moderate income housing. On June 28, 1991, the town leased that 10 acre parcel to CIL Housing, Incorporated (CIL Housing) for a term of ninety-nine years pursuant to a written ‘Ground Lease.’ The ground lease provided that the land would be used only for ‘residential purposes and only for occupancy by low and moderate income residents,’ pursuant to a plan of development . . . [to construct] approximately fifty housing units. The ground lease also provided that any and all improvements constructed, placed or main- tained by CIL Housing on any part of the leased parcel during the term of the lease would be and would remain the property of CIL Housing. ‘‘CIL Housing created the Eno Farms Limited Partner- ship [partnership] and assigned its interest in the ninety- nine year ground lease [thereto]. [The partnership] financed construction of what came to be known as ‘Eno Farms’ through the [Connecticut Housing Finance Authority (CHFA)] and the state of Connecticut. [The partnership] granted a first leasehold mortgage to CHFA to secure a loan in the amount of $1,495,000. [The part- nership] also granted a second leasehold mortgage to the state of Connecticut to secure a loan in the amount of $2,782,000. The second leasehold mortgage was ulti- mately assigned by the state of Connecticut to CHFA. [The partnership] also qualified the project as a low income housing project pursuant to the Internal Reve- nue Service code in order to obtain low income housing tax credits. [The partnership] thereafter sold those tax credits to outside investors. ‘‘On December 28, 1993, the [partnership] executed a declaration of cooperative (declaration) making the project a limited equity leasehold cooperative pursuant to General Statutes § 47-242 (a) . . . . The [declara- tion] restricts the occupancy of the rental units to low and moderate income tenants, specifies income qualifi- cations for those tenants, and sets forth restrictions on alienation of those units. ‘‘Pursuant to the [declaration], the plaintiff created the Eno Farms Cooperative Association, Inc. (associa- tion). The association was comprised of members who occupied their respective units pursuant to continually renewing lease agreements for one year terms. Article IX of the [declaration] provides that the ‘interests allo- cated to each unit’ include a ‘percentage interest in the association,’ a ‘percentage of liability for the common expenses,’ and ‘one vote in association matters.’ Section 10.4 of the [declaration] provides that each member of the association is ‘entitled to a proprietary lease representing such member’s right to occupy a unit.’ If a member of the association decides to vacate their rental unit while in good standing (a ‘departing mem- ber’), section 10.2 of the [declaration] assigns a mone- tary value to the departing member’s ‘interest in the association and his or her right to occupy the unit during the year of membership.’ ‘‘In 2006, CHFA declared [the partnership] in default under the terms of the first and second leasehold mort- gages. Thereafter, CHFA commenced a foreclosure action in the Superior Court, judicial district of Hartford . . . . The association appeared in that action, was rep- resented by counsel, and, on behalf of its member ten- ants, opposed the foreclosure. Among other claims, the association argued that its members held an ownership interest in the property to be foreclosed. ‘‘After a trial in which the parties fully, fairly and comprehensively litigated the question of ownership rights in [the property], the court, [Hon. Robert Satter, judge trial referee], issued its memorandum of decision on June 12, 2009. The court rejected all the special defenses asserted by the association, including its claim that ‘the residents and the association are the owners of the project,’ stating that the ‘CHFA itself never promised home ownership to the association or residents [of the property], nor was there evidence of reliance upon a nonexistent promise. Finally, the evidence is that no conveyance by deed or otherwise conferred ownership of [the property] upon the association. . . . As a conse- quence, the court concludes that the association’s spe- cial defense to the foreclosure counts has not been factually proven and is legally invalid.’ The court entered a judgment of strict foreclosure in favor of CHFA.’’1 (Footnote omitted.) The court further ordered that the association be terminated. See Connecticut Housing Finance Authority v. ENO Farms Ltd.

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CHFA–Small Properties, Inc. v. Elazazy, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chfasmall-properties-inc-v-elazazy-connappct-2015.