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Summaries of Articles from October 2009 Bulletin
Agencies Begin Implementing the Protecting Tenants at Foreclosure Act
On May 20, 2009, the Protecting Tenants at Foreclosure Act (PTFA) was enacted into law as a part of the Helping Families Save Their Homes Act. Section 702 of the PTFA requires purchasers of foreclosed homes to take the properties subject to existing leases. The act also requires a minimum ninety-day notice before commencing an eviction action against a tenant arising solely because of a foreclosure. Therefore, if the balance remaining on a lease term is more than ninety days, the successor in interest must give the tenant at least ninety days’ notice to vacate prior to the end of the lease term. If the balance remaining on a lease is less than ninety days, the successor in interest must give the tenant at least ninety days’ notice to vacate. This article provides advocates with an update on the guidance and regulations issued by various entities since the passage of the PTFA.
Earnings and Living Opportunities Act Would Strengthen Section 3
Section 3 of the Housing and Urban Development Act of 1968 directs training and jobs to public housing residents and other low-income residents living in areas where funds from the Department of Housing and Urban Development (HUD) are expended so as to multiply the benefit of the funds for low- and very low-income individuals. Since its creation, Section 3 has not operated to its greatest potential due to a lack of HUD oversight and the absence of enforceable rules. As a result, a multitude of projects and the expenditure of billions of dollars have failed to generate the quality and quantity of employment opportunities that Congress intended. The Earnings and Living Opportunities Act (ELOA) would bolster Section 3 obligations. This article summarizes and expands upon testimony presented in support of ELOA by NHLP before the Subcommittee on Housing and Community Opportunity, and examines the major changes that ELOA proposes.
HUD Shifts Approach to Lifetime Registered Sex Offenders
A recent Office of Inspector General (IG) audit regarding the number of federally subsidized households that contain lifetime registered sex offenders has prompted the Department of Housing and Urban Development (HUD) to take a more aggressive stance regarding this issue. This article summarizes the IG report and the actions that HUD has taken in response. It also sets forth strategies for advocates representing HUD-subsidized tenants who are subject to lifetime registration requirements.
Historic Settlement Reached in Desegregation Case Against Westchester County
Under a landmark settlement agreement, Westchester County, New York must develop at least 750 new affordable housing units, the vast majority of which must be built in towns and villages with small minority populations. The settlement stems from groundbreaking litigation filed by the Anti-Discrimination Center of Metro New York, Inc. (ADC). ADC brought the lawsuit under the federal False Claims Act in a qui tam action, alleging that Westchester knowingly made numerous false claims and certifications to the U.S. Department of Housing and Urban Development (HUD) between April 2000 and April 2006 to secure more than $52 million in federal housing and community development block grant (CDBG) funds. This article provides an overview of the case.
Court Blocks HUD Contract Termination for Due Process Violations
Reacting to a fact pattern seen all too often by housing advocates, a federal district court has enjoined the Department of Housing and Urban Development (HUD) from terminating a project-based Section 8 Housing Assistance Payments (HAP) contract on a substandard property in Ocala, Florida. Although the complaint contained numerous claims, the court’s ruling focused on the tenants’ due process argument, which alleged a deprivation of their property interests without adequate notice and an opportunity to be heard. The ruling demonstrates the utility of asserting, when threatened by the imminent harm of displacement, basic constitutional protections in the face of hasty governmental behavior. This article provides an overview of the case.
Nonprofit Obtains Mixed Ruling on Fair Market Rents
A Dallas nonprofit working on behalf of Section 8 voucher holders received a mixed ruling from a federal district court in its suit challenging rental standards set by the Department of Housing and Urban Development (HUD). Inclusive Communities Project, Inc. (ICP) sued HUD over its methodology of calculating Fair Market Rents (FMRs), which determine the maximum rental subsidies Section 8 voucher holders may receive. ICP claimed that HUD’s use of multi-county regions to calculate FMRs was setting Dallas FMRs too low, effectively preventing minority households from finding housing in wealthier neighborhoods occupied by whites. This article provides an overview of the case.
