Baum v. Espy

840 F. Supp. 493, 1993 U.S. Dist. LEXIS 19664, 1993 WL 556933
CourtDistrict Court, N.D. Ohio
DecidedDecember 13, 1993
Docket5:88 CV 0234
StatusPublished
Cited by1 cases

This text of 840 F. Supp. 493 (Baum v. Espy) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baum v. Espy, 840 F. Supp. 493, 1993 U.S. Dist. LEXIS 19664, 1993 WL 556933 (N.D. Ohio 1993).

Opinion

MEMORANDUM OPINION

DOWD, District Judge.

I. INTRODUCTION

On November 16, 1992, 1 the U.S. Court of Appeals for the Sixth Circuit reversed and remanded this Court’s prior decision wherein summary judgment had been granted to the plaintiffs on the ground that 7 U.S.C. § 2014(d)(1) required exclusion of utility reimbursements (“UR”) from income for purposes of determining food stamp eligibility. 2 See Baum v. Madigan, 979 F.2d 438 (6th Cir.1992). The Sixth Circuit instructed this Court to enter judgment for the defendants on that issue, Baum v. Madigan, 979 F.2d at 443, and noted that issues raised in plaintiffs’ cross-appeal need not be addressed until this Court made a decision on the remaining claims of the plaintiffs which had not yet been addressed. 3

The original cross-motions for summary judgment, which are once again before this Court on remand, were filed by the Secretary of the United States Department of Agriculture (“the Secretary”) and the Director of the Ohio Department of Human Services 4 [collectively “defendants”] (Docket No. 51) and by the plaintiffs (Docket No. 94). 5

For the reasons discussed below, summary judgment is granted for the defendants and against the plaintiffs and this case is dismissed.

II. FACTUAL BACKGROUND

The facts in this case are not in dispute. However, the following background, set forth *495 in this Court’s earlier decision, is helpful to an understanding of the nature of the claims and defenses.

Plaintiffs, as public housing tenants, pay “rent” in the amount of 30% of the tenant’s adjusted monthly gross income. Plaintiffs’ public housing rent, whatever that figure is determined to be, automatically includes a predetermined amount for reasonable utilities consumption, known as a utilities allowance. Plaintiffs pay no more than 30% of their adjusted monthly gross income for rent, which includes the predetermined amount for utilities.
Unlike other public housing tenants, plaintiffs pay some or all of their costs for utilities directly to the utility suppliers. For reasons described infra, the amount plaintiffs pay directly for utilities exceeds the total monthly amount plaintiffs’ [sic] owe to the local Public Housing Authority (“PHA”), in essence plaintiffs’ landlord. The PHA reimburses plaintiffs the difference between plaintiffs’ rent obligation and the utilities allowance in the form of a check made payable to plaintiffs.
When public housing tenants receive an allowance for utilities expenses and the utilities are paid by the PHA, the Secretary of Agriculture excludes the benefit tenants receive from household income for purposes of determining food stamp awards. However, the Secretary counts the “utility reimbursement payments” plaintiffs receive as household income. The calculation of food stamp benefits are [sic] based on plaintiffs’ relative levels of household income: the lower the income level, the more food stamps the household is entitled to receive and vice versa. Because these utility reimbursement payments are included in plaintiffs’ income for purposes of determining food stamp awards, plaintiffs receive a smaller award of food stamps than they would receive if the income was excluded.

Baum v. Yeutter, 750 F.Supp. at 845-46.

III. THE UNDERLYING STATUTORY SCHEMES

The relevant statutory schemes are also set forth in the Court’s prior decision as follows.

A. The Federal Housing Subsidy
Plaintiffs live in federally assisted rental housing in Portage County and Pike County, Ohio. According to what is commonly known as the Brooke Amendment, lower income families living in federally assisted public housing are charged rent based upon a formula that takes into consideration a household’s income. 42 U.S.C. § 1437a(a). As a practical matter, plaintiffs are required to pay monthly rent in the amount of 30 percent of a household’s monthly adjusted income. The amount of HUD’s contribution is equal to the difference between the contract rental and the amount the household is required to pay. 42 U.S.C. § 1437f(c)(3). Included as “rent” are the reasonable amounts paid for utility services (“utilities”) which are defined to include the costs for electricity, gas, heating fuel, water and sewage service, and trash collection. 42 U.S.C. § 1437f(c)(l); 24 C.F.R. § 965.472 (1989). The local PHA determines a community-wide utility allowance (“UA”), and adds that figure to each public housing tenant’s rent, irrespective of the actual amount spent on utilities consumption, although a household that spends more than the UA is usually required to pay for the cost of the excess usage. 24 C.F.R. § 965.470-482 (1989). The UA is established at a level equal to “the monthly cost of a reasonable consumption of such utilities and other services for the unit by an energy-conservative household of modest circumstances.” 24 C.F.R. § 913.102 (1989).
Prior to 1981, the utilities in multi-resident apartment buildings were metered on an aggregate basis, and individual households did not pay for their own utilities separate from the monthly rent which included an allowance for utilities. In 1981, HUD began requiring local PHA’s to install individual utility meters so that each household would pay all or a part of the monthly utility expense. As it now stands, three different methods for collection and payment of utilities in public housing exist. First, in older public housing units, the *496 PHA may purchase the utilities directly and add the monthly costs of the utilities to the tenant’s rent obligation, without use of a UA. The household pays only its Brooke Amendment rent obligation subject to additional flat fee charges for certain appliances. 24 C.F.R. § 965.471(b); 965.-477(b) (1989).
Second, the PHA again purchases the utilities directly.

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In Re Young
199 B.R. 643 (E.D. Tennessee, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
840 F. Supp. 493, 1993 U.S. Dist. LEXIS 19664, 1993 WL 556933, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baum-v-espy-ohnd-1993.