Document: 508 U.S. 10 113 S.Ct. 1898 123 L.Ed.2d 572 Henry G. CISNEROS, Secretary of Housing and Urban Development, et al., Petitionersv.ALPINE RIDGE GROUP al. No. 92-551. Argued March 30, 1993. Decided May 3, Syllabus * The so-called Section 8 housing program under the United States Act 1937 (Housing Act) authorizes private landlords who rent to low-income tenants receive "assistance payments" from Department Development (HUD) in an amount calculated make up difference between tenants' payments a "contract rent" agreed upon by HUD. 1.9b latter parties' contracts" provides that contract rents are be adjusted annually applying latest automatic adjustment factors developed HUD on basis particular formulas, while § 1.9d specifies that, "[n]otwithstanding any other provisions this Contract, adjustments as provided shall not result material differences charged for assisted comparable unassisted units, determined Government. . ." In early 1980's, began conduct independent "comparability studies" certain real estate markets where it believed rents, upward factors, were materially higher than prevailing market rates housing, use cap limiting assistance payments. litigation, respondent allege 801 Reform 1989 (Reform Act)—which, inter alia, limit future through comparability studies—violates Due Process Clause Fifth Amendment stripping them their vested rights contracts annual increases based alone. separate lawsuits, District Courts each granted summary judgment respondents. Court Appeals affirmed judgments consolidated appeal. Held: This need consider whether unconstitutionally abrogated right unobstructed formula-based adjustments, since respondents have no such right. do prohibit studies impose adjustments. Indeed, 1.9d's plain language clearly mandates "shall not" so exceed "comparable units" rental market, "[n]otwithstanding" might seem require result. limitation is consistent with itself, 42 U.S.C. 1437f(c)(2)(C). Moreover, clear 1.9d—which its own terms envisions some comparison rents—affords sufficient discretion design implement reasonable means effectuating mandate, section expressly assigns "the Government" determination exist. Respondents' contention HUD's been poorly conceived executed, resulting faulty misleading comparisons, irrelevant question had contractual authority employ at all. If denied shoddy remedy challenge study, deny comparisons. Pp. 1902-1905. 955 F.2d 1382 (CA9 1992), reversed. WHITE, J., delivered opinion unanimous Court. Michael R. Dreeben, Washington, DC, petitioners. Warren J. Daheim, Tacoma, WA, Justice WHITE 1 presented case 1989, 103 Stat. 2057, violates abrogating respondents' subsidies. 2 A. 3 1974, Congress amended create what known program. Through program, hoped "ai[d] families obtaining decent place live," 1437f(a) (1988 ed., Supp. III), subsidizing would tenants. Under income ability pay; then makes tenant's contribution landlord As required statute, is, turn, fair rental" value dwelling, allowing modest increase over account additional expense participating See 1437f(c)(1). 4 originally enacted, further monthly least follows: 5 established area similar types sizes dwelling units or, if determines, formula. 6 7 "(C) Adjustments maximum hereinbefore Secretary." §§ 1437f(c)(2)(A) (C) (1982 ed.). developers entered into long-term HUD—known Assistance Payments (HAP) Contracts or contracts"—to lease newly constructed apartment Their initial unit provided, statutory authorization, these regularly, formula, keep pace changes values market. provides: 9 "b. Automatic Annual "(1) Adjustment Factors will Government annually; interim revisions may made conditions warrant. Such published Federal Register. 11 "(2) On anniversary date Contract Rents applicable Factor most recently downward, appropriate; however, less effective Contract." App. Brief Petitioners 8a. 12 which refer trends recorded Consumer Price Index Bureau Census American Surveys. 13 contracts, part tracking 8(c)(2)(C) Act, 1437f(c)(2)(C) 14 "d. Overall Limitation. Notwithstanding Government; construed extent existed respect Rents." 8a-9a. B 15 suspect was making well above housing. Accordingly, agency out line rents. studies, personnel select three five buildings they considered building compare serve contracts. 16 After several brought suit, Ninth Circuit ruled 1988 standard described prohibited Rainier View Associates v. States, 848 988, reasoned HUD, having contracted automatically year formula (the second two alternative approaches permitted 8(c)(2)(A) see supra, 2), could thereafter those survey first alternatives). "Having choice," court wrote, "HUD cannot now change mind." F.2d, 991. 17 certiorari review decision, 490 1066, 109 2065, 104 630 (1989), intention adhere decision's interpretation outside Circuit. Faced prospect inconsistent application depending solely geography, attempted resolve matter amendments late 1989. Act), provide explicitly studies. apparent compromise, same also sought restore project owners portion prior enactment amendments. thus offered partial retroactive lost attributable time affirming authorization adjustments.1 C 18 alleged Western Washington Central California 764 F.Supp. 1393, 774 1240. Circuit, appeal, both judgments. Alpine Ridge Group Kemp, (1992). Refusing reconsider earlier holding View, reaffirmed capping 1384-1385. held Congress' attempt authorize caps deprived "vested property interest pursuant contracts." Id., 1387. 19 We certiorari, 506 ----, 490, 121 429 (1992), reverse. II 20 begin our analysis due process claim Because we find ends there well. 21 view, claimed entitlement without regard comparisons private-market precluded To sure, 1.9b(2) [annually] Government." imposes labeled "[o]verall [l]imitation" 1.9b. It (emphasis added). noted previously construing statutes, "notwithstanding" clause signals drafter's override conflicting section. Shomberg 348 540, 547-548, 75 509, 512-513, 99 L.Ed. 624 (1955). Likewise, generally "interpreted 'notwithstanding' supersede all laws, stating ' "[a] clearer statement difficult imagine." " Liberty Maritime Corp. 289 U.S.App.D.C. 1, 4, 928 413, 416 (1991) (quoting Crowley Caribbean Transport, Inc. 275 182, 184, 865 1281, 1283 (1989) (in turn quoting Illinois National Guard FLRA, 272 187, 194, 854 1396, 1403 (1988))); Bank New England Old Colony, N.A. Clark, 986 600, 604 (CA1 1993), Dean Veterans Admin. Regional Office, 943 667, 670 (CA6 1991), vacated remanded grounds, 503 112 1255, 117 486 (1992); re FCX, Inc., 853 1149, 1154 (CA4 1988), cert. sub nom. Universal Cooperatives, 489 1011, 1118, 181 (1989); Multi-State Communications, FCC, 234 285, 291, 728 1519, 1525, denied, 469 1017, 105 431, 83 358 (1984); Jersey Air 677 276, 283 (CA3), Employees Guard, 459 343, 74 384 (1982). Thus, think beyond peradventure market—even plainly "[a]djustments rents," surveys differences" Supp III). 22 read "overall limitation" empowering only prospective discovered producing inflated rents; court's permit "abandonment method whenever disparity rents." But reading contract—under demand payment until publish revised aimed curing overpayment—is almost precisely backwards. entitle collect promised notwithstanding sort 1.9d. 23 Reading does not, supposed, "render authorized statute elected nullity." Ibid. indicated remain presumptive called contract. presumably exceptional cases has reason study ensue. themselves geared reflect local regional theoretically should often suggest rents.2 24 Respondents assert provision central HAP signed contained [comparability] asks imply." Acacia Village 22. They urge us eschew allow displacement "automatic" bargained "project-by-project process" "would leave [project owners] mercy minor officials." Respondent 30-31. At bottom, many arguments support decision below circle back vigorous integrity carried entirely Even demonstrated unreliable, way forbids accurate comparisons.3 25 sum, owner units. "between units"—affords mandate. regard, observe exist occasion III 26 For reasons, 27 Reversed. syllabus constitutes but prepared Reporter Decisions convenience reader. Detroit Lumber Co., 200 321, 337, 282, 287, 50 499. subparagraphs (A) (B) quality, type, age area, Secretary. implementing preceding sentence, establish regulations conducting projects believe subparagraph differences. request project, determines appropriate establishing, practicable, modified factor designate, geographically smaller used establishment (A). results conducted charged, previous year, area. Where when applied apply methodology order different State complete submit later 60 days before section, applied. reduce effect after April 15, 1987, constructed, substantially rehabilitated, moderately rehabilitated (including November 1983), unless refinanced manner reduces periodic owner. Any reduced 14, 7, 1988, restored 1987. (from amounts reserved original contract) equal multiplied number months effect." proposed governing provision. 57 Fed.Reg. 49120 suggested interpreted barring factors. cited CFR 888.204 (1987), states "will establishing [a] area" can demonstrate Although regulation certainly view understanding contracts' language: acknowledges revision remedying foreclose corrective acknowledge must satisfy requirements administrative reasonableness 'is reviewable law principles.' Reply 16, n. Sheridan Square Partnership 761 738, 745, (Colo.1991)).

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