ELR Citation: ELR 20112
No(s). s. 81-2944, 82-2897 (7th Cir. Sep 15, 1982)

The Seventh Circuit affirms the district court's ruling that the city of Chicago's application for community development block grant (CDBG) funds to finance the Milwaukee/Ashland Project complied with the Housing and Community Development Act (HCDA) and the National Environmental Policy Act (NEPA). The court rejects plaintiffs' contention that, since the HCDA entitles displaced tenants to a reasonable opportunity to relocate in their immediate neighborhood and no such relocation housing existed, the city should be precluded from proceeding with the redevelopment project. Instead, the court rules that the HCDA contains an implied exception to the reasonable opportunity provision, applicable where no relocation housing exists in the immediate area. In addition, the court holds that the city was not required to exercise its powers under the HCDA to encourage or develop relocation housing in the immediate neighborhood when comparable replacement housing existed elsewhere.

The court also holds that the city's environmental review complied with NEPA, ruling that, even if the review underestimated the potential number of displaced residents, such a mathematical error would not automatically render it inadequate. The court rejects plaintiffs' assertions that preparation of the environmental review did not take place early enough in the planning stages because they failed to show that an irretrievable commitment of resources foreclosed alternatives. Nor was the city required to examine the cumulative impacts of all CDBG activities in the area within which the Milawukee/Ashland project was located. Finally, the court rules that the Department of Housing and Urban Development's approval of the city's application was neither arbitrary nor capricious.

Counsel for Plaintiffs
Howard A. Learner
Business & Professional People for the Public Interest
109 N. Dearborn St., Chicago IL 60602
(312) 641-5570

Counsel for Defendants
Jerome A. Siegan, Corp. Counsel
121 N. La Salle St., Chicago IL 60602
(312) 744-6942

Richard C. Stearns
Office of the General Counsel
Department of Housing and Urban Development, 451 7th St. SW, Washington DC 20410
(202) 755-1300

Before BAUER, Circuit Judge, GIBSON, Senior Circuit Judge,^* and POSNER, Circuit Judge.