Perez v. Boston Housing Authority

Nine persons, tenants in various developments of the Boston Housing Authority (BHA), brought this action for themselves and on behalf of the whole class of tenants of BHA similarly situated, seeking to vindicate their statutory rights to decent, safe, and sanitary housing. (See G. L. c. 121B, § 32; also c. 111, § 127H). The judge below found at successive stages of the action that many of the units and common facilities of BHA housing were in substandard conditions in violation of the State Sanitary Code (see G. L. c. 111, § 127A). In order to right the wrong and provide a remedy, the judge attempted a number of expedients, based essentially on exercise of his injunctive powers, to guide and compel performance by BHA. These failed. After much effort, a comprehensive consent decree was formulated. This also failed. The judge found upon lengthy trial that a major cause of the failures was lack of willing and competent leadership on the part of the five-member Board of BHA. Finally, as an ultimate recourse, after nearly five years of litigation, the judge took the step of ordering appointment of a “receiver” (to be appointed “as soon as possible”) 2 who would assume temporarily the functions of the Board (see G. L. c. 121B, § 5), subject to court order, this again with a view to securing, to the extent that *705 competent management contending with financial stringency could do so, the minimal statutory rights upon which the action was grounded. We have to decide whether this remedial step — certainly an exceptional one — exceeded the bounds of legality or discretion. We hold that it did not, and affirm the judgment appealed from, with a modification to be mentioned.

I. The Basic Record

We give a summary account of this protracted case embodied in a very extensive record. In doing so we apply the rule that findings of fact made by the judge below are to be accepted by us unless clearly erroneous, Mass, R. Civ. P. 52 (a), 365 Mass. 816 (1974), and we also take the view that more general appraisals by the judge, who presided in the case from the beginning, are entitled to respect although they are not binding on us. Cf. Commonwealth v. Jones, 375 Mass. 349, 354 (1978). 3

A. Initiation of the Action in Boston Housing Court. The plaintiffs, duly certified in the proceedings as class representatives, commenced this action against BHA in the Housing Court of the City of Boston on February 7, 1975, basing their claims primarily on G. L. c. 111, § 127H, the general statute entitling residential tenants to relief against landlords for violations of the sanitary code. 4 Soon the plaintiffs joined in the action certain so-called “State defendants,” including notably the Secretary of Communities and Development who, through the Department of Community Affairs *706 (DCA), had supervisory responsibilities toward local housing authorities including BHA. (Also joined were the Commissioner of DCA and the Treasurer and Governor of the Commonwealth).

The judge of the Housing Court found in his decision of March 28, 1975: “As indicated by the evidence in this case and by scores of criminal and civil complaints by its tenants against B.H.A. on the dockets of this Court which complaints were corroborated by the evidence in those cases concerning which I take judicial notice . . ., a number, un-ascertainable at this time but probably the great majority, of the residential units of buildings owned and operated by B.H.A. as well as the buildings themselves are not decent, nor are they safe . . . nor are they in compliance with the State Sanitary Code.” The judge also found that BHA did not have sufficient funds to bring those properties up to standard.

The liability of BHA under § 127H as landlord was clear as a matter of law, and only the propriety and feasibility of particular remedies could remain in any doubt. Section 127H did not itself apply to the State defendants, but a claim had been asserted against them under a related § 127N which permitted joinder of, and held jointly liable with the landlord, any other person who had authority to decide whether to rehabilitate the property in question. The judge believed that the Secretary of Communities and Development could be held liable for the code violations through § 127N, and on that theory ordered the State defendants to take certain measures calculated to result in the provision of additional State funds to BHA for purposes of rehabilitation of developments in need.

B. First Appeal to this Court. 1. Dismissal of “State defendants. ” The State defendants — not BHA — appealed to this court. We agreed with the judge’s findings about conditions in the BHA properties — we said the situation was “appalling” (368 Mass, at 341, n.5) — but we held, for the reasons to be read in our opinion, Perez v. Boston Hous. Auth., 368 Mass. 333, 336-341, decided on July 10, 1975 *707 (appeal dismissed sub nom. Perez v. Bateman, 423 U.S. 1009 [1975]), that § 127N was inapplicable to the Secretary of Communities and Development; thus any directions in the judgment aimed at compelling the State to furnish funds to BHA were inapposite. The State defendants were dismissed from the action.

2. Remand to Boston Housing Court for remedial action. However, we acknowledged the “disturbing social implications” of our holding. Id. at 334. “The Commonwealth cannot be required to expend funds for rehabilitation of BHA property; yet hundreds, and probably thousands, of tenants are living in substandard units which the judge has characterized as ‘not decent.’ Without adequate funding, the ¿lternatives appear equally unacceptable: either the tenants continue to live in conditions which are unlawful under the sanitary code, or the substandard units are to be withdrawn from use, with the accompanying probability of many persons left homeless.” Id. at 341-342. We described graphically the scope of the problem. 5

Nevertheless we thought there was still room for significant remedial action by the court. “Jurisdiction of the subject matter (violations of the sanitary code) resides in the Housing Court, of course, and that court’s powers embrace such matters, relating to both the problem and the cure of *708 the sanitary code violations, as vandalism, crime, alleged mismanagement, and the marshalling of tenant cooperation. Furthermore, the Housing Court judge has demonstrated, in his considerable efforts up to this point, both sympathetic understanding and competence directed toward the special problems of the BHA.” Id. at 343. “[Fjurther proceedings,” we said, “despite the lack of availability of State funds as decided in this case, may result in appropriate orders against BHA related to the sanitary code. See G. L. c. 111, § 127H. Moreover, additional proceedings may well offer guidance and precedent for future cases involving not only mandatory action by BHA, but also discretionary action by the legislative and executive branches.” Id. at 343-344. We concluded: “The case is remanded to the Housing Court for further proceedings as to the BHA in the discretion of the judge and consistent with this opinion.” Id. at 344.

C. Search for Remedy in Boston Housing Court. To return, then, to the Boston Housing Court. The judge, in finding BHA liable under § 127H, had directed, by way of initiating a remedy — “[a]s a first step in responding to especially intolerable conditions set out in the findings of fact” — that BHA prepare plans, recommendations, and proposed court orders in certain “areas of immediate concern.” These “areas” included the identification of vacant apartments and apartments which placed the health, welfare, or safety of tenants in “serious jeopardy,” and preparation of plans for cleaning and securing unoccupied apartments, and removing broken glass from the several developments. BHA was also to prepare temporary or provisional plans on the issues of vandalism, crime, racial segregation, and extension of leased housing operations. It was “to consult with and request assistance from the Class and tenants groups which represent the Class as well as with other appropriate governmental and non-governmental agencies and organizations.” Looking to longer-range rehabilitation was an order requiring BHA to hold a “mobilizing conference” to determine how best to use the resources of man *709 power and money in the Boston area to modernize BHA’s decaying physical properties.

1. Appointment of “master.” Such a conference was held in April, 1975 (while the appeal of the State defendants was pending). The “consensus” of those attending was that BHA would need expert assistance to accomplish any improvements. The consensus opinion appeared to be confirmed as BHA began to file plans with the court, as it had been ordered to do. A question arose what form the expert assistance should take. BHA in fact itself filed with the court a draft order regarding appointment of a “master”; the plaintiffs presented a draft order for appointment of a receiver. The events of April were referred to in the preambles to the important “Order of Reference” issued by the judge on May 22, 1975. He rejected at that time the more intrusive course of appointing a receiver, as suggested by the plaintiffs. Instead, he appointed Robert B. Whittlesey to serve as master. 6 The master was to gather information through investigation and through consultation with the personnel of BHA and any others, official or private, who could be of help. He might prepare draft orders responding to “especially intolerable individual situations.” He was also charged with preparing certain plans, some of them related to tasks that had been cast on BHA by the court’s first “ interim” order (referred to at 2 below). But his chief duty, to be performed over a period of more than a year, was to prepare interim and long-range plans for the maintenance and rehabilitation of the properties. As many ills, of which vandalism was typical, were at once the causes and effects of the physical breakdown of the developments (pointing both to “the problem and the cure,” as we later said [368 Mass, at 343]), the master’s plans must necessarily encompass those matters. BHA was charged with a duty of assist *710 ing the master, including the furnishing of all data that he might require.

2. “Interim” injunctive orders. In the period to September, 1976, there is record of numerous attempts by the judge, often with the help of the master, to meet or anticipate crises or lesser difficulties arising in the management of the BHA developments, all related in one way or other to the correction of substandard conditions. A problem might be brought to the judge’s attention by the plaintiffs or the master. It might be raised by the judge himself through his knowledge of BHA operations deriving from the Perez action or from separate criminal or civil proceedings initiated by individual tenants in the Boston Housing Court over which he presided as Chief Justice. The so-called “interim” orders or rulings made in this period as part of the Perez action sometimes went to the BHA operations as a whole, sometimes affected particular developments. Thus we find that an “ Interim Identification/Rectification/Relocation Plan” and an “Interim Identification/Clear-Up/Securing Plan,” developed by BHA and the master, were ordered into effect with stated deadlines. When deadlines were not met, the judge particularized his order to speed up action at given developments. Other “interim” orders were directed initially to particular developments to secure if possible quick correction of severe problems: repairs of roofs at the Mission Hill and West Broadway developments are examples. Still other orders prevented BHA from taking action that would undercut rehabilitation: for example, the Board’s attempts to purchase additional housing from the Federal Department of Housing and Urban Development (HUD) and to lay off thirty-eight maintenance employees.

Thus progressively using his injunctive powers, and observing the occasions for his orders and the manner of their carrying out, the judge gained increasingly the impression that there was a grievous lack of coordination in the higher echelons of the BHA staff, resulting in serious inefficiency, and indicating an absence of effective leadership at the top. Symptomatic were failures to place roofing at Mission Hill, *711 to deal with budget submissions, to supply a list of inadequate apartments at Columbia Point and Mission Hill (resulting in a contempt adjudication), and to make progress in administering a modernization program at Columbia Point. In some of his memoranda explaining his orders and examining the responses to the orders the judge became severely and vehemently critical of BHA performance. In the instance last cited, modernization at Columbia Point, the judge wrote (June 22, 1976) that this failure was just one in a line of failures, an example of the “demonstrated inability of BHA’s top level management to manage and operate BHA adequately and to carry out the orders of this Court in this case.”

3. Master’s report of July 1, 1976. The master filed his culminating draft report, standing in five volumes, on July 1, 1976, giving his impressions of the situation as he had observed it. His chronicle was not a happy one. Financial conditions: BHA on the “edge of bankruptcy” due in part to “the protracted delay by BHA in taking adequate administrative steps to bring expenses into line with income and subsidies.” Management of developments: Criticized for BHA’s policies preventing the managers from participating in decisions affecting their respective development sites. Maintenance operations: The ordinary maintenance program “an impenetrable morass.” Modernization: “ [Grossly inefficient and slow”; capital improvements “suffered from major, unjustifiable delays.” Development planning: Acquisition of new developments stressed unduly as against rehabilitation of the existing developments, resulting in confusion of criteria as to which developments needed most support. Security: A serious problem, traceable in part to a failure to monitor activities of the security department. Tenant selection: BHA’s plan faulty in various respects, including its response to the problem of segregated housing; but the criticism mooted somewhat because the staff did not follow the plan, responding instead on an ad hoc basis to individual tenant applications. Tenant involvement: Participation in administration and allocation of maintenance *712 and modernization funds hampered by inadequate information and poor administration and management of these programs by HUD, DCA, and BHA.

Addressing itself to the internal administration of BHA, the master’s report found a tradition of employing persons on the basis of “political sponsorship and nepotism” which had affected the quality of the work. Further, “there are major problems in the capability of the BHA to communicate, implement and administer major policy decisions and programs within the Authority.” BHA officials had failed to see the extent and seriousness of the deficiencies in the traffic of information within the organization, in the direction and delegation of authority, and in the capacity of some BHA personnel to get the job done.

Turning to the Board of BHA, the report “discovered little evidence that the Board is fully aware of the scope and seriousness of these problems or has provided the leadership necessary to resolve these major problems.” The Board had failed to make policies — it had set none on such important matters as budget determinations and the effort to eliminate operating deficits; maintenance; priorities in spending modernization funds and allocation of money to a “target project program”; tenant selection. The administrator was criticized for not attempting to explain the major problems to the Board, but it was pointed out that over the years the members of the Board had not felt sufficiently impelled to ask the questions. Longstanding problems had thus been left not only without solution but without direction guides toward solution.

In an attempt to fill this void in decision making the master set out detailed recommendations for substantive and procedural changes.

4. Plaintiffs’ application of August 4, 1976, for receiver. The master’s report was followed on August 4, 1976, by a motion on the part of the plaintiffs for the appointment of a receiver with authority temporarily to run BHA in an attempt to bring the properties up to sanitary code levels. The point made repeatedly in this submission was that, in the *713 face of its notorious shortage of funds and dependence on never-adequate subsidies (in this sense BHA was called “insolvent”), any waste of money in the operation of the properties due to mismanagement must have dire effect; and the motion charged that there had been wanton waste as a result of mismanagement for much of the time since May 22, 1975, without over-all improvement, and indeed with deterioration of the housing and increased lapsing of units and buildings into the category of the uninhabitable. Detailing their claims of mismanagement, the plaintiffs referred among other things to BHA’s unsatisfactory performance under the orders of court, and finally attributed responsibility to “the highest levels of the corporation, including the Administrator [chief officer appointed by the Board] and Board . . . .” The course of events since May, 1975, showed that the court, even with the assistance of a master, could not by sporadic use of the injunctive power prevent mismanagement; and interposition of a receiver must be tried as a remedy of last resort. For legal authority for such appointment, the plaintiffs’ motion cited G. L. c. 111, § 127H, aided by § 1271, as well as the court’s general or inherent equity powers.

On its part BHA objected to and moved to strike the master’s report and to revoke the order of reference designating him.

Discovery in respect to the plaintiffs’ application was under way in August and September, 1976, with hearings set for September 3, 1976.

D. Formulation of Consent Decree. At this stage the main parties, joined by Boston Public Housing Tenants’ Policy Council, Inc. (TPC) (an intervener plaintiff broadly representative of the residents of BHA housing), commenced negotiations looking to conciliation and agreement on a plan of action to implement the statutory duty and liability originally declared. By invitation of the parties, the judge joined actively in these discussions which were ramified and long protracted. The judge devoted “hundreds” of hours to this work. When, on October 6, 1976, he retired *714 from the Boston Housing Court to accept appointment as a judge of the Superior Court, the Perez case by order of our court, on consent of the parties, was transferred to the Superior Court and assigned there to remain in the same judicial hands. Negotiations continued under the same auspices and eventuated in a “consent decree,” approved after due notice, to become effective on June 1, 1977.

1. Nature of the decree. We do not undertake a detailed description of this decree running in the record to 291 pages. 7 The judge said: “The Consent Decree can best be viewed as an effort to achieve implementation of the rec-commendations set out in the Master’s July 1, 1976, Report by means short of receivership.” At the heart of the decree was an “Agreement” listing plans under thirteen heads: Central Administration Reorganization, Personnel Department, Financial Plan, Purchasing Department, Central and Project Stores, Maintenance, Department of Data Systems and Processing, Management of BHA Developments, Modernization and Planning, Security, Tenant Selection and Marketing Plan, Evictions, and Legal Department. The topics went varying distances toward completeness, that is, with respect to some matters, BHA was given fairly specific plans with directions what to do (for example, BHA was directed to eliminate a given position or to fill a position in a stated time); as to other matters, the plans or parts of them were in less detailed form and looked to the preparation by BHA of “Sub-Plans” which it undertook within stated tolerances of time to prepare and put into effect: “Each Sub-Plan must provide, insofar as is reasonably possible, a highly effective means of carrying out the particular purposes and provisions of the Plan which it is intended to supplement.” The judge considered that “ [t]he Plans were designed to be implemented within available financial resources so that necessary changes would not be delayed while the BHA searched for additional funds.”

*715 2. Monitoring provisions. The master was reappointed under the decree. He was given particularly strong powers in respect to the hiring of persons at the higher levels of BHA administration and promotion into those positions. 8 He was to make himself available to assist BHA in carrying out its agreed duties under the decree and was to monitor and report upon the actual performance. In case of any instance of “substantial noncompliance” with the decree (as defined), 9 The master, or a party, could give notice and, failing a mutually agreed adjustment, could invoke a disputes procedure that would bring the issue to the court for hearing and decision.

The decree had a stated life of three years, but under § 10A of the decree it “shall be vacated at any time upon the application of any Party, if such Party demonstrates that, because of a change of law or any other reason, its further functioning will in all likelihood be so substantially unworkable that it will not substantially achieve the significant particular purposes of the Plans. The Court, in making such a determination, will issue written findings of fact and rulings which will support such determination.” 10

E. Allegations of Failure of Performance Under Consent Decree. 1. Notices of substantial noncompliance; plaintiffs’ applications. We skip here to November, 1978. In that eighteenth month of the consent decree, the master forwarded to BHA some twenty-six notices of substantial non *716 compliance. 11 These were met by counter assertions. The notices were the basis of a plaintiffs’ application of December 28, 1978, under the disputes procedure. On the same day the plaintiffs applied in the action pursuant to § 10A, above quoted, for vacation of the decree, and as further relief, for the appointment of a receiver, citing for the latter remedy (as they had in their application preceding the appointment of the master) G. L. c. 111, §§ 127H and 1271, and the court’s equity powers; to which was added § 10D of the decree which allowed the court to make appropriate orders if the decree was vacated, without foreclosing BHA from contending that any such orders were wrong or beyond the court’s jurisdiction.

2. Alleged basis for vacation of decree. On the score of vacation of the decree, the plaintiffs charged in effect a pervasive failure of BHA to meet the substantial demands of the consent decree and thereby to make any measure of progress toward improving the condition of the many substandard properties. In this connection the plaintiffs pointed to certain major failures of compliance with the decree related to notices of substantial noncompliance, including: financial forecasts and programs; consolidated budgets; central stores, maintenance reorganization; work order procedure; repair or securing of vacant apartments; rerental of such apartments; security. Hereunder the plaintiffs also cited faults of the Board in regard to appointments of higher level officials of BHA, and undue and obstructive interferences by Board members with BHA’s day-to-day operations.

*717 3. Prayer for receiver. All reasonable alternatives for remedying the deprivations of decent, safe, and sanitary housing having been now exhausted, the plaintiffs prayed the remedy of a temporary receivership of BHA.

4. Hearings. After BHA had filed responses to the plaintiffs’ dual applications, the court on consent of the parties consolidated the applications for hearing. After much discovery, the consolidated case was heard on thirty-five days from March 26, 1979, to May 23, 1979. On the part of the plaintiffs and TPC there was testimony from witnesses and documentary evidence. BHA cross-examined extensively and on its own case offered one witness. A massive record was generated. The judge filed findings, rulings, opinion, and judgment on July 25, 1979. From this judgment the present appeal is taken.

F. Findings as to Nonperformance. The findings are in some measure retrospective to the beginning of the action, thus dealing with matters mentioned above; but our present interest is in the findings regarding compliance of BHA with the terms of the consent decree which was stated in the decree to be the responsibility of BHA’s Board and administrator.

1. Appointments. The decree began its active life with some optimism among the parties and signs of the decree’s inherent workability, as in the use of the prescribed hiring procedures (and the implementation of a subplan regarding the organization of BHA) to make a considerable number of appointments to staff. 12 However in this very respect there were crucial failures. Samuel Thompson, who was serving as administrator during the negotiation of the consent decree, resigned the office on September 16, 1977, effective October 17. Then followed a series of almost farcical episodes in finding a successor. The Board claimed that the appointment of an administrator was not governed by the *718 decree. The judge held otherwise. The Board’s vacillation and neglect or refusal to follow the procedures of the decree, which, as we have seen, assigned an important role in this and in other staff appointments to the master, created a situation where the judge ordered on March 6, 1978, that the Board act finally in a week’s time. The appointment went to Bradley Biggs.

There were further difficulties in the attempt to fill the position of deputy administrator. When Biggs resigned on October 13, 1978, an impasse developed in finding a successor which resulted in the master’s filing a statement of dispute on March 29, 1979, after hearings on vacation of the consent decree had begun. The judge in his findings pointed to the regrettable fact that BHA was without a permanent administrator for nearly half the period of the decree. This, he found, was chargeable to the Board’s acting “recklessly and in bad faith in its efforts to fill the top position at the BHA.” 13

2. Certain key projects. The findings go on to deal with the extent and quality of BHA’s performance of certain key undertakings set out in the Agreement or stemming therefrom and with the Board’s accountability for the performance such as it was.

(a) Under the heading “financial planning,” BHA was required by Plan 111(A)(1) and (2) to take budgets required by and prepared for the State and Federal Management Programs, and prepare certain studies therefrom. (The State was here represented by DCA, and the Federal interest by HUD, these being the sources of subventions, respectively, for BHA’s State- and federally-funded developments.) The studies were to consist of detailed three-year forecasts using alternative assumptions, and, as a “policy document,” a detailed three-year program to be revised and *719 updated annually reflecting decisions taken on the basis of the forecasts. To an organization under severe constraints of funding, such planning appeared essential. In the judge’s view, the (delayed) State forecast as delivered by BHA was inadequate, as was the (longer delayed) Federal forecast, preventing the adoption of adequate financial programs. The “alternative assumptions” requirement was met only superficially.

(b) In a subplan under Plan 111(B)(2) for “preparation of consolidated budgets,” we have an instance of a scheme of some promise, which was approved, but which failed of implementation. Managers of the various developments were to be brought more fully into the budgeting process in order to reach a better understanding of the costs of maintenance of each development and of means of controlling those costs. The consolidation of those budgets could be expected to produce financially sound operating budgets to be presented to the State and Federal Management Programs. All this called for training of managers and staff. The subplan, adopted in mid-May, 1978, was supposed to be well on the way to implementation by July but by November implementation had hardly begun; indeed BHA had attempted unilaterally to change the subplan and postpone its implementation. Contributing to the failure was an eight-month vacancy in the budget officer’s position. The judge thought it highly unlikely that the subplan could achieve its goals during the term of the decree. He took the experience with this subplan as characteristic of an attitude among those responsible for carrying out the decree that it was “only a paper exercise.”

(c) One of the notorious failures of BHA had been in the delivery of maintenance supplies to tenants, and an elementary cause was lack of a proper inventory system for maintenance items. Individual workmen were found to have hoarded supplies because they could not rely on existing procedures for requisitioning them. Under Plan V(A) a subplan was early approved for requisitioning, storage, and distribution of items, with appropriate record keeping. The *720 subplan succeeded to the extent that there was current “ inputting” of requisitions into a computer, but major difficulties were not adequately attacked. There were discrepancies between supplies in fact stored and those claimed to be there. The increase of staff stipulated in the subplan was not carried out. The back order problem remained unsolved, that is, no effective system has been developed for providing tolerably reliable information as to what items not in stock would become available to meet given needs.

(d) Under Plan VI(A)(1), the inefficiency of BHA’s maintenance of properties was to be tackled by a subplan which would assign laborers, craftsmen, and others to particular developments where their work would be supervised by the development managers who would be charged with responsibility. After objection by the master to a submission of a subplan not properly directed to the delegation to local managers, there was such a lack of cooperation in preparing a resubmission as could, according to the judge, be taken as negatively “probative of the continued workability of the Decree.”

(e) Work order procedure which would lead rapidly from tenants’ requests for maintenance to assignments of workers, and provide also for priorities in maintenance jobs, was the subject of a required subplan under Plan IV(B)(1). Again submission and resubmission were found by the master to be insufficient among other reasons because they were uncoordinated with other plans. A promised prompt delivery of a final corrected plan did not materialize. The judge again despaired of material accomplishment during the period of the decree.

(f) Under Plan VI(D)(1), BHA was to formulate a pilot study which would appraise whether it was advisable, on grounds of efficiency and cost, to use outside contractors instead of BHA maintenance employees to repair vacant apartments. The project petered out, starting with a first submission that would choose to compare private contractors with “CDBG” crews (under Community Development Block Grant) rather than with BHA crews. The judge *721 noted again the negative attitude of BHA toward the consent decree as indicative of its unworkability.

(g) BHA was required by Plan VI (D)(4) to prepare and commence to implement a feasibility study examining whether outside companies should be used for routine maintenance tasks. This also wandered on without signficant result, and drew further comments by the judge about the attitude and competence of the organization.

(h) It was agreed on all sides that the problem of dealing with vacancies was serious and difficult. Hence a subplan (under Plan VI[F][1]) was needed to set up a pattern for prompt rerenting of vacant units requiring no or few repairs, and securing others in worse shape, with a complementary work program concentrating on repair and securing of vacancies in chosen developments from year to year. The judge considered the documents submitted to be not up to the mark of the subplan in several respects, and in fact contradictory of some subplans already adopted. He noted that this was an instance of Board members not participating in a BHA proposal which necessarily assumed policy decisions of a high order of importance.

(i) Also of crucial importance was “security” in the sense of the safety of residents from physical and psychological invasion. Several approaches were contemplated.

By Plan X(A)(2), BHA undertook to prepare a subplan to staff and fund the security department, but its submission was merely in the form of a proposal for a blue ribbon committee drawn from the community which would be given the task of formulating the security program. After this beginning, nothing definitive seems to have followed.

A work program was required by Plan X(A) (3) but revision of the original submission evidently was not completed, nor were any programs actually launched.

Preparation of a subplan required by Plan X(B)(4) for the allocation of security guards to developments also languished.

A feasibility assessment of alternative methods of providing security (Plan X[B][5a]) was not supplied, nor was an *722 assessment of management and legal problems to reduce vandalism (Plan X[D][1]).

It was said that long delay in finding a person to become assistant supervisor of security contributed to these failures. The judge concluded that Plan X was largely unfulfilled and he called “inexcusable” the neglect of the Board and the administrator and acting administrator to see to adequate staffing for security.

(j) Delinquencies were found in performance under an approved subplan (Plan II[B][1]) for “affirmative action” in recruiting, hiring, and promoting employees of BHA, and in appointing a person to head this work.

(k) The Plan XI(C)(1) and (2) directions to hire a “marketing specialist” and to present a subplan for stimulating demand for rentable units were also defaulted. 14

3. Flow of information to master. Sundry provisions of the decree were designed to ensure that BHA would provide adequate current information to the master to enable him to attend to his duties. Yet in various reports the master complained repeatedly that no clear channels had been set up and often he obtained important information only by chance. The judge found that the procedures adopted by BHA in practice “appeared to be designed to inhibit the flow of information to the Master rather than promote it.”

4. Board’s performance. 15 Two members of the Board were called by the plaintiffs at the hearings and interrogat *723 ed about their relation to and responsibility for performance under the consent decree. It does these members no injustice to say that they had no clear idea of the requirements of the decree or the state of compliance with its provisions, and that they had not made any serious attempt to supervise such compliance.

One of these witnesses testified that he was so busy with other matters that he was not able to discuss any of the sub-plans with other Board members, or to see that information requested by the master was provided. He did not know whether subplans had been submitted on time, who wrote them, what they said, or whether the master had accepted them. He relied entirely on BHA staff to tell him about compliance with the decree. He evidently knew very little about BHA’s financial structure; did not know what a fiscal year was or when BHA’s fiscal year began; did not understand what parentheses around numbers on a balance sheet signified (and thus did not know BHA’s current or projected deficit); and did not apprehend the changes of policies regarding maintenance, renovation, and tenant transfers proposed in certain BHA documents submitted to the master and the parties.

The Board’s chairperson at first could not recall any discussion of policy matters at Board meetings, but on reflection, when cross-examined, remembered three such occasions, none in relation to the decree. She, too, was unaware of policy positions taken in subplans submitted to the master; and knew nothing about the dates for submission of subplans or failures to submit on time. Except in the most rudimentary manner she could not explain what BHA’s budget was like. She had not seen the financial forecasts that had been prepared and indeed remembered no Board discussions of BHA’s financial programs.

Testimony by both members showed they had not read the second six-month report of the master about operations under the decree. However they had read the covering letter and admitted under questioning that it raised serious questions about BHA’s satisfying the decree (in fact the *724 report foresaw in many ways the collapse of the decree in the third period); but they were not moved to look into the matter. 16

According to the testimony, Board members busied themselves answering individual tenants’ complaints and the Board approved contracts or dealt with minutiae but did not oversee operations or determine policy.

Indeed a tendency on the part of the Board or its members to reach down to deal with details could have the effect of interfering with lines of authority. The Board on September 1, 1978, voted (among other things) to order the administrator to instruct all officers and employees that they “may communicate fully with, and respond to requests of, members of the Board when requested by a member of the Board without necessity for authorization or approval to do so by their superiors or supervisors.” Administrator Biggs thought he saw reason to read this vote as a destructive attempt to interfere with day-to-day activities of BHA, and as damaging to his role. The plaintiffs applied for and obtained an order temporarily restraining implementation of the vote, and testimony was later received in respect to a preliminary injunction, but without conclusion. On October 13, 1978, Biggs resigned.

5. Conclusion as to the Board. The judge concluded as follows with respect to the Board: “Under the terms of the Consent Decree, the Board and the BHA’s Administrator are responsible for insuring the BHA’s compliance with the requirements of the Consent Decree. The evidence introduced at the hearings on the Application to Vacate revealed that the Board is incapable of effective leadership and is unable and unwilling to carry out those responsibilities. The Board’s incompetence and indifference to those obligations *725 has directly and substantially contributed not only to the BHA’s failure to implement important provisions of the Consent Decree but also to the unprecedented deterioration of the BHA’s developments and the widespread violations of the Sanitary Code. Throughout the four-year history of this case, the Board has shown itself to be capable of nothing more than gross mismanagement. The unabated mis- and nonfeasance of the Board necessitates the extraordinary action of appointing a Receiver in this case.” 17

6. Condition of the housing. Finally we recur to the condition of BHA housing about the time of the hearings. The state of the physical accommodations as well as their ambiance of course varied from property to property but as to many units, including common areas, the adjective “appalling” still undoubtedly applied. We need not enter into detail about the rampant, continuing violations of the sanitary code. It will be enough to take note of the findings regarding vacancies as indicative of the decline of much of the BHA venture by the year 1979. As to “family” developments (sixteen “Federal” and ten “State”), we have figures indicating that the situation was worse in January, 1979, than it had been around the time of the decision of March 28, 1975; and, further, that the over-all rate of vacancies in those developments had been rising: 15% of “available units” 18 in January, 1977, 20% in January, 1978, and 28% in January, 1979. The rates at particular developments were shocking. 19

*726 7. Receivership as last resort. On the record digested above, the judge concluded, with reluctance, that the leadership vested in the Board of BHA, but only nominally exercised by it, must pass to a qualified person to act as receiver under the aegis of the court. Other approaches had been tried over a considerable period of time, and had not succeeded. It would not make sense to try to continue with the consent decree. In the judge’s view receivership was the only remaining expedient which offered a prospect (not a certainty) of moving BHA toward the goal of satisfying the requirements of the sanitary code — the aim of the Perez litigation from the outset.

G. Judgment Appealed From. Following is an outline of the judgment appealed from which provides for the receivership. 20 The court makes a recertification of class in terms of all residential tenants of properties of BHA in which there are or may in the future be conditions in violation of the State Sanitary Code. The court vacates the consent decree under its § 10A (quoted above), and, having referred to the general equity power, states its intention to appoint a receiver pursuant to G. L. c. 111, § 127H, who, with powers permitted by § 1271, shall have authority to administer, manage, and operate BHA; he shall have the powers of the Board of BHA (including control of funds and revenues) and any additional powers that may be necessary or appropriate; upon his appointment, the Board’s powers shall be superseded. To assist the court in selecting a receiver, the master, who is redesignated, shall among his other duties take steps to bring forward the names of qualified persons. An advisory committee of nine or eleven members will be appointed coincidentally with the appointment of the receiver to counsel the court and the receiver in the attempt to achieve the goal of compliance with sanitary code standards.

A series of “interim orders” are made to last until the receiver takes office. These are intended to prevent further *727 regression of BHA operations during that period. In particular the court expresses its concern lest gains made toward a “patronage-free personnel system” be lost through irresponsible action. 21 “These Orders are drawn largely from the Agreement section of the Consent Decree covering such areas as personnel, contracts and the availability of information to the Master.” BHA shall implement all approved subplans (including approved work programs and a certain plan as to tenant selection, assignment, and transfer). There is detailed direction requiring BHA to provide the master with information and for the master’s furnishing information so received to the parties or DCA or HUD.

The hiring of personnel at certain salary scales, or their promotion thereto, and the termination or suspension of employees at such scales, are made subject to stated procedures in which the master has a prominent or controlling part, with certain possibilities of review by the court at the instance of a party. BHA shall not enter into or extend contracts for $250,000 or more, or, in the case of service contracts, for $25,000 or more (there are exceptions as to the latter category) without notice to the master and the parties, and the master is empowered to disapprove these agreements, again with a possibility of court review. BHA is required to notify the master of its intention to take steps of serious consequence (as described), and the master may approve or disapprove; in eithe