Opinion ID: 399881
Heading Depth: 1
Heading Rank: 3

Heading: Enjoining Further Rent-Subsidy Payments: Equitableness of the Remedy

Text: 33 However, the chief effect of an injunction prohibiting further subsidy payments would be the eviction of the 44 low-income families from the apartment complex, since they would not be able to afford to pay the full fair-market value rent. The injury to the public interest that would be caused by the uprooting of these 44 innocent families, and the lack of environmental relief that would result from their eviction (their apartments would simply be filled by unsubsidized tenants), are factors that weigh heavily against the plaintiffs in the judicial consideration of their demand for relief of this nature. Cf. Sworob v. Harris, 451 F.Supp. 96, 102 (E.D.Pa.), aff'd. mem., 578 F.2d 1376 (3d Cir. 1978), cert. denied, 439 U.S. 1089, 99 S.Ct. 871, 59 L.Ed.2d 55 (1979) (irreparable injury that would be suffered by those in desperate need of decent housing is an important factor in determining whether plaintiffs are entitled to equitable relief). 34 As noted previously, in view of the completion and occupancy of the apartment complex in question, the plaintiffs may secure equitable injunctive relief in this case only if they can prove 1) that HUD has blatantly violated NEPA requirements and 2) that the value of the requested relief outweighs adversely affected public interests. Because the plaintiffs have failed to raise genuine factual issues with respect to either of these necessary elements of their case, we agree with the district court that HUD is entitled to summary judgment. 35
36 Most of the plaintiffs' NEPA claims are wholly without merit. For example, the plaintiffs assert that HUD's decision to fund the project must be set aside because HUD failed to comply with timing requirements. Before signing the contracts with the developer, HUD only prepared an NEC, even though, due to the magnitude of the project, HUD regulations required preparation of a more-detailed SEC prior to finalization of the arrangements with the developer. HUD eventually did prepare a SEC, but, because the SEC was not timely prepared, the plaintiffs insist that HUD's decision must be set aside in its entirety. However, the rule is that deficiencies in the environmental review process may be required to be corrected, but they do not void the initial agency decision. Initial noncompliance does not preclude eventual compliance. Sierra Club v. Lynn, 502 F.2d 43, 60 (5th Cir. 1974), cert. denied, 421 U.S. 994, 95 S.Ct. 2001, 44 L.Ed.2d 484 (1975); Upper Pecos Ass'n v. Stans, 500 F.2d 17, 19 (10th Cir. 1974). 37 The plaintiffs' next argument is that HUD's funding decision must be set aside because HUD failed to give sufficient public notice or hold a public hearing before reaching its decision. However, although NEPA and its implementing regulations do indeed encourage agencies to obtain public input regarding agency decisions, agencies are under no obligation to hold public hearings or give any particular form of public notice. See Como-Falcon Community Coalition v. United States, Dept of Labor, 609 F.2d 342, 345 (8th Cir. 1979), cert. denied, 446 U.S. 936, 100 S.Ct. 2154, 64 L.Ed.2d 789 (1980); Scenic Rivers Ass'n. v. Lynn, 520 F.2d 240, 246-47 (10th Cir. 1975), rev'd on other grounds, 426 U.S. 776, 96 S.Ct. 2430, 49 L.Ed.2d 205 (1976); Jicarilla Apache Tribe of Indians v. Morton, 471 F.2d 1275, 1286 (9th Cir. 1973); 40 C.F.R. § 1506.6 (1981). See also Note, 6 Colum.J.Environ.L. 165, 170-73, 180 (1980). In the present case, despite the plaintiffs' vigorous assertions that HUD acted in a covert manner, HUD fulfilled its notice obligations by obtaining input from numerous Dallas public officials, and by obtaining approval from the area clearinghouse, the North Texas Council of Governments. See 40 C.F.R. § 1506.6(b)(3)(i) (1981). 7 38 The plaintiffs raise a number of allegations of HUD bad faith and inadequate consideration of environmental factors. However, we have carefully reviewed the record and have found not a scintilla of evidence to support the allegations of bad faith. With respect to each of the so-called environmental factors allegedly not considered by HUD, 8 in every instance HUD representatives spoke with the appropriate officials and thereafter reached a reasonable decision that these factors did not require disapproval of the revised proposal. A further indication of HUD's good faith is the rejection, due to environmental factors, of the developer's initial proposal. Thus, there is no doubt that HUD considered the environmental consequences of its decision .... NEPA requires no more. Strycker's Bay Neighborhood Council, Inc. v. Karlen, 444 U.S. 223, 228, 100 S.Ct. 497, 500, 62 L.Ed.2d 433 (1980). 39 However, although the bulk of the plaintiffs' claims are insubstantial, there are two claims that have at least arguable merit. First, the plaintiffs note that HUD utterly failed to consider any alternatives to the proposed action, as required by section 102(2)(E) of NEPA, 42 U.S.C. § 4332(2)(E). The § 102(2)(E) obligation to consider alternatives is not limited to proposed major actions significantly affecting the human environment, i.e., actions for which preparation of an EIS is required. See Aertsen v. Landrieu, 637 F.2d 12, 20 (1st Cir. 1980). The provision requires federal agencies to study, develop, and describe alternatives to any proposal which involves unresolved conflicts concerning alternative uses of available resources. Arguably, HUD should have at least discussed the conflict as to whether the site should be left as it was or used for low-cost housing. Aertsen, supra, 637 F.2d at 21. On the other hand, here where the real alternatives were either to build or not to build the complex that in part included housing for low-income persons, the failure to address specifically these as alternatives might arguably be viewed as a merely-technical omission to state specifically an alternative implicitly rejected. 40 The only other arguably meritorious contention raised by the plaintiffs concerns the railroad noise problems at the apartment complex site. While the SEC reasonably concludes that the apartments themselves have acceptable noise exposures, as defined in 24 C.F.R. § 51.103, the swimming pool area, arguably an ancillary noise sensitive open space subject to the noise-level regulations, see id. § 51.106(c), is much closer to the tracks, in an unacceptably noisy area. The plaintiffs argue that the project therefore should not have been approved. The plaintiffs also complain that the method of measuring noise-acceptability did not comply with HUD regulations. While we regard at least the latter complaint as without merit, in any event the plaintiffs have no standing to raise any complaint as to noise levels within the apartment complex, because the noise-level regulations are designed solely for the protection of residents of the complex. See Clinton Community Hospital Corp. v. Southern Maryland Medical Center, 510 F.2d 1037, 1038 (4th Cir.), cert. denied, 422 U.S. 1048, 95 S.Ct. 2666, 45 L.Ed.2d 700 (1975) (plaintiffs lacked standing to bring a NEPA action based on the allegation that a proposed hospital should not be constructed near a noisy airport, because the plaintiffs would not suffer from such noise). 41
42 In summary, the record demonstrates that, in apparent good faith, HUD attempted to comply with NEPA requirements and that it in fact did so with two exceptions that, in the context of the issues raised, are minor. Considering the good-faith and relatively minor deficiencies in HUD's preconstruction environmental clearance study, as well as the circumstance that, unopposed by the plaintiffs, the construction and occupancy of the apartment complex are now complete, we do not think that the nonmoot post-completion equitable remedy sought-the enjoining of rent-subsidy payments to the low-income tenants until the deficiencies are cured-should appropriately be granted. On the one hand, it is doubtful that the remedy sought would actually afford relief to the plaintiffs as to the environmental harms of which they complain-the schools and traffic would be as much or as little congested by the unsubsidized tenants who would replace the low-income families formerly aided by the rent-subsidy payments. On the other hand, the great harm that would be sustained by the displaced low-income tenants weighs heavily against granting the plaintiffs the equitable remedy they seek. See Sworob v. Harris, supra, 451 F.Supp. at 102. Moreover, in our view it is extremely unlikely that any HUD (re)approval of the apartment project would be conditioned upon the developer accepting any of the alternative tenant-occupancy plans suggested by the plaintiffs. 43 In similarly denying post-completion relief grounded on preconstruction environmental-study inadequacies belatedly raised, the First Circuit noted the social waste, without contribution to the legislative environmental purposes, of ordering the undoing and redoing (of) what has been done in the light of (r)etrospective review (that), with the benefit of hindsight, would predictably reveal in many projects some lapse of planning and foresight.... Ogunquit Village Corp. v. Davis, 553 F.2d 243, 245 (1st Cir. 1977). For these reasons, as well as those previously set forth to the effect that an injunctive remedy would be inappropriate under present circumstances, we find no error in the judgment of the district court denying the plaintiffs' demand for post-completion relief grounded on inadequacies in the preconstruction environmental clearance study.