Evergreen Square of Cudahy v. Wisc. Housing and Economic Development Authority

Dist. Ct. erred in dismissing for lack of subject-matter jurisdiction plaintiff’s action alleging that defendant breached certain Housing Assistance Payments contracts by failing to approve annual rent increases, as required by federal law, and by requiring plaintiffs (who owned rental properties assisted by federal Section 8 program) to submit rent comparability studies as prerequisites to receiving rent increases. Although instant action asserted only state-law breach of contract claim, federal question jurisdiction under 28 USC section 1331 existed over instant action, where said action stated substantial federal issue that met 4-element jurisdictional test under Gunn, 133 S.Ct. 1059, and where instant action concerned important issues with respect to scope of federal Section 8 program.