In the Text Case of Open Communities Alliance V

question 54

Multiple Choice

In the text case of Open Communities Alliance v. Carson, The US Department of Housing and Urban Development (HUD) , without notice and comment or any evidence, delayed almost entirely by two years implementation of a rule requiring local Public Housing Authorities in 24 metropolitan areas to calculate housing vouchers' values based on local, rather than metropolitan-wide, prevailing market rents. The plaintiffs sought a preliminary injunction to require HUD to implement the rule on its effective date of January 1, 2018. What was the result?

• A) The court granted the preliminary injunction, holding that HUD's suspension of the rule was done without proper notice and comment procedure, did not meet any of the three exceptions to the requirement of notice and comment, and that the action was arbitrary and capricious.
• B) The court denied the preliminary injunction, holding that HUD's suspension of the rule was done without proper notice and comment procedure, did not meet any of the three exceptions to the requirement of notice and comment, and that the action was arbitrary and capricious.
• C) The agency can choose which procedures to use when it modifies a rule.
• D) The agency must send a notice via mail to all interested parties when it modifies a rule.
• E) The agency must use the notice-and-comment procedure when it modifies rules.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, representing how much of the asset's value has been used up.

Balances

The figures that represent the difference between the sum of debits and credits in an account.

Expense Recognition

The accounting principle that expenses are recorded and reported in the same period as the revenues they help to generate, ensuring accurate financial statements.

Revenue Recognition

The accounting principle that revenue should be recognized in the accounting period in which it is earned and realizable, regardless of when cash is received.