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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In its Complaint, HUD sought $1,260,000 against Mantua
Gardens for its Section 8 violations. After finding that Mantua
Gardens violated the requirements of the Section 8 program, the
ALJ initially concluded that the penalty should be $2,325,000.
Mantua Gardens, 2013 WL 663168, at *20. But after
considering the “ability to pay” factor set forth in 24 C.F.R.
§ 30.80 as a requirement to be considered when determining a
penalty amount, the ALJ reduced the penalty to $450,000. This
amount, according to the ALJ, was the most Mantua Gardens
could reasonably be expected to pay and still stay in business.
The ALJ noted that Mantua Gardens introduced no evidence to
show the lack of an ability to pay the higher penalty amount. Id.
at *19–*20. The Secretary reversed the ALJ’s penalty
reduction, imposing instead the original amount sought by HUD,
$1,260,000. Pursuant to 24 C.F.R. §§ 30.75(b) and 30.80(c), the
Secretary explained, the ability to pay a penalty is presumed
unless it is raised as an affirmative defense and documentary
evidence is provided. The Secretary noted that in this instance
no evidence was presented showing Mantua Gardens’ ability to
pay any penalty amount. Sec’y’s Op. at 8–9, Supp. JA 8–9.

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