Project Basic Tenants Union v. Rhode Island Housing & Mortgage Finance Corp.

636 F. Supp. 1453, 1986 U.S. Dist. LEXIS 24584
CourtDistrict Court, D. Rhode Island
DecidedJune 5, 1986
DocketCiv. A. 85-0131
StatusPublished
Cited by5 cases

This text of 636 F. Supp. 1453 (Project Basic Tenants Union v. Rhode Island Housing & Mortgage Finance Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Project Basic Tenants Union v. Rhode Island Housing & Mortgage Finance Corp., 636 F. Supp. 1453, 1986 U.S. Dist. LEXIS 24584 (D.R.I. 1986).

Opinion

OPINION

FRANCIS J. BOYLE, Chief Judge.

Plaintiff, Project Basic Tenants Union, sues Rhode Island Housing Mortgage Finance Corporation (“RIHMFC”), the City of Providence, the State of Rhode Island, the United States Department of Housing and Urban Development (“HUD”), and certain named City and State officials and ex-officials. It alleges that Defendants have violated federal law by adopting and promulgating racially discriminatory housing practices, in the City of Providence generally and in the Silver Lake area specifically. Defendants have moved to dismiss the action on the ground that Plaintiff lacks both the capacity and standing to sue. The Court heard argument and reserved decision. For reasons detailed below, the Court holds that Plaintiff has the capacity to sue and has standing as to some Defendants. The Plaintiff lacks standing as to other Defendants. The motions of Defendants RIHMFC, State of Rhode Island, City of Providence and HUD are denied. Those of the individual Defendants, Mayor Paolino, Governor DiPrete, Councilman Stravato, Commissioner Pisaturo, former Mayor Cianci and Ralph Pari, are granted.

I.

Plaintiff is an association of individuals who seek to rectify perceived inequalities in Providence housing. 1 It has two self appointed chairpersons, and no set number of members. Membership in the association generally consists of lessees in public and private housing. Membership is voluntary, based on consistent attendance at association meetings. Project Basic Tenants Union operates under the umbrella of the John Hope Settlement House, a neighborhood community center which provides certain social services. The Tenants Union has no budget or bank account apart from that of the Settlement House. In fact, it is an association under the group known as Project Basic, an apparently more formal association within the Settlement House. Project Basic is also financially dependent upon the larger association. Project Basic Tenants Union is not incorporated and was not formed pursuant to any statutory authority.

In 1976, a development group known as Hillside Associates sought and received from RIHMFC financing for a federally subsidized housing project to be constructed in the Silver Lake area of Providence. As of the 1980 census, Silver Lake was the least integrated tract of the 36 Providence census tracts. At that time, the development group, through the efforts of RIHMFC, also received a commitment from HUD for federal rental subsidy for the project.

Shortly thereafter, Hillside Associates retained a builder who sought a building permit from the City of Providence. At this time, however, public objection to the Hillside Project was mounting. It is alleged that then Mayor Cianci and City Councilman Louis R. Stravato, both named Defendants, were among those speaking out against the project, and that they vowed to stop it. In 1978, the City changed its zoning in the Silver Lake area so that the project could not proceed.

Vincent J. Mesolella, owner of the targeted land in Silver Lake and organizer of Hillside Associates, challenged the City zoning change in the state courts. The Rhode Island Supreme Court ultimately sustained a Superior Court ruling which invalidated the zoning change and removed any zoning barrier to the Hillside Project. *1457 Mesolella v. City of Providence, 439 A.2d 1370 (R.I.1982).

While the zoning issue was being resolved, HUD and RIHMFC had not terminated their financing commitments, but had held them in abeyance. Opponents of Hillside Village learned of this fact and in February of 1985 “renewed their efforts to terminate the development or have it moved to South Providence.” Former Mayor Cianci allegedly rejoined the effort, and Governor DiPrete and the State allegedly urged RIHMFC and its Executive Director Ralph Pari to withdraw their financing commitment. On March 1, 1985, RIHMFC did in fact withdraw its financing commitment. HUD has confirmed that, from its standpoint, the project is still feasible.

Plaintiff alleges in substance that the policies and practices of the Defendants both generally and in relation to Hillside Village have, in a racially discriminatory manner, denied low income minorities access to open and integrated housing in the City of Providence. With respect to all non-federal Defendants, Plaintiff alleges violations of the Fair Housing Act, 42 U.S.C. § 3601, Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d, the civil rights laws of 42 U.S.C. §§ 1981 and 1982, the Thirteenth and Fourteenth Amendments, and the United States Housing Act, 42 U.S.C. § 1437. It alleges that the federal Defendant, HUD, in violation of the Fair Housing Act, has provided funds to Providence and Rhode Island despite known Title VIII non-compliance by the City. Plaintiff seeks damages, declaratory relief, and injunctive relief including but not limited to:

1. a direction that RIHMFC rescind its announcement withdrawing financing for Hillside Village and seek the necessary extensions of its financing commitment and HUD’s reservation of funds;
2. an injunction against further opposition to the Hillside project against the named City and State officials and former Mayor Cianci;
3. a direction that the City, State and RIHMFC develop a plan to alleviate a general “imbalance in terms of geographical location and elderly-family proportionality” in Providence housing; and
4. a direction that HUD withhold federal funding earmarked for Providence until the City establishes its compliance with its Title VIII obligations.

Plaintiff seeks to raise and protect the rights of certain named members of its association. By way of affidavit, Plaintiff certifies that two members, Mary-Lou Tetreault and Cassandra Plummer, are income eligible for Section 8 housing, would like to live in Silver Lake, and would apply for admission to Hillside Village if it were built. The depositions of these two individuals reveal that neither has sought any housing, let alone Section 8 housing, in at least two years, and the eligibility of each for Section 8 housing is questionable — Ms. Tetreault, because of a lack of credit worthiness, and Ms. Plummer, due to income in excess of the maximum requirement.

All Defendants question Plaintiffs standing to sue in either its own right as an organization or as representative of its members. Defendant RIHMFC raises a more basic concern — whether the Plaintiff is a legal entity capable of bringing suit at all. The Court will first address this capacity concern and then the standing questions.

II.

At common law, an unincorporated association had no capacity to sue or be sued. See Puerto Rico v. Russell & Co.,

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Bluebook (online)
636 F. Supp. 1453, 1986 U.S. Dist. LEXIS 24584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/project-basic-tenants-union-v-rhode-island-housing-mortgage-finance-rid-1986.