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- NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
- being done in connection with this case, at the time the opinion is issued.
- The syllabus constitutes no part of the opinion of the Court but has been
- prepared by the Reporter of Decisions for the convenience of the reader.
- See United States v. Detroit Lumber Co., 200 U. S. 321, 337.
-
- SUPREME COURT OF THE UNITED STATES
-
- Syllabus
-
- CISNEROS, SECRETARY OF HOUSING AND
- URBAN DEVELOPMENT, et al. v. ALPINE RIDGE
- GROUP et al.
- certiorari to the united states court of appeals for
- the ninth circuit
- No. 92-551. Argued March 30, 1993-Decided May 3, 1993
-
- The so-called Section 8 housing program under the United States
- Housing Act of 1937 (Housing Act) authorizes private landlords who
- rent to low-income tenants to receive ``assistance payments'' from the
- Department of Housing and Urban Development (HUD) in an
- amount calculated to make up the difference between the tenants'
- rent payments and a ``contract rent'' agreed upon by the landlords
- and HUD. Section 1.9b of the latter parties' ``assistance contracts''
- provides that contract rents are to be adjusted annually by applying
- the latest automatic adjustment factors developed by HUD on the
- basis of particular formulas, while 1.9d specifies that,
- ``[n]otwithstanding any other provisions of this Contract, adjustments
- as provided in this Section shall not result in material differences
- between the rents charged for assisted and comparable unassisted
- units, as determined by the Government . . . .'' In the early 1980's,
- HUD began to conduct independent ``comparability studies'' in
- certain real estate markets where it believed that contract rents,
- adjusted upward by the automatic adjustment factors, were
- materially higher than prevailing market rates for comparable
- housing, and to use the private market rents as an independent cap
- limiting assistance payments. In this litigation, respondent Section 8
- landlords allege that 801 of the Department of Housing and Urban
- Development Reform Act of 1989 (Reform Act)-which, inter alia,
- authorizes HUD to limit future automatic rent adjustments through
- the use of comparability studies-violates the Due Process Clause of
- the Fifth Amendment by stripping them of their vested rights under
- the assistance contracts to annual rent increases based on the
- automatic adjustment factors alone. In separate lawsuits, the
- District Courts each granted summary judgment for respondents.
- The Court of Appeals affirmed the judgments in a consolidated
- appeal.
- Held: This Court need not consider whether 801 of the Reform Act
- unconstitutionally abrogated a contract right to unobstructed
- formula-based rent adjustments, since respondents have no such
- right. The assistance contracts do not prohibit the use of
- comparability studies to impose an independent cap on such
- adjustments. Indeed, 1.9d's plain language clearly mandates that
- contract rents ``shall not'' be adjusted so as to exceed materially the
- rents charged for ``comparable unassisted units'' on the private rental
- market, ``[n]otwithstanding'' that 1.9b might seem to require such a
- result. This limitation is consistent with the Housing Act itself, 42
- U. S. C. 1437f(c)(2)(C). Moreover, it is clear that 1.9d-which by its
- own terms clearly envisions some comparison of assisted and
- unassisted rents-affords HUD sufficient discretion to design and
- implement comparability studies as a reasonable means of
- effectuating its mandate, since the section expressly assigns to ``the
- Government'' the determination of whether material rent differences
- exist. Respondents' contention that HUD's comparability studies
- have been poorly conceived and executed, resulting in faulty and
- misleading comparisons, is irrelevant to the question whether HUD
- had contractual authority to employ such studies at all. If
- respondents have been denied formula-based rent increases based on
- shoddy comparisons, their remedy is to challenge the particular
- study, not to deny HUD's authority to make comparisons. Pp. 7-11.
- 955 F. 2d 1382, reversed.
- White, J., delivered the opinion for a unanimous Court.
-