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CITY HARRISBURG v. CAPITOL HOUSING CORPORATION ET AL. PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY AND KENNETH R. REEHER (06/29/88)

decided: June 29, 1988.

CITY OF HARRISBURG, A MUNICIPAL CORPORATION, AND THE REDEVELOPMENT AUTHORITY OF THE CITY OF HARRISBURG
v.
CAPITOL HOUSING CORPORATION ET AL. PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY AND KENNETH R. REEHER, APPELLANTS. SCHOOL DISTRICT OF THE CITY OF HARRISBURG V. TOWNE HOUSE APARTMENTS ET AL. PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY AND KENNETH R. REEHER, APPELLANTS



Appeals from the order of the Court of Common Pleas of Dauphin County, in the cases of City of Harrisburg, a Municipal Corporation, and the Redevelopment Authority of the City of Harrisburg v. Capitol Housing Corporation, a Pennsylvania Corporation; Towne House Apartments, a Limited Partnership; Abe Cramer; Mark Cramer; Pennsylvania Higher Education Assistance Agency, and Kenneth R. Reeher, individually and as Executive Director of the Pennsylvania Higher Education Assistance Agency, No. 4587 of 1986, and in the case of School District of the City of Harrisburg v. Towne House Apartments, a Limited Partnership; Capitol Commercial Corporation, a Pennsylvania Corporation; Pennsylvania Higher Education Assistance Agency, a Public Corporation and Government Instrumentality of the Commonwealth of Pennsylvania; Kenneth R. Reeher, Executive Director; Abe Cramer, Mark Cramer, Abraham Brenman, and Joseph Jaffe, Individuals, and the Estate of Harry Cramer, jointly and severally, No. 4586 of 1986, dated July 9, 1987.

COUNSEL

John D. Killian, with him, Robert W. Barton, Killian & Gephart, for appellants.

Judith Brown Schimmel, City Solicitor, for appellee, City of Harrisburg.

Earl Harris, for appellee, Harrisburg School District.

Stuart Magdule, for appellee, Harrisburg Redevelopment Authority.

President Judge Crumlish, Jr., Judge McGinley, and Senior Judge Narick, sitting as a panel of three. Opinion by President Judge Crumlish, Jr. Judge Craig did not participate in the decision in this case.

Author: Crumlish

[ 117 Pa. Commw. Page 410]

The Pennsylvania Higher Education Assistance Agency (PHEAA) appeals a Dauphin County Common Pleas Court order affirming its prior decree nisi and enjoining the sale of the Towne House apartment building (Towne House)*fn1 to PHEAA.

[ 117 Pa. Commw. Page 411]

The Towne House is located on real estate which was purchased by the Capitol Housing Corporation (CHC) from the Harrisburg Redevelopment Authority (Authority)*fn2 in 1958. The deed incorporated a redevelopment contract, providing that the tract would be developed in accordance with the Redevelopment Plan, which divided the area into residential (private and public), institutional and commercial tracts. The contract and Plan imposed a forty-year restriction on the land which was designated as "residential private housing."*fn3

In contradiction to the Plan, however, the Towne House ownership attained permission from the City of Harrisburg*fn4 to rent the second, third and fourth floors as government offices. Subsequently, PHEAA, the lessee, was given an option to purchase the entire property, which it accepted in 1986. This purchase agreement was made pursuant to the Act of August 7, 1963, P.L.

[ 117 Pa. Commw. Page 412549]

, as amended, 24 P.S. ยง 5104(12) (Act 130), which grants ...


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