Opinion ID: 462576
Heading Depth: 1
Heading Rank: 4

Heading: review of the decision to close the shelter

Text: 60 The government's rescission of its well publicized commitment to renovate the Second and D Streets shelter is subject to judicial review to ensure that, given the guidance of the Community Services Block Grant Act, it was not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. 5 U.S.C. Sec. 706(2)(A). As enunciated by the Supreme Court in Motor Vehicle Manufacturers Association v. State Farm Mutual Automobile Insurance Co., 463 U.S. 29, 42, 103 S.Ct. 2856, 2866, 77 L.Ed.2d 443 (1983), to satisfy these standards an agency must articulate a satisfactory explanation for any change of course from previously stated policies or intentions. This requirement is more demanding than that which may be required when an agency does not act in the first instance. Id.; see also National Black Media Coalition v. FCC, 775 F.2d 342, 354-356 (D.C.Cir.1985); Airmark Corp. v. FAA, 758 F.2d 685, 691-692 (D.C.Cir.1985); Massachusetts Fair Share v. Law Enforcement Assistance Administration, 758 F.2d 708, 711 (D.C.Cir.1985); Greater Boston Television Corp. v. FCC, 444 F.2d 841, 852 (D.C.Cir.1970), cert. denied, 403 U.S. 923, 91 S.Ct. 2233, 29 L.Ed.2d 701 (1971). Upon review, the court must invalidate agency action if it finds that the agency entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise. Motor Vehicle Manufacturers Association v. State Farm Mutual Automobile Insurance Co., supra, 463 U.S. at 43, 103 S.Ct. at 2867. In short, the court must ensure that changes in policy are carried out for rational reasons that are sufficiently explained. Ventura Broadcasting Co. v. FCC, 765 F.2d 184, 190 (D.C.Cir.1985). 61 Appellants maintain that the decision to close the shelter was contrary to the purposes of the Community Services Block Grant Act as there was no basis for the agency's stated belief that the closing would be coupled with the location of adequate alternatives. Appellants also contend that the government's decision was based on an impermissible and irrelevant factor: personal animus toward CCNV. Our review of the record confirms that the agency did not act out of personal animus toward CCNV or without adequate factual support, but rather acted for well articulated reasons that were neither arbitrary nor capricious. 62 The government's reasons for reversing the commitment to renovate and deciding instead to close the shelter were articulated by Undersecretary Baker in his July 31, 1985 memorandum. See J.App. 110-112. The first reason cited was the deplorable condition of the facility which, according to the Undersecretary, rendered it unfit for use as a shelter for the homeless. Given the statutory objective of providing adequate housing and a suitable living environment to the homeless 17 and the well documented evidence of deplorable conditions at the shelter, 18 we cannot say that this invocation of the health and safety interests of the occupants was impermissible. Moreover, Undersecretary Baker's reliance on this consideration cannot be faulted for failing to take account of the danger to the homeless that would result from closing the shelter as the agency coupled its decision to close with a commitment to locate alternative facilities offering conditions superior to those at the Second and D Streets facility. 19 Consistent with the agency's commitment to locate alternatives, closure of the shelter has been repeatedly delayed as the Anacostia and Florida Avenue facilities were renovated and staffed. 63 The second basis for the decision was the lack of a suitable operator willing to commit itself to maintaining the facility. Appellants characterize the agency's reliance on this consideration as evidence that the agency acted out of animus toward CCNV. 20 This contention fails to take into account CCNV's announcement that it was unwilling to continue operating the shelter unless the government agreed to meet CCNV's renovation demands. This ultimatum forced the government's hand. The District government had repeatedly ignored calls for assistance. Despite efforts to identify local community groups that might step into the breach, no suitable operator had been identified. HHS was therefore faced with the prospect of spending $2.7 million to renovate a facility no one was willing to operate. This risk, combined with other factors such as the fast approach of winter and the doubt as to whether renovations could be completed prior to the onslaught of cold weather, led the agency to seek alternatives to continued use of the Second and D Streets facility. 64 The third reason cited by Undersecretary Baker was the perceived inappropriateness of federal involvement with the operation of the shelter. Without commenting on the political issue of whether the problem of homelessness is best addressed at the federal or local level, it is not difficult to discern the basis for the Undersecretary's concern in this instance. CCNV had always operated the facility and was threatening to abandon it. No other operator had surfaced to step into CCNV's shoes and there existed a real threat to the welfare of the occupants of the shelter. At the same time, the Community Services Block Grant Act, which was to fund the federal role in the shelter project, provided for only limited expenditures on a short-term basis. 21 Thus, it was reasonable for Undersecretary Baker to be concerned about assuming an expanded long-term role of directly administering the facility. The agency's predicament was reasonably resolved through the commitment to locate suitable alternatives. 65 The fourth and fifth reasons identified by Undersecretary Baker concern the need to eliminate two factors the agency viewed as impeding the identification of alternative shelter facilities: the pendency of this litigation and the continued operation of the Second and D Streets shelter. The record contains no substantiation for the agency's speculation that continued litigation discouraged potential shelter providers from becoming involved. Although we reject this reason, its articulation does not nullify the decision in view of the other factors supporting the agency. 66 The weight to be given to the agency's belief that only immediate and decisive action to close the shelter would spur the necessary cooperation is not easily determinable. In the absence of the government's commitment to locate alternatives, we would have serious doubts about this calculated brinkmanship. But given this commitment, we cannot hold the agency's attempt to break the political logjam to be unreasonable. 67