12 U.S.C. § 1702

Administrative provisions

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The powers conferred by this chapter shall be exercised by the Secretary of Housing and Urban Development (hereinafter referred to as the “Secretary”). In order to carry out the provisions of this subchapter and subchapters II, III, V, VI, VII, VIII, IX–B, and X, the Secretary may establish such agencies, accept and utilize such voluntary and uncompensated services, utilize such Federal officers and employees, and, with the consent of the State, such State and local officers and employees, and appoint such other officers and employees as he may find necessary, and may prescribe their authorities, duties, responsibilities, and tenure and fix their compensation. The Secretary may delegate any of the functions and powers conferred upon him under this subchapter and subchapters II, III, V, VI, VII, VIII, IX–B, and X to such officers, agents, and employees as he may designate or appoint, and may make such expenditures (including expenditures for personal services and rent at the seat of government and elsewhere, for law books and books of reference, and for paper, printing, and binding) as are necessary to carry out the provisions of this subchapter and subchapters II, III, V, VI, VII, VIII, IX–B, and X, without regard to any other provisions of law governing the expenditure of public funds. All such compensation, expenses, and allowances shall be paid out of funds made available by this chapter: Provided, That notwithstanding any other provisions of law except provisions of law hereafter enacted expressly in limitation hereof, all expenses of the Department of Housing and Urban Development in connection with the examination and insurance of loans or investments under any subchapter of this chapter all properly capitalized expenditures, and other necessary expenses not attributable to general overhead in accordance with generally accepted accounting principles shall be considered nonadministrative and payable from funds made available by this chapter, except that, unless made pursuant to specific authorization by the Congress therefor, expenditures made in any fiscal year pursuant to this proviso, other than the payment of insurance claims and other than expenditures (including services on a contract or fee basis, but not including other personal services) in connection with the acquisition, protection, completion, operation, maintenance, improvement, or disposition of real or personal property of the Department acquired under authority of this chapter, shall not exceed 35 per centum of the income received by the Department of Housing and Urban Development from premiums and fees during the preceding fiscal year. Except with respect to subchapter III, for the purposes of this section, the term “nonadministrative” shall not include contract expenses that are not capitalized or routinely deducted from the proceeds of sales, and such expenses shall not be payable from funds made available by this chapter. The Secretary shall, in carrying out the provisions of this subchapter and subchapters II, III, V, VI, VII, VIII, IX–B, and X, be authorized, in his official capacity, to sue and be sued in any court of competent jurisdiction, State or Federal.

Notes of Decisions

Cited in 253 cases (9 in the last 5 years), 1937–2025 · leading case: Merrill Tenant Council v. United States Dep't of Hous. & Urban Dev. (Hud), 638 F.2d 1086 (7th Cir. 1981).

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Merrill Tenant Council v. United States Dep't of Hous. & Urban Dev. (Hud), 638 F.2d 1086 (7th Cir. 1981). · cites it 12× “We hold that plaintiffs may sue in contract, and that for purposes of this action sovereign immunity was waived under 12 U.S.C. § 1702 . In the first count of their complaint, plaintiffs referred to Ill.”

Indus. Indem., Inc. v. Moon Landrieu, Sec'y of the Dep't of Hous. & Urban Dev. of the United States of Am., 615 F.2d 644 (5th Cir. 1980). · cites it 9× “Rejecting the plaintiff’s assertion of jurisdiction under Section 1 of the National Housing Act, as amended, 12 U.S.C. § 1702 (1976), the district court based its order on two recent Ninth Circuit opinions, Marcus Garvey Square, Inc.”

Lightfoot v. Cendant Mortg. Corp., 137 S. Ct. 553 (2017). · cites it 2× “2 1990) (Under 12 U.S.C. § 1702 (1988 ed.), Secretary of Housing and Urban Development's authority "in his official capacity, to sue and be sued in any court of competent jurisdiction, State or Federal"); Industrial Indemnity, Inc.”

Armor Elevator Co., Inc. v. Phoenix Urban Corp., 493 F. Supp. 876 (D. Mass. 1980). · cites it 14× “Applicability of 12 U.S.C. § 1702 As previously noted, six of these actions were originally filed in the state superior court.”

Arakaki v. United States, 62 Fed. Cl. 244 (Fed. Cl. 2004). · cites it 4× “Plaintiffs original complaint, naming as defendants, among others, the Secretary of the Department of Housing and Urban Development (HUD) and HUD itself, sought monetary and other relief under the National Housing Act, 12 U.”

Selden Apts. v. United States Dep't of Hous. & Urban Dev., 785 F.2d 152 (6th Cir. 1986). · cites it 5× “Selden argues that HUD has waived its sovereign immunity with respect to these actions because they fall within the purview of the “sue and be sued” provision of section 1 of the National Housing Act of 1934, 12 U.S.C. § 1702 . Section 1702 provides in pertinent part: The powers…”

Aetna Cas. & Sur. Co. v. United States, 228 Ct. Cl. 146 (Ct. Cl. 1981). · cites it 4× “§§ 1331 and 1332 or 12 U.S.C. § 1702 itself. As the Trans-Bay Engineers opinion demonstrates, supra at 378-382, once jurisdiction is proper, the federal district and circuit courts may apply a variety of substantive theories, including those based solely on equitable…”

Bor-Son Bldg. Corp. v. Keith R. Heller, 572 F.2d 174 (8th Cir. 1978). · cites it 3× “The district court, while apparently of the view that the Hennepin County District Court in which this action was originally brought could properly have exercised jurisdiction over the claims asserted in these counts, nonetheless *179 concluded it lacked jurisdiction to…”

Lightfoot v. Cendant Mortg. Corp, 137 S. Ct. 533 (2017). · cites it 2× “2d 114 (CA2 1990) (Under 12 U. S. C. §1702 (1988 ed.), Secre- tary of Housing and Urban Development’s authority “in his official capacity, to sue and be sued in any court of competent jurisdiction, State or Federal”); Industrial Indemnity, Inc.”

Slattery v. United States, 635 F.3d 1298 (Fed. Cir. 2011). · cites it 2× “" (quoting 12 U.S.C. § 1702 )). A similar sue and be sued provision relating to the savings-and-loan insurance fund was considered in Far West Federal Bank, S.”

John R. Van Drasek, Captain v. John Lehman, Sec'y of the Navy, 762 F.2d 1065 (D.C. Cir. 1985). · cites it 3× “1976) (Tucker Act does not bar suit in the district court for claims against the United States exceeding $10,-000 because the National Housing Act, 12 U.S.C. § 1702 , waives sovereign immunity, and 28 U.”

Knuckles v. RBMG, INC., 481 F. Supp. 2d 559 (S.D.W. Va 2007). · cites it 6× “1977) (“ ‘sue and be sued’ clauses, such as 12 U.S.C. §§ 1702 & 1723a, are not jurisdictional grants”) (citations omitted).”

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