Former Metro Manor manager exonerated in court.

         ...U.S. District Court Judge William Barbour said the U.S. Department of Housing and Development had a responsibility to provide enough federal funds to operate and repair the 19-building complex as part of its subsidy agreement.
         ...Metro Manor, a west Jackson complex razed last year by the city, was a lightning rod of controversy in the late 1990s amid reports of rodent infestation and unsanitary living conditions.
         By 2000, HUD foreclosed on the property, the tenants moved out and the U.S. attorney’s office filed suit against Nail and owners of other complexes for mismanagement. Those lawsuits were eventually dismissed when the federal court ruled HUD shouldn’t have continued to make payments to the owners when it knew the properties were substandard.
         ...Since 1994, Nail said he made refinancing proposals to HUD to fund improvements. However, Nail said HUD turned him down. Shortly thereafter, he said, outside investors were able to refinance the bonds on the complexes and “sucked all the money out of the complexes.”
         Nail plans to recoup losses for investors from the two properties, which he estimates to be about $3 million for Metro Manor and $1.5 million for Eastover. He also wants to recoup management fees.