106 F.4th 1134
D.C. Cir.2024Background
- Sandpiper Cove is a privately owned, HUD-subsidized apartment complex in Texas, participating in the Section 8 project-based rental assistance program.
- Plaintiffs (tenants and tenant association) sued HUD, alleging failure to maintain habitable conditions and sought Tenant Protection Vouchers to relocate.
- Under relevant federal law, HUD may offer vouchers only if the property owner has received a Notice of Default and the units pose imminent health and safety risks.
- After a Notice of Default was issued to the former owner (Compass Pointe), the property was sold to a new owner (Winnie Street), who did not receive such a notice.
- The District Court dismissed the suit for lack of subject-matter jurisdiction, reasoning that after the sale, the statutory condition for vouchers was unmet; the plaintiffs appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Mootness of claims after property sale | Sale does not moot; relief still live | Sale moots claim; relief not possible | Not moot; issue goes to merits, not jurisdiction |
| Standing/redressability under Article III | Injuries redressable by injunction | HUD not required to give vouchers | Standing exists; sufficient for jurisdiction |
| Statutory entitlement to vouchers post-sale | Past Notice of Default is sufficient | Only current owner's notice counts | Only current owner’s notice counts; claim fails |
| Failure to state a claim (Rule 12(b)(6)) | Sufficient relief sought (vouchers) | No plausible claim for relief | Complaint fails to state a plausible claim |
Key Cases Cited
- Cisneros v. Alpine Ridge Grp., 508 U.S. 10 (describes Section 8 housing and HUD’s obligations)
- Lewis v. Cont’l Bank Corp., 494 U.S. 472 (Article III mootness requirement for cases/controversies)
- Already, LLC v. Nike, Inc., 568 U.S. 85 (standing requirements)
- Chafin v. Chafin, 568 U.S. 165 (mootness only where relief is impossible)
- Powell v. McCormack, 395 U.S. 486 (distinction between mootness and merits)
- Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83 (jurisdiction only defeated by wholly insubstantial claims)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (standard for stating a plausible claim for relief)