Woodside v. Jahren = the Abilities Amendment NIMBYism results in a - - PowerPoint PPT Presentation

Woodside v. Jahren = the Abilities Amendment NIMBYism results in a Fair Housing Ruling from the Florida Supreme Court

Abilities, Inc. of Florida

• Doors opened in 1958
• Primary Campus is Clearwater
• Offices in 14 counties in Florida
• Rehabilitation for re-entry to the workplace
• Vocational Rehab
• Benefits Planning
• Self Employment
• 1995 launched Homes for Independence as

CHDO to provide housing for the first time

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Abilities at Woodside, Inc.

• 1994 Abilities applied for funding
• Option contract with Jahren for purchase
• 1995 Awarded
• Option becomes sales contract with anticipated

closing of June 1997

• December 1995 officially Incorporated

Abilities at Woodside, Inc.

• April 1996 granted 501(c)(3) status

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The plot thickens…..

• Fall 1996 approached Woodside Board of

Directors for approval in purchase & exterior modifications for accessibility

• General Board meeting, ownership allowed to

comment

• It did not go well
• NIMBY at its best
• Threats to stop progress (and bodily harm)
• Approval withheld until more review could be done

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Declaration of Condominium Amended

• “In 1997 some owners became concerned that units were increasingly

becoming non-owner occupied, and that such a condition would have a negative impact on the quality of life in Woodside Village and on the market value of units.”

• “Accordingly, Section 10.3 was amended in March of 1997 to limit the

leasing of units to a term of no more than nine months in any twelve- month period. A provision was also added prohibiting owners from leasing their units during the first twelve months of ownership…No record owner or owners of units in this condominium shall rent or lease more than three of their units at any one time.”

• For the first time, leases and potential residents had to be approved by

the Board of Directors.

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And it goes to Court…

• The Association notifies Jahren of non-

compliance with the nine-month lease restriction

• Association files complaints in circuit court

seeking injunctions to enforce compliance with the provisions of the Declaration

• Abilities notifies HUD of issues
• Respondents file counterclaims for

declaratory and injunctive relief

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The Counterclaim

• Unreasonable, Arbitrary and Capricious
• No purpose other than to effectively ban all

leasing

• Lease restriction was confiscatory and

deprived them of lawful uses

• Sought injunction prohibiting the

Association from enforcing restriction or to compensate for fair market value of unit

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Summary Judgment

• In respondents’ favor
• Court acknowledged that Association has

the authority to pass an amendment restricting the leasing of units, adding the lease restriction “creates more than one class of ownership because it cannot be applied retroactively against the unit owners who purchased their unit prior to the date of the amendment”

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On appeal

• The Second District affirmed the trial

court’s final summary judgment and held that the lease restriction could not be enforced because it was adopted after the respondents purchased their units.

• Petitioner maintains that the district court

decision creates two classes of ownership

• Those who can lease for 12 months and those

restricted to 9 months

• They don’t want two classes

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State Federal Court

• Federal Courts overturned the Circuit courts

citing section 13of the Condo Declaration stating “each owner shall be governed by the Declaration as amended from time to time”

• The respondents were on notice that the

form of ownership at time of purchase was subject to change and they would be bound by amendments.

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Abilities files federal law suit

• Remember:
• We entered into the agreement three years prior

for the purchase of 6 units

• We had been awarded significant funding from

HUD on a program requiring 12 month leases

• The Association had been hostile regarding

purchase and modifications

• HUD now refusing to finance unless

restrictions are reversed

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Abilities files federal law suit alleging

Woodside Village had violated fair housing laws by failing to provide a reasonable accommodation to tenants based on their disabilities. A temporary injunction was issued against the Association barring the enforcement of the lease restriction against Abilities

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Settlement

• The parties settled the lawsuit with one of

the conditions adopt the “Abilities Amendment” which would allow Abilities to purchase the 6 units at the condominium that would be exempt from the nine-month lease restriction

• The amendment was properly adopted by

the Association in November 1997.

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So Why did Woodside Settle?

• After all, the District court agreed with the

trial court that the Abilities Amendment impermissibly created two classes of condominium ownership although the court cited no authority to support the conclusion.

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And in Pearlman v. Lake Dora Villas Management

• The court invalidated a declaration

prohibiting all children under the age of 16 from permanent residence unless there was an institutional first mortgage saying the provision violated equal protection by its creation and arbitrary treatment of two classes of grantees

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Because the Florida Supreme Court Determined

• “the distinction between Abilities and

(Pearlman v. Lake Dora) is not arbitrary and

• discriminatory. Rather it is directly related

to providing reasonable accommodations to enable handicapped persons an equal

• pportunity to use and enjoy a unit in the

complex through the assistance of Abilities.”

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Because the Florida Supreme Court Determined

• “both federal law and section 760.23

Florida Statutes generally prohibit discrimination in the sale or rental of a dwelling based on among other things, a person’s handicap.”

• Discrimination includes refusal to make

reasonable accommodations in rules, policies, practices or services when necessary to afford equal opportunity

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Concluding

• “the Abilities Amendment does not

constitute an arbitrary and discriminatory creation of two classes in its attempt to accommodate the disabled”.

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Contact Info

• Lori (Kreisle) Sandonato

Vice President, Homes for Independence Director of Housing, Abilities of Florida 2735 Whitney Road Clearwater FL 33760 lori.sandonato@servicesource.org 727-538-7370 ext 357

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