According to the complaint, the Defendants solicited and represented to residents of the Park that if they consented to the purchase of the property described in the complaint, with the proceeds of tax-exempt bond issues from the Daly City Housing Development Finance Agency. The residents would then control the Park via Ownership in their mobile home spaces and/or membership interests in a new non-profit corporation.
The defendants promised the residents that if they would agree to a large monthly rent increase, then they could participate in the initial acquisition and subsequent ownership in the proposed property.
The Defendants allegedly omitted to the residents how the rent and occupancy restrictions of the Regulatory Agreement as a condition of obtaining tax-exempt bond financing would be applicable to them or how they could participate or benefit from the rent restrictions, but instead encouraged all of the residents to agree to commit to paying increased rent.On August 12, 2010, an Amended Complaint for Damages, Restitution, Injunctive Relief, Dissolution Of Corporation, Specific Performance was filed against the defendants.
On July 22, 2010, the defendants filed a motion to dismiss the initial complaint. Before any ruling, the plaintiffs filed a First Amended Complaint on August 12, 2010. The defendants responded by filing several motion to dismiss on September 29, 2010. On February 11, 2011, Judge James Ware granted the defendants' motion to dismiss with leave to amend. The plaintiffs did not file an amended complaint, and March 17, 2011, the Court entered the Final Judgment. The case is now closed.