HUD Building Exempt from Local Code Requirements

The Fire Department issued a violation notice to landlord for violating various Fire Department rules by failing to provide fire buckets or a fire extinguisher in a building's boiler room, failing to provide a self-closing fireproof door leading to the boiler room, failing to repair a hole in the boiler room ceiling, and failing to provide a copy of a certificate of approval for the installation of the oil burning system to the Fire Department. HUD had taken over the building through a foreclosure proceeding and claimed that it wasn't subject to Fire Department rules. The ALJ ruled that, although HUD was immune from liability, landlord, as HUD's agent, wasn't. The ALJ fined landlord $2,500. Landlord appealed, claiming that HUD was authorized by the National Housing Act (NHA) to sell properties it acquired "as is" in order to ensure a maximum return to its mortgage fund. The Fire Department argued that HUD program requirements for residential properties required compliance with state and local regulations. ECB ruled for HUD's agent. The NHA preempted Fire Department rules.

National Housing Group, Inc.: ECB App. No. 43019 (5/7/09) [3-pg. doc.]