DeSuze v. Ammon, No. 20-1141 (2d Cir. 2021)
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In 2018 plaintiffs, the former and current tenants of a privately owned affordable housing project, filed suit challenging the regulatory approval of rent increases a decade earlier by HUD and the New York HPD. The district court dismissed the complaint under Federal Rule of Civil Procedure 12(b)(1) and (6).
The Second Circuit held that the tenants lack standing for their procedural violation claim against HUD under the Administrative Procedure Act based on the sequence of regulatory approval because the order of the approval process was not designed to protect the tenants' concrete interests in notice and participation; all of the tenants' APA claims are in any event untimely under 28 U.S.C. 2401(a) because they accrued in April 2011, which is more than six years before they filed their complaint; Section 2401(a) is a claims-processing rule rather than a jurisdictional bar, but the tenants are not entitled to equitable tolling; and the tenants' claims under 42 U.S.C. 1983 against the City and its housing authority are untimely and the continuing violation doctrine does not save those claims because each arises from a discrete approval process. Accordingly, the court affirmed the district court's judgment.
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