Case 1:17-cv-02192-BAH Document 15-1 Filed 11/08/17 Page 1 of 51 UNITED STATES DISTRICT COURT DISTRICT OF THE DISTRICT OF COLUMBIA OPEN COMMUNITIES ALLIANCE, et al., Plaintiffs, Civ. Action No. 1:17-cv-02192 (BAH) v. Chief Judge Beryl A. Howell BEN CARSON, et al., Defendants. MEMORANDUM OF LAW IN SUPPORT OF PLAINTIFFS’ MOTION FOR A PRELIMINARY INJUNCTION Case 1:17-cv-02192-BAH Document 15-1 Filed 11/08/17 Page 2 of 51 TABLE OF CONTENTS TABLE OF AUTHORITIES .......................................................................................................... ii INTRODUCTION ..........................................................................................................................1 STATEMENT OF FACTS ..............................................................................................................3 I. Overview of the HCV Program and Fair Market Rents ................................................3 II. Problems with Fair Market Rents Based on Broad Metropolitan Areas .......................4 III. HUD’s Experience With Small Area FMRs and Their Alternatives ...........................10 IV. The Small Area FMR Rulemaking ..............................................................................11 V. The Interim Evaluation ................................................................................................14 VI. HUD’s Sudden Suspension of the Small Area FMR Rule ..........................................16 ARGUMENT .................................................................................................................................19 I. Plaintiffs Are Likely to Prevail on the Merits. .............................................................21 A. HUD Failed to Follow Required Notice-and-Comment Procedures. ..........................22 B. HUD’s Delay of the Small Area FMR Rule Was Arbitrary and Capricious. ..............28 II. HUD’s Delay of the Small Area FMR Rule Will Irreparably Harm Plaintiffs. ..........34 A. Plaintiffs Crystal Carter and Tiara Moore Will Suffer Irreparable Harm If HUD’s Violation of the APA Is Not Enjoined. ........................................................35 B. Plaintiff Open Communities Alliance Will Suffer Irreparable Harm If HUD’s Violation of the APA Is Not Enjoined. ...........................................................39 III. The Balance of Equities and the Public Interest Support Plaintiffs’ Request for Preliminary Relief. ..................................................................................41 CONCLUSION ..............................................................................................................................43 i Case 1:17-cv-02192-BAH Document 15-1 Filed 11/08/17 Page 3 of 51 TABLE OF AUTHORITIES Cases Page(s) Am. Wild Horse Pres. Camp. v. Perdue, __ F.3d __, 2017 WL 4385259 (D.C. Cir. Sept. 29, 2017) ..................................................................................................31 Arcoren v. U.S., 929 F.2d 1235 (8th Cir. 1991) .............................................................................27 Bellevue Hosp. Ctr. v. Leavitt, 443 F.3d 163 (2d Cir. 2006) .........................................................34 Bronson v. Crestwood Lake Section 1 Holding Corp., 724 F. Supp. 148 (S.D.N.Y. 1989) .................................................................................................................38 California v. U.S. Bureau of Land Mgmt., __ F. Supp. 3d __, 2017 WL 4416409 (N.D. Cal. 2017).....................................................................................................23, 29, 31 Cf. Chem. Mfrs. Ass’n v. EPA, 217 F.3d 861 (D.C. Cir. 2000) .....................................................29 Chamber of Commerce of U.S. v. Occupational Safety and Health Admin., 636 F.2d 464 (D.C. Cir. 1980) ...........................................................................................24 Chaplaincy of Full Gospel Churches v. England, 454 F.3d 290 (D.C. Cir. 2006) ........................35 Chestnut Hill Benevolent Ass’n v. Burwell, 142 F. Supp. 3d 91 (D.D.C. 2015) ...........................26 Clean Air Council v. Pruitt, 862 F.3d 1 (D.C. Cir. 2017)...................................... 20, 22, 24, 33-34 Council of the S. Mountains, Inc. v. Donovan, 653 F.2d 573 (D.C. Cir. 1981) .............................23 Cresote Council v. Johnson, 555 F. Supp. 2d 36 (D.D.C. 2008) ...................................................43 Encino Motorcars, LLC v. Navarro, 136 S. Ct. 2117 (2016) ............................................20, 31, 33 Envtl. Def. Fund, Inc. v. EPA, 716 F.2d 915, 920 (D.C. Cir. 1983) ..............................................23 Envtl. Def. Fund, Inc. v. Gorsuch, 713 F.2d 802, 813 (D.C. Cir. 1983) ........................................23 Equal Rights Ctr. v. Post Props., Inc., 633 F.3d 1136 (D.C. Cir. 2011) .................................39, 41 Gordon v. Holder, 721 F.3d 638 (D.C. Cir. 2013) ........................................................................43 Gresham v. Windrush Partners, Ltd., 730 F.2d 1417 (11th Cir. 1984) .........................................36 Gulf Coast Mar. Supply, Inc. v. United States, 218 F. Supp. 3d 92 (D.D.C. 2016) ................ 42-43 Havens Realty Corp. v. Coleman, 455 U.S. 363 (1982) ................................................................39 ii Case 1:17-cv-02192-BAH Document 15-1 Filed 11/08/17 Page 4 of 51 Hispanic Affairs Project v. Perez, 141 F. Supp. 3d 60 (D.D.C. 2015) ..........................................42 Inclusive Cmtys Project, Inc. v. U.S. Dep’t of Hous. and Urban Dev., No. 3:07-cv-00945-O, Doc. 1, Doc. 52 (N.D. Tex. May 29, 2007)............................. 10-11 League of Women Voters of the U.S. v. Newby, 838 F.3d 1 (D.C. Cir. 2016) ...................................................................19-21, 34-35, 42-43 Mingo Logan Coal Company, Inc. v. EPA, 70 F. Supp. 3d 151 (D.D.C. 2014) ............................28 Motor Vehicle Mfrs. Ass’n of U.S., Inc. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29 (1983) .................................................................................. 20, 28-29 Nat. Res. Def. Council, Inc. v. Abraham, 355 F.3d 179 (2d Cir. 2004) ................................... 22-23 Nat. Res. Def. Council, Inc. v. EPA, 683 F.2d 752 (3d Cir. 1982) ................................................23 Nat’l Fair Hous. Alliance v. Travelers Indemnity Co., __ F. Supp. 3d __, 2017 WL 3608232 (D.D.C. 2017) ................................................................................................................................39 Nat’l Treasury Emps. Union v. United States, 101 F.3d 1423 (D.C. Cir. 1996) .................................................................................................................40 N. Mariana Islands v. United States, 686 F. Supp. 2d 7 (D.D.C. 2009)..................................34, 42 Patriot, Inc. v. U.S. Dep’t of Hous. and Urban Dev., 963 F. Supp. 1 (D.D.C. 1997) ....................................................................................................................42 Public Citizen v. Steed, 733 F.2d 93 (D.C. Cir. 1984) ...................................................................23 Pursuing America’s Greatness v. FEC, 831 F.3d 500, 511–12 (D.D.C. 2016).............................43 Regular Common Carrier Conference of American Trucking Ass’ns, Inc. v. United States, 628 F.2d 248 (D.C. Cir. 1980)....................................................................24 Republican Nat’l Comm. v. FEC, 76 F.3d 400 (D.C. Cir. 1996) ...................................................28 R.I.L-R v. Johnson, 80 F. Supp. 3d 164 (D.D.C. 2015) .................................................................42 S. Co. Servs., Inc. v. Fed. Energy Regulatory Comm’n, 416 F.3d 39 (D.C. Cir. 2015) ................29 Shieldalloy Metallurgical Corp. v. Nuclear Regulatory Comm’n, 768 F.3d 1205 (D.C. Cir. 2014) ................................................................................... 26-27 Sierra Club v. Jackson, 833 F. Supp. 2d 11 (D.D.C. 2012)...........................................................24 iii Case 1:17-cv-02192-BAH Document 15-1 Filed 11/08/17 Page 5 of 51 Spann v. Colonial Vill., Inc., 899 F.2d 24 (D.C. Cir. 1990) ..........................................................39 Tex. Children’s Hosp. v. Burwell, 76 F. Supp. 3d 224 (D.D.C. 2014) ..........................................41 Trinity Servs., Inc. v. Marshall, 593 F.2d 1250 (D.C. Cir. 1978) ..................................................26 Whitman v. Am. Trucking Ass’ns, Inc., 531 U.S. 457 (2001) ........................................................27 Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7 (2008) .............................................................41 Rules Page(s) 5 U.S.C. § 551(4) ...........................................................................................................................22 5 U.S.C. § 553 ................................................................................................................................22 5 U.S.C. § 706(2)(A).......................................................................................................... 21-22, 28 5 U.S.C. § 706(2)(D)......................................................................................................................24 5 U.S.C. § 706(2)(E) ......................................................................................................................21 42 U.S.C.