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This case explores both the public policy and legal issues that arose when the largest federally assisted rental housing complex in the US chose to achieve racial integration through a policy of 'managed occupancy'. In order to achieve its publicly stated goal to be 70 percent white and 30 percent minority in residential composition, the management of the 5,800-unit complex in southern Brooklyn took such steps as holding large numbers of apartments vacant until white tenants could be found for them - even as hundreds of blacks were placed on a waiting list. This policy posed a series of difficult decisions for New York state and federal housing officials, as well as the federal courts. Parts A and B highlight decisions by state officials as to whether to permit and financially support the policy. Part C frames the subsequent precedent-setting federal court case initiated by the Reagan administration. Funding for this case was provided by an unrestricted grant from Starrett City Associates, Disque D Dean, managing partner, who exercised no editorial control.