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Taylor v. Martinez

Class action on behalf of all tenants holding enhanced vouchers who paid rent increases as a result of HUD’s unlawful policy to only cover an owner’s first rent increase following conversion. Court granted HUD's motion to dismiss plaintiffs' APA claims for reimbursement on grounds of sovereign immunity. HUD and plaintiffs then negotiated a settlement, which generally requires PHAs to identify and reimburse affected tenants from funds under their ACC, their reserves, or funds created by turnover vouchers. HUD issued Notices directing PHAs to undertake specific activities.

CV 02-1120-AA (D. Ore. filed 2002)
Summary:

(Washington Plaza)

Class action suit brought on behalf of all tenants holding enhanced vouchers who paid rent increases as a result of HUD’s unlawful policy to only increase the payment standard to cover an owner’s first rent increase following prepayment of the HUD mortgage. The suit requested that HUD identify, locate and reimburse tenants for subsidy amounts unlawfully withheld. Court granted HUD's motion to dismiss plaintiffs' APA claims for reimbursement on grounds of sovereign immunity. HUD and plaintiffs then negotiated a settlement, approved on May 16, 2005, which generally requires PHAs to identify and reimburse affected tenants from funds under their ACC, their reserves, or funds created by turnover vouchers. HUD has issued Notices directing PHAs to undertake specific activities, so the implementation process should be ongoing from August of 2005 through at least the next year. For more information, see www.hud-enhanced-vouchers.org

List of Properties Potentially Affected By Settlement, Sorted by State and City [XLS; 219K]

This is an Excel file listing the properties identified by HUD so far as potentially affected by the settlement. You can sort it by any of the column headings by placing your cursor in row 14 under the column headings you'd like to use, and selecting "Data" from the top menu bar, and then "sort."

Note that: (1) this list only identifies those properties that HUD has agreed are potentially affected -- others may be subsequently identified; (2) in order to determine eligibility for reimbursements, advocates must find out from tenants or PHAs whether there was a second rent increase subsequent to market-rate conversion that was not covered by a voucher subsidy adjustment; (3) there is no further identifying information for about 100 of the properties, so you should scroll through those at the end to see if you recognize either the property name or PHA involved; (4) the last two columns indicate any disparity between the info as listed on the HUD PIH Notice and the info contained in HUD's terminated mortgage database for prepayments; and (5) in most cases HUD has reported significantly fewer vouchers issued than units in the property, and as yet we have no explanation for this from HUD.

HUD Notice PIH 2005-24 (July 8, 2005) [DOC; 383K]

HUD's directive to PHAs to identify claimants and make reimbursements.

HUD PIH Notice 2005-10 (March 23, 2005) [PDF; 45K]

HUD's first Notice of proposed Settlement in Taylor. Contains Notice of Class Certification and Proposed Settlement (Att. A), (Virtually Useless) List of Potentially Affected Properties (by fiscal year of prepayment, alpha by property name, limited geographical info) (Att. B)

Proposed Consent Decree [PDF; 84K]

Opinion and Order Granting HUD's Motion to Dismiss in Part [PDF; 192K]

Court rules that reimbursement claims are claims for substitute relief and not restitution within the APA's waiver, distinguishing Zellous because payments here are made not directly by HUD,. but through PHAs. Court refuses to grant HUD's motion to dismiss entire complaint, finding that plaintiffs could possibly demonstrate other forms of equitable releif other than what it has ruled barred.

Plaintiffs' Response to HUD's Motion to Dismiss [DOC; 114K]

Argues that requested enhanced voucher reimbursements fall within the waivers of sovereign immunity provided by the APA for "claims other than money damages" and the federal housing statutes.

xHUD Memo on Motion to Dismiss [PDF; 871K]

HUD's contends that the releif requested on behalf of plaintiifs falls outside of the APA's waiver of sovereign immunity for "claims other than money damages", and is thus barred.

xClass Action Complaint [WPD; 46K] [PDF; 30K]

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