Bridgeport sues Fannie, Freddie

The city of Bridgeport filed a class action lawsuit earlier this week against Fannie Mae and Freddie Mac, claiming the two companies haven’t paid state taxes relating to real estate transfers.

The city alleges in the Aug. 20 filing that the quasi-public lenders illegally claimed status as government entities, meaning that they would not have been required to pay taxes on property transfers.

Any property sold in the state must pay a 1 percent tax on the value of the property, unless it is sold by a government entity.

Several cities across the nation have now filed similar complaints, Anthony Musto, the lead attorney on the case, told the Connecticut Post. Fannie Mae and Freddie Mac have previously defended themselves against such lawsuits, claiming exemption because they are government-sponsored.

Bridgeport filed the suit on behalf of Connecticut’s 169 municipalities and is seeking damages in unpaid taxes as well as interest and penalties.