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The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the Western District of New York in the civil investigation of Pilgrim Village Associates, L.P.; North-Ellicott Management, Inc.; and Trammell Property Management (Pilgrim Village). Pilgrim Village Associates, L.P., was the owner of Pilgrim Village Apartments, a 90-unit multifamily housing development located in Buffalo, NY.  The project received HUD Section 8 project-based assistance for 89 of these units.  North-Ellicott Management, Inc., was the managing general partner of Pilgrim Village Associates.  Trammell Property Management was the management agent.

On May 28, 2014, the U.S. Attorney’s Office for the Western District of  New York filed a complaint on behalf of HUD, seeking double damages under 12 U.S.C. (United States Code) 1715z-4a for the alleged unauthorized use of project assets and income (project funds).  The Government alleged that between 2004 and 2011, Pilgrim Village disbursed at least $1.5 million in project funds in violation of the regulatory agreements.  On October 21, 2015, the United States (on behalf of HUD) and Pilgrim Village agreed to settle the complaint to avoid the time, cost, and uncertainty of future litigation, and Pilgrim Village denied the allegations in the civil complaint.  Under the settlement agreement, Pilgrim Village agreed to pay $650,979 to the Government in full satisfaction of the allegations.