City of New Haven, Connecticut v. United States

634 F. Supp. 1449, 1986 U.S. Dist. LEXIS 25371
CourtDistrict Court, District of Columbia
DecidedMay 16, 1986
DocketCiv. A. 86-0967, 86-0460 and 86-0455
StatusPublished
Cited by5 cases

This text of 634 F. Supp. 1449 (City of New Haven, Connecticut v. United States) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of New Haven, Connecticut v. United States, 634 F. Supp. 1449, 1986 U.S. Dist. LEXIS 25371 (D.D.C. 1986).

Opinion

MEMORANDUM AND ORDER

JACKSON, District Judge.

These consolidated cases, now before the Court on the parties’ cross-motions for summary judgment, present a challenge to the President’s deferral of the expenditure of funds appropriated by Congress for various domestic programs in fiscal 1986. 1 Specifically, plaintiffs contend that the statute pursuant to which the President has acted to defer “budget authority” 2 is unconstitutional by reason of the presence of an inseverable one-House legislative veto provision in the legislation as enacted. For the reasons set forth below, plaintiffs’ motions for summary judgment will be granted, defendants’ motion for summary judgment denied, and the declaratory and injunctive relief sought will be entered as prayed.

I.

In November, 1985, President Reagan signed the fiscal year 1986 appropriations bill for the Department of Housing and Urban Development (“HUD”), Pub.L. No. 99-160, 99 Stat. 909 (1985), which appropriated funds for certain long-standing local housing and community development programs. On February 5, 1986, the President sent impoundment notices to Congress pursuant to the Budget and Impoundment Control Act of 1974 announcing his deferrals of the expenditure of funds for the four programs at issue here. H.Doc. No. 99-161, 99th Cong., 1st Sess. 246-53 (1986); 51 Fed.Reg. 5829, 5953-58 (Feb. 18, 1986). The deferrals were not made in response to the Balanced Budget and Emergency Deficit Control Act of 1985, Pub.L. No. 99-177, 99 Stat. 1038, (1985), but were, rather, intended by the President to bring 1986 spending levels into line with his 1987 proposed budget. H.Doc. No. 99-161 at 246. The deferrals have been put into effect and are indisputably having a present (and by plaintiffs undesired) impact on the programs, their proponents, and their intended beneficiaries.

Plaintiffs are various representatives of those affected: cities, mayors, community groups, members of Congress, associations of mayors and municipalities, and disappointed expectant recipients of benefits under the programs so diminished. Nominal defendants are the United States, the Secretary of HUD (the “Secretary”), and the Director of the Office of Management and Budget (“OMB”).

Of the four programs in jeopardy the first is known as the Section 8 Housing Assistance Payments Program (“Section 8”), established by the Housing and Community Development Act of 1974, amending the Housing Act of 1937. 42 U.S.C. § 1487f (1982 & Supp. I 1983 & Supp. II 1984). Section 8’s purpose is to assist lower-income families in obtaining housing by, inter alia, a direct housing subsidy. The Secretary of HUD disburses funds to state and local housing agencies which, in turn, use the funds to obtain housing for low income families. The HUD appropriations bill for fiscal year 1986 included nearly $2.4 billion for direct housing subsidies, of which the President has deferred all but $184 million.

The second program concerned was created by Section 202 of the Housing Act of 1959, 12 U.S.C. § 1701q (1982 & Supp. I 1983 & Supp. II 1984) (“Section 202”), to *1452 assist in housing the elderly and handicapped with direct loans to private nonprofit corporations, limited profit sponsors, consumer cooperatives, and certain public agencies for use in constructing or rehabilitating low cost rental units. Section 202 also operates in conjunction with Section 8 to provide a direct subsidy for rental costs incurred by elderly and handicapped people living in Section 202 housing. The fiscal year 1986 HUD appropriations bill included $631 million for the Secretary of HUD to lend under Section 202 and $1.6 billion for rent subsidies under Section 8. The President deferred approximately $600 million in construction loan money and all but $12.8 million of the rent subsidies.

The Community Development Block Grant (“CDBG”) program originated in Title I of the Housing and Community Development Act of 1974. 42 U.S.C. § 5301 et seq. (1982 & Supp. I 1983 & Supp. II 1984). The CDBG program was designed to consolidate a number of grant programs providing federal assistance to local governments with funds to, inter alia, acquire property, construct public facilities, rehabilitate housing, support economic development projects, and extend social and health services to low income people. The CDBG program allocation for fiscal year 1986 was $3.1 billion. The President deferred $500 million.

The final program affected was created by Section 312 of the Housing Act of 1964, as amended, 42 U.S.C. § 1452b (1982 & Supp. I 1983) (“Section 312”). Under Section 312, the Secretary lends funds to assist in the rehabilitation of single- and multifamily residential property in low-income neighborhoods. Typically, cities or local public agencies administer the program, lending money to low- and middle-income people who will occupy the housing they will use the funds to rehabilitate. For fiscal year 1986 Congress appropriated no new funds for the Section 312 program, but instead directed that all funds remaining in the program, $166 million, should be made available for new loans in 1986. The President has deferred $135 million of the sum.

Plaintiffs have submitted numerous affidavits — of mayors, city managers, directors of local public agencies, and intended beneficiaries of the depleted programs — attesting to the observable impact the budget deferrals have had and will have on local affairs. The affidavits assert (presently without contradiction), for example, that only a fraction of the eligible low-income families will receive Section 8 assistance this year; that no elderly or handicapped people will receive rent subsidies; and that no loans to rehabilitate housing in depressed neighborhoods will be made. The mayors and city managers state that they have had to cut their CDBG programs, necessitating the layoff of staff and a substantial reduction in such social and health services as shelters for the homeless, meals to elderly, public transportation for the elderly and handicapped, job training, health and dental care for low-income people, and child care for single parents.

In deferring the expenditure of appropriated funds the President acted pursuant to the Budget and Impoundment Control Act of 1974, Pub.L. No. 93-344, 88 Stat. 297, or more precisely, Title X of the Act, also known as the Impoundment Control Act of 1974 (the “Act” or "IGA”), Pub.L. No. 93-344, §§ 1001-1017, 88 Stat. 297, 323-37 (codified at 2 U.S.C. §§ 681-688 (1982 & Supp. II 1984)). Under the Act the President can impound funds in two ways. First, he may propose to “rescind,” or cancel, all or part of the budget authority Congress has appropriated for a particular program. 2 U.S.C. § 683.

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634 F. Supp. 1449, 1986 U.S. Dist. LEXIS 25371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-new-haven-connecticut-v-united-states-dcd-1986.