Mays v. Cuomo

No. C-1-96-929 (S.D. Ohio May 21, 1998). ; Clearinghouse Number: 52265

Description

Court Dismisses Challenge to Department of Housing and Urban Development’s Failure to Impose Low-income Use Restrictions and Project-Based Rental Assistance on Property Lost in Foreclosure

Abstract

The district court granted the motion of defendant Department of Housing and Urban Development (HUD’s) to dismiss for lack of subject-matter jurisdiction plaintiff tenants of multifamily housing projects’ suit claiming that HUD abused its discretion when it foreclosed on the projects, acquired them in sale, and agreed to sell to a housing authority without imposing low-income use restrictions and project-based Section 8 assistance conditions. The court agreed with HUD’s claim that amendments to the National Housing Act (in particular, section 204 of the Independent Appropriations Act of 1997) gave it unfettered discretion to establish the terms of the management and disposition of property and mortgages. The court rejected plaintiffs’ description of the dispute as the decision to foreclose privately owned property; the court held that it instead involved the terms established for the management and disposition of HUD-held mortgages and of property in which HUD was a mortagee-in-possession and then an owner. The court also rejected plaintiffs’ claim that 24 C.F.R. part 290 provided the specific law to decide whether there had been an abuse of discretion since the language of section 204 clearly illustrated that Congress intended t the section to preempt other statutes and regulations, including those that might define standards restricting HUD’s authority.

Additional Information

Attorney Information
Plaintiffs represented by Sue Livensparger, Kelly A. Malone, Legal Aid Society of Cincinnati, 901 Elm St., Cincinnati, OH 45202; 513.241.9400.
Docket Date
1999-05-21 00:00:00+00:00

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