What limits exist on HUD's discretion to waive otherwise-applicable requirements for local housing authorities to receive federal money to house low-income families? How is this program actually impacting the supply of housing for the poor?
Congress adopted a demonstration grant program to give flexibility to local housing authorities ("LHAs") receiving federal aid money to house low-income families. The legislation allows the Department of Housing and Urban Development ("HUD") to grant exemptions to LHAs from statutes and regulations that provide significant protections for beneficiaries of federal monies. Are there limits on the scope of HUD's discretion to waive otherwise-applicable requirements? Is litigation over the scope of permissible variation from rules in other demonstration projects in grant-in-aid programs applicable here? How is this program actually impacting the supply of housing for the poor?