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Lawyers' Committee for Civil Rights Under Law
1401 New York Avenue, NW
Suite 400
Washington, DC 20005

For Immediate Release
Contact: Diane Gross
202-662-8600

November 25, 2002

HUD Sued for Denying Purchase of Public Housing Project for Redevelopment

Alexandria Resident Council Says HUD Violated Federal Law by Denying Public Housing Residents the Opportunity to Purchase Samuel Madden Public Housing Project

WASHINGTON, DC – Today, the Alexandria Resident Council, Inc. (“ARC”) filed a federal lawsuit against the Secretary of the United States Department of Housing and Urban Development ("HUD"), alleging that HUD refused to permit ARC an opportunity to purchase the Samuel Madden (Downtown) public housing project ("Samuel Madden") in violation of federal law. ARC is a community organization that officially represents the public housing residents in Alexandria, VA.

The lawsuit was filed in Federal District Court in Washington, D.C., and the plaintiffs are represented by the Lawyers' Committee for Civil Rights Under Law, a national civil rights legal organization working to eradicate discrimination in both public and private housing, and the law firm of Paul A. Fiscella, P.C. The lawsuit alleges that beginning in 1996, when the Alexandria Redevelopment and Housing Authority ("ARHA") resolved to demolish and redevelop Samuel Madden, ARC has sought to purchase Samuel Madden.

The complaint details how ARHA, and now HUD, have stood in the way of ARC's opportunity to purchase and have also prevented the resident's involvement in the redevelopment of their homes. ARHA wanted to sell Samuel Madden to a private buyer, however, federal law requires that before public housing projects are sold, residents must be given the first opportunity at purchase. Therefore, the lawsuit alleges, and other courts have found, that ARHA has improperly denied ARC's opportunity and right to purchase Samuel Madden. In 2002, ARC appealed ARHA's actions to HUD, who promptly denied ARC's appeal. As a result, the lawsuit alleges that HUD's denial of ARC's appeal violates federal law and represents a dramatic reversal of positions that HUD has taken both in Alexandria and across the county.

"The residents have been trying to purchase this property since 1996. First, it was ARHA, now it's the federal government trying to thwart our efforts. These attempts to deny the rights of public housing residents to buy their own homes are outrageous," said Thomas "Pete" Jones, the president of ARC. He added, "We do not want to delay the project, in fact we welcome the opportunity to work with the current ARHA commissioners and staff.. We just want justice and for HUD to stand up for public housing residents - both of which have not happened."

This lawsuit seeks to require HUD to mandate that ARC have the right to purchase Samuel Madden and to develop it in a manner that will serve all of the residents of Alexandria, including African-American, low-income residents of the City. "It is unforgivable that public housing residents are being denied this opportunity to take control over their housing," commented Barbara R. Arnwine, Executive Director of the Lawyers' Committee. She added that, "it is particularly shocking that HUD arbitrarily refuses to follow its own guidelines in this regard."

When HUD denied ARC's request to mandate ARHA to comply with federal law, it claimed that the requirement to offer the residents that ability to buy the public housing project is a one-time requirement that was satisfied by ARHA's 1998 offer. "That the previous offer satisfies federal law is unconscionable given that ARHA and the City of Alexandria have dramatically improved the terms of sale of Samuel Madden for the private buyer," says local lawyer, Paul Fiscella, who has long represented ARC in this matter. “Federal law demands that ARC be given an opportunity to purchase on as favorable terms as any private developer. This lawsuit is about ARHA, and now HUD, failing to meet this requirement, "he added.

"What HUD and ARHA have done here is unprecedented and could possibly destroy residents' right to purchase their homes," stated Matthew Clash-Drexler, Lawyers' Committee Staff Attorney. "Housing authorities will simply choose to make offers that are unworkable for residents so that they can select a developer of their choice. We cannot stand by while HUD and ARHA blatantly disregard the rights of an African-American public housing organization, " he continued.

For a copy of the complaint, click here.

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