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Dist. of Columbia v. Brookstowne Community Development Co.

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Argued October 28, 2009

Before WASHINGTON, Chief Judge, REID, Associate Judge, andPRYOR, Senior Judge.

The District of Columbia appeals from a judgment entered against it for breach of a contract to sell, pursuant to the District’s Homestead Program created by the Homestead Housing Preservation Act of 1986 (“HHPA”), D.C. Code § 45-2701 et seq. (1996),*fn1 a multi-family residential apartment building to Brookstowne Community Development Company (“Brookstowne”), a for-profit entity. On appeal, as before the trial court, the District contends that the HHPA prohibits such sales of property to for-profit entities, so it could not have entered into the Brookstowne contract as a matter of law, and the contract is therefore void and unenforceable ab initio. We hold that the HHPA does not authorize the District to sell property to for-profit entities under the Homestead Program,*fn2 and that the District cannot be estopped from disavowing the Brookstowne contract on that basis. Accordingly, we reverse.

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