The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the District of Minnesota in a civil investigation of Willow Run Partners L.P. and Willow Run II Partners L.P. Willow Run Partners L.P. was the owner of Willow Run I Apartments, and Willow Run II Partners L.P. was the owner of Willow Run II Apartments. Our investigation began as a result of a referral from HUD’s Departmental Enforcement Center (DEC). DEC referred the matter to HUD OIG based on its review of the projects’ financial statements and potential compliance deficiencies. Willow Run I and Willow Run II are located in Willmar, MN.
Based upon our review and further investigation, the United States contended that the owner and management agents of Willow Run I and Willow Run II spent certain sums from January 1, 2005, through December 31, 2010, in violation of the regulatory agreements. On August 10, 2016, the owner and management agents of Willow Run I and Willow Run II entered into a settlement agreement with the Government to pay $510,000 to avoid the delay, uncertainty, inconvenience, and expense of lengthy litigation. The settlement was neither an admission of liability by the owner and management agents nor a concession by the United States that its claims were not well founded.