Velez v. Cisneros

850 F. Supp. 1257 (1994)

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Velez v. Cisneros

United States District Court for the Eastern District of Pennsylvania
850 F. Supp. 1257 (1994)

Facts

The Chester Housing Authority (CHA) (defendant) operated Pennsylvania public-housing developments with a substantial vacancy rate that was deficient under US Department of Housing and Urban Development (HUD) (defendant) standards. CHA public-housing tenants (the tenants) (plaintiffs) sued CHA and HUD, arguing that CHA and HUD caused de facto demolition of the units by failing to fill vacant units and maintain the units in a habitable condition. The court appointed a mediator to assist in reaching a resolution. While mediation was ongoing, HUD declared CHA a troubled housing authority. When mediation failed, the tenants moved for a preliminary injunction against HUD and CHA. While the motion was pending, HUD assumed control of CHA. Due to the availability of large HUD grants earmarked for widespread building modernization and reconstruction, HUD decided not to rehabilitate individual vacant units for immediate occupancy. HUD determined that allowing units to remain vacant pending large-scale rehabilitation was more fiscally efficient than performing one-off interim repairs in individual vacant units. As a result, the vacancy rates in CHA’s units increased further. HUD/CHA implemented plans for a phased reconstruction over several years in which residents would be relocated within the development during ongoing construction.

Rule of Law

Issue

Holding and Reasoning (Shapiro, J.)

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