6601 Dorcheser Investment Group, LLC v. United States

CourtUnited States Court of Federal Claims
DecidedJuly 27, 2021
Docket20-1427
StatusPublished

This text of 6601 Dorcheser Investment Group, LLC v. United States (6601 Dorcheser Investment Group, LLC v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
6601 Dorcheser Investment Group, LLC v. United States, (uscfc 2021).

Opinion

In the United States Court of Federal Claims No. 20-1427C (Filed: July 27, 2021)

) 6601 DORCHESTER INVESTMENT ) GROUP, LLC, ) ) Plaintiff, ) ) v. ) ) THE UNITED STATES, ) ) Defendant. )

William B. Jung, Mount Pleasant, SC, for Plaintiff.

Sarah E. Kramer, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C., for Defendant. With her on the briefs were Brian M. Boynton, Acting Assistant Attorney General, Robert E. Kirschman, Jr., Director, and Elizabeth M. Hosford, Assistant Director, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C.

OPINION AND ORDER

SOLOMSON, Judge.

This case arises under an alleged contract between Plaintiff, 6601 Dorchester Investment Group, LLC (“Dorchester”), and Defendant, the United States, acting by and through the United States Department of Housing and Urban Development (“HUD”) and the United States Department of Veterans Affairs (“VA”), for the lease of apartment units to veteran participants in the HUD-VA Supportive Housing (“HUD-VASH”) program. Dorchester alleges that, in order to incentivize its participation in the HUD- VASH program, the government agreed to reimburse Dorchester for physical apartment damage caused by, and unpaid rent owed by, veteran participants. According to Dorchester, however, the government ultimately failed to do so. Dorchester now brings claims in this Court against the government for breach of an express contract and an implied-in-fact contract. 1 The government moves to dismiss Dorchester’s complaint pursuant to Rules 12(b)(1) and 12(b)(6) of the Rules of the United States Court of Federal Claims (“RCFC”) for, respectively, lack of subject matter jurisdiction and failure to state a claim upon which relief may be granted. In the alternative, the government moves for a more definite statement under RCFC 12(e). For the reasons explained below, the Court GRANTS the government’s motion to dismiss pursuant to Rule 12(b)(6) for failure to state a claim.

I. LEGAL AND FACTUAL BACKGROUND 2

a. HUD’s Housing Choice Voucher Program

Congress created the Housing Choice Voucher (“HCV”) program “[f]or the purpose of aiding low-income families in obtaining a decent place to live and of promoting economically mixed housing.” 42 U.S.C. § 1437f(a). Through the HCV program, HUD provides participants with HUD-funded vouchers via local public housing agencies (“PHAs”). 24 C.F.R. § 982.1(a)(1). HUD funds the vouchers using annual contributions contracts it enters into with individual PHAs: HUD makes payments to a particular PHA, and the PHA in turn agrees to administer the HCV program in accordance with HUD requirements. 24 C.F.R. § 982.151(a)(1). As part of the HCV program, the PHA issues HUD-funded vouchers to eligible tenants, see 24 C.F.R. § 982.1(a), who then use the vouchers to rent units from property owners participating in the program. 24 C.F.R. § 982.1(a)–(b).

The government does not lease the housing units from a landlord or a PHA. Rather, each individual tenant participating in the HCV program signs a lease with the

1 Dorchester initially also brought claims for promissory estoppel and attorney’s fees, expenses, and costs pursuant to the Equal Access to Justice Act (“EAJA”), 28 U.S.C. § 2412. Compl. at 8, 10. While Dorchester correctly concedes that these claims should be dismissed for lack of jurisdiction, it continues to pursue its breach of contract claims. ECF No. 12 at 1-2; Int’l. Data Prods. Corp. v. United States, 492 F.3d 1317, 1326 (Fed. Cir. 2007) (holding that this Court has no jurisdiction over promissory estoppel claims); Johnson Lasky Kindelin Architects, Inc. v. United States, 151 Fed. Cl. 642, 651 (2020) (holding that this Court has no jurisdictions over claims sounding in tort). 2 The facts alleged in Plaintiff’s amended complaint are assumed to be true and do not constitute factual findings by the Court. See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (“[F]or the purposes of a motion to dismiss we must take all of the factual allegations in the complaint as true.” (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007))). The Court also has considered “matters incorporated by reference or integral to the claim, items subject to judicial notice, [and] matters of public record.” Dimare Fresh, Inc. v. United States, 808 F.3d 1301, 1306 (Fed. Cir. 2015) (quoting 5B Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1357 (3d ed. 2004)).

2 landlord of his or her unit and pays a portion of the rent according to the tenant’s ability to pay. 24 C.F.R. § 982.515. The PHA then makes up the difference between the tenant’s contribution and the allowable rent under a Housing Assistance Payment (“HAP”) contract. 24 C.F.R. § 982.515. Each HAP contract is between the property owner and the PHA, see 24 C.F.R. § 982.162(a)(2), and “must be in the form required by HUD.” 24 C.F.R. § 982.451(a)(1). The property owner is responsible for “performing all of the owner’s obligations under the HAP contract and the lease,” including collecting from the tenant both the tenant’s portion of the rent (the amount not covered by the PHA) and any charges for unit damage caused by the tenant. 24 C.F.R. § 982.452(a)–(b).

b. HUD-VASH Program

Established in 2012, HUD-VASH is a collaborative program between HUD and the VA that combines HUD housing vouchers with VA supportive services (e.g., medical centers and community-based clinics) to assist homeless veterans and their families with finding and sustaining permanent housing. 77 Fed. Reg. 17,086 (Mar. 23, 2012); Compl. at 1. To provide housing to eligible veterans, PHAs administer the HCV vouchers provided to veterans under HUD-VASH in accordance with the HCV regulations discussed supra. See 24 C.F.R. § 982; 77 Fed. Reg. 17,087 (Mar. 23, 2012) (“[A]ll regulatory requirements and HUD directives regarding the HCV tenant-based program are applicable to HUD–VASH vouchers, including the use of all HUD required contracts and other forms.”). 3 Under the HUD-VASH program, as in the general HCV program, a PHA contracts with a property owner to make monthly rent subsidy payments directly to the owner on behalf of the veteran. 77 Fed. Reg. 17,087 (Mar. 23, 2012). The participating veterans enter into separate leases with property owners and pay their share of the rent in accordance with their individual leases. Id.

c.

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