Atkins v. Robinson
| Citation | 545 F. Supp. 852 |
| Decision Date | 02 August 1982 |
| Docket Number | Civ. A. No. 81-0778-R. |
| Parties | Ernestine ATKINS, et al., Plaintiffs, v. William A. ROBINSON, et al., Defendants. |
| Court | U.S. District Court — Eastern District of Virginia |
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Ira M. Steingold, Steingold & Glanzer, Norfolk, Va., Stephen W. Bricker, Richmond, Va., Martin E. Sloane, Jane W. Vanneman, Bruce S. Gelber, Staff Atty., National Committee Against Discrimination in Housing, Inc., Washington, D. C., for plaintiff.
Richard K. Bennett, Browder, Russell, Morris & Butcher, Richmond, Va., Russell O. Slayton, Jr., Hammack, Slayton & Bain, Lawrenceville, for all defendants except HUD and Va. Housing Development Authority.
Carl F. Bowmer, Roseleen Rick, Richmond, Va., for Va. Housing Development Authority.
Robert W. Jaspen, Asst. U. S. Atty., Richmond, Va., David Belkowitz, Richmond, Va., Nelson Chan, Philadelphia, Pa., for HUD.
Plaintiffs, low-income black residents of Greensville County, Virginia, bring this class action against the County, the members of the Board of Supervisors ("Board") of the County in their individual and official capacities, and the Board's tie breaker in his individual and official capacity alleging that the defendants' veto of a proposed low-income housing development to be located in the County and to participate in the federal Section 8 Housing Assistance Payments program for rent subsidies for lower income families in new housing units under 42 U.S.C. § 1437f was violative of the Fair Housing Act, Title VIII of the Civil Rights Act of 1964, 42 U.S.C. §§ 3601 et seq., 42 U.S.C. § 1982, the thirteenth amendment, and the equal protection and due process clauses of the fourteenth amendment. Also present as plaintiffs are the two would-be developers of the housing project. The Virginia Housing Development Authority ("VHDA") and the United States Department of Housing and Urban Development ("HUD") were joined as defendants by the Court under Fed.R.Civ.P. Rule 19(a) to assure complete relief should the plaintiffs prevail.
Plaintiffs' statutory causes of action rest on 42 U.S.C. § 3612, 42 U.S.C. § 1981 and 42 U.S.C. § 1982. The Court's jurisdiction over these claims vests pursuant to 28 U.S.C. §§ 1331 and 1343(3), and 42 U.S.C. § 3612. Their constitutional claims, based on 42 U.S.C. § 1983, are within this Court's jurisdiction under 28 U.S.C. § 1343(3). Plaintiffs on behalf of the two classes they represent1 seek a court order declaring that Greensville County's veto of the proposed project and the state statute allowing the veto, Va.Code § 36-55.39(B) ("Veto Statute"), to be null and void, prohibiting the County from vetoing the project, assuring Section 8 subsidies and construction financing for the housing complex, permanently enjoining the County from denying access to housing on the basis of race, color, religion, sex or national origin, directing the County to adopt a plan of housing assistance for families in need of rental assistance and to establish a mandatory fair housing educational program for all county officials involved in implementing the court order.2 The Court having heard the evidence, and argument of counsel, this memorandum as its findings of fact and conclusions of law.
Plaintiffs Maurice Steingold and Simon Miller, developers of lower income housing ("S & M"), entered into a contract in early 1981 to purchase approximately 12 acres of land in Greensville County for $150,000. S&M planned to construct on the property a federally-subsidized, family rental housing project to be known as Emporia Heights.3 The proposed site is located on Route 58, east of the City of Emporia, Virginia4 and is situated near water and sewer facilities, municipal and social services, shopping, a hospital and potential employment.5 S&M applied for a mortgage construction loan from the VHDA envisioning that the residents of Emporia Heights would receive rental assistance payments under the Section 8 Housing Assistance Payments program of Section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f.6 The named individual plaintiffs ("minority plaintiffs") are black residents of Greensville County, currently paying more than 25% of their respective incomes in rent and living in homes without indoor plumbing, who would have eligible for Section 8 assistance in Emporia Heights.7
An examination of the financing system for projects similar to Emporia Heights is in order at this point. The VHDA, a political subdivision of the Commonwealth of Virginia, is authorized by Va.Code § 36-55.25 to encourage the investment of private capital in and stimulate the construction and rehabilitation of residential housing through public financing to meet the housing needs of persons of low and moderate income. The agency is empowered to make mortgage loans, insure mortgage loans, borrow money, issue bonds, enter agreements with federal and state governments and administer federal loan programs. Va.Code § 36-55.30. VHDA may pursuant to Va.Code § 36-55.30(10) accept "rent supplement payments made on behalf of eligible persons or families or for the payment in whole or in part of the interest expense for a housing development ...,"8 which would include rental assistance payments provided by the federal government under the Section 8 program.
Under the Section 8 program, the Secretary of HUD is authorized to make rental assistance payments with respect to existing ("Section 8 Existing"), newly constructed ("Section 8 New") and substantially rehabilitated ("Section 8 Substantial Rehabilitation") housing "for the purpose of aiding lower-income families in obtaining a decent place to live and of promoting economically mixed housing ...." 42 U.S.C. § 1437f(a). Generally, families whose incomes do not exceed 80% of the median income for the area as determined by HUD and who pay between 15% and 25% of their income for rent and utilities are eligible for this rental assistance. 24 C.F.R. §§ 883.101(c) and § 889.102. Section 8 subsidies are available in connection with financing by the Farmers Home Administration ("FmHA"),9 or directly from HUD field offices for newly constructed housing,10 substantially rehabilitated housing,11 existing or moderately rehabilitated housing,12 for elderly housing in conjunction with direct HUD loans,13 and for existing HUD-insured and HUD-held housing.14 See 24 C.F.R. § 883.101(a)(2). Another line of access to Section 8 assistance, and the one most relevant to this action, is through statewide or special purpose housing agencies, like the VHDA, established by the various states.15 See 24 C.F.R. § 883.101(a)(1).
The Section 8 program provides only rental assistance, not construction or permanent financing.16 Rather, it is the responsibility of the agency participating in the program to arrange the financing for newly constructed or substantially rehabilitated housing, and of the owner to finance moderately rehabilitated housing. 24 C.F.R. § 883.101(e). The Section 8 Substantial Rehabilitation program provides certain rent subsidies for eligible families residing in housing improved to "decent, safe and sanitary condition in accordance with standards set in the agreement among the state agency, HUD and the developer or owner from a condition below those standards." 24 C.F.R. § 881.201. The Section 8 Existing program provides rental assistance payments for residents of approved existing housing projects or to holders of a Certificate of Family Participation, a family declared eligible to participate in the program by a state or local public housing entity or body, who selects a suitable dwelling unit. 24 C.F.R. §§ 882.102, 882.103. Housing qualifies as "existing" housing, however, only if it meets the standards of decency, safety and sanitation set by HUD in 24 C.F.R. § 882.109, which require, inter alia, hot and cold running water, a flush toilet, certain kitchen facilities, the presence of a living room, kitchen, bathroom and at least one sleeping area for every two persons, lockable doors and windows, safe heating and/or cooling facilities, electricity, adequate illumination, and other structural and material characteristics. 24 C.F.R. §§ 882, 101(a)(2), 882.102, 882.109. Special procedures are provided in 24 C.F.R. Part 882, Subparts D and E for assistance payments to eligible residents of moderately rehabilitated units, i.e., rehabilitation which involves a minimum expenditure of $1,000 for a unit for "modest" improvements needed to comply with the housing quality standards. 24 C.F.R. § 882.402. S & M sought coverage for Emporia Heights under the Section 8 New program, which provides rent subsidies for residents of newly constructed housing units. 24 C.F.R. Part 880.
Under the state agency method of distributing Section 8 New rental subsidies in Virginia, HUD, through the VHDA, enters into an agreement to join a housing assistance payments contract with the private developer of the new housing project. HUD assistance payments, which amount to the difference between the total contract rent for the unit and the rent paid by the tenant, which in turn is determined by a certain portion of his income, are funneled through the VHDA directly to the owner of the project. 24 C.F.R. §§ 101(b); 883.302, 883.602. Each fiscal year,17 HUD Section 8 New rental assistance funds, in the form of "contract authority," are allocated by HUD Central in Washington, D. C. among HUD, the VHDA and FmHA. HUD Central apportions the authority for rent subsidies to its regional offices, including the Philadelphia Office of Region III, on a "fair share" formula reflecting population, poverty, overcrowding, housing condition and similar indices of housing need.18 The Region III Philadelphia office in turn suballocates this authority in December or January of each year to the area HUD offices, including the area office in...
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