Opinion ID: 399881
Heading Depth: 1
Heading Rank: 2

Heading: The Issues Raised and Remedy Sought by This Appeal

Text: 19 We have extensively summarized the factual background to demonstrate the context in which the issues are raised and in which the plaintiffs seek a declaratory and limited injunctive remedy. We must emphasize that the record nowhere demonstrates bad faith or deliberate disregard by HUD of the environmental review procedures mandated by NEPA and by the implementing administrative regulations. 20 The issues raised by the plaintiffs' appeal relate to certain alleged deficiencies in HUD's conduct of the preconstruction environmental clearance that was required solely because of federal assistance in financing of the construction of the project. They are raised in the factual context of a completed apartment building in a properly-zoned multi-family area causing alleged injuries in fact (see below) that would equally well have resulted had the building been constructed by a private developer without federal participation in its construction financing. In this post-completion attack upon allegedly defective environmental clearance procedures, the plaintiff associations of neighboring property owners-who did not seek to enjoin or prevent the construction of the building-now ask for declaratory relief holding that the NEPA environmental-review procedures conducted by HUD were deficient in certain respects. The coercive remedies presently sought as a consequence of these declaratory findings are (a) the setting aside of HUD's approval of federal subsidization for the construction, and (b) the enjoining of HUD from paying the developer further rent subsidy or housing assistance payments until (alleged) NEPA preconstruction procedural deficiencies are cured. 21 Aside from some patently meritless contentions, the plaintiffs principally urge that HUD's approval of the project is tainted because the environmental clearance (SEC) on which it was based (1) did not consider alternatives, such as restricting occupancy to childless families, to a plan for tenant occupancy that would overcrowd the neighborhood schools and produce the other ills of which the property-owner associations complain, and (2) did not give due regard to the railroad-noise problem at the subject site. We should here note that these contentions are made in the light of the following alleged injuries in fact complained of by the plaintiffs-as summarized in their brief: HUD's illegal conduct will result in a diminution in the real estate values of the member's homes, additional strains on the already overburdened schools and social services, increased traffic congestion, increased population density, increased noise pollution, and a general adverse effect on the quality of the homeowners' lives. 3 22 III. Viability of this Suit in Light of the Completion and Occupancy of the Apartment Complex 23 At oral argument, the developer suggested to the court that, because the project in question has been completed and the apartment units have been fully occupied, the plaintiffs' action is now moot. The mootness issue implicates our jurisdiction to determine the merits of the appeal. See, e.g., St. Paul Fire & Marine Insurance Co. v. Barry, 438 U.S. 531, 537, 98 S.Ct. 2923, 2927, 57 L.Ed.2d 932 (1978). We therefore consider it. 24 Preliminarily, we observe that the basic thrust of the NEPA legislation is to provide assistance for evaluating proposals for prospective federal action in the light of their future effect upon environmental factors, not to serve as a basis for after-the-fact critical evaluation subsequent to substantial completion of the construction. Aertsen v. Landrieu, 637 F.2d 12, 19 (1st Cir. 1980). NEPA imposes upon federal agencies procedural duties that are designed to insure fully-informed and well-considered decisions, the merits of which judicial review is not concerned. Strycker's Bay Neighborhood Council, Inc. v. Karlen, 444 U.S. 223, 227, 100 S.Ct. 497, 500, 62 L.Ed.2d 433 (1980). When a federal agency is found to have reached a decision on a proposed construction project without complying with NEPA-mandated procedures, the normal remedy afforded by the courts, where appropriate, is an injunction prohibiting construction and maintaining the status quo until the agency has complied with the statutorily-required procedures. Rodgers, Handbook on Environmental Law 798-809 (1977). See, e.g., Natural Resources Defense Council, Inc. v. Callaway, 524 F.2d 79, 95 (2d Cir. 1975). 25 Because NEPA contemplates a future-looking agency inquiry, the courts have been reluctant, at least in the absence of blatant bad-faith violations, to grant relief after the challenged project has been substantially or wholly completed, even in instances where the agency, in reaching the decision to build or finance the project in question, has acted in violation of NEPA-mandated preconstruction procedures. Depending upon the specific factual circumstances of each particular case, the courts have employed different rationales in reaching the conclusion that NEPA does not contemplate post-completion relief. For example, in some cases, courts find that they can not undo what has already been done, and they therefore declare the action moot. 4 In other cases, where the plaintiffs have not filed suit or sought injunctive relief until construction of the challenged project has proceeded to an advanced stage, courts have applied the equitable doctrine of laches to bar the plaintiffs' suit. 5 In yet other instances, the courts simply deem the plaintiffs not to be entitled to any relief, based on the conclusion that countervailing considerations of public interest outweigh any possible benefits that might be obtained by halting or undoing the project. 6 26 When injunctive relief is an appropriate remedy for purposes of fulfilling the objectives of NEPA, its issuance is limited by general equity principles, and the court should make a particularized analysis of the violations that have occurred, of the possibilities for relief, and of any countervailing societal interests that might be adversely affected by the issuance of an injunction. Environmental Defense Fund v. Marsh, 651 F.2d 983, 1005-06 (5th Cir. 1981); Natural Resources Defense Council, Inc. v. United States Nuclear Regulatory Com'n, 606 F.2d 1261, 1272-73 (D.C.Cir.1979). But if the violations of NEPA have been blatant, and if the public interest will not be irreparably harmed, an injunction may be ordered even if the project has proceeded to an advanced stage of completion. See, e.g., Marsh, supra (injunction ordered even though project 55% completed). Although on the same principles post-completion injunctive relief might perhaps theoretically be possible in extreme cases, we have not found a single case in which such relief was granted. 27 In view of these principles, the mere completion of the project might not, technically, moot a claim for injunctive relief based on NEPA violations. Nevertheless, in the light of these principles-because the plaintiffs failed to seek a preliminary injunction to enjoin construction, and because the apartment complex is now complete and fully occupied-the plaintiffs may prevail only if 1) they can demonstrate blatant NEPA violations by the defendant HUD, and if 2) they can show that the value of the requested relief outweighs the public interests that would be adversely affected if relief is granted. Marsh, supra. 28
29 In the present case, the plaintiffs contend that the tainted approval of federal subsidization for the Project must be set aside. However, they do not specify how this could be accomplished. In view of the fact that the complex has been built and the construction company has been paid, we see no way that HUD's already-satisfied construction financing commitments can now be set aside. HUD has enabled the developer to obtain permanent financing through another governmental agency (GNMA) of the nearly eight million dollars of construction costs. In accordance with the terms of the mortgage, the developer must now repay these sums to this nondefendant agency (GNMA) over a forty-year period. All that remains for GNMA to do is to collect the mortgage loan payments from the developer. Thus, at least with respect to this aspect of the plaintiffs' claim for relief, the claim is now moot. 30
31 The plaintiffs additionally desire injunctive relief prohibiting HUD from making further rent subsidy payments to the developer for the 44 low-income families residing in the complex, at least until alleged NEPA deficiencies are cured. This court could at least theoretically grant such relief, if deemed appropriate, so to this extent the plaintiffs' claim for relief is not moot, and the case remains a live controversy. 32