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 2 Florida Housing Coalition 2011 Annual Conference
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 3
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 4 Florida Housing Coalition 2011 Annual Conference
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. 5 Florida Housing Coalition 2011 Annual Conference
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 6 Florida Housing Coalition 2011 Annual Conference
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 7 Florida Housing Coalition 2011 Annual Conference
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” 8 INSERT TITLE HERE
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 9 Florida Housing Coalition 2011 Annual Conference
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. 10 Florida Housing Coalition 2-11 Annual Conference
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 11 Florida Housing Coalition 2011 Annual Conference
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 12 Florida Housing Coalition 2011 Annual Conference
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. 13 INSERT TITLE HERE
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. 14 Florida Housing Coalition 2011 Annual Conference
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 15 Florida Housing Coalition 2011 Annual Conference
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 opportunity to use and enjoy a unit in the complex through the assistance of Abilities.” 16 Florida Housing Coalition 2011 Annual Conference
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 17 Florida Housing Coalition 2011 Annual Conference
Concluding “the Abilities Amendment does not constitute an arbitrary and discriminatory creation of two classes in its attempt to accommodate the disabled”. 18 Florida Housing Coalition 2011 Annual Conference
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 19 Florida Housing Coalition 2011 Annual Conference
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