Citywide Education Action Project v. Community Services Administration

497 F. Supp. 1239, 1980 U.S. Dist. LEXIS 9411
CourtDistrict Court, S.D. New York
DecidedSeptember 19, 1980
Docket79 Civ. 6673 (LBS)
StatusPublished
Cited by1 cases

This text of 497 F. Supp. 1239 (Citywide Education Action Project v. Community Services Administration) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citywide Education Action Project v. Community Services Administration, 497 F. Supp. 1239, 1980 U.S. Dist. LEXIS 9411 (S.D.N.Y. 1980).

Opinion

OPINION

SAND, District Judge.

Plaintiffs Citywide Education Action Project (“CEAP”), Crown Heights Education Committee (“CHEC”), Shellman Johnson, Violet Hines and Helen Lord bring suit against federal and New York City defendants, in an action arising from what plaintiffs characterize as the termination of funding of two educational programs, CEAP and CHEC.1 The federal defendants are the United States Community Services Administration (“CSA”), Graciela Olivarez, Director of CSA; Vaughn Gearan, Regional Counsel of CSA; Nevin Greene, Metropolitan Director of CSA; and Grace McCabe, Senior . Field Representative of CSA.2 Named as New York City defendants are the Community Development Agency of the City of New York (“CDA”); Roger P. Alvarez, Commissioner of CDA; John Nolan, Director of the Audit Review Department of CDA; the members of the Citywide [1241]*1241Community Action Board of CDA; Joseph L. Jacobson, formerly Inspector General of CSA; Robert Gersony, an official of the City of New York; the Human Resources Administration of the City of New York (“HRA”), which, plaintiffs allege, bears responsibility for the operations of CDA; Stanley Brezenoff, Commissioner of HRA; and Edward I. Koch, Mayor of the City of New York.

Plaintiffs claim that they should have been afforded the procedures set forth in 42 U.S.C. § 2944(2) or 2944(3) governing appeals by grantees which have been “terminated” or “superseded” within the meaning of that statute. They seek a preliminary injunction directing the refunding and reinstatement of CEAP and CHEC, enjoining the continuation of review proceedings begun by defendants, and declaring such procedures illegal.3 As permanent relief, plaintiffs seek a judgment declaring that the harassment and termination of the programs are illegal, declaring that CDA has breached its contract with plaintiffs, and awarding $1,000,000 in damages plus attorneys fees.

Plaintiffs apparently seek judicial review under the Administrative Procedure Act, 5 U.S.C. § 551 et seq. Plaintiffs allege violations of their rights under the First, Fourth, Fifth, Ninth and Fourteenth Amendments to the United States Constitution, and deprivation of civil rights under 42 U.S.C. § 1983. Finally, plaintiffs ask for indemnification, back pay, damages and restoration of property, and claim deprivation of procedural due process under the Administrative Procedure Act, the Economic Opportunity Act, and unspecified provisions of New York law.

Federal and city defendants have moved to dismiss the complaint pursuant to Fed.R.Civ.P. 12(b)(6) on the ground that plaintiffs have failed to state a claim upon which relief can be granted. In the alternative, city defendants seek summary judgment pursuant to Fed.R.Civ.P. 56.

I. Background

CSA is the federal anti-poverty agency which is the successor to the Office of Economic Opportunity (“OEO”), the agency established by the Economic Opportunity Act of 1964, 42 U.S.C. §§ 2701 et seq. (“the Act”). Under Title II of the Act, 42 U.S.C. §§ 2781-2837, federal money is made available to local communities for various “community action programs.” 42 U.S.C. § 2795. These are defined as programs which are community based and operated and which include a sufficient number of projects or components to provide a range of services and activities which will have some impact on the causes of poverty in the particular community. 42 U.S.C. § 2790(a).

The mechanism for the administration of the funds is established by 42 U.S.C. §§ 2790 and 2791. Under these statutes, a community action agency (the grantee of the funds) may be a state or political subdivision of a state, or a public or private non-profit organization. 42 U.S.C. § 2790(a). Where the community action agency is a state or political subdivision thereof, the grant is to be administered through a community action board which meets certain statutory requirements. 42 U.S.C. § 2791(a). The community action board may, in turn, place responsibility for policy determinations in neighborhood-based local subsidiary boards. 42 U.S.C. § 2791(c).

In the instant case, the City of New York is the community action agency and is the direct grantee of funds under Title II; defendant CDA is the responsible city agency with respect to those funds; and, until June 30, 1977, the Council Against Poverty func[1242]*1242tioned as the City’s community action board pursuant to 42 U.S.C. § 2791(c).

Exercising its authority under 42 U.S.C. § 2791(c), the Council Against Poverty created or recognized twenty-six community corporations to make certain decisions about the use of funds in their neighborhoods. The primary role of those community corporations is to develop programs, plan overall strategy and coordinate local poverty operations. Various “delegate agencies” and service organizations are funded under short term contracts through the community corporations.

In short, the overall funding scheme is as follows: CSA grants funds to the City of New York, by way of 'its antipoverty agency CDA; CDA, administering the funds through its community action board, funded twenty-six neighborhood based community corporations, one of which was the Crown Heights North Multi-Service Center, Inc., (“Crown Heights North”). CHEC and its alter ego CEAP were in turn funded through Crown Heights North.4

II. Facts

Plaintiff CEAP is a project of CDA which began in 1976 and maintains offices in New York City. Complaint, Par. 13. Plaintiff CHEC, originally a local educational program in the community of Crown Heights, was created in 1967. Id. Par. 14. In 1974, it was established as a Council Against Poverty pilot project, (Id.) and in 1976 it became an advisory committee to CEAP. (Id.)

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Bluebook (online)
497 F. Supp. 1239, 1980 U.S. Dist. LEXIS 9411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citywide-education-action-project-v-community-services-administration-nysd-1980.