Opinion ID: 3065171
Heading Depth: 4
Heading Rank: 3

Heading: The Litigation Position of HUD and Recent HUD

Text: Regulations Support a Finding of Nonpreemption [10] Responding to our invitation to HUD to express its view on whether LARSO’s eviction controls actually conflict with 24 C.F.R. § 982.310(d)(1)(iv), the United States informs us that “LARSO’s eviction controls do not pose an obstacle to the accomplishment and execution of the full purposes and objectives of HUD’s regulation providing that ‘other good cause’ for terminating a Section 8 tenancy ‘may’—but does not necessarily—include a landlord’s desire to raise the rent.” In support of its position, the United States first notes that the statutory language and its own regulations expressly contemplate the interdependence of federal assisted housing law and state and local housing law: 42 U.S.C. § 1437f(o)(7)(B)(ii)(I) provides that the lease must contain terms that are “consistent with State and local law”; § 1437f(o)(7)(E) mandates that the HAP contract “shall provide” that “any relief [from termination] shall be consistent with applicable State and local law”; 24 C.F.R. § 982.308(c) allows PHA the right to “decline to approve the tenancy if the PHA determines that the lease does not comply with State or local law”; and § 982.310(e)(2)(i) requires section 8 owners to use the eviction notice “used under State or local law.” Second, the United States highlights the use of “may” in 24 C.F.R. § 982.310(d)(1), which provides that “ ‘[o]ther good cause’ for termination of tenancy by the owner may include, but is not limited to, any of the following examples.” It notes that “ ‘[m]ay’ is permissive and connotes discretion, absent clear indication to the contrary.” BARRIENTOS v. 1801-1825 MORTON LLC 14449 Brief for the United States as Amicus Curiae supporting affirmance of the district court (citing Fernandez v. Brock, 840 F.2d 622, 632 (9th Cir. 1988)). Third, the United States argues that “[n]either the wording nor the intent of [24 C.F.R. § 982.310] gives a landlord an unqualified ‘right’ to terminate a Section 8 tenancy because he wants to raise the rent,” as the regulation utilizes “general terms” and intentionally leaves the determination of “good cause” to the courts “on a case-bycase basis.” Finally, the United States assures us that “HUD has never interpreted 24 C.F.R. § 982.310 as prohibiting state and local governments from providing additional protection from eviction to tenants.” Moreover, a recently published HUD guidance document, Notice PIH 2009-18 (HA), State and Local Law Applicability to Lease Terminations in the Housing Choice Voucher (HCV) Program, § 3 (June 22, 2009), mirrors the litigation position expressed in the amicus brief of the United States. It states that “while good cause ‘may include’ a business or economic reason (e.g., [when] there is no State or local law prohibiting termination of tenancy for such cause), in other circumstances it may not include a business or economic reason.” Id. “If a State or local law prohibits the termination o[f] tenancy for a business or economic reason such as a desire to lease the unit at a higher rental, the[n] that specific ground[ ] for termination of the tenancy does not constitute ‘other good cause’ under 24 CFR [§ ] 982.310(d) in that particular instance.” Id. In conclusion, HUD dictates that “nothing in 24 CFR [§ ] 982.310(d)(1) pre-empts any applicable State or local laws that restrict or prohibit the termination of tenancy. This applies to all HCV vouchers.” Id. [11] The position of the United States is entitled to deference, as is HUD’s most recent guidance document. “[W]hen an agency invokes its authority to issue regulations, which then interpret ambiguous statutory terms, the courts defer to its reasonable interpretations.” Fed. Express Corp. v. Holowecki, 128 S. Ct. 1147, 1154 (2008). “[T]he agency is entitled 14450 BARRIENTOS v. 1801-1825 MORTON LLC to further deference when it adopts a reasonable interpretation of regulations it has put in force.” Id. at 1155 (citing Auer v. Robbins, 519 U.S. 452, 461 (1997) (deferring to the agency’s position unless it is “plainly erroneous or inconsistent with the regulation” (internal quotation marks omitted))). Further, an agency’s litigation position in an amicus brief is entitled to deference if there is “no reason to suspect that the interpretation does not reflect the agency’s fair and considered judgment on the matter.” Auer, 519 U.S. at 462. And, as explained above, the interpretive policy statements are at least “entitled to a measure of respect under the less deferential Skidmore standard.” Fed. Express Corp., 128 S. Ct. at 1156 (internal quotation marks omitted). Of course, we do not defer “to an agency’s conclusion that state law is pre-empted. Rather, we have attended to an agency’s explanation of how state law affects the regulatory scheme.” Wyeth, 129 S. Ct. at 1201. Agencies “have a unique understanding of the statutes they administer and an attendant ability to make informed determinations about how state requirements may pose an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” Id. (internal quotation marks omitted); see also Sprietsma v. Mercury Marine, 537 U.S. 51, 68 (2002); Geier, 529 U.S. at 883. Moreover, while “[t]he weight we accord the agency’s explanation of state law’s impact on the federal scheme depends on its thoroughness, consistency, and persuasiveness,” Wyeth, 129 S. Ct. at 1201, HUD has amply demonstrated its thoughtful consideration of, and its commitment to, the principle that local eviction control laws that are more protective of tenants are not preempted by its own “good cause” regulation. [12] Our independent analysis of the statutory language and legislative history, the persuasive reasoning of prior LARSO decisions by us and the Federal Circuit, the litigation position of the United States, and HUD’s most recent publication lead us to conclude that the HUD regulation and LARSO do not actually conflict. LARSO does not impede the federal objective of providing affordable housing to low-income families. BARRIENTOS v. 1801-1825 MORTON LLC 14451 LARSO, therefore, is not preempted by 24 C.F.R. § 982.310(d)(1)(iv) to the extent the HUD regulation permits eviction in order to obtain a higher rental, in the absence of contrary state or local law.8