Alexander v. United States Department of Housing & Urban Development

441 U.S. 39, 99 S. Ct. 1572, 60 L. Ed. 2d 28, 1979 U.S. LEXIS 31
CourtSupreme Court of the United States
DecidedApril 17, 1979
Docket77-874
StatusPublished
Cited by65 cases

This text of 441 U.S. 39 (Alexander v. United States Department of Housing & Urban Development) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander v. United States Department of Housing & Urban Development, 441 U.S. 39, 99 S. Ct. 1572, 60 L. Ed. 2d 28, 1979 U.S. LEXIS 31 (1979).

Opinion

*42 Me. Justice Marshall

delivered the opinion of the Court.

These cases require us to interpret the definition of a “displaced person” set forth in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Relocation Act), 84 Stat. 1894, 42 U. S. C. §4601 et seq. Section 101 (6) of the Act defines a “displaced person” as

“any person who . . . moves ... as a result of the acquisition of . . . real property, ... or as the result of the written order of the acquiring agency to vacate real property, for a program or project undertaken by a Federal agency....” 42 U. S. C. § 4601 (6). 1

*43 Relocation benefits are available under the Act for individuals and businesses that satisfy either the “acquisition” or “written order” clause of this definition. Because the Courts of Appeals for the Seventh and District of Columbia Circuits have adopted conflicting interpretations of the written order clause, 2 we granted certiorari. 437 U. S. 903 (1978).

Both cases involve housing projects that the Department of Housing and Urban Development (HUD) acquired after the projects’ sponsors defaulted on federally insured loans. We must determine whether the written order clause encompasses the tenants required to vacate those housing projects, even though HUD’s orders to vacate were not motivated by a governmental acquisition of property to further a public program or project.

I

A

Petitioners in No. 77-874 are 17 former tenants of the Riverhouse Tower Apartments, a low- and middle-income housing project in Indianapolis, Indiana. This complex was built in the late 1960’s by a private nonprofit corporation, Riverhouse Apartments, Inc., whose mortgage HUD insured and subsidized pursuant to § 221 (d) (3) of the National Housing Act, 75 Stat. 150, as amended, 12 U. S. C. § 17152 (d)(3). Upon completion of the project, the Government National Mortgage Association (GNMA) purchased the mortgage from *44 the private lender in accordance with § 221 (d)(3) of the Housing Act. When Riverhouse Apartments, Inc., defaulted on the loan in July 1970, GNMA assigned the mortgage to HUD in exchange for payment of the statutory mortgage benefits. Three years later, HUD initiated foreclosure proceedings, and a court-appointed receiver assumed operation of the project until HUD purchased the property at a foreclosure sale in August 1974.

HUD initially retained a management agent to continue operating the newly acquired project. However, the condition of the property had deteriorated so seriously during the period of default that HUD soon decided to close the apartment complex. Notices to quit were served on all remaining tenants in November 1974, and by the following February, the buildings were vacant. HUD refused to provide relocation benefits for these dislocated tenants or to disclose its plans regarding the terminated project. 3

Petitioners then initiated this action in Federal District Court, claiming, inter alia, that they were “displaced persons” entitled to assistance under the Relocation Act. 4 Construing the written order clause of § 101 (6) literally, the tenants argued that they had moved upon receiving written orders to vacate property acquired by a Government agency. The District Court rejected this statutory construction and granted summary judgment for HUD. Blades v. Dept. of HUD, Civ. No. IP 74-706-C (SD Ind., July 1, 1976). The Court of Appeals for the Seventh Circuit affirmed. In its view, § 101 (6) encompasses only displacements for programs designed to ben *45 efit the public as a whole or to fulfill a public'need, not dislocations caused by the irretrievable failure of a public housing project. 555 F. 2d 166, 169-170 (1977). 5

B

The tenants in No. 77-1463 formerly occupied the Sky Tower apartment complex built in Washington, D. C., during the 1950’s. A nonprofit corporation purchased Sky Tower in 1970, intending to convert a number of its small “garden” apartments into larger units for low- and moderate-income families. HUD agreed to assist in the rehabilitation by insuring the corporation’s mortgage on the complex and subsidizing its interest payments, pursuant to § 236 of the National Housing Act, 82 Stat. 498, as amended, 12 U. S. C. § 1715z 1. Difficulties with two successive general contractors eventually prevented the corporate sponsor from making interest payments on its loan. As a result, the mortgagee declared the sponsor in default, foreclosed on the mortgage, and conveyed title to HUD in exchange for the statutory mortgage insurance benefits. See 12 U. S. C. §§ 1713 (g), (k).

After acquiring title to Sky Tower in June 1973, HUD hired a management agent to continue operating the partially rehabilitated complex. By September 1974, however, HUD realized that Sky Tower’s deteriorated condition would render any further efforts at rehabilitation futile. The agency therefore planned to demolish the buildings and sell the land to private developers for construction of single-family homes. *46 When the 72 families living in the complex were ordered to vacate, HUD declined to extend assistance under the Relocation Act. 6

A group of the Sky Tower tenants brought this suit in Federal District Court, challenging HUD’s decision to raze the complex and its refusal to provide full relocation benefits. The District Court preliminarily enjoined HUD from completing the demolition, and subsequently granted summary judgment for the tenants on the benefits issue. Civ. Action No. 74-1872 (DC, Sept. 12, 1975). 7 A divided panel of the Court of Appeals for the District of Columbia Circuit agreed that these tenants were “displaced persons” under the written order clause of § 101 (6). 187 U. S. App. D. C. 156, 161, 571 F. 2d 590, 595 (1977). In so ruling, the Court of Appeals rejected HUD’s argument that § 101 (6) reaches only persons dislocated by an agency’s purposeful acquisition of property for use in certain types of government programs. The court instead considered the written order clause applicable whenever an agency orders persons to vacate so that property can be devoted to a federal program “ 'designed for the benefit of the public as a whole.’ ” 187 U. S. App. D.

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Bluebook (online)
441 U.S. 39, 99 S. Ct. 1572, 60 L. Ed. 2d 28, 1979 U.S. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-v-united-states-department-of-housing-urban-development-scotus-1979.