United States Supreme Court
425 U.S. 284 (1976)
The district court found the Chicago Housing Authority (CHA) and the Federal Department of Housing and Urban Development (HUD) to be funding and building public housing only in African-American neighborhoods in violation of the Constitution. Municipal governments had to either apply to HUD for housing assistance funds or approve the use of the funds in the locality at the time that the district court entered its order. Subsequently, the Housing and Community Development Act of 1974 enlarged the role of HUD. Under § 8, HUD may contract directly with private owners. Local governments retain the right to comment on applications and, in certain contexts, to reject proposals. The United States Court of Appeals for the Seventh Circuit ordered consideration of a metropolitan plan as a remedy to the constitutional violation. HUD petitioned the United States Supreme Court for review.
Rule of Law
Holding and Reasoning (Stewart, J.)
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