731 F.Supp.3d 19
D.D.C.2024Background
- Plaintiffs, including Jolene Anderson and the Marrero Tenants Organization, challenged HUD's approval of the closure and conversion of the Acre Road public housing development in Louisiana, operated by the Housing Authority of Jefferson Parish (HAJP).
- The conversion would shift assistance from public housing (Section 9) to tenant-based housing vouchers (Section 8), following mold and habitability issues at Acre Road.
- HUD granted HAJP's application without requiring a full statutory conversion assessment, relying instead on its waiver authority for small PHAs.
- The Tenants Organization opposed, arguing conversion would increase segregation and reduce actual housing options due to low Section 8 participation by landlords.
- During litigation, HUD's initial agency decision was ratified by a higher official, who did not rely on the challenged 2019 HUD waiver notice but exercised case-specific waiver authority.
- The court reviewed cross-motions for summary judgment, ultimately dismissing some claims as moot but vacating HUD's approval of the Acre Road conversion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of Notice PIH 2019-05 | HUD unlawfully issued and relied on the Notice when approving conversion without rulemaking. | The Notice was not the basis for conversion approval after ratification; the ratifying official exercised independent waiver authority. | Moot: Ratification made the notice irrelevant to the final agency action. |
| Fair Housing Act Discrimination (42 U.S.C. § 3604(a)) | Conversion increases segregation/disparate impact, violating the Act. | HUD made required findings and relied on administrative record; relied on Office of Fair Housing's review. | For Plaintiff: HUD failed to address or justify the disparate impact in the record; its approval was arbitrary/capricious. |
| Substantive Statutory Criteria for Conversion (42 U.S.C. § 1437t(c), (e)) | HAJP failed to submit a required cost/benefit assessment and did not demonstrate conversion would benefit residents/community or maintain affordable housing. | HUD could waive assessment burden for small PHAs and relied on other evidence of benefit. | For Plaintiff: HAJP did not provide required demonstration; HUD approval violated statutory criteria. |
| Waiver of Conversion Assessment Requirements (42 U.S.C. § 1437t(b)(1), (3)) | Waiver authority does not extend to requirements for public housing conversion assessments. | Statute grants HUD authority to waive assessment requirements for small PHAs. | For HUD: Waiver of full assessment was within statutory authority, but can't waive substantive conversion criteria (c). |
Key Cases Cited
- Motor Vehicle Mfrs. Ass’n of the U.S., Inc. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29 (agency action upheld if the path may reasonably be discerned, but not if it overlooks critical issues)
- Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402 (limits on agency discretion—meaningful judicial review required)
- SEC v. Chenery Corp., 318 U.S. 80 (courts review agency decisions on the record presented, not post hoc rationalizations)
- Department of Homeland Security v. Regents of the University of California, 140 S. Ct. 1891 (distinction between new agency actions and mere rationalizations of existing actions)
- FCC v. Fox Television Stations, Inc., 556 U.S. 502 (agency departures from prior policy must be explained)
- Camp v. Pitts, 411 U.S. 138 (judicial review must have an adequate agency explanation)
- Heckler v. Chaney, 470 U.S. 821 (discussing when agency action is unreviewable as committed to discretion)