Auburn Housing Authority v. Martinez

277 F.3d 138, 2002 WL 14158
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 7, 2002
DocketDocket No. 01-6086
StatusPublished
Cited by15 cases

This text of 277 F.3d 138 (Auburn Housing Authority v. Martinez) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Auburn Housing Authority v. Martinez, 277 F.3d 138, 2002 WL 14158 (2d Cir. 2002).

Opinion

KATZMANN, Circuit Judge.

Introduction

The Defendants, Mel Martinez, Secretary of the United States Department of Housing and Urban Development, and the United States Department of Housing and Urban Development (collectively “HUD”), appeal from a decision of the District Court for the Southern District of New York (William H. Pauley III, /.) denying their motion for summary judgment and granting the plaintiffs’ motion for summary judgment. The plaintiffs, Auburn Housing Authority, New York City Housing Authority, and Plattsburgh Housing Authority (collectively “the Housing Authorities”), brought this lawsuit to enforce section 519(n) of the Quality Housing and Work Responsibility Act of 1998, Pub. L. No. 105-276, tit. V, 112 Stat. 2461, 2518-2670 (1998) (codified at 42 U.S.C. § 1437g(n) (Supp. 1998)) (“QHWRA”), which the plaintiffs argue requires HUD to [141]*141provide funding to approximately .7000 of the plaintiffs’ public housing units. HUD contends that section 226 of the 1999 Veteran Affairs and HUD Appropriations Act, Pub. L. No. 105-276, 112 Stat. 2461, 2490 (1998) (“the 1999 Appropriations Act”), permanently bars HUD from implementing section 519(n) of QHWRA, which was also enacted in the 1999 Appropriations Act. The district court rejected HUD’s position and ordered the Secretary to comply with section 519(n). For the reasons stated below, we affirm the district court’s decision.

Background

This case arises from a disagreement as to the interpretation of two provisions in the 1999 Appropriations Act that, on the surface, appear to conflict. In order to evaluate properly the parties’ arguments on appeal, it is helpful first to discuss the federal public housing program and to set out the statutory provisions at issue in this case.

The Federal Public Housing Program

Pursuant to the United States Housing Act of 1937, 42 U.S.C. § 1437 et. seq. (“the Housing Act”), HUD provides financial assistance to public housing throughout the country primarily through two types of annual grants to public housing agencies— an Operating Fund and a Capital Fund. An Operating Fund grant provides funding for the routine expenses of operating and managing public housing developments, while a Capital Fund grant provides funds for capital improvements to those developments and for related expenses. Congress appropriates amounts for the Operating Fund and the Capital Fund annually. HUD, in turn, allocates these funds to the public housing agencies through an Operating Fund formula and a Capital Fund formula. The public housing agencies receive their annual allocations of operating and capital funds based on agreements with HUD that are amended annually. Prior to the passage of QHWRA in 1998, federal funds could only be used to support housing units developed through the federal public housing program, with some very limited exceptions.

The Two Statutorg Provisions At Issue

QHWRA was enacted on October 21, 1998 as part of the 1999 Appropriations Act. See 112 Stat. at 2518-2670. QHWRA amends Section 9 of the Housing Act by, among other things, making certain public housing units developed pursuant to state law eligible for federal assistance. Id. at 2551, 2559-60. Specifically, section 519(n) of QHWRA provides that for purposes of determining allocations under the Operating Fund and Capital Fund formulas, HUD is to deem certain state-aided housing units in New York and Massachusetts to be federal public housing and to provide assistance for those units. Id. at 2559-60. As to New York, section 519(n) states in relevant part:

[T]he Secretary shall deem any covered locally developed public housing units as public housing units developed under this title and such units shall be eligible for such assistance....
For purposes of this paragraph, the term “covered locally developed housing units” means ... not more than 7,000 public housing units developed pursuant to laws of the state of New York and that received debt service and operating subsidies pursuant to such laws....

Id. at 2560.

The 1999 Appropriations Act also included administrative provisions, such as section 226, which stated:

Notwithstanding any other provision of law, no funds in this Act or any other Act may hereafter be used by the Secre[142]*142tary of Housing and Urban Development to determine allocations or provide assistance for operating subsidies or modernization of certain State and city funded and locally developed public housing units, as defined for purposes of a statutory paragraph, notwithstanding the deeming by statute of such units to be public housing units developed under the United States Housing Act of 1937, unless such unit was so assisted before October 1,1998.

Id. at 2490.

The Housing Authorities’ Requests for Funding under § 519(n) of QHWRA

In the Spring of 2000, the Housing Authorities filed applications with HUD’s regional offices, requesting that HUD deem certain locally developed public housing units to be covered units so they could qualify for funding under section 519(n). The plaintiffs were informed that a determination regarding the requests would have to be obtained from HUD’s Washington, D.C. office. To date, HUD has failed to provide the requested funding to the Housing Authorities based on its understanding that section 226 permanently bars the agency from doing so.

On June 18, 2000, New York Representative Rick Lazio, Chairman of the House of Representatives Subcommittee on Housing and Community Opportunity of the Committee on Banking and Financial Services and principal author of QHWRA, wrote then-HUD Secretary Andrew Cuo-mo regarding the Housing Authorities’ requests for funding. Congressman Lazio explained that although the 1999 Appropriations Act prohibited HUD from implementing section 519(n) for fiscal year 1999, the 2000 Appropriations Act did not contain any such restriction. On June 30, 2000, several Members of Congress wrote Secretary Cuomo, requesting that the approximately 7000 units of state-assisted public housing in Plattsburgh, Auburn, and New York City be transferred into the federal housing program pursuant to section 519(n) of QHWRA. The Members expressed their view that section 226 only limited the Secretary’s ability to expend certain funds and that sections 226 and 519(n) should be read together to give effect to both provisions.

On August 9, 2000, before the instant litigation began, Harold Lucas, HUD Assistant Secretary for Public and Indian Housing, wrote to the Chairmen and Ranking Minority Members of the House and Senate Appropriations Subcommittees on Veterans Affairs, HUD, and Independent Agencies, informing them of the Housing Authorities’ requests. Assistant Secretary Lucas noted that “[w]e have received letters from Members of Congress expressing the view that the intent of section 226 was not to permanently foreclose funding. Therefore, we will act in accordance with the mandate of section 519 and fund those units.” Lucas asked that the Members inform him if this was not Congress’s intent.

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Auburn Housing Authority v. Mel Martinez
277 F.3d 138 (Second Circuit, 2002)

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Bluebook (online)
277 F.3d 138, 2002 WL 14158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/auburn-housing-authority-v-martinez-ca2-2002.