City of Kansas City v. United States Department of Housing and Urban Development

861 F.2d 739 (1988)

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City of Kansas City v. United States Department of Housing and Urban Development

United States Court of Appeals for the District of Columbia Circuit
861 F.2d 739 (1988)

DD

Facts

Under the Community Development Block Grant (CDBG) program, the Department of Housing and Urban Development (HUD) (defendant) provided annual funding to state and local governments. The City of Kansas City, Missouri (the city) (plaintiff) was a recipient of CDBG funds and used CDBG funds from 1978 to 1985 to improve sidewalks in certain areas of the city. The city assessed property owners for the cost of improving the sidewalks in front of their homes. HUD prohibited this type of assessment and ordered the city to reimburse the property owners for the improper assessments. The city refused to comply with HUD’s order. Fearing that HUD planned to withhold the city’s 1987 CDBG funds, the city filed suit, seeking to compel HUD to distribute the full amount of the funds. Later, HUD conditioned a portion of the city’s 1987 CDBG funds on the city’s repayment of the assessments. The district court determined that HUD was required to provide the city with an opportunity for a hearing before imposing the condition. HUD appealed.

Rule of Law

Issue

Holding and Reasoning (Edwards, J.)

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