Hilda Abrams v. Carla A. Hills, as Secretary of the United States Department of Housing and Urban Development

This suit was instituted by residents of a multi-family housing project, Meyler Park, constructed with assistance provided under the National Housing Act, 12 U.S.C. § 1715z-l (1970) (Supp. IV). The provision of that Act at issue in the present appeal established the “operating subsidy” program, a program that we shall explain. The Secretary of Housing and Urban Development (hereinafter the Secretary) refused to implement the “operating subsidy” program on various grounds, and in September, 1975, the plaintiffs, here the appellees, sued, alleging that the failure of the Secretary to establish an initial operating expense level for Meyler Park and to pay an “operating subsidy” was unlawful.

The District Court held that it had jurisdiction under 28 U.S.C. § 1361 , and certified the suit as a class action on behalf of the named plaintiffs and all tenants of Meyler Park who paid “basic rent,” as defined in 12 U.S.C. § 1715z-l, in excess of 25 percent of their adjusted family income. The court then held that the Secretary was required to provide an “operating subsidy” to Meyler Park and ordered the Secretary to: (a) establish an initial operating expense level for Meyler Park; (b) to…