State Agency Should Be Able to Pursue Part of Third-Party Claim Against HUD, Magistrate Judge Says

摘要

A magistrate judge recommended that the U.S. District Court for Maine dismiss portions of a third-party complaint against HUD in a Section 8 contract dispute with the Maine State Housing Authority (MSHA), while allowing part of a breach of contract claim against the department to proceed. The magistrate judge considered two related cases involving the MSHA's implementation of 1994 statutory amendments and HUD's accompanying Notice H 95-12. The plaintiff project owners sued the MSHA, contending that the agency's failure to provide automatic annual rent adjustments, the reduction in the annual adjustment factors (AAFs) for units with no tenant turnover, and the requirement for owners to conduct rent comparability studies breached their housing assistance payments (HAP) contracts.