The plaintiffs, landlords participating in the U.S. Department of Housing and Urban Development’s (HUD) Section 8 housing program (program), commenced a putative class action against the NYC Housing Authority (NYCHA), alleging that NYCHA failed to comply with a federal statute 42 U.S.C. §1437f (§1437f), federal regulations 24 C.F.R. Part 982 (Part 982), and NYCHA’s own policies and contracts. The plaintiffs alleged violations of their Fourteenth Amendment procedural due process rights and that §1437f and Part 982 create a private right of action.
NYCHA moved to dismiss the amended complaint, arguing that the plaintiffs’ allegations constituted "merely a state-law contract dispute over which the Court lacks subject matter jurisdiction," and "there is no private right of action" under the subject statute and regulations. NYCHA also asked the court to decline to exercise supplemental jurisdiction over the contract claim. The court granted NYCHA’s motion to dismiss.
