Kopanuk v. AVCP Regional Hous. Auth.

902 P.2d 813 (Alaska Sup. Ct. 1995); No. S-6432 (Alaska Sup. Ct. Sept. 15, 1995) ; Clearinghouse Number: 51104

Description

Tenant Participating in Mutual Help and Occupancy Program Is Not Subject to Eviction

Abstract

The Alaska Supreme Court has held that eviction action may not be brought against tenants in the Mutual Help and Occupancy Program, a homeownership program funded by HUD, commonly in Indian Country. Petitioner tenant entered into a Mutual Help and Occupancy Agreement (MHOA) with the local housing authority. The MHOA, a HUD form contract that was self-described as a lease, required a nonrefundable land contribution, which in this case was made by a Native corporation. Tenant made monthly payments toward an administrative charge and an equity payments account. Voluntary overpayments were to be credited to another equity payments account. The MHOA allowed tenant to purchase the home at any time; the purchase price declined under the terms of the contract over 25 years, eventually reaching zero. Upon termination of the contract, amounts in equity payments accounts were to be refunded. After tenant fell behind in his payments, the housing authority sought to evict him. Arguing that the MHOA was not a lease with an option to purchase, but rather an installment contract for sale of real property, tenant challenged the trial court's jurisdiction. Tenant asserted that, because he had equitable interests in the property at issue, he could not be evicted pursuant to a forcible entry and detainer action. The trial court denied the challenge, and the appellate court affirmed. Reversing, the supreme court found that the MHOA's creation of equitable interests, or potential equitable interests, in the home buyer precluded the trial court from hearing the case. Counsel notes that this is the first decision by the supreme court of any state on this issue.

Additional Information

Attorney Information
Petitioner represented by James Davis, Deborah Reichard, Alaska Legal Services Corporation, P.O. Box 248, Bethel, AK 99559, (907) 543-2237; Carol Daniel, Joseph Johnson.
Docket Date
1970-01-01 06:00:00+00:00