History
  • No items yet
midpage
795 F.3d 578
6th Cir.
2015
Read the full case

Background

  • Plaintiffs Velez and Hatcher are Housing Choice Voucher recipients who initially signed one-year leases with K&D and thereafter entered shorter-term renewals (month-to-month or nine-month) that imposed mandatory short-term fees ranging $35–$100/month.
  • K&D characterized the additional charges as separate short-term or month-to-month fees (not labeled "rent") to offset turnover, marketing, and market-risk costs; some landlords instead raise the base monthly rent to cover similar costs.
  • Cuyahoga Metropolitan Housing Authority (CMHA) had a policy treating those short-term fees as not part of "rent" for voucher subsidy calculations, so it did not subsidize them; tenants paid the fees out-of-pocket.
  • Plaintiffs sued CMHA under 42 U.S.C. § 1983 seeking subsidization/damages; CMHA impleaded K&D for contribution/indemnity if the fees were deemed rent.
  • The district court granted summary judgment to CMHA, holding the fees were not rent; the plaintiffs appealed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether short-term lease fees are "rent" under Section 8 (42 U.S.C. § 1437f) and HUD regs Fees are consideration paid for use/occupancy and thus constitute "rent" regardless of label Fees are separate convenience/compensatory charges for short-term risk and not "rent" Reversed district court: fees are "rent" (part of tenant's periodic payment for occupancy)
Whether labeling a charge "fee" rather than "rent" removes it from subsidy calculation Labels cannot change substance; mandatory occupancy charges are rent Labeling distinguishes them from "rent" for subsidy purposes Substance controls; mandatory periodic occupancy charge is rent
Whether tenants forfeited subsidy claims by failing to submit fees to CMHA per regulatory procedure Tenants seek subsidy/damages because fees were treated as non-rent by CMHA policy CMHA argues tenants forfeited claims by not submitting fees for approval District court did not decide; remanded for consideration
Statute-of-limitations for some of Hatcher’s claims Plaintiffs did not concede timing bars CMHA contends some claims are time-barred Not decided by district court; remanded for determination

Key Cases Cited

  • Desert Palace, Inc. v. Costa, 539 U.S. 90 (statutory interpretation begins with text)
  • Conn. Nat’l Bank v. Germain, 503 U.S. 249 (plain-meaning inquiry ends the judicial inquiry)
  • Community for Creative Non-Violence v. Reid, 490 U.S. 730 (use of established federal/common-law meanings)
  • Ratzlaf v. United States, 510 U.S. 135 (term usage uniformity across statute)
  • Atlantic Cleaners & Dyers v. United States, 286 U.S. 427 (uniformity presumption may yield to differing subject-matter)
  • M.E. Blatt Co. v. United States, 305 U.S. 267 (definition: rent is fixed sum paid at stated times for use of property)
  • Duffy v. Central R. Co. of N.J., 268 U.S. 55 (defining "rentals")
  • Wright v. City of Roanoke Redevelopment & Housing Auth., 479 U.S. 418 (deference to HUD interpretations)
  • United States v. Pileggi, 192 F.2d 878 (payment required as condition of rental constitutes rent)
  • Wuebker v. C.I.R., 205 F.3d 897 (modern appellate definition of rent as consideration for use/occupancy)
  • Aujero v. CDA Todco, Inc., 756 F.2d 1374 (definition of rent in later case law)
Read the full case

Case Details

Case Name: Waleska Velez v. Cuyahoga Metro. Housing Authority
Court Name: Court of Appeals for the Sixth Circuit
Date Published: Jul 30, 2015
Citations: 795 F.3d 578; 2015 U.S. App. LEXIS 13265; 2015 FED App. 0173P; 2015 WL 4569450; 14-3978
Docket Number: 14-3978
Court Abbreviation: 6th Cir.
Log In
    Waleska Velez v. Cuyahoga Metro. Housing Authority, 795 F.3d 578