Hartwig

In Count II of an amended complaint lodged with the United States District Court of Montana, the Government alleged in part that pursuant to Priorities Regulation 33, as amended, appellants applied for and received authorization for priority assistance from the Federal Housing Administration, hereafter F. H. A., to construct 27 dwellings in the Calhoun Lane Subdivision at or near Billings, Montana; that the F. H. A duly established a maximum sales price of $8,000.00 for each dwelling for which priority assistance had been granted; that appellants represented to F. H. A. that said maximum sales price included all special improvements, including but not limited to sanitary sewers, water mains, curbs, gutters and street paving. It is alleged that appellants constructed and sold 25 of the dwellings involved and violated Section 944.54 (g) of Priorities Regulation by selling nine of the dwellings at prices in excess of the maximum prices approved by F. H. A. Further, it is alleged that appellants failed to construct water mains, sewers, curbs and gutters in accordance with the specifications filed with the F. H. A.; that upon appellants’ petition, a special improvement district was…