In Zigas v. Superior Court, 120 Cal. App. 3d 827, 174 Cal. Rptr. 806 (Cal. Ct. App. 1981), apartment tenants filed a class action suit against their landlords. The apartments were funded by federally insured mortgages under the National Housing Act (12 U.S.C. 1701 et seq.). Pursuant to the Act, the landlords and the Department of Housing and Urban Development (HUD) entered into an agreement which prohibited the landlords from charging rent above the HUD approved rent schedule. Zigas, 174 Cal. Rptr. at 807-08. When the landlords raised rent in violation of the Act, the tenants sought to enforce the agreement as third party beneficiaries. The California appellate court held that "the purposes enunciated throughout the Act and the regulations promulgated thereunder, can leave no doubt that petitioners are members of the class which this legislation was intended to benefit" and that, because "it was clear that a HUD approval of rent increases could only benefit the tenants," the tenants were third party beneficiaries to the Act. Id. at 810.