WASHINGTON -- The Riverside County Housing Authority filed suit in a U.S. District Court in California yesterday to prevent the Treasury Department and the Internal Revenue Service from either revoking the tax-exempt status of the $ 17.5 million Whitewater Gardens black box bond issue or collecting $ 2.25 million in arbitrage profits from the deal.

Brown & Wood, attorneys for the authority, filed motions seeking a temporary restraining order as well as a pemanent injunction that would bar Treasury Secretary Nicholas Brady and, IRS Commissioner Fred T. Goldberg Jr. and their agencies from applying arbitrage rebate restrictions to the Whitewater Gardens multi-family housing issue.

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