COLO. PUBLIC INTEREST RESEARCH GROUP, INC. v. Hills

420 F. Supp. 582
CourtDistrict Court, D. Colorado
DecidedAugust 2, 1976
DocketCiv. A. 75-A-672
StatusPublished

This text of 420 F. Supp. 582 (COLO. PUBLIC INTEREST RESEARCH GROUP, INC. v. Hills) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
COLO. PUBLIC INTEREST RESEARCH GROUP, INC. v. Hills, 420 F. Supp. 582 (D. Colo. 1976).

Opinion

420 F.Supp. 582 (1976)

COLORADO PUBLIC INTEREST RESEARCH GROUP, INC., a non-profit Colorado Corporation and Victor Feeney, Plaintiffs,
v.
Carla A. HILLS, Secretary, U. S. Department of Housing and Urban Development, and Alan J. Kappeler, Acting Interstate Land Sales Administrator, Department of Housing and Urban Development, Defendants.

Civ. A. 75-A-672.

United States District Court, D. Colorado.

August 2, 1976.

*583 James L. Kurtz-Phelan, Denver, Colo., and David C. Mastbaum, Boulder, Colo., for plaintiffs.

James L. Treece, U.S. Atty., by Hank Meshorer, Trial Atty., Dept. of Justice, Land and Natural Resources Div., Denver, Colo., for defendants; Samuel B. Rothman, Dept. of Housing and Urban Development, of counsel.

MEMORANDUM OPINION AND ORDER

ARRAJ, Chief Judge.

This matter is before the court on the parties' cross motions for summary judgment. Lengthy briefs and numerous exhibits were filed by each side prior to oral argument. The court having considered the arguments, stipulated facts and exhibits, and the parties having stipulated that there is no genuine issue of material fact, the matter is ripe for disposition.

I

This case concerns the interface between the Interstate Land Sales Full Disclosure Act of 1968 [ILSA], 15 U.S.C. § 1701 et seq., and the National Environmental Policy Act of 1969 [NEPA], 42 U.S.C. § 4321 et seq. and its effects on the Office of Interstate Land Sales Registrations [OILSR] in the Department of Housing and Urban Development [HUD]. Plaintiffs are the Colorado Public Interest Research Group [COPIRG] and Victor Feeney, a resident of Colorado. Defendants are Carla A. Hills, the Secretary of HUD, and Alan J. Kappeler, the Acting Interstate Land Sales Administrator of HUD. The court has jurisdiction under §§ 1337, 1361 and 2201 of the Judicial Code.

Briefly, plaintiffs claim that defendants have failed to carry out their duties under NEPA in the administration of ILSA and have failed to adopt rules and regulations alleged to be necessary in order to protect the public interest. The manner in which plaintiffs would have defendants comply with NEPA is described variously and at length in the complaint, the pretrial order, and the briefs. At oral argument, at the court's urging, counsel for plaintiffs singled out for emphasis five different proposed compliance measures:

First, property reports and statements of record filed by land developers in compliance with ILSA should be modified to contain more information concerning the impact of the registered subdivision on the environment.

Second, defendants should disclose the nationwide environmental consequences of requiring the disclosures discussed above and alternative types of disclosures in a comprehensive programmatic environmental impact statement.

Third, OILSR should be made to disclose periodically the cumulative environmental impacts of subdivisions registered with the office based upon its independent analysis and evaluation of developer-generated information.

Fourth, OILSR should submit a report to the President and the Council on Environmental Quality concerning any inconsistencies between NEPA and ILSA or regulations promulgated pursuant to ILSA.

Fifth, OILSR should generally comply with other aspects of NEPA not involving an environmental impact statement.

Defendants, on the other hand, have at various times stated their position in rather bald terms: the National Environmental Policy Act is not applicable to the Office of *584 Interstate Land Sales Registration in the administration of the Interstate Land Sales Full Disclosure Act. This analysis is more simple than sound. Unquestionably the mandate of NEPA does apply to ILSA and the defendants in some respects; it is our task to consider the extent of that application.

II

Our analysis must begin with the Supreme Court's most recent statement concerning the interface of NEPA and ILSA. Flint Ridge Development Co. v. Scenic Rivers Association, ___ U.S. ___, 96 S.Ct. 2430, 49 L.Ed.2d 205 (1976), rev'g, 520 F.2d 240 (10th Cir. 1975) [Flint Ridge]. The question presented was whether NEPA requires HUD to prepare an environmental impact statement before it may allow a disclosure statement filed with it by a private real estate developer pursuant to ILSA to become effective. The answer that the unanimous Court gave, Mr. Justice Powell not taking part, was no.

The Court set out the provisions and requirements of ILSA, noting its purpose to "prevent false and deceptive practices in the sale of unimproved tracts of land by requiring developers to disclose information needed by potential buyers." 96 S.Ct. at 2433; 15 U.S.C. § 1705. This purpose is accomplished by the filing of a statement of record and property report with HUD. If the statement is on its face complete and accurate, it must be permitted to go into effect.

The Secretary has no power to evaluate the substance of the developer's proposal; and the Disclosure Act expressly provides that "[t]he fact that a statement of record with respect to a subdivision has been filed or is in effect shall not be deemed a finding by the Secretary that the statement of record is true and accurate on its face, or be held to mean the Secretary has in any way passed upon the merits of, or given approval to, such subdivision." § 1417 of the Disclosure Act, 15 U.S.C. § 1716. Moreover, the Act prohibits any person from advertising or representing that the Secretary approves or recommends the subdivision or the sale or lease of lots therein. §§ 1408(b), 1417 of the Disclosure Act, 15 U.S.C. §§ 1707(b), 1716.

Flint Ridge, supra, 96 S.Ct. at 2435 (footnote omitted).

In discussing the ramifications of NEPA, the Court said:

NEPA's instruction that all federal agencies comply with the impact statement requirement—and with all the other requirements of § 102—"to the fullest extent possible," 42 U.S.C. § 4332, is neither accidental nor hyperbolic. Rather, the phrase is a deliberate command that the duty NEPA imposes upon the agencies to consider environmental factors not be shunted aside in the bureaucratic shuffle. . . .
Section 102 recognizes, however, that where a clear and unavoidable conflict in statutory authority exists, NEPA must give way.

Id. 96 S.Ct. at 2437-2438. The Court concluded that NEPA must give way in the case before it.

[E]ven if the Secretary's action in this case constituted major federal action significantly affecting the quality of the human environment so that an environmental impact statement would ordinarily be required, there would be a clear and fundamental conflict of statutory duty.

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Related

Kleppe v. Sierra Club
427 U.S. 390 (Supreme Court, 1976)
Colorado Public Interest Research Group, Inc. v. Hills
420 F. Supp. 582 (D. Colorado, 1976)

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