US District Court Orders GSA to Delay Auction of Federal Center Station Property
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FOR IMMEDIATE RELEASE John Parvensky |
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US District Court Orders GSA to Delay Auction of Federal Center Station Property
Lakewood, CO, August 9, 2017 — US District Court Judge William J. Martinez issued a ruling and new Order on August 8, 2017, ordering the General Services Administration (GSA) to refrain from accepting any bid or to “otherwise dispose of the Surplus Property before October 16, 2017.” This order extended the prohibition previously included in the Court’s July 28th Temporary Restraining Order (TRO) that had prevented any sale until August 11, 2017. The new Order was in response to a Joint Motion filed by the Colorado Coalition for the Homeless (CCH) and the US Attorney’s Office representing GSA and the US Department of Housing and Urban Development (HUD). Under the Order, HUD has agreed to reopen a review of its determination of “unsuitability” of the property for use for homeless assistance based on information provided by GSA and CCH regarding the environmental condition of the site. Under the terms outlined in a Joint Motion filed by CCH and the US Attorney’s Office, HUD has agreed to provide a new determination of suitability within 30 days of receiving information from GSA and CCH. HUD will have until September 14, 2017, to reconsider its initial determination of unsuitability and issue a written notice of its decision to the CCH and GSA. Within hours of the issuance of the new Order, GSA provided a letter to HUD and the Coalition identifying “information that could be pertinent to HUD’s reconsideration of its determination of unsuitability of the Federal Center site.” CCH is reviewing this information and will provide its recommendation to HUD by August 15, 2017. The Coalition filed a lawsuit and requested a Temporary Restraining Order and Preliminary Injunction on July 25, 2017, to prevent the imminent sale of a 59-acre, surplus portion of the Federal Center property in Lakewood, arguing that HUD’s determination that the property was unsuitable for homeless use, while GSA was marketing and selling the property as suitable for mixed-use and market-rate residential development was arbitrary and capricious and in violation of Title V of the McKinney-Vento Homeless Assistance Act and federal regulations. On July 28, 2017, Judge Martinez issued a Temporary Restraining Order, prohibiting GSA from selling the property prior to August 11, 2017. In his Order, Judge Martinez found that CCH had demonstrated a “substantial likelihood of success on the merits” of proving that “HUD’s unsuitability determination was arbitrary and capricious and therefore in violation of the Administrative Procedures Act.” The Court further found that CCH would suffer irreparable injury if the GSA auction was permitted to conclude. If HUD determines that the property is suitable for use to assist the homeless, the Coalition intends to request that the site be transferred to CCH to provide a range of supportive housing, health, employment, and other supportive services for homeless families and individuals in Lakewood and throughout the Metro Denver area. “We are pleased that Judge Martinez agreed with us that HUD’s original determination and subsequent affirmation about the property’s “unsuitability” for homelessness assistance had been arbitrary and capricious,” said John Parvensky, President and CEO of CCH. “We believe that the only logical conclusion that HUD can make in light of the evidence provided by GSA and CCH is that the property be deemed “suitable” for development to assist the homeless. We look forward to working with GSA and HUD in righting the injustice that restricting access to this property would have created for thousands of individuals and families experiencing homelessness in the Denver Metro Area.” CCH staff and partners are exploring a variety of potential opportunities for development on the Federal Center property including supportive housing, healthcare, wellness services, and vocational programs. “With housing costs rapidly rising throughout the metro area, and land costs going sky-high, this land provides a once in a lifetime opportunity to develop needed affordable housing and services to meet the needs of homeless families and individuals,” said Parvensky. “Located adjacent to the RTD Federal Station light rail station, we believe that a transit oriented development that provides affordable housing and supportive services to these families and individuals will go far in meeting our goal of creating lasting solutions to homelessness in the area.” For additional background on this lawsuit, please see: About Colorado Coalition for the Homeless ### |