Chicago Acorn v. U.S. Department of Housing and Urban Development

No. 05C3049 (N.D. Ill. filed Aug. 10, 2005) ; Clearinghouse Number: 55889

Description

Section 8 Tenants' Supplemental Complaint Alleges that New Federal Housing Appropriations Law Requires HUD to Maintain Section 8 Subsidies on Foreclosed Project-Based Section 8 Property

Abstract

Project based section 8 tenants filed a class action suit to prevent HUD from illegally terminating the project based section 8 contract on 1,240 housing units at Lawndale Restoration properties after foreclosure. Plaintiffs allege that HUD’s actions will result in a permanent loss of scare subsidized housing resources and the illegal displacement of low income residents. Plaintiffs allege that a new federal housing appropriations law requires HUD to maintain the project-based Section 8 assistance after foreclosure and to offer the foreclosed property to the City of Chicago with the pre-existing Section 8 contract intact. Specifically, plaintiffs allege that § 311 of the Transportation, Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriations Act of 2006, Pub. L. No. 109-115, 119 Stat. 2396 (November 30, 2005) requires HUD to maintain subsidies in place at project based section 8 properties after foreclosure, unless HUD determines that maintaining such subsidies is “not feasible”. Plaintiffs also allege that the Multi-Family Housing Property Disposition Reform Act of 1994, 12 U.S.C. 1701z-11, mandates that HUD dispose of “multifamily housing projects” in a manner that addresses affordable housing goals. Plaintiffs allege that HUD has arbitrarily instituted a new policy that all project based Section 8 contracts are to be terminated upon foreclosure. Plaintiffs allege that HUD is required to affirmatively further fair housing within its programs. Plaintiffs seek preliminary and permanent injunctive relief.

Additional Information

Attorney Information
Plaintiffs represented by John M. Bouman, Katherine E. Walz, Rajesh D. Nayak, Sargent Shriver National Center on Poverty Law, 50 E. Washington St., Suite 500, Chicago, IL 60602 (312.263.3830); John "Jack" Cann, Housing Preservation Project, 570 Asbury St., Suite 105, St. Paul, MN 55104 (651.642.0102).
Docket Date
2005-05-23 00:00:00+00:00
Attorney Email
johnbouman@povertylaw.org, katewalz@povertylaw.org, rajeshnayak@povertylaw.org