discriminatory” from the reach of federal law. Id. at 50, 119 S.Ct. 977. “Careful adherence to the ‘state action’ requirement preserves an area of individual freedom by limiting the reach of federal law and federal judicial power.” Lugar v. Edmondson, 457 U.S. 922, 936, 102 S.Ct. 2744, 73 L.Ed.2d 482 (1982). It also avoids the imposition of responsibility on a State for conduct it could not control. See Blum v. Yaretsky, 457 U.S. 991, 1004, 102 S.Ct. 2777, 73 L.Ed.2d 534 (1982). The significance of this requirement is highlighted in cases such as the present one, where plaintiffs seek to hold a private entity liable for purported state action, and the state responsible for a private actor’s conduct. Whether private conduct “may be fairly treated as that of State” turns on whether there is a sufficiently “close nexus between the State and the challenged action.” Jackson v. Metro. Edison Co., 419 U.S. 345, 351, 95 S.Ct. 449, 42 L.Ed.2d 477 (1974).
Defendants do not contest the plaintiffs’ description of the governing regulatory scheme, nor its specific application in the present context, but move for summary judgment primarily on the grounds that there is no legal basis for finding state action in this case. Plaintiffs, in contrast, argue that there is a sufficiently close nexus here because Halle Housing is subject to extensive government regulation and benefits from extensive government funding.
Such a close nexus may be found where the “State has so far insinuated itself into a position of interdependence with [a private entity] that it must be considered a joint participant in the challenged activity.” Burton v. Wilmington Parking Auth., 365 U.S. 715, 725, 81 S.Ct. 856, 6 L.Ed.2d 45 (1961). Government funding of a private entity, however, no matter how extensive, is insufficient to transform otherwise private conduct into state action. See Rendell-Baker v. Kohn, 457 U.S. 830, 840, 102 S.Ct. 2764, 73 L.Ed.2d 418 (1982). Similarly, “[t]he mere fact that a business is subject to state regulation does not by itself convert its action into that of the state,” Jackson, 419 U.S. at 351, 95 S.Ct. 449, unless the private decision is “compelled or even influenced by any state regulation.” Rendell-Baker, 457 U.S. at 841, 102 S.Ct. 2764; see also Flagg Bros., Inc. v. Brooks, 436 U.S. 149, 164-66, 98 S.Ct. 1729, 56 L.Ed.2d 185 (1978). This is the case where, for example, a private actor is a “willful participant in joint activity with the State or its agents.” Lugar, 457 U.S. at 941, 102 S.Ct. 2744 (citation omitted). On the other hand, “[m]ere approval or acquiescence [by the State] in the initiatives of a private party is not sufficient.” Blum, 457 U.S. at 1005, 102 S.Ct. 2777. In addition, even if there is no interdependent relationship between the state and the challenged action, conduct by a private actor may still bear a sufficiently close nexus to the state if the private actor is carrying out a public function. However, the designation of a public function only applies to the “exercise by a private entity of powers traditionally exclusively reserved to the state.” Jackson, 419 U.S. at 352, 95 S.Ct. 449. Here, the plaintiffs have presented insufficient evidence to support a finding of state action on either a “symbiotic relationship” or “public function” theory.
It is undisputed that the Muhlenberg is not a classic public housing project, operated directly by a state or municipal government, whose policies limiting residents’ freedom of association are clearly subject to constitutional scrutiny. Cf. Vinson v. Greenburgh Hous. Auth., 29 A.D.2d 338, 288 N.Y.S.2d 159 (2d Dep’t 1968), aff'd, 27 N.Y.2d 675, 314 N.Y.S.2d 1, 262 N.E.2d 211 (1970). Plaintiffs argue, how