Neighborhood Research Institute v. Campus Partners for Community Urban Development

212 F.R.D. 364, 2002 U.S. Dist. LEXIS 25903, 2002 WL 31906345
CourtDistrict Court, S.D. Ohio
DecidedNovember 26, 2002
DocketNo. 92-CV-460
StatusPublished

This text of 212 F.R.D. 364 (Neighborhood Research Institute v. Campus Partners for Community Urban Development) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neighborhood Research Institute v. Campus Partners for Community Urban Development, 212 F.R.D. 364, 2002 U.S. Dist. LEXIS 25903, 2002 WL 31906345 (S.D. Ohio 2002).

Opinion

OPINION AND ORDER

MARBLEY, District Judge.

I. INTRODUCTION

This matter is before the Court on the Defendants’ motions to dismiss the Plaintiffs’ Complaint. On July 8, 2002, Defendants Broad Street Management, Inc., Encore, Sandefur Builders, Inc. (General Partner of Encore), Buckeye 77, Medallion Buckeye, Inc., Medallion-Buckeye, Ltd., Citation, Medallion-Citation, Ltd., U.S. # 51, David W. Houze, Sandefur Builders, Inc. (General Partner of Citation), Discovery 76, Medallion-Discovery, Inc., Medallion-Discovery, Ltd., Momentum 75, Polaris, Medallion-Polaris, Inc., Medallion-Polaris, Ltd., Sandalwood, Rehab Unlimited, Rehab Unlimited 74, Medallion-Sandalwood, Ltd. (General Part[366]*366ner of Sandalwood Limited Partnership), Medallion-RU 74, Inc., Odyssey, Medallion-Odyssey, Ltd., Metro I, Medallion-Metro, Inc., Horizon, and Sandefnr Builders, Inc. (General Partner) (collectively, “Broad Street Defendants”), filed a Motion to Dismiss the Plaintiffs’ Complaint. Then, on July 12, 2002, Defendant Secretary of Housing and Urban Development (“HUD”) filed a Motion to Dismiss. Finally, on July 29, 2002, Defendants James D. Ward, Deborah Martin, and Donald E. Wuertz, the Delaware County Commissioners (collectively, “Delaware Defendants”) filed a Motion to Dismiss the Plaintiffs’ Complaint for failure to state a claim upon which relief can be granted. The Plaintiffs in this case are the Neighborhood Research Institute (“NRI”), which represents residents and an organization of residents of the neighborhood known as Olde Town East, located on the near east side of the City of Columbus, William Shaffer, a resident and homeowner in the near east side of Columbus, and David Fisher d/b/a F & W Properties, who owns properties in the near east side of Columbus.

Based on the following analysis, the Court GRANTS the Defendants’ Motions to Dismiss.

II. BACKGROUND

A. Relevant Statutes and Regulations

The gravamen of the Plaintiffs’ Complaint is that they were wrongfully deprived of the opportunity to participate in the Defendants’ restructuring of certain section 8 housing1 in the City of Columbus. Their claims relate to three federal programs and the associated statutes and regulations. In particular, at issue in this matter are: (1) mortgage insurance, provided pursuant to sections 221(d)(3) and 221(d)(4) of the National Housing Act, 12 U.S.C. § 1715Z (d)(4) (2000); (2) low-income housing assistance, provided pursuant to section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f (Supp. V 1999); and (3) section 8 contract renewals and mortgage restructuring pursuant to the Multifamily Assisted Housing Reform and Affordability Act of 1997, Pub.L. § 105-65, codified at 42 U.S.C. § 1437f Note (“MAHRA”), referred to by HUD as the “Mark-to-Market Program.”

Sections 221(d)(3) and 221(d)(4) of the National Housing Act authorize programs under which HUD insures mortgages on multifamily rental housing projects. Pursuant to those provisions, HUD insures the private lender against default on the loan by the borrower. See 12 U.S.C. § 17151 Each of the thirteen projects at issue in this case was developed through the use of § 221(d)(3) and § 221(d)(4) mortgage insurance.

Section 8 housing assistance is the primary means through which HUD “aid[s] low-income families in obtaining a decent place to live and ... promotes] economically mixed housing.” 42 U.S.C. § 1437f(a). Under the section 8 program, eligible families pay thirty percent of their adjusted income toward their rental payment, while HUD pays the balance of the rent to the project owner, usually through public housing agencies. 42 U.S.C. § 1437f(c)(3), 42 U.S.C. § 1437a(a)(l). All of the section 8 rental assistance provided in this case was project-based, which means that the rental assistance is attached to the housing units, and any eligible tenant residing in the units may receive the assistance.2 See 42 U.S.C. § 1437f(d).

HUD’s Mark-to-Market Program was created pursuant to the requirements of MAH-RA. The purposes of MAHRA include the following:

(1) to preserve low-income rental housing affordability and availability while reducing the long-term costs of project-based assistance;
(2) to reform the design and operation of Federal rental housing assistance programs, administered by the Secretary, to promote greater multifamily housing project operating and cost efficiencies;
[367]*367(3) to encourage owners of eligible multifamily housing projects to restructure their FHA-insured mortgages and project-based assistance contracts in a manner that is consistent with this subtitle before the year in which the contract expires;
(4) to reduce the cost of insurance claims under the National Housing Act ... related to mortgages insured by the Secretary and used to finance eligible multifamily housing projects;
(5) to streamline and improve federally insured and assisted multifamily housing project oversight and administration;
(6) to resolve the problems affecting financially and physically troubled federally insured and assisted multifamily housing projects through cooperation with residents, owners, State and local governments, and other interested entities and individuals;
(7) to protect the interest of project owners and managers, because they are partners of the Federal Government in meeting the affordable housing needs of the Nation through the section 8 rental housing assistance program;
(8) to protect the interest of tenants residing in the multifamily housing projects at the time of the restructuring for the housing; and
(9) to grant additional enforcement tools to use against those who violate agreements and program requirements, in order to ensure that the public interest is safeguarded and that Federal multifamily housing programs serve their intended purposes.

MAHRA § 511(b).

The Mark-to-Market program entails restructuring existing mortgage debt on multifamily housing projects with expiring project-based section 8 rental assistance contracts and the reduction of section 8 rents accordingly. MAHRA §§ 514, 515, 524. The program allows HUD to continue section 8 rental assistance at rental levels in line with comparable unassisted units by means of restructuring the mortgage debts owed on the projects and providing for needed rehabilitation.

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Bluebook (online)
212 F.R.D. 364, 2002 U.S. Dist. LEXIS 25903, 2002 WL 31906345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neighborhood-research-institute-v-campus-partners-for-community-urban-ohsd-2002.