Theodore Hayes v. Philip Harvey

903 F.3d 32
Court of Appeals for the Third Circuit·Decided August 31, 2018·No. 16-2692·Published·Cited by 18 cases

Opinion

GREENAWAY, JR., Circuit Judge.

The Hayes family receives enhanced voucher rental assistance from the federal government, and a federal statute provides that enhanced voucher holders "may elect to remain" in their housing developments, even after their landlord has opted out of *36 the federal housing assistance program. 42 U.S.C. § 1437f(t)(1)(B). But the Hayes family's landlord, Appellee Philip Harvey, contends that this statutory right to "elect to remain" does not apply at the end of a lease term. Thus, according to Harvey, he is permitted to evict the Hayes family without cause once their lease has expired. The District Court agreed and granted Harvey's motion for summary judgment. We will reverse, however, because the statute's plain language and history make evident that enhanced voucher holders may not be evicted absent good cause, even at the end of a lease term. We will therefore remand so that the District Court may consider whether Harvey has good cause to evict under the circumstances of this case.

I. BACKGROUND

A. Statutory and Regulatory Background

In 1974, Congress created the Section 8 housing program "[f]or the purpose of aiding low-income families in obtaining a decent place to live." 42 U.S.C. § 1437f(a) ; Housing and Community Development Act of 1974, Pub. L. No. 93-383, § 201(a), 88 Stat. 633 , 662-66 (1974) (amending the United States Housing Act of 1937) (codified as amended at 42 U.S.C. § 1437f ). The program, which is funded by the Department of Housing and Urban Development ("HUD") and administered by local public housing agencies ("PHAs"), 24 C.F.R. § 982.1 (a)(1), generally provides two different types of rental assistance: "project-based" subsidies and "tenant-based" subsidies. Id. § 982.1(b)(1).

Project-based assistance is tied to specific housing developments or units. 42 U.S.C. § 1437f(f)(6) ; 24 C.F.R. § 982.1 (b)(1). Owners of such properties enter into long-term contracts with the applicable PHA, under which the owners agree to rent their properties to eligible low-income families and the PHA agrees to provide rental assistance payments to the owners on behalf of the assisted tenants. See 42 U.S.C. § 1437f(b) ; 24 C.F.R. §§ 983.202 , 983.205. The owners then enter into written leases with particular families for individual units. See 24 C.F.R. § 983.256 .

Tenant-based assistance, by contrast, is tied to a specific tenant family and travels with the family if it moves. 42 U.S.C. § 1437f(f)(7) ; 24 C.F.R. § 982.1 (b). Tenant-based vouchers may be used on rental units anywhere in the United States, so long as the unit is in the jurisdiction of a PHA that administers a voucher program. 24 C.F.R. § 982.1 (b)(1). Once the assisted family selects an eligible unit and the applicable PHA approves the tenancy, the PHA enters into a contract with the property owner, under which the PHA agrees to make rental assistance payments to the owner. Id. § 982.1(b)(2). Unlike long-term PHA contracts for project-based assistance, a PHA contract for tenant-based assistance can provide for a term as short as one year, and the contract covers only the single unit and the particular assisted family. See id. §§ 982.1(b)(2), 982.309(a). But as with project-based assistance, in addition to the PHA contract, the property owner also enters into a written lease with the assisted family. Id. § 982.308(b).

Under both project-based and tenant-based assistance, the assisted family contributes a prescribed amount toward the overall rental payment, generally equal to thirty percent of the tenant family's monthly "adjusted income" or ten percent of its monthly gross income, whichever is greater. 42 U.S.C. § 1437f(o)(2) ; see also id. § 1437a(a)(1). The government pays the balance of the rent amount up to a statutorily capped amount known as the "payment standard," which normally cannot *37 exceed 110 percent of the fair market rental value for the property, as established by HUD. See id. § 1437f(c), (o)(1)-(2).

In the late 1980s, many of the long-term, project-based assistance contracts between property owners and PHAs began to expire.

Free access — add to your briefcase to read the full text and ask questions with AI

Theodore Hayes v. Philip Harvey, 903 F.3d 32 (3d Cir. 2018).

903 F.3d 32 (Theodore Hayes v. Philip Harvey) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related