Glendale Neighborhood Ass'n v. Greensboro Housing

• Decision Date: 08 June 1995
• Docket Number: Civ. No. 2:95CV00277.
• Citation: 901 F. Supp. 996
• Court: U.S. District Court — Middle District of North Carolina
• Parties: GLENDALE NEIGHBORHOOD ASSOCIATION, an unincorporated association; Randall Gore, Dwight Saffer, and Debra W. Martin, individually, Plaintiffs, v. GREENSBORO HOUSING AUTHORITY, and Henry J. Cisneros, in his official capacity as Secretary of the United States Department of Housing and Urban Development, Defendants.

901 F. Supp. 996

GLENDALE NEIGHBORHOOD ASSOCIATION, an unincorporated association; Randall Gore, Dwight Saffer, and Debra W. Martin, individually, Plaintiffs, v. GREENSBORO HOUSING AUTHORITY, and Henry J. Cisneros, in his official capacity as Secretary of the United States Department of Housing and Urban Development, Defendants.

Civ. No. 2:95CV00277.

United States District Court, M.D. North Carolina, Greensboro Division.

June 8, 1995.

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Gary L. Beaver, Patton Boggs, L.L.P., Greensboro, NC, for plaintiffs.

James R. Turner, Turner Enochs & Lloyd, P.A., Greensboro, NC, Gill P. Beck, Office of U.S. Attorney, Greensboro, NC, for defendants.

MEMORANDUM OPINION

BULLOCK, Chief Judge.

FACTS

In 1994, Defendant United States Department of Housing and Urban Development ("HUD") approved a concept for the development of a public housing project submitted by Defendant Greensboro Housing Authority ("GHA"). HUD reserved a grant to pay for the project whenever a proper site could be located and approved. GHA located a site on Glendale Drive in Greensboro, North Carolina.

On February 13, 1995, GHA submitted a proposal to HUD requesting funding and approval of a public housing project ("the project") for low-income families with children to be built on a 13.92 acre site on Glendale Drive. The site is located in Census Tract 126.12. The proposal called for 50 public housing units to be built on eight acres in the northern portion of the site, and 18 single-family detached homes to be built on the remaining six acres in the southern part of the site. The southern six acres are to be sold to non-profit corporations which will build the homes and sell them to low-income families.

Individuals, both minority and non-minority, living near the proposed site learned of GHA's proposal and decided to oppose the project. Plaintiff Glendale Neighborhood Associated ("GNA") is a 300-person unincorporated association of such individuals. The three individual plaintiffs live near the proposed site and are members of GNA.

Plaintiffs' investigation led them to believe that the project violated federal regulations. Specifically, Plaintiffs believed that HUD violated regulations governing the placement of public housing projects in areas of minority concentration. Plaintiffs also believed that HUD was required to consider demographic trends in the racial composition of a proposed site and that HUD did not do so in this case.

Plaintiffs gathered 1980 and 1990 census data for the area and conducted their own demographic survey of the area surrounding the proposed site. Plaintiffs interpreted their data to show that the site is one of minority concentration and that the demographic trend indicates that the area would continue to increase in minority concentration. This information was delivered to GHA on March 21, 1995, and is part of the Administrative Record. On April 3, 1995, HUD mailed its decision to approve the Glendale site to GHA.

Plaintiffs seek a preliminary injunction against the construction of the project.

ANALYSIS

I. Standing

Defendants argue that Plaintiffs have no standing to pursue this suit. Plaintiffs in the case at bar have alleged that they will be injured by development of the proposed public housing project "because it will result in the creation of a segregated neighborhood in violation of federal law and policy, including the Fair Housing Act and 24 C.F.R. § 941.202." (Am.Verified Compl. ¶ 43, filed May 4, 1995). The analysis of two federal circuit courts is especially persuasive on this issue.

In Jackson v. Okaloosa County, 21 F.3d 1531 (11th Cir.1994), a person living in a public housing project next door to a proposed public housing project who did not assert any intent to relocate to the new project brought suit against HUD and others. Id. at 1539. She alleged that the defendants violated the Fair Housing Act ("FHA") and HUD rules in the site selection process. Id. She also alleged that the defendants maintained a pattern of segregated residential public housing. Id. She argued that placement of the proposed public housing project would "exacerbate segregation in her neighborhood." Id. The court observed that "the Supreme Court has held that `the loss of important benefits from interracial associations' is an injury in fact sufficient for standing under § 804 (42 U.S.C. § 3604) of the FHA." Id. (quoting Trafficante v. Metropolitan Life Ins. Co., 409 U.S. 205, 210, 93 S.Ct. 364, 367, 34 L.Ed.2d 415 (1972)). The court held that "a plaintiff may have `neighborhood' standing to challenge violations of the FHA even if the discriminatory acts are not directed at that person." Id. The court set forth some criteria: "In order to establish neighborhood standing, the plaintiff must show that the racially discriminatory practice at issue affects the neighborhood where the plaintiff resides." Id. (citing Havens Realty Corp. v. Coleman, 455 U.S. 363, 377, 102 S.Ct. 1114, 1123-24, 71 L.Ed.2d 214 (1982)). Moreover, "the neighborhood in question must be relatively compact." Id. (citing Havens, 455 U.S. at 377, 102 S.Ct. at 1123-24).

The Jackson court, reasoning that the proposed facility's population would be almost entirely minority and would be placed next door to the plaintiff's complex, itself almost entirely minority, found that the segregative effect of this occurrence "on a compact area is distinct and palpable." Based on this analysis, the Jackson court held that the plaintiff had standing.

In Alschuler v. HUD, 686 F.2d 472 (7th Cir.1982), neighborhood residents brought a suit very similar to the one at bar. Id. at 477. The court, in examining the defendant's standing argument, quoted the Supreme Court: "The person on the landlord's blacklist is not the only victim of discriminatory housing practices; it is, as Senator Javits said in supporting the bill, `the whole community.'" Trafficante, 409 U.S. at 211, 93 S.Ct. at 368 (citations omitted), quoted in Alschuler, 686 F.2d at 477. The court concluded that "this generous view of the FHA makes clear that plaintiffs are within the zone of interests to be protected and therefore have standing under the Administrative Procedure Act to challenge HUD's decision as contrary to the mandate of the FHA." Id. at 477-48 (footnote and citations omitted); see also La Plaza Defense League v. Kemp, 742 F.Supp. 792 (S.D.N.Y.1990).

Based on the analysis of Jackson and Alschuler described above, the court finds that Plaintiffs have standing in the case at bar.

II. Preliminary Injunction

In determining whether a preliminary injunction should issue, the court must consider four factors: (1) the likelihood of irreparable harm to the plaintiff if the preliminary injunction is denied; (2) the likelihood of harm to the defendant if the requested relief is granted; (3) the likelihood the plaintiff will succeed on the merits; and (4) the public interest. See Blackwelder Furniture Co. v. Seilig Mfg. Co., 550 F.2d 189, 193-196 (4th Cir.1977); see also L.J. v. Massinga, 838 F.2d 118, 120 (4th Cir.1988), cert. denied, 488 U.S. 1018, 109 S.Ct. 816, 102 L.Ed.2d 805 (1989); Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Bradley, 756 F.2d 1048, 1054 (4th Cir.1985). These factors are known as the "Blackwelder factors."

The Blackwelder factors are not considered in a vacuum; the court must "weigh each of the factors in light of the `flexible interplay' among all the factors considered." Quince Orchard Valley Citizens Ass'n v. Hodel, 872 F.2d 75, 79 (4th Cir.1989) (quoting Blackwelder, 550 F.2d at 196). "Because of this flexible interplay, ... a strong showing by the plaintiff on one aspect of the test can compensate for a weak showing on another." Murrow Furniture Galleries, Inc. v. Thomasville Furniture Indus., Inc., 889 F.2d 524, 527 (4th Cir.1989).

The Fourth Circuit has stated, however, that "the irreparable harm to the plaintiff and the harm to the defendant are the two most important factors." Rum Creek Coal Sales, Inc. v. Caperton, 926 F.2d 353, 359 (4th Cir.1991). "If, after balancing those two factors, the balance `tips decidedly' in favor of the plaintiff, a preliminary injunction will be granted if `the plaintiff has raised questions going to the merits so serious, substantial, difficult and doubtful, as to make them fair ground for litigation and thus for more deliberate investigation." Id. (citations omitted).

Based on these principles, the court will examine each of the four Blackwelder factors.

1. Likelihood of irreparable harm to Plaintiffs

Plaintiffs argue that they will be irreparably injured if the court does not issue a preliminary injunction. Citing Gresham v. Windrush Partners, Ltd., 730 F.2d 1417 (11th Cir.1984), cert. denied sub nom. Windrush Partners, Ltd. v. Metro Fair Housing Servs., 469 U.S. 882, 105 S.Ct. 249, 83 L.Ed.2d 187 (1984), Plaintiffs argue that irreparable injury is presumed in this case. Gresham states that "when a plaintiff who has standing to bring suit shows a substantial likelihood that a defendant has violated specific fair housing statutes and regulations, that alone, if unrebutted, is sufficient to support an injunction remedying those violations." Id. at 1423 (citations omitted). The Gresham court also noted that "housing discrimination causes irreparable injury by denying whites, as well as blacks, the benefits of living in an integrated community." Id. at 1424.

The segregation of a neighborhood — especially segregation accomplished through governmental programs — is a harm that affects the residents of the entire neighborhood. Violation of federal housing laws injures not only the residents of the project at issue, but every person living in the neighborhood. The Supreme Court has explained that "`the whole community'" is the victim of discriminatory housing practices. Trafficante, 409 U.S. at 211, 93 S.Ct. at 367-68 (citations omitted).

Plaintiffs also argue that placement of the...