McDonell v. Harford Cnty. Hous. Agency
This text of 202 A.3d 540 (McDonell v. Harford Cnty. Hous. Agency) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Adkins, J.
To paraphrase Justice William Brennan in the landmark decision
Goldberg v. Kelly
,
Today we resolve two questions: 1 (1) whether Respondent Harford County Housing Agency ("HCHA") terminated Petitioner Karen McDonell's voucher without affording appropriate procedures under Maryland law and the United States Constitution; and (2) whether the HCHA's decision to terminate McDonell's voucher was supported by substantial evidence in the record.
We shall hold that the HCHA complied with procedural due process, that Maryland law required no additional process, and that the record contained substantial evidence.
BACKGROUND
Factual Overview and Procedural Posture
On November 4, 2011, Karen McDonell was enrolled in the Housing Choice Voucher Program ("HCVP" or "Voucher Program," but commonly "Section 8"). The HCVP is a federally-funded housing assistance program, administered by the HCHA 2 in Harford County, Maryland. Families enrolled in the HCVP must abide by a set of guidelines, explained in detail below, or risk termination of their monthly rental assistance.
McDonell participated in the Voucher Program without issue for more than three years. In February 2015, she fell behind on her obligation to reimburse the HCHA for an overpayment and entered into a Restitution Agreement. Under the agreement, she was required to make monthly payments of $42.22. The amount of the payments was ultimately lowered because McDonell struggled to afford the first-prescribed amount. Even so, she failed to make payments in August and September of 2015.
In June 2015, McDonell was involved in an altercation involving her sister, a neighbor, and the neighbor's daughter. McDonell was found guilty on two counts of second-degree assault and was incarcerated at the Harford County Detention Center. While McDonell was incarcerated, her mother twice informed the HCHA that McDonell and her family were not residing in the home: once on October 1 and once on an unknown date. During her incarceration, McDonell was allegedly denied access to her medication, and consequently, fell into a diabetic coma and was taken to Upper Chesapeake Medical Center. The HCHA was made aware of this.
McDonell was released from jail on October 15, 2015. Days after her release, McDonell's unit failed a Housing Quality Inspection due to a rodent infestation, and she was ordered to make repairs by November 10. But on November 10, McDonell was not present at the home for the reinspection.
On November 30, 2015, the HCHA sent McDonell a letter notifying her that her Housing Voucher was being terminated for the following reasons:
1. Failure to provide access to your unit for the required Housing Quality Standard (HQS) Inspection scheduled for November 10, 2015.
2. Failure to notify the Housing Agency that your family was not residing in the assisted unit. (According to the Maryland Judiciary Case Search, you were incarcerated from September 8, 2015, through October 14, 2015.)
3. On June 9, 2015, you were charged with two counts of Second Degree Assault in the District Court for Harford County. On September 8, 2015, the District Court of Harford County listed the disposition for both charges as guilty.
4. Failure to pay restitution to the Housing Agency in accordance with the restitution agreement you signed on February 5, 2015. The last payment made on your accoun[t] was October 19, 2015.
The letter also advised McDonell that her housing assistance would terminate December 31, 2015 and that she had the right to request an informal hearing within 14 days. McDonell requested an informal hearing, which was held on December 21, 2015. The Hearing Officer ("HO") issued a decision upholding the termination on January 6, 2016, which is excerpted at length below.
McDonell sought judicial review in the Circuit Court for Harford County. McDonell argued that: the hearing was "unfair," she never received notice of the reinspection, her mother promptly notified the HCHA of McDonell's incarceration, she was "caught up" on her restitution payments, and she was "falsely" charged with two counts of second-degree assault. The Circuit Court determined that the record contained substantial evidence to justify the HCHA's decision to terminate McDonell's voucher. The judge upheld the termination on all four grounds listed in the notice.
In an unreported decision, the Court of Special Appeals affirmed the decision of both the Circuit Court and the HO. While finding the due process issues unpreserved, the intermediate appellate court went on to hold that, even if the issue was properly before it, "the Housing Agency did not violate appellant's due process rights." It also held that "the [HCHA's] decision to terminate appellant's Housing Vouchers was supported by substantial evidence in the record and not premised upon an erroneous legal conclusion."
HUD Regulations and the Informal Hearing Procedure
Congress established the HCVP with the express purpose of "promot[ing] the
general welfare of the Nation ...."
Free access — add to your briefcase to read the full text and ask questions with AI
Adkins, J.
To paraphrase Justice William Brennan in the landmark decision
Goldberg v. Kelly
,
Today we resolve two questions: 1 (1) whether Respondent Harford County Housing Agency ("HCHA") terminated Petitioner Karen McDonell's voucher without affording appropriate procedures under Maryland law and the United States Constitution; and (2) whether the HCHA's decision to terminate McDonell's voucher was supported by substantial evidence in the record.
We shall hold that the HCHA complied with procedural due process, that Maryland law required no additional process, and that the record contained substantial evidence.
BACKGROUND
Factual Overview and Procedural Posture
On November 4, 2011, Karen McDonell was enrolled in the Housing Choice Voucher Program ("HCVP" or "Voucher Program," but commonly "Section 8"). The HCVP is a federally-funded housing assistance program, administered by the HCHA 2 in Harford County, Maryland. Families enrolled in the HCVP must abide by a set of guidelines, explained in detail below, or risk termination of their monthly rental assistance.
McDonell participated in the Voucher Program without issue for more than three years. In February 2015, she fell behind on her obligation to reimburse the HCHA for an overpayment and entered into a Restitution Agreement. Under the agreement, she was required to make monthly payments of $42.22. The amount of the payments was ultimately lowered because McDonell struggled to afford the first-prescribed amount. Even so, she failed to make payments in August and September of 2015.
In June 2015, McDonell was involved in an altercation involving her sister, a neighbor, and the neighbor's daughter. McDonell was found guilty on two counts of second-degree assault and was incarcerated at the Harford County Detention Center. While McDonell was incarcerated, her mother twice informed the HCHA that McDonell and her family were not residing in the home: once on October 1 and once on an unknown date. During her incarceration, McDonell was allegedly denied access to her medication, and consequently, fell into a diabetic coma and was taken to Upper Chesapeake Medical Center. The HCHA was made aware of this.
McDonell was released from jail on October 15, 2015. Days after her release, McDonell's unit failed a Housing Quality Inspection due to a rodent infestation, and she was ordered to make repairs by November 10. But on November 10, McDonell was not present at the home for the reinspection.
On November 30, 2015, the HCHA sent McDonell a letter notifying her that her Housing Voucher was being terminated for the following reasons:
1. Failure to provide access to your unit for the required Housing Quality Standard (HQS) Inspection scheduled for November 10, 2015.
2. Failure to notify the Housing Agency that your family was not residing in the assisted unit. (According to the Maryland Judiciary Case Search, you were incarcerated from September 8, 2015, through October 14, 2015.)
3. On June 9, 2015, you were charged with two counts of Second Degree Assault in the District Court for Harford County. On September 8, 2015, the District Court of Harford County listed the disposition for both charges as guilty.
4. Failure to pay restitution to the Housing Agency in accordance with the restitution agreement you signed on February 5, 2015. The last payment made on your accoun[t] was October 19, 2015.
The letter also advised McDonell that her housing assistance would terminate December 31, 2015 and that she had the right to request an informal hearing within 14 days. McDonell requested an informal hearing, which was held on December 21, 2015. The Hearing Officer ("HO") issued a decision upholding the termination on January 6, 2016, which is excerpted at length below.
McDonell sought judicial review in the Circuit Court for Harford County. McDonell argued that: the hearing was "unfair," she never received notice of the reinspection, her mother promptly notified the HCHA of McDonell's incarceration, she was "caught up" on her restitution payments, and she was "falsely" charged with two counts of second-degree assault. The Circuit Court determined that the record contained substantial evidence to justify the HCHA's decision to terminate McDonell's voucher. The judge upheld the termination on all four grounds listed in the notice.
In an unreported decision, the Court of Special Appeals affirmed the decision of both the Circuit Court and the HO. While finding the due process issues unpreserved, the intermediate appellate court went on to hold that, even if the issue was properly before it, "the Housing Agency did not violate appellant's due process rights." It also held that "the [HCHA's] decision to terminate appellant's Housing Vouchers was supported by substantial evidence in the record and not premised upon an erroneous legal conclusion."
HUD Regulations and the Informal Hearing Procedure
Congress established the HCVP with the express purpose of "promot[ing] the
general welfare of the Nation ...."
PHAs are required to "comply with HUD regulations," issued in the Code of Federal Regulations, and "other binding program directives."
family's action or failure to act," explained in
In those circumstances, the PHA "must give the family prompt written notice" of the termination of assistance.
HUD regulations also provide guidance regarding hearing procedures. Both the family and the PHA are given an opportunity to conduct discovery. The family "must be given the opportunity to examine ... any PHA documents that are directly relevant" before the hearing.
Informal hearings are conducted by an HO. This individual may be "any person" designated by the PHA, so long as he or she did not "approve[ ] the decision under review" and is not a subordinate of that person.
PHAs are also required to adopt a written Administrative Plan "that establishes local policies for administration of the [Voucher Program] in accordance with HUD regulations and requirements."
Though lengthy, the relevant portions of the HCHA Administrative Plan are largely a restatement of the informal hearing requirements included in the HUD regulations. Regarding the informal hearing decisions, the Administrative Plan states that the HO's decision must: (1) "be based solely on allowable pertinent evidence presented at the time of the informal hearing"; (2) determine "if the action, inaction, or decision of the HCHA is in accordance with HUD regulations and this plan"; and (3) include "[a] clear summary of the decision," "the reasons for the decision," and "[t]he effective date of the decision." Harford County Housing Agency,
Administrative Plan
171 (2016) [hereinafter
Admin. Plan
]. The Administrative Plan also provides timeframes for some of the HUD requirements.
See
Procedural Due Process Overview
The Due Process Clause is the floor upon which each of the above statutes, regulations, and administrative plans rests-it prevents procedures from falling below a certain level. There are two questions at the heart of any procedural due process case. The first question considers whether due process protections should be afforded to the interest at issue. Specifically, the Fifth and Fourteenth Amendments list "life,
liberty, [and] property" as protected interests. U.S. Const. amends. V, XIV. The next question is: If a protected interest is involved, what process is due? "Due process, unlike some legal rules, is not a technical conception with a fixed content unrelated to time, place and circumstances."
Cafeteria & Restaurant Workers Union, Local 473, AFL-CIO v. McElroy
,
In
Goldberg v. Kelly
,
The Supreme Court first highlighted that it was "crucial" to consider that terminating aid to the private welfare recipient "pending resolution of a controversy over eligibility may deprive an eligible recipient of the very means by which to live
while he waits."
Ultimately, the Court concluded that "[t]he stakes [were] simply too high for the welfare recipient," whose interest "clearly outweighs the State's competing concern ...."
Regarding the decision rendered from the pre-termination hearing, the
Goldberg
Court determined that "the decisionmaker's conclusion as to the recipient's eligibility must rest solely on the legal rules and evidence adduced at the hearing."
The underlying importance of appropriate pre-deprivation procedures and a resulting adequate decision was discussed in
Moore v. Ross
,
We first addressed
Goldberg
as it relates to informal hearing procedures in
Walker v. Department of Housing and Community Development
,
DISCUSSION
Preservation
We first discuss HCHA's contention that McDonell did not preserve her due process challenge. The Court of Special Appeals agreed with the HCHA that McDonell "failed to properly preserve all issues regarding due process" because she did not "seek judicial review of the Agency's decision on due process grounds ...." Ultimately, the intermediate appellate court concluded that McDonell waived her appellate rights pursuant to Maryland Rule 8-131(a).
In Maryland, generally, "the appellate court will not decide any other issue [not related to jurisdiction] unless it plainly appears by the record to have been raised in or decided by the trial court ...." Md. Rule 8-131(a). Nonetheless, we may still choose to decide an unraised issue "if necessary or desirable to guide the trial court or to avoid the expense and delay of another appeal."
McDonell filed a
pro se
memorandum in the Circuit Court for Harford County. In her memorandum, McDonell states among her reasons for appealing her voucher termination that she "was given an unfair hearing." Both the United States Supreme Court and this Court have repeatedly and consistently emphasized that the purpose underlying the procedural due process guarantee is fundamental fairness.
See
Mathews v. Eldridge
,
The preservation question is a close one, but we have found cause before to review questions that were narrowly preserved but nonetheless "important."
See
Johnson v. State
,
The HCHA uses our decision in
Board of Physician Quality Assurance v. Levitsky
,
In light of the considerable importance of the issue, and considering that McDonell argued "fairness," a basic tenet of procedural due process, we hold that McDonell's due process claim was adequately preserved for our review.
Procedural Arguments
McDonell raises two main procedural arguments. First, she argues that she should have received a contested case hearing under the Maryland Administrative Procedure Act. Second, even if she was not entitled to such a hearing, McDonell asserts her due process rights were nonetheless violated because she was deprived of adequately protective procedures. We review both arguments in turn. 5
Standard of Review
Generally, we review legal determinations without deference to the views of the intermediate appellate court, trial court, or administrative agency.
See
Cty. Council of Prince George's Cty. v. Zimmer Dev. Co.
,
MD APA Contested Case Hearings
The Maryland Administrative Procedure Act contested case procedures, codified at Md. Code (1984, 2014 Repl. Vol.), §§ 10-201-226 of the State Government Article ("State Gov't"), was enacted for the sometimes-competing purposes of "ensur[ing] the right of all persons to be treated in a fair and unbiased manner" and "promot[ing] prompt, effective, and efficient government."
McDonell argues that she, and presumably any HCVP participant facing termination of benefits, is entitled to a contested case hearing under the MD APA. The crux of McDonell's argument is that because
Walker
held that voucher recipients in State-administered programs must receive contested case hearings,
The HCHA responds that, as an agency operating in a single county, it falls outside the scope of the MD APA. It argues that contested case hearings only apply to proceedings before an "agency,"
State Gov't § 10-202(d)(1), and that under the MD APA, the HCHA is not an agency.
We believe this issue presents a relatively straightforward question of statutory interpretation. State Gov't § 10-203 provides a list of "general exclusions" from the contested case hearing procedures. One of the enumerated exceptions includes:
(4) an officer or unit not part of a principal department of State government that: [i] is created by or pursuant to the Maryland Constitution or general or local law; [ii] operates in only 1 county; and [iii] is subject to the control of a local government or is funded wholly or partly from local funds.
Likewise, the HCHA falls outside the definition of "agency." Under the statute, a " 'contested case' means a proceeding
before an
agency
to determine ... a right, duty, statutory entitlement, or privilege of a person" that, under the Constitution, can only be "determined" once given the opportunity for a hearing. State Gov't § 10-202(d)(1) (emphasis added). The term "agency" means "a unit that: (i) is created by general law; (ii) operates in at least 2 counties;
and
(iii) is authorized by law to adjudicate contested cases."
As discussed, the HCHA only operates in one county: Harford County. The Administrative Plan specifically states that the HCHA's jurisdiction includes "Harford County, Maryland" and no other location.
Admin. Plan
, at 1. Thus, the HCHA is not an "agency" under the statute, and a contested case hearing could never come before it. In this way, McDonell's case markedly differs from
Walker
, in which the parties stipulated that the Department of Housing and Community Development was "a State agency to which the [MD APA] applies."
McDonell calls the dichotomy between the MD APA covering some housing voucher recipients, but not others, "absurd," 6 but she offers no plausible legal rationale as to why this arrangement is unlawful. Nor do we see any. We do not concur with McDonell's view of this legislation as a choice to cover some voucher recipients but not others. Rather, the General Assembly apparently chose to impose the more formal APA requirements on larger, state-wide agencies, but not on local ones. This may reflect a legislative concern that the more formal procedures required by the MD APA are too costly and inefficient for a local government to bear-certainly not an absurd rationale. The General Assembly has often demonstrated caution and restraint when imposing mandates on local government, especially those involving additional costs that are not funded by the State. McDonell also offers a three-factor analysis, allegedly prescribed by our administrative common law that, if met, entitles a voucher recipient to a contested case hearing. She asserts that if a hearing involves disputed facts, an adverse impact to liberty or property interests, and no emergency decision is required, then MD APA contested case protections must be provided. But McDonell cites no authority to support this proposition, although the factors she highlights seem to be derived from Goldberg . Even assuming this is an appropriate synthesis and application of the Goldberg requirements, satisfying these elements would only entitle a recipient to a hearing consistent with the Constitution's due process protections, not relief under a statutory scheme from which she is plainly foreclosed.
For the above reasons, we hold that recipients in locally-administered housing voucher programs, like the one in this case, are not entitled to contested case hearings under the MD APA. This leaves unanswered the question-which we consider next-of whether the HCHA's procedures, as applied here, meet the due process guarantee.
Procedural Due Process
McDonell makes three arguments in support of her claim that she was deprived of procedural due process. First, and most easily resolved, is McDonell's assertion that the Hearing Officer's final decision failed to inform her of her right to seek judicial review. McDonell bases this argument on the MD APA requirement that agencies provide a "written statement of appeal rights." State Gov't § 10-221(b)(2). But, as we said above, the MD APA does not apply, and so this argument fails.
Next, McDonell argues that the HCHA failed to maintain an adequate record of the informal hearing. McDonell avers that whatever happened at the informal hearing is
entirely unclear from the record and insists that the HCHA is required to maintain a more comprehensive accounting. Yet, McDonell cites no cases providing support for her assertion that due process requires that the hearing be recorded. Indeed, there is case law to the contrary.
See
Montgomery v. Hous. Auth. of Balt. City
,
Adequacy of the HO's Written Decision
Finally, McDonell argues that the HCHA failed to issue an adequate decision in light of federal law and its own Administrative Plan. For one, McDonell asserts that the HO's decision did not contain adequate conclusions of law because the only regulation referenced was
First, we address McDonell's argument, based solely upon
Turner v. Hammond
,
A crucial difference between
Turner
and this case is that
Turner
dealt with zoning exemptions, which are reviewed at public hearings and subject to quasi-judicial action by administrative bodies. In
Hyson v. Montgomery County Council
,
Based on our reading of
Goldberg
alone, however, it is difficult to divine the precise contours of an "adequate" decision. The Supreme Court provided little in the way of guidance, stating simply that "the decision maker should state the reasons for his determination and indicate the evidence he relied on, though his statement need not amount to a full opinion or even formal findings of fact and conclusions of law."
Goldberg
,
In a leading case,
Escalera v. New York City Housing Authority
,
The minimum procedural requirements of due process under the Fourteenth Amendment must reflect the balance between the government's interest in efficient administration and the nature of the individual's interest being affected by governmental action. We hold only that granting every favorable inference to plaintiffs' complaints and affidavits, it appears that the [Housing Authority's] procedures are deficient in several specific aspects. Upon trial, the [Housing Authority] may be able to show great need for expedited procedures, or the plaintiffs may fail to substantiate all of their allegations. Therefore the fashioning of a remedy or a declaratory judgment must await the full trial of these actions.
In a similar vein, the Seventh Circuit, after recognizing an entitlement to retroactive housing payments, remanded to the district court "to determine what process may be due."
Holbrook
,
The function of the legal process, as that concept is embodied in the Constitution, and in the realm of factfinding, is to minimize the risk of erroneous decisions. Because of the broad spectrum of concerns to which the term must apply, flexibility is necessary to gear the process to the particular need; the quantum and quality of the process due in a particular situation depend upon the need to serve the purpose of minimizing the risk of error.
Id. at 1280. 7 With the federal appellate judges deferring to their colleagues at the trial level to measure constitutional adequacy, we have fewer reported cases to consider regarding the particulars of informal hearings.
We find the Federal District Court's decision in
Moore v. Ross
,
A few other cases also help give shape to our notion of what might render a decision adequate. Decisions also may not stand when the evidence supporting them "consists
entirely of hearsay,"
Sanders v. Sellers-Earnest
,
More relevant to this case, the HO's decision must respond, in some fashion, to the evidence presented at the hearing. In
Carter v. Lynn Housing Authority
,
The HO is also required to cite an adequate legal basis for his or her decision. This basis should give the recipient an accounting of which regulations were allegedly violated and some explanation as to how he or she failed to meet the requirements of each regulation.
Compare
In
Edgecomb v. Housing Authority of the Town of Vernon
,
Additionally, the HO's decision cannot be so "conclusory" as to make it inadequate. In
Driver
,
To review, although a decision need not "amount to a full opinion,"
Goldberg
,
Here, the Hearing Officer's January 6, 2016 decision consists of approximately one and one-third of a page. A significant portion of that is a repetition of the November 30, 2015 Notice of Termination. The remainder of the decision is stated in full below:
Access was given to the unit for the Housing Agency to perform the [Housing Quality Standards] inspection. The inspection was completed, but the unit failed to pass the inspection. Restitution is currently paid up to date, although letters were presented from the Housing Agency Accounting Department showing numerous late pays during the term of the Restitution Agreement. Evidence was presented that notification did occur regarding the family not residing in the unit during the term of incarceration, however, this notification was not within the time requirements given by the Housing Agency. Evidence was presented that you were a victim of the assault and not the aggressor, however, it was not refuted that the incarceration did occur per a court order. You testified that you are working to have the charges overturned through the court system, but at this time, your record shows that you have been found guilty by the courts.
A determination must be made based on the evidence presented at the Hearing. In this case, it is found that you have violated the rules and regulations of the Program, and the termination is upheld. You may apply for services again once the waiting list has been reopened. If you apply and are selected, the outcome of your conviction appeal may be taken into consideration.
Applying the Goldberg formulation, we first examine the types of evidence on which the HO relied. There is no reason to believe that the HO relied on any inappropriate evidence-e.g., ex parte evidence, etc.-in his decision. Nor does McDonell claim to the contrary. So, we examine whether the HO appropriately considered and responded to the evidence presented at the hearing.
"[T]he decisionmaker's conclusion as to the recipient's eligibility must rest solely on the legal rules and evidence adduced at the hearing."
Goldberg
,
Some aspects of the decision fall short. One example is the HO's discussion of whether McDonell provided adequate notice to the HCHA regarding her family's absence from the unit. The HO states that "[e]vidence was presented that notification did occur regarding the family not residing in the unit during the term of incarceration ...." Yet, he concludes that "this notification was not within the time requirements given by the Housing Agency." The record reveals that McDonell's mother called twice-one message dated and the other undated-to notify the HCHA of McDonell's absence. Yet we cannot tell from the written decision why the HO concluded there was insufficient notice. Accordingly, if the lack of notice of McDonell's absence from the unit were the only grounds for termination, we would be loath to uphold the decision.
But there is more. The HO also grounded his decision on evidence that McDonell was convicted of assault. 10 The written decision informed McDonell that her participation in the HCVP was terminated because, among other reasons, "[she was] charged with two counts of Second Degree Assault in the District Court for Harford County" and that the "disposition for both charges [was] guilty." The decision provides the exact dates for both above instances. Moreover, the HO did not ignore McDonell's claim that she "was the victim of the assault and not the aggressor," or that she "testified that [she was] working to have the charges overturned." The HO paired each piece of evidence back-to-back, intimating that they were weighed against each other. In the end, though, the HO chose to rely on McDonell's criminal conviction in the District Court and uphold termination.
The HCHA Administrative Plan sets forth that the types of credible evidence to be weighed include "evidence obtained from police and/or court records." Admin. Plan , at 162. Although some information from these sources no doubt would be unreliable or inconclusive, we see no logic in rejecting a judicial verdict of guilt as legitimate grounds for the HO to decide that the assault occurred. In her District Court trial, the State was required to prove McDonell's guilt beyond a reasonable doubt and the panoply of rights accorded criminal defendants was accorded her. The administrative record contains the docket entries, which reflect that McDonell was represented by counsel and entered a plea of Not Guilty.
We are not persuaded otherwise by McDonell's exercise of her right to a de novo appeal to the Circuit Court pursuant to Md. Code (1974, 1982 Repl. Vol.), § 12-401 of the Courts and Judicial Proceedings Article, or the subsequent decision by the Circuit Court to vacate the judgment in favor of entering a verdict of probation before judgment. 11 The HO was required to decide whether McDonell committed the assault based on a preponderance of the evidence presented to him at the time of the informal hearing. Evidently, the HO was persuaded that McDonell committed the acts underlying the criminal conviction.
The HO was not required to defer his decision until after McDonell exhausted her appeal. To hold otherwise would unjustifiably delay prompt and efficient administration of the Voucher Program-not just in this case, but in the potentially countless other cases in which a criminal conviction is a ground for termination. With McDonell's assault conviction as the foundation for the HO's decision, we conclude both that the written decision is adequate, and that due process does not require a recording or transcript of the informal hearing. 12
Legal Grounds For Termination
A separate question remains-whether the assault conviction or McDonell's underlying actions afforded an appropriate legal basis for termination from the program. We start with
the regulatory law that termination from the program is permissible even if only one of the charges is sustained.
See
Substantial Evidence Arguments
We granted
certiorari
on several questions that revolve around whether the record contains substantial evidence to support termination for a given offense. "[T]he PHA may at any time ... terminate program assistance for a participant[ ] for
any
" of the allowable grounds under the regulation.
The inherent power of judicial review of administrative decisions is extremely limited.
See
Harvey v. Marshall
,
This substantial evidence test is familiar as we normally apply the standard in review of administrative decisions when review
is
authorized by statute.
See, e.g.
,
Dickinson-Tidewater, Inc. v. Supervisor of Assessments of Anne Arundel Cty.
,
Review under the test "is limited to determining if there is substantial evidence in the record as a whole to support the agency's findings and conclusions, and to determine if the administrative decision is premised upon an erroneous conclusion of law."
United Parcel Serv., Inc. v. People's Counsel for Balt. Cty.
,
A reviewing court "may not uphold the agency order unless it is sustainable on the agency's findings and for the reasons stated by the agency."
United Parcel Serv.
,
Violent or Otherwise Threatening Criminal Activity
Applying these principles, we consider whether substantial evidence in the record supports termination for engaging in violent criminal activity. McDonell argues that second-degree assault does not constitute "violent criminal activity" to
warrant voucher termination. She points to HUD's definition of "violent criminal activity" as a crime with one of its elements being the use or threatened use of force "substantial enough to cause ... serious bodily injury or property damage,"
The HCHA responds that McDonell's reading of the HUD regulations is too limiting. Rather, they say that an agency may terminate a voucher if it finds, by a preponderance of the evidence, that "the family has been engaged in criminal activity or alcohol abuse as described in [ 24 C.F.R.] § 982.553," regardless of conviction.
Both parties recognize that criminal activity, generally, is an acceptable ground upon which the HCHA may terminate assistance, as specified in
With this standard in mind, we evaluate whether the record contained substantial evidence for the HCHA to determine, by a preponderance of the evidence, that McDonell's alleged conduct was violent or threatening to health, safety, or peaceful enjoyment. The assault charges stem from an incident involving McDonell, her sister, a neighbor, and the neighbor's daughter. We have no transcript of testimony-from either the District Court trial or the HCHA informal hearing-and rely largely on the dual Applications For Statement of Charges-one filed by Joann Douglas against McDonell, and the other filed by McDonell against Douglas. As McDonell describes the events, she was leaving the HCHA property to run errands with her sister when the neighbor and her daughter attacked them. During the altercation, the neighbor and her daughter physically injured both McDonell and her sister and damaged their personal property. Also, in a "Tenant Complaint Form," submitted after her incarceration, McDonell asserts that the neighbor "assaulted" her again on two separate occasions. 16
The neighbor, in her Application for Statement of Charges, describes the events differently. She reported that McDonell initiated the confrontation by directing "racial slurs" at her and her daughter, and then drove with her sister to the neighbor's home to continue to harass her. Allegedly, McDonell exited her car and attempted to punch the neighbor multiple times, ultimately striking her on the shoulder. The daughter and sister also allegedly began to fight. The neighbor also claims that McDonell pulled out her daughter's braids and scratched her face. When the altercation ended, the neighbor called the police.
On June 8, 2015, the day of the assault, McDonell pressed charges against her neighbor. On June 11, the neighbor also pressed charges against McDonell for two counts of second-degree assault. Although the State dismissed all charges against the neighbor on August 10, it pursued them against McDonell, and after a September 9 trial, McDonell was found guilty on both charges. McDonell's sister was also found guilty of second-degree assault. 17 The record demonstrates that McDonell appealed her convictions on December 16, 2015, but the judge ordered that the "terms or conditions of probation not be stayed." There is no indication as to the result of the appeal.
All the above was in the record before the HO during the informal hearing, as well as McDonell's conviction. The HO noted some of these facts in his decision, as described above. The HCHA was not required to prove guilt beyond a reasonable doubt. Instead, the HCHA need only establish, by a preponderance of the evidence, that McDonell committed the violent act or threatened resident health, safety, or peaceable enjoyment for which her voucher was terminated. We concluded earlier that the HO did not ignore McDonell's claim that she "was the victim of the assault and not the aggressor," or that she "testified that [she was] working to have the charges overturned," but decided to rely on the conviction itself to tip the scales. A reviewing court "must review the agency's decision in the light most favorable to it; the agency's decision is prima facie correct and presumed valid and it is the agency's province to resolve conflicting evidence ...."
Marzullo v. Kahl
,
Applying the substantial evidence standard as required by due process, we conclude that a reasoning mind could have reached the factual conclusion the agency reached-that McDonell attacked or threatened the health, safety, or peace of the neighbor and her daughter. For this reason, we uphold the HCHA's decision to terminate McDonell's voucher.
SUMMARY
In sum, we hold that the HCHA is not an "agency" for the purposes of the MD APA, and therefore, McDonell is not entitled to a contested case hearing. McDonell was entitled to due process, which she was accorded by the HCHA through the informal hearing and written decision. The HCHA provided adequate notice before the hearing, and was not required to include notice of her right to appeal. She was not entitled to a transcript of the informal hearing. The Hearing Officer's decision was supported by substantial evidence of qualifying criminal activity. We need not reach the other substantial evidence issues because the above-enumerated reasons are sufficient to uphold the HCHA's decision to terminate McDonell's housing voucher. We disagree with the Court of Special Appeals as to its conclusion that McDonell's due process claim was not adequately preserved. But, we affirm the intermediate appellate court on Petitioner's substantive issues, although, as explained, on somewhat different grounds.
JUDGMENT OF THE COURT OF SPECIAL APPEALS IS AFFIRMED. COSTS TO BE PAID BY PETITIONER.
Related
Cite This Page — Counsel Stack
202 A.3d 540, 462 Md. 586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonell-v-harford-cnty-hous-agency-md-2019.