Grier v. United States Department of Housing & Urban Development, 418 U.S. App. D.C. 185 (2015)

Citation: Grier v. United States Department of Housing & Urban Development, 418 U.S. App. D.C. 185 (2015)
Parent Document: Grier v. United States Department of Housing & Urban Development, 418 U.S. App. D.C. 185 (2015)
Jurisdiction: United States (federal)
Effective Date: 2015-07-14
Original Source: https://www.courtlistener.com/opinion/2816866/grier-v-united-states-departmen... ↗

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Gardens and Grier jointly and severally, for violation of the
requirements of the Section 236 program, and $1,260,000 solely
against Mantua Gardens for violation of the requirements of the
Section 8 program. In 2013, the Administrative Law Judge
assigned to the case found Mantua Gardens and Grier liable for
violating their HUD statutory, regulatory, and contractual
obligations. In re Mantua Gardens East, Inc., HUDALJ 12-F-
043-CMP-3, 2013 WL 663168 (Feb. 1, 2013). The ALJ found
that Mantua Gardens and Grier deserved the maximum
penalties, resulting in total liability of $262,500 jointly and
severally, and $2,325,000 for Mantua Gardens. However, the
ALJ observed that the governing regulations provided for
consideration of “ability to pay” in the determination of penalty
amounts. Id. at 11; see 24 C.F.R. § 30.80(c). After considering
that regulatory factor, the ALJ determined that Mantua Gardens,
instead of $2,325,000, could reasonably pay a penalty of only
$450,000. Mantua Gardens, 2013 WL 663168, at *19-20. The
ALJ also determined that under another regulatory factor, “such
other matters as justice may require,” 25 C.F.R. § 30.80(j), HUD
had conducted its penalty analysis in bad faith, i.e., HUD’s
motivation was to bankrupt Mantua Gardens and Grier, Mantua
Gardens, 2013 WL 663168, at *21. The ALJ consequently
reduced both the $262,500 penalty and the $450,000 penalty by
25%, resulting in final penalties of $196,875 jointly and
severally, and $337,500 for Mantua Gardens. Id. at *22.

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