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LouisaP (Texas)
Posts: 2
Posted:
In our CC&R's no businesses are permitted to operate from a residence. Our Property Management Company sent a cease and desist letter to a property that is actually a small group home with no more than 3 disabled residents and one caretaker. I'm of the opinion that the management company should have done some due diligence before the letter was sent and could be a violation of the Federal Act. Your thoughts or experience is appreciated.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
This would not be a business per se. It's falls more along the lines of not using the property as a single family home. Typically a business definition in a HOA is more like you can't put a "shingle up" that says "Dentist". You can have home businesses like Tupperware or those that don't generate traffic/parking issues.

In this case, it's not being used as a single family home due to rooms are probably leased out. It's more like a boarding house situation. Many HOA's frown against this because of the multiple tenant issues. They akin them to like Frat houses or Airnb's. Although not all of these group home situations are bad nuisances. It doesn't sound like it in this case. Maybe if it was a rehab home there could be.

I would say they are wrong in the definition of business. Plus the MC is to do what the board tells them to do. So they may be out of their reach on this one unless the board was involved.

Former HOA President
JanetB2 (Colorado)
Posts: 4,219
Posted:
I agree with Melissa ... It is not really being used as a business and instead could potentially violate the CCR's if they note that homes can only be used as Single Famility Homes. However, if your CCR's do not note that only Single Famility homes is allowed this will be a battle the HOA most likely will loose in a Court battle. Was the Board aware of the letter being sent and did they perform due diligence prior to sending???
TimB4 (Tennessee)
Posts: 21,059
Posted:
Louisa,

I agree that the MC should always do due diligence. However, they may have been instructed to send the letter by the Board - hence, the issue is likely with the Board.

Per the The Fair Housing Act, The Act protects people from discrimination when they are renting, buying, or securing financing for any housing. The prohibitions specifically cover discrimination because of race, color, national origin, religion, sex, disability and the presence of children.

Per this 2015 article from a legal firm:

While each situation is unique and must be evaluated individually, in virtually all cases the association will NOT be able to enforce these restrictions against a group home because of the provisions of the Federal Fair Housing Act, 42 U.S.C. ยง 3601

If you are involved in the situation, I wouldn't run to HUD just yet. Try and resolve at the lowest level. Contact the Board and simply make them aware that such a demand is likely a violation of the Fair Housing Act and encourage them to seek a legal opinion vs. opening the Association up to a potential legal action.

AugustinD
Posts: 5,144
Posted:
Good work by TimB4.

I do not buy the possible "single family" use argument. I think it is fraught with land mines. Like "define family." Also, if there is then some definition of family used, this definition might invite a different FFHA complaint: Discrimination on the basis of familial status.

Louisa, is renting of homes prohibited?

Have there actually been any problems with this home, other than its being a group home?

Otherwise, I agree with TimB4's suggestions.

LouisaP (Texas)
Posts: 2
Posted:
Thank you all for your comments. Let me answer your questions. I am the VP on the Board. Was not aware the cease and desist was sent until it showed up on a compliance report. What makes this even worse is I'm a licensed RE agent and the home in question are my next door neighbors. We have many rental homes in our community. Based on all the above, I'm considering resigning. I noted for the record in an email that I have never approved any such notice to any property in my community.
AugustinD
Posts: 5,144
Posted:
Here's a 2002 Florida state appeals court decision ruling in favor of the group home residents et al., based in Florida law and the federal Fair Housing Act: http://www.ccfj.net/courtdecFLCommHome.html

Excerpts:
~~~
The restrictive covenants of the subdivision at issue provide:
1. Each lot shall be used expressly and exclusively for single-family, private residence purposes.
2. No business activity shall be conducted or carried on in connection with the residential usage of any lot or parcel.
...

[The court concludes] "that the Holleys' action to enforce the deed restriction is impermissibly discriminatory. Their action was premised on the fact that the residence was to be a group home for developmentally delayed adults. Whether the Holleys' action was motivated by a desire to prevent these disabled persons from living in the neighborhood or simply by their objection to any group home is not clear from the record. Therefore, it was error to decide the absence of intentional discrimination by summary judgment. However, the record does show that by enforcing the restriction, incidental discrimination results since the residence is made unavailable for the handicapped. See Rhodes v. Palmetto Pathway Homes, Inc., 400 S.E. 2d 484 (S.C. 1991). Finally, public policy as stated in section 419.001(2) and in section 393.062, Florida Statutes (2000), *fn2 supports the premise that the group home is the functional equivalent of a single-family residential unit and as such does not pose any threat to the purpose justifying the deed restrictions at issue. Thus, to refuse to waive these restrictions is to refuse to offer a reasonable accommodation, which also amounts to discrimination as defined by statute. See Advocacy Ctr., 192 F. Supp. 2d 1344.
~~~

Thanks to poster RW1 for providing the citation above in the 2007 thread http://www.hoatalk.com/Forum/tabid/55/view/topic/postid/27956/Default.aspx

Here is what may be the seminal federal ruling on the subject,from 1994: Martin v. Constance, http://law.justia.com/cases/federal/district-courts/FSupp/843/1321/2594110/ . Once again, a neighborhood sought to enforce a restrictive covenant that would preclude use of a home by the state for a group of disabled adults. The neighborhood lost.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LouisaP on 09/27/2017 7:32 AM
Thank you all for your comments. Let me answer your questions. I am the VP on the Board. Was not aware the cease and desist was sent until it showed up on a compliance report. What makes this even worse is I'm a licensed RE agent and the home in question are my next door neighbors. We have many rental homes in our community. Based on all the above, I'm considering resigning. I noted for the record in an email that I have never approved any such notice to any property in my community.

LouisaP, with your research, experience, and stand on this important issue, you are too valuable a presence to resign. Share with the other board members what you have learned. Ask that the HOA attorney be consulted. The instant the owners of the group home question the violation notice, tell the board that the HOA's insurer must be informed, as the HOA is thoroughly vulnerable to a lawsuit.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By LouisaP on 09/27/2017 7:32 AM

Based on all the above, I'm considering resigning.

You should not resign.

Instead, you should call a meeting with the Board, the MC rep and reps boss.
Explain the situation along with the potential ramifications of such action.
Then ask the MC point blank if they are aware of the fair housing act and, if they are, why they chose to potentially violate it in the name of the Association. Basically, read them the riot act.

If you resign, nothing will likely change and you will miss an opportunity to educate.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By AugustinD on 09/27/2017 7:20 AM
Good work by TimB4.

I do not buy the possible "single family" use argument. I think it is fraught with land mines. Like "define family." Also, if there is then some definition of family used, this definition might invite a different FFHA complaint: Discrimination on the basis of familial status.

Louisa, is renting of homes prohibited?

Have there actually been any problems with this home, other than its being a group home?

Otherwise, I agree with TimB4's suggestions.



Could be ... however, would depend on how it is defined in the CCR's: https://carolinacommonelements.com/2015/07/31/can-hoa-enforce-single-family-rules/
LetA (Nevada)
Posts: 2,679
Posted:
The FHA rules was amended last year under the Obama Regime that allows group homes, transitional housing et al whatever you want to call them, now has a RIGHT
to operate in deed restricted common interest communities.
I know because we have a prison step-down unit in the the adjacent HOA to mine. This "group home" is for repeat offenders for burglary, robbery etc. another group home in other adjacent community houses sex offenders..

THANK YOU FHA PHHHHHLLLLLLLLLLBTTTTTTTTTTTT!!!!!!!!!!!!
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By LetA on 09/28/2017 9:15 AM
The FHA rules was amended last year under the Obama Regime that allows group homes, transitional housing et al whatever you want to call them, now has a RIGHT
to operate in deed restricted common interest communities.
I know because we have a prison step-down unit in the the adjacent HOA to mine. This "group home" is for repeat offenders for burglary, robbery etc. another group home in other adjacent community houses sex offenders.

The following from the Justice Department in 2015 says otherwise:

"The disability discrimination provisions of the Fair Housing Act do not extend to persons who claim to be disabled solely on the basis of having been adjudicated a juvenile delinquent, having a criminal record, or being a sex offender. Furthermore, the Fair Housing Act does not protect persons who currently use illegal drugs, persons who have been convicted of the manufacture or sale of illegal drugs, or persons with or without disabilities who present a direct threat to the persons or property of others."

More at https://www.justice.gov/crt/joint-statement-department-justice-and-department-housing-and-urban-development-1 :
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By LetA on 09/28/2017 9:15 AM
The FHA rules was amended last year under the Obama Regime that allows group homes, transitional housing et al whatever you want to call them, now has a RIGHT
to operate in deed restricted common interest communities.
I know because we have a prison step-down unit in the the adjacent HOA to mine. This "group home" is for repeat offenders for burglary, robbery etc. another group home in other adjacent community houses sex offenders..

Sounds like fake news to me. To be expected, I suppose, by someone casually using the word "regime" when talking about a U.S. President.
LetA (Nevada)
Posts: 2,679
Posted:
The NV legislation shoved this down our throats a couple of years ago.

i'm under the belief that if I want to live in a prison, I know what to do to move in. Hence, I don't want to live in a prison and I don't want a prison in my Neighborhood.
That's why I did not buy a home in Jean, NV, North Las Vegas, or Indian Springs.
https://www.reviewjournal.com/uncategorized/new-hoa-laws-affect-group-homes-disputes/
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By LetA on 09/28/2017 1:46 PM
The NV legislation shoved this down our throats a couple of years ago.

i'm under the belief that if I want to live in a prison, I know what to do to move in. Hence, I don't want to live in a prison and I don't want a prison in my Neighborhood.
That's why I did not buy a home in Jean, NV, North Las Vegas, or Indian Springs.
https://www.reviewjournal.com/uncategorized/new-hoa-laws-affect-group-homes-disputes/


LetA ... Your link makes the statement:

"Restrictions are still valid for group homes whose occupants are active drug users or felons."

Therefore, restrictions against those type homes are still in place and valid against active drug users or felons. Potentially the way around this issue is to have a VERY good definition in the CCR's regarding "Single Family Homes".
LetA (Nevada)
Posts: 2,679
Posted:
The aggravating factor is we have politicians that like to promote social experiments, just as long as it's not next door to them.
I wold like to see these type of group homes up in the Ridges, Red Rock country club, Seven Hills or Southern Highlands
where all the FAT CHIT executives, judges, and some politicians live. Maybe if they had to face the everyday struggles of burglaries and robberies, they live in super guard gated communities.
JohnB83 (South Carolina)
Posts: 124
Posted:
Single family home:

ONE kitchen

ONE unit

NO interior 'lock out' partitions

NO 'sub leasing' of efficiency rooms

NO 'room rentals'

A group home serving multiple persons with a common interest with ONE kitchen meets the specs for single family

If not for profit, it would NOT be a business per se

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