Boaz Housing Authority v. United States, No. 19-2325 (Fed. Cir. 2021)Annotate this Case
The Housing Act, 42 U.S.C. 1437g, provides funds for public housing. The Department of Housing and Urban Development (HUD) allocates amounts in the fund to eligible public housing agencies (PHAs). Each of the 553 plaintiff-PHAs executed an Annual Contributions Contract (ACC) with HUD, which requires HUD to “provide annual contributions to the [PHA] in accordance with all applicable statutes, executive orders, regulations, and this ACC” and requires the PHA to develop and operate covered projects in compliance with the ACC and all applicable statutes, executive orders, and regulations. The standard form ACC incorporates 24 C.F.R. 990.210(c), which provides HUD with “discretion to revise, on a pro-rata basis, the amounts of operating subsidy to be paid to PHAs” where “insufficient funds are available.”
In 2012, Congress funded only 80% of the total operating subsidies and directed HUD to “take into account" PHA excess operating fund reserves in determining their 2012 operating subsidy. HUD considered the excess reserves and did not prorate the available funding under 24 C.F.R. 990.210(c) and the ACCs. Some PHAs received more funding than they would have if HUD prorated the available funding. The plaintiffs received less than they would have and brought suit under the Tucker Act, 28 U.S.C. 1491(a)(1). The Federal Circuit affirmed summary judgment for the PHAs. Their claim was contract-based and the “strings-attached” nature of the operating subsidy did not preclude the court from exercising Tucker Act jurisdiction over the claim. The PHAs sought compensatory damages for their losses from the government’s failure to meet a past-due obligation and not equitable relief to enforce a regulatory obligation; their claim is based on a breach of contract and not a statute.