Circuit Judge.
Thе plaintiffs in this suit are several minority residents of Boston’s South End, South Cove, and Chinatown neighborhoods, and a Chinatown neighborhood association. In essence, they seek judicial review of a “final agency action,” 5 U.S.C. § 704, the decision of the Department of Housing and Urban Development (HUD) to grant $19 million to the City of Boston to help develop the Copley Place commercial complex. The *423 plaintiffs argue that the decision is unlawful because HUD failed to follow proper procedures in approving the grant. In particular, they assert that cеrtain statutes and regulations require HUD to make a more thorough study than was performed of the grant’s possible negative impact, through neighborhood upgrading and “gentrification,” on residential integration in the area. They do not ask that the “agency action,” the grant itself, be set aside; rather, they seek retroactive compliance with the alleged procedural obligation, namely, a proper study. And, in the event that a study bears out their contentions, they believe that HUD should be ordered to spend additional funds to keep their neighborhoods integrated or otherwise insulate them from the effects of racially unequal residential displacement.
The district court decided that plaintiffs could not show that the agency action of which they complained was likely to cause them “injury in fact.” The court therefore held that they had not demonstrated the existence of the concrete “case or controversy” that Article III of the Constitution requires as a condition for the exercise of federal judicial power.
See, e.g., Valley Forge Christian College v. Americans United for Separatiоn of Church and State, Inc.,
After reviewing the record, we conclude that the district court was correct as to the standing of certain plaintiffs and incorrect as to the standing of others. We remand this case as to those plaintiffs who have standing, so that the district court can determine: (1) whether the statutes and regulations that the plaintiffs rely on actually imрose upon HUD the duty to conduct the type of “housing impact” study that the plaintiffs seek; (2) if so, whether Congress intended the courts to review the manner in which HUD carries out any such duty, see 5 U.S.C. § 701(a)(2); (3) if so, whether HUD violated any such mandate in this instance; and (4) if all preceding questions are answered in the plaintiffs’ favor, what relief is appropriate. None of these issues is directly before us on this appeal, nor was any argued in sufficient detail to allow us to decide it. We therefore limit our decision to the question of standing.
I
The following facts are not in dispute. In April 1980, the city of Bоston asked HUD for an Urban Development Action Grant (“UDAG”) to help it and private developers build Copley Place. This $450 million commercial project in downtown Boston will contain three million square feet of space, and will include a 712-room luxury hotel, a 960-room convention hotel, retail facilities, office space, parking facilities, and 100 to 150 units of housing, 25 percent of which will be subsidized and reserved for low-income tenants. The project is being built on 9.5 acres of previously vacant land next to the Massachusetts Turnpike, near the neighborhoоds of Back Bay, Fenway, the South End, South Cove, and Chinatown.
As part of its application for the UDAG, Boston presented a study of the project’s likely impact on local housing demand. It estimated that the project would generate increased demand for residential space that would in turn displace several hundred families. Soon thereafter, several neighborhood organizations, including the Chinatown Housing Task Force, a plaintiff here, complained to HUD’s Boston area Division of Fair Housing and Equal Opportunity that the project would limit housing oppоrtunities for low-income and minority residents in nearby neighborhoods. The Division considered the complaint; its director concluded that the minority displacement problem was serious; and further meetings were held with the complainants and others in Washington. HUD eventually decided to *424 provide a $19 million grant. While that grant was not conditioned precisely in the manner that the complainants had requested, HUD allowed the city to use the loan repayments (amounting to roughly $40 million) for various neighborhood development projects, including at least $2.5 million for low and moderаte income residents. HUD concluded that the grant, in light of these terms, did not violate any civil rights laws or regulations.
In November 1980, six weeks after HUD announced the grant, the Task Force and seven individuals brought this suit. Six of the seven individual plaintiffs are black or Puerto Rican residents of the South End. The seventh is a Chinese resident of South Cove. The Task Force is a community advocacy organization, 75 percent of whose members are Chinese. The plaintiffs’ primary legal claim is that Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, and various related HUD regulations required HUD to conduct a more thorough study of the impact of Copley Place on the racial integration of nearby neighborhoods. They point to several statutes, regulations, and cases that, they claim, support them: 42 U.S.C. §§ 2000d, 3608(d)(5); 24 C.F.R. §§ 1.1-1.12, 570.450-570.466;
Otero v. New York City Housing Authority,
The defendants, officials of HUD and the City of Boston, asked the district court to dismiss the complaint summarily on the ground that the action complained of — the decision to provide the grant — did not cause the harm that the plaintiffs allegedly will suffer. The defendants argued that the independent actions of private landlords and homebuyers, not the grant, would “cause” the rent increases, tenant displacement, and loss of integrated neighborhoods of which the plaintiffs complained. They added that, since other private and public development would continue in the absence of the grant, “gentrification” would occur regardless of whether Copley Place were built.
Initially, the district court ruled against the defendants. But one year later, after additional discovery and the submission of considerable evidence through affidavits, the court held that the plaintiffs had not successfully shown that the HUD grant would cause the injuries of which they сomplained. Munoz-Mendoza v. Pierce, No. 80-2589-C (D.Mass. June 28, 1982). The court added that, in any event, conducting the residential impact study now would not provide the plaintiffs with meaningful relief, for withdrawal of HUD funding would not lead to abandonment of the project. The district court therefore dismissed the suit.
II
The principles of standing are primarily aimed at determining whether a particular plaintiff is the type of person whom the law intends to protect against the type of harm of which he complains. The constitutional standing rules seek to ensure that a concrete Article III “case or controvеrsy” exists by focusing on plaintiff’s “harm.” They ask whether the plaintiff “in fact” has suffered a redressable injury as a result of the defendant’s actions. In the words of the Supreme Court, the plaintiff must demonstrate that his injuries “ ‘fairly can be traced to the challenged action of the defendant,’ or put otherwise, that the exercise of the Court’s remedial powers would redress the claimed injuries.”
Duke Power Co. v. Carolina Environmental Study Group, Inc.,
A plaintiff who has established the constitutional element of standing must go on to show that his “injury” is of a sort against which the law seeks to protect.
See Valley Forge Christian College,
We mention the “prudential” standing requirements in order to show why they are not at issue here. If the plaintiffs’ interpretation of the relevant statutes and regulations is correct, those statutes and regulations were designed specifically to prevent injuries of the type that plaintiffs allege. Whether plaintiffs’ interpretation is correct, of course, is quite another matter; but, that question — the quеstion of whether the plaintiffs assert a valid claim under the relevant substantive law — and the question of “prudential” standing, here collapse into one. Thus, the only standing question anyone need face is the threshold “constitutional” question — whether the plaintiffs have suffered “injury in fact” because of the defendants’ actions.
Decisions of the Supreme Court and other federal courts suggest that factual issues concerning the existence of “injury in fact” are to be resolved much like any other factual issue. The ultimate burden of proving “injury in fact” rests with the plaintiffs.
NAACP v. Harris,
Here we believe the district court has resolved all relevant factual issues. Although the parties and the trial court referred to the proceedings below in terms of “summary judgment,” the record contains virtually all the evidence on the standing issue likely to become available. The court made factual decisions on a record that was essentially complete; and no one has complained about the court’s decision to make findings of fact or asked us to reopen the factual inquiry. We therefore shall accept the district court’s findings of fact unless we are convinced that they are “clearly erroneous.”
Duke Power Co. v. Carolina Environmental Study Group, Inc.,
Applying a “clearly erroneous” standard, we agree that the plaintiffs have failed to show an adequate causal connection between HUD’s action — the award of the UDAG — and
one
alleged injury, the risk that the plaintiffs will have to pay increased rents or move from their homes. The district court reasoned that the causal linkage involved — from the grant to the building of Copley Place, to increased demand for housing in nearby neighborhoods, to private landlords’ decisions to raise the rent in the units occupied by the plaintiffs themselves, to the еventual need to find new housing — was simply too speculative. In the district court’s judgment, the evidence did not support the inference that the UDAG would displace any
specific
individual. Even if we assume
arguendo
that the threat of displacement is immediate enough to avoid problems of ripeness,
but see City of Los Angeles v.
Lyons, — U.S. —,
In reviewing this finding, we are governed by the Supreme Court’s decision in
Simon v. Eastern Kentucky Welfare Rights Organization,
The plaintiffs, however, also allege another, and different, sort of injury. They claim that the grant will increase racial segregation in nearby neighborhoods, and that as a result, they will lose the advantage of living in an integrated local community. There is no question that this
type
of injury is sufficient under Article III t.o allow standing to contest the legality of conduct that causes it, for the Supreme Court has specifically so held.
Gladstone, Realtors v. Village of Bellwood,
*427
To prove the causal link, the plaintiffs must show three things. First, they must show that the UDAG was necessary for the construction of Copley Place. Second, they must show that Copley Place will increase local housing demand and rents. Third, they must show that higher rents and displacement of low-income tenants will result in a less “integrated community.” The burden of proof rests on the plaintiffs, but the burden is not insurmountable; they need only demonstrate a “substantial likelihood” that the causal link exists.
Duke Power Co. v. Carolina Environmental Study Group, Inc.,
The district court did not take issue with the first link in the causal chain, nor do the defendants. Federal law forbids HUD from extending a UDAG unless it finds “a strong probability that the non-Federal investment in the project would not be made without” the federal funding. 42 U.S.C. § 53180); 24 C.F.R. §§ 570.458(c)(14)(ii), 570.459(q)(2). The City of Boston submitted affidavits stating that Copley Place would not have been undertaken without the grant. The project manager affirmed that “[b]ut for, and only for, an injection of public funding in ... [the amount provided by HUD] can this project be undertaken.” Himmel Affidavit in Support of Motion for Summary Judgment ¶ 37.
The second link is not disputed directly. No one denies the connection between the construction of Copley Place and increased local housing demand and rents. No one disputes that Copley Place is likely to lead to increased rents throughout the area. Rather, the defendants claim that the area would be redeveloped and rents would increase even if Copley Place were not built, i.e., that Copley Place is not a necessary condition for the rent increases. And the district court agreed with this argument. It noted that other development was taking place in the area, and it stated that:
Copley Place is but part of a larger continuing pattern of development in and around the South End area of Boston. This considerable property development has undeniably generated an increase in area property values, which in turn has contributed to dramatic increases in the cost of rental housing in the area, which, of course, has a significant impact оn those, like the plaintiff here, whose incomes may not be sufficient to meet those increases. Combined with other factors ... the continuing property development and increase in the property values are sure to continue whether or not Copley Place is completed or becomes the success its developers hope it will be.
It is at this point that we part company with the district court. We do not doubt the correctness of its conclusion that “upgrading” and rent increases will continue whether or not Copley Place is built. But we dо not see how it can be concluded, on the basis of the record, that upgrading and rent increases would continue at anything like the same pace and in anything like the same amounts in Copley Place’s absence. The Copley Place project is a $450 million undertaking, which its developers expect will create over 6,000 permanent jobs in downtown Boston. It cannot seriously be contended that a commercial complex of this scale will not create a material impact on housing demand in neighborhoods adjacent to it. It is alsо impossible for us to believe — without record evidence — that, had the HUD grant been denied, some other project or set of projects, waiting in the wings, would soon have stepped forward and taken its place.
Cf. S. W. Neighborhood Assembly v. Eckard,
The third link in the causal chain — the link between higher rents and less residen
*428
tial integration — is not seriously disputed with respect to the six individual plaintiffs who reside in the South End. The district court found in a prior opinion, and the defendants do not contest, that the South End is “a fully integrated residential neighborhood.”
Munoz-Mendoza v. Pierce,
The seventh individual plaintiff, Kam Yum Lee, and the Task Force stand in a different position. Mrs. Lee is a resident of the South Cove neighborhood; the Task Force represents the residents of Chinatown. According to the most recent census figures provided by the parties, the population of the Chinatown-Sоuth Cove area is 80 percent Asian and Pacific Islander and only 14.5 percent Caucasian. As a result, any foreseeable displacement of poorer residents by rent increases is likely to make the two neighborhoods more, rather than less, racially integrated. That is not to say that Mrs. Lee, and their neighborhoods will suffer no harm; the character of their neighborhood may change, as they believe, for the worse. But this harm is not the special legal harm of residential segregation that the Supreme Court held sufficient to confer standing under Gladstone, Realtors and Trafficante.
We do not accept the Task Force’s additional “injury” argument — namely its claim of direct injury as an organization due to HUD’s allegedly cavalier treatment of its administrative complaint. The likelihood that the Task Force has suffered or will suffer “diminished stature, diminished volunteer power, [and] perhaps even diminished funding” is, at best, purely speculative.
The defendants make three additional arguments to avoid the conclusion that
any
of the plaintiffs has standing. First, they argue that the study sought by the plaintiffs might not have changed HUD’s mind about the grant, and that the causal link between the inadequate study and the harm thеrefore has not been shown. This argument, however, confuses the agency
action
of which the plaintiffs complain with the
ground
for their complaint. The challenged action is the decision to extend the UDAG to Boston; the procedural “error,” the failure to make an allegedly mandatory study. Article III of the Constitution does not require a plaintiff to show that use of a mandated procedure would change an agency’s substantive action.
See United States v. SCRAP,
Second, the defendants argue that the causal link is broken because the displacement and racial segregation at issue depend upon the voluntary actions of private parties, such as landlords who must individually and separately decide to raise their rents. This argument may be relevant to the substantive legal question of whether the statute and regulations are to be interpreted as the plaintiffs argue, but it is not material to the question of standing. The plaintiffs’ basic claim is that the statutes and regulаtions oblige HUD not to give a UDAG without studying how third parties like landlords are likely to react and what the effect on residential integration is likely to be. If the plaintiffs are wrong on this substantive argument, they have no claim on the merits. If they are right, however, the involvement of third parties is no answer to their standing claim, for they would have suffered the very harm that Congress meant to protect against. The defendants’ argument, at best, provides a reason for believing that Congress did not intend to impose this sort of obligation on HUD, an issue which the district court must first determine.
Third, the defendants argue that the court cannot provide meaningful relief to the plaintiffs, for Copley Place will be built even if a more extensive study were to persuade or require HUD to withdraw the UDAG funding. They point out that plaintiffs must show that their injury can be redressed by judicial relief in order to have Article III standing.
See City of Los Angeles v.
Lyons, — U.S. at — & n. 20,
We therefore hold that the district court correctly dismissed Mrs. Lee and the Task Force for lack of standing, but that it erred in ruling that the remaining plaintiffs lacked standing to pursue their claims.
Ill
Because this case must be remanded for further proceedings, we offer several other comments for the guidаnce of the parties and the district court. First, as is apparent, we believe that this case in essence is a challenge to federal administrative action of the sort typically governed by the standards of the Administrative Procedure Act. See generally 5 U.S.C. §§ 701-06. In prior pleadings and before this court, the parties sought to cast the action in a different light, arguing as if the underlying issue were whether the plaintiffs possessed a private right of action under the relevant federal civil rights laws. This perspective has only limited value with respect to the plaintiffs’ claim against HUD, for there is no need to locate a separate private right of action given the judicial review provisions of the APA.
*430
The basis for the plaintiffs’ suit against the Boston officials is less clear, in large part because it is unclear what role Boston has played in the actions that aggrieve the plaintiffs and what relief the plaintiffs seek from them. The plaintiffs do not have a right of action against the city officials under the APA, because neither Boston nor the Boston Redevelopment Authority is an “agency” within the meaning of the Act.
See
5 U.S.C. § 701(b)(1);
City of Rohnert Park v. Harris,
Second, the plaintiffs complain of the district court’s failurе to certify their suit as a class action. Because we have held that some plaintiffs have standing to seek relief for certain sorts of injuries, but not for other sorts, and because the other plaintiffs have no standing at all, we believe it appropriate for the district court to reconsider the class action question in light of this opinion.
See
28 U.S.C. § 2106;
cf. Inda v. United Air Lines, Inc.,
Third, we reassert our view that there remain several difficult issues in this case. The plaintiffs must show that their substantive view of the statutes and regulations is a correct one. They must also show that Congress intended the courts, at the risk of intеrrupting or seriously delaying multi-million dollar projects aimed at helping distressed areas, to review agency “study” decisions
of the sort here at issue
in order to correct the type of abuse of discretion that the plaintiffs here allege.
See
5 U.S.C. § 701(a)(2);
Hahn v. Gottlieb,
The judgment of the district court is affirmed in part and reversed in part. This ease is remanded for further proceedings consistent with this opinion.
On Petition For Rehearing
The federal appellees’ petition for rehearing is denied. The federal appellees may in part be contending that they have not (in the context of these proceedings) had an adequate opportunity to present evidence on “the third link in the causal chain — the link between higher rents and less residential integration — ... with respect to ... the South End.” If so, they can present that contention to the District Court, which can decide whether (or when) further evidence should be presented.
