Abstract: A hanging closet apparatus for storing items in the ceiling. The hanging closet apparatus includes a housing having a top wall, a bottom wall, a back wall, a first side wall, and a second side wall. A plurality of apertures is in the first and second side walls. A latch means selectively holds the housing in an extending position from the ceiling and a retracted position in the ceiling. The latch means extends through the apertures in the housing in a locked position. An enclosure receives the housing in the ceiling. The enclosure is mounted in the ceiling. The enclosure has two pairs of opposing walls. A first pair of opposing walls has apertures therein. The apertures in the enclosure are positioned such that the apertures in the housing are aligned with the apertures in the enclosure when the housing is in the enclosure. A biasing means biases the housing toward the retracted position in the enclosure. The biasing means comprises a pulley system.