Tenants in Springfield have secured a preliminary injunction, temporarily halting plans to evict them from low-income housing units at the former Cedarwood Terrace Apartments and Rosewood Estates. The injunction, granted by Greene County Circuit Court Judge Joshua B. Christensen, prohibits the property owners from evicting or terminating the tenancy of any tenant without good cause or increasing the rent on any low-income housing unit more than 7% annually.
Background of the Lawsuit
The lawsuit was filed by current tenants Ramona Teeter, Shellastine Williams, Jami Johnston, and Emily Hester, who are receiving legal support from the Kansas City-based Heartland Center for Jobs and Freedom. The tenants allege that the former property owner and its affiliated entities failed to properly notify them of plans to remove the properties from the Low-Income Housing Tax Credit (LIHTC) federal program.
The LIHTC program provides developers with tax credits in exchange for developing and maintaining affordable housing. The application to remove the properties from the program was approved by the Missouri Housing Development Commission, and tenants later received notice that the properties were under contract and that the new owners would abide by LIHTC requirements through 2026.
However, following the 2024 sale of the properties to Cedarwood Terrace LLC and 604-1120 Sunset LLC, tenants were notified that Rosewood would be converted into a luxury living rental community and Cedarwood would be converted into individually owned residential townhomes, and that tenants would not be able to remain past July 14, 2026, and August 11, 2026.
Impact of the Injunction
The preliminary injunction is a significant victory for the tenants, who had argued that they were not properly notified of the plans to remove the properties from the LIHTC program. The injunction will remain in place until the lawsuit is resolved, with a nine-day jury trial set to start on April 26, 2027, or August 23, 2027.
The case is being closely watched by affordable housing advocates, who argue that the removal of properties from the LIHTC program can have devastating consequences for low-income tenants. The Heartland Center for Jobs and Freedom has stated that the case is an important one, as it highlights the need for transparency and accountability in the affordable housing sector.
Original reporting: Springfield Daily Citizen — read the source article.
