Business Ass'n of University City v. Landrieu

660 F.2d 867
CourtCourt of Appeals for the Third Circuit
DecidedAugust 5, 1981
DocketNo. 80-2717
StatusPublished
Cited by8 cases

This text of 660 F.2d 867 (Business Ass'n of University City v. Landrieu) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Business Ass'n of University City v. Landrieu, 660 F.2d 867 (3d Cir. 1981).

Opinions

OPINION OF THE COURT

A. LEON HIGGINBOTHAM, Jr., Circuit Judge.

Over the past two decades, Congress and several federal agencies have explored various policies for minimizing racial and economic segregation in American society. One such approach was recognized by this Court in Shannon v. HUD, 436 F.2d 809 (3d Cir. 1970). There, we held that the Civil Rights Act of 1968, 42 U.S.C. §§ 3601, 3608(d)(5) (1976), required the Department of Housing and Urban Development (HUD) to consider, before approving construction of proposed federally subsidized low income housing, its impact on racial concentration. The location of new housing, we observed, could lead to the “undue concentration of persons of a given race, or socio-economic group, in a given neighborhood,” and thereby “have the ‘effect of subjecting persons to discrimination ... [or] . . . substantially impairing accomplishment of the [integrative] object of the’ ” 1968 Civil Rights Act. Id. at 820. When reviewing locations for proposed low income housing, therefore, HUD was obligated to weigh the need for “desegregation of housing” through some institutionalized method. Id. at 821. Accord Otero v. New York City Housing Authority, 484 F.2d 1122 (2d Cir. 1973). In light of Shannon and the subsequent passage by Congress of the Housing and Community Development Act of 1974 (the Act), HUD has since promulgated regulations requiring its officials to consider, prior to the approval of a new low income housing project, the impact of the project on the concentration of racial and low income persons.

In this case, we are asked to review HUD’s approval of a new low income project in light of these statutory and regulatory obligations. Because we find that HUD’s decision was based on a consideration of the relevant factors and does not constitute an abuse of discretion, we will affirm the decision of the district court upholding HUD’s approval.

I.

The Section 8 New Construction Program of the Housing and Community Development Act of 1974, 42 U.S.C. § 1437f(a) (1976) seeks to aid “lower income families in obtaining a decent place to live and [to promote] economically mixed housing.” In Section 5301(c), Congress provided:

The primary objective of this chapter is the development of viable urban communities, by providing decent housing and a suitable living environment and expanded economic opportunities, principally for persons of low and moderate income.

The program stimulates construction by private developers of housing for low income families through a system of rent subsidies. Federal or state agencies normally provide low interest construction mortgages, underwritten by HUD, for private developers of approved construction, projects for low income families.1 After the project is built, HUD subsidizes the rental payments of the low income tenants under Section 8 up to a certain percentage of their income so they can afford housing which is at the same time economically profitable for the developer.2

[870]*870Although the actual rental subsidies are only extended after the housing is built and rented, the Section 8 program necessarily requires review and approval by HUD of a proposal before private or local government resources can be committed for construction. Under the administrative regulations, HUD normally advertises that it has available funds for sites in a particular geographic area. See 24 C.F.R. § 880.203 (1979).3 Prospective developers submit for HUD’s review their “preliminary proposals,” which must detail the location, size, intended rents, along with other pertinent information concerning their proposed projects. See 24 C.F.R. § 880.205 et seq. (1979). The administrative regulations promulgated by HUD require its officials to review these proposals for compliance with technical, financial, fair-housing/equal opportunity, and environmental requirements. See §§ 880.208 et seq. (1979). Compliance with the regulations provide the basis for many of the claims by the plaintiffs in the present action, and are outlined below.

The developers of proposals which are found by HUD officials to be conditionally acceptable submit “final proposals,” which, if accepted, provide the basis of the final agreement between HUD and the developer, called an “Agreement to Enter Into a Housing Assistance Payments Contract.” See 24 C.F.R. § 880.214 (1979). The Housing Assistance Payments Contract is entered into by HUD upon the successful completion of the project by the developer.

The administrative regulations relevant to the present appeal direct HUD officials to review site selections for their impact on the concentration of minority and low income families. Rule 24 C.F.R. § 880.-112(c)(1) (1979) requires that:

The site shall not be located in: (1) an area of minority concentration unless (i) sufficient, comparable opportunities exist for housing for minority families, in the income range to be served by the proposed project, outside areas of minority concentration, or (ii) the project is necessary to meet overriding housing needs which cannot otherwise feasibly be met in that housing market area.4

Further, Rule 24 C.F.R. § 880.112(d) (1979) mandates:

The site shall promote greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low income' persons.

The present case concerns HUD’s approval under Section 8 of a bid to construct low income housing at a site in West Philadelphia (the development). The land is owned by the City of Philadelphia. The previous administration in Philadelphia, according to all parties, compiled a “dismal” record in [871]*871the construction of low income units in non-impacted areas. In May of 1979, after several earlier threats, HUD withheld 21 million dollars in block grants until the City Administration submitted an acceptable strategy for constructing 448 subsidized units for low and moderate income family households in non-impacted areas, and construction on at least 100 of these units had begun. App. at 446-47. The land at issue in the present case, which was originally designated for commercial use under the City’s comprehensive plan, was rezoned on March 15, 1979 for residential use and offered to HUD as an acceptable location for non-impacted low income housing. A private developer, I.B.I.D.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rivera-Mercado v. General Motors Corp.
51 V.I. 307 (Supreme Court of The Virgin Islands, 2009)
New York v. Shinnecock Indian Nation
560 F. Supp. 2d 186 (E.D. New York, 2008)
In Re Fine Paper Antitrust Litigation. (Ten Cases) the State of Alaska, on Its Own Behalf and on Behalf of Its Cities, Boroughs, and Other Political Subdivisions v. Boise Cascade Corporation, a Delaware Corporation Champion International Corporation, a New York Corporation Crown Zellerbach Corporation, a Nevada Corporation Great Northern Nekoosa Corporation, a Maine Corporation Hammermill Paper Company, a Pennsylvania Corporation International Paper Company, a New York Corporation Kimberly Clark Corporation, a Delaware Corporation the Mead Corporation, an Ohio Corporation Potlatch Corporation, a Delaware Corporation Scott Paper Company, a Pennsylvania Corporation St. Regis Paper Company, a New York Corporation Union Camp Corporation, a Virginia Corporation Wausau Paper Mills Co., a Wisconsin Corporation Westvaco Corporation, a Delaware Corporation Weyerhaeuser Company, a Washington Corporation Blake, Moffitt & Towne, Inc., a Division of Saxon Industries, Inc., a New York Corporation Western Paper Company, a Division of Hammermill Paper Company, a Pennsylvania Corporation and Zellerbach Paper Company, a Division of Crown Zellerbach Corporation, a Nevada Corporation. Appeal of State of Alaska, in No. 81-2341. State of Colorado v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, D/B/A Zellerbach Paper Company, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Weyerhaeuser Company, Butler Paper Company and Dixon Paper Company. Appeal of State of Colorado, in No. 81-2342. State of Washington, on Behalf of Itself and Its Public Entities v. Boise Cascade Corp., Champion International Corporation, Hammermill Paper Company, International Paper Company, Potlatch, Inc., Scott Paper Company, St. Regis Paper Company, Weyerhaeuser Company, Blake, Moffitt & Towne, Inc., a Division of Saxon Industries, Inc., Carpenter-Offutt Paper Company, Inc. A Division of Unisource Corp., Zellerbach Paper Company, a Division of Crown Zellerbach Corporation. Appeal of State of Washington, in No. 81-2343. State of Missouri v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Weyerhaeuser Company Corporation, Butler Paper Company, Graham Paper Company, Bermingham & Prosser Company, Distribix, Inc. Paper Supply Company, and Shaughnessy-Kniep-Hawe Paper Company. Appeal of State of Missouri, in No. 81-2344. The State of Oregon, on Its Own Behalf and on Behalf of Its Cities, Counties, and Other Political Subdivisions v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Weyerhaeuser Company, Blake, Moffitt & Towne, Division of Saxon Industries, Inc., Carpenter-Offutt Paper Company, Division of Unisource Corporation, Western Paper Company, Division of Hammermill Paper Company, and Zellerbach Paper Company, Division of Crown Zellerbach Corporation. Appeal of State of Oregon, in No. 81-2345. The State of California, on Behalf of Itself and All Political Subdivisions, Public Agencies and Districts Within the State Similarly Situated v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Weyerhaeuser Company, Butler Paper Company, an Affiliate of Great Northern Nekoosa Corp., J. C. Paper Company, an Affiliate of Wausau Paper Mills Co., Nationwide Papers, Incorporated, a Division of Champion International Corp., Seaboard Paper Company, an Affiliate of Mead Corp., Zellerbach Paper Company, a Division of Crown Zellerbach Corp., Blake, Moffitt & Towne, a Division of Saxon Industries, Inc., Carpenter-Offutt Paper Company, a Division of Unisource Corp., Ingram Paper Company and Noland Paper Company (Carpenter/offutt Paper Co.). Appeal of State of California, in No. 81-2346. Nebraska, State of v. Boise Cascade Corporation, Champion International Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Co., Westvaco Corporation, Weyerhaeuser Company, Crown Zellerbach Corporation, Kimberly Clark and Western Paper Co., a Division of Hammermill Paper Company. Appeal of State of Nebraska, in No. 81-2347. State of Iowa, by Its Attorney General, Richard C. Turner v. Boise Cascade Corp. Champion International Corporation the Mead Corporation Great Northern Nekoosa Corporation Hammermill Paper Company International Paper Company Potlatch Corporation Scott Paper Company St. Regis Paper Company Union Camp Corporation Wausau Paper Mills Co. Westvaco Corp. And Weyerhaeuser Company. Appeal of State of Iowa, in No. 81-2348. Montana, State of v. Boise Cascade Corp. Champion International Corp. Great Northern Nekoosa Corp. Hammermill Paper Co. International Paper Co. Mead Corp. The Potlatch Corp. Scott Paper Co. St. Regis Paper Co. Union Camp Corp. Wausau Paper Mills Co. Westvaco Corp. Weyerhaeuser Co. Crown Zellerbach Corp. And Kimberly Clark. Appeal of State of Montana, in No. 81-2349. State of Arkansas v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Western Paper Company, Graham Paper Company. Appeal of State of Arkansas, in No. 81-2350
685 F.2d 810 (Third Circuit, 1982)
Alaska v. Boise Cascade Corp.
685 F.2d 810 (Third Circuit, 1982)
Business Association Of University City v. Landrieu
660 F.2d 867 (Third Circuit, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
660 F.2d 867, Counsel Stack Legal Research, https://law.counselstack.com/opinion/business-assn-of-university-city-v-landrieu-ca3-1981.