Why is the U.S. Department of Housing and Urban Development in such a hell-fire hurrry to take over the Miami-Dade Housing Agency? The County's court fight to stop the pending federal takeover of the embattled agency sheds light on some possible reasons why. A district court judge has ordered mediation between HUD and the county over the takeover, delaying the receivership until at least September 20. (Read the judge's order here.) But the really interesting document is the detailed memo filed by the county (with the mayor and commissioners in rare agreement, along with local housing activists, who didn't file a friend of the court brief, but who probably for the first time are in line with the county...) to support their case for relief. In that memo (read it here), the county argues that HUD broke its own rules by now giving the county sufficient time to correct any violations, rather than seizing the housing agency and all of its properties. Speaking of properties, the county argues that the takeover would do irreparable harm to the county. How? Let me count the ways:
The loss of control over a significant County department, by itself, constitutes irreparable harm that cannot possibly be repaired by money damages. This is particularly true where the County has recently spent tremendous time, money, and other resources in creating an expert management team to run and revitalize its Housing Department.
Moreover, approximately 545 employees work in the Housing Department. If HUD is allowed to implement its final decisions, HUD will be able to abrogate the collective bargaining agreement that these employees have with the County. 19 42 U.S.C. § 1437d(j)(3)(D)(i)(V). HUD has given the County no assurances as to how these employees would be treated. In fact, Assistant Secretary Cabrera stated publicly that if HUD did fire these employees, this would be the County’s problem, not HUD’s.20 See Orlando Cabrera Interview, The Jim DeFede Show, AM 940, Aug. 9, 2006. Putting 545 County employees at risk of being fired or losing their health and retirement benefits and disregarding their collective bargaining agreements constitutes irreparable harm to the County and its employees.
And now for the big finish:
Furthermore, if HUD does take possession of any of the County’s assets, HUD could sell these assets, including valuable riverfront property where public housing projects sit. 42 U.S.C. § 1437d(j)(3)(D)(i)(II). HUD could build market-rate housing, and could privatize the public housing stock and/or programs. Thus, HUD would seize County assets, control them, privatize them, and the County would never regain possession or control. Clearly, this represents irreparable harm to the County and the public.
Again, when HUD Secretary Orlando Cabrera -- formerly the chief counsel to the powerful Latin Builders Association -- appeared on our morning show (with Andre -- I was out on vacation -- ) He refused to rule out privatizing the Liberty City properties that would come under HUD's control under a receivership. He refused to do that, because he very likely plans to flip some of those valuable public properties to private control. This is a guy who in March, gave a speech about what a burden Section 8 is on the federal government. He he doesn't believe in public housing, that I can tell. But he does have his relationships, and the LBA is likely to be the chief beneficiary of this quickie takeover, if it is allowed to happen.
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"[T]he practice of arbitrary imprisonments, have been, in all ages, the favorite and most formidable instruments of tyranny.' Alexander Hamilton, Federalist No. 84, August, 1788
