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Human Rights DecisionState of Montana Department of Labor & Industry Brian Schweitzer, Governor Employment Relations Division -° - Human Rights Bureau Katherine Kountz, Bureau Chief February 9, 2011 Charles Harball Attorney at Law 201 First Avenue East Kalispell MT 59901 SUBJECT: Montana Fair Housing v City of Kalispell, Mayor Tammi Fisher, Commissioner Kari Gabriel, Commissioner Robert Hafferman, Commissioner Jeff Zauner, Commissioner Wayne Saverod, Commissioner Jim Atkinson, Commissioner Randy Kenyon, Commissioner Tim Kluesner, and Commissioner M. Duane Carson Case No. 0112014642- 0112014650 Dear Mr. Harball: . After investigation, the Human Rights Bureau has found no reasonable cause to believe that discrimination occurred in the above -referenced case. This determination is based upon the investigator's recommendation, which is enclosed. Section 49-2-504(7), MCA requires the Human Rights Bureau to dismiss a complaint when it has made a no reasonable cause finding. This dismissal gives the charging parry the opportunity to file an objection to the dismissal with the Montana Human Rights Commission or to pursue the complaint directly in district court. Pursuant to the statute, I have issued a Notice of Dismissal and Right to File Civil Action in District Court in this case. A copy of the notice to the charging party is enclosed and it should be self-explanatory. Thank you very much for your cooperation. If you have any questions, please contact our office. Sincerely, Kath rine Kountz Bureau Chief Human Rights Bureau Enclosures: Final Investigative Report, Notice of Dismissal Phone (406) 444-2884 Fax (406) 444-2798 1625 11"' Avenue/P.O. Box 1728 TDD (406) 444-9696 "An Equal Opportunity Employer" Helena, MT 59624-1728 OF :rr & IND EMPLOYMENT RELATIONS DIVIDISON RIGHTSHUMAN ; l..- !: Final Investigative Report Montana Fair housing v. City of Kalispell Mayor Tammi Fisher HRB Case No. 0112014642 Montana Fair Housing v. City of Kalispell Commissioner Mari Gabriel HRB Case No. 0112014643 Montana Fair Housing v. City of Kalispell Commissioner Robert Haffernian HRB Case No. 0112014644 Montana Fair housing v. City of Kalispell Commissioner Jeff Launer HRB Case No. 0112014645 Montana Fair housing v. City of Kalispell Commissioner Wayne Saverod HRB Case No. 0112014646 Montana Fair Housing v. City of Kalispell Commissioner Jim Atkinson HRB Case No. 0112014647 Montana Fair housing v. City of Kalispell Commissioner Randy Kenyon HRB Case No. 0112014648 Montana Fair Housing v. City of Kalispell Commissioner Tim Kluesner HRB Case No. 0112014649 Montana Fair Housing v. City of Kalispell Commissioner M. Duane Carson HRB Case No. 0112014650 Recommendation: Based on investigation, I recommend a finding of no reasonable cause to believe unlawful housing discrimination occurred as set forth in Charging Party's Complaints. 1 tYE, 1 1114VKII a V . 1a A. Introduction: On October 12, 2010, Montana Fair Housing (MFH) filed nine Complaints of Discrimination on behalf of Freedom House, Inc. The Complaints filed by MFH are unclear as to the particulars of the alleged adverse actions. Following the filing of its Complaints, MFH failed to cooperate with the Human Rights Bureau in the investigation of these claims. The Investigator made numerous attempts to obtain clarification of the charge and supporting evidence; however, MFH failed to provide the requested information. Therefore, the Bureau used its judgment to determine the position of MFH based solely on the language contained in the Complaints. B. Charging Party, MFH, alleges the named Respondents discriminated against Freedom House, a clean and sober housing provider, in the area of housing on the basis of disability (drug and alcohol addiction) when the Respondents (1) failed to accommodate Freedom House residents' disabilities by waiving the city's ordinance limiting the number of unrelated residents in a single-family dwelling; (2) tabled the conditional use permit application file by Freedom House; and, (3) made numerous discriminatory comments targeting Freedom House at city council meetings. C. Respondents, hereinafter referred to collectively as Kalispell or Cityj deny the allegations of discrimination. Kalispell asserts that (1) it never enforced the residency ordinance against Freedom House, so an accommodation waiving the occupancy limitation was unnecessary; (2) it temporarily tabled the conditional use permit application filed by Freedom House for legitimate, non-discriminatory reasons; and; (3) discussions by elected officials during the legislative process (i.e., city council meetings), even if discriminatory in nature, are not unlawful. D. Issues: Did Kalispell unlawfully discriminate against Freedom House on the basis of disability in violation of the Human Rights Act (Title 49, Chapter 2, MCA) by failing to reasonably accommodate Freedom House and waive enforcement of the city ordinance limiting the number of unrelated residents allowed within a single dwelling unit? Did Kalispell unlawfully discriminate against Freedom House on the basis of disability in violation of the Human Rights Act (Title 49, Chapter 2, MCA) and the Governmental Code of Fair Practices (Title 49, Chapter 3, MCA) when the city council tabled the conditional use permit application filed by Freedom House? Did Kalispell unlawfully discriminate against Freedom House on the basis of disability in violation of the Human Rights Act (Title 49, Chapter 2, MCA) by making discriminatory comments at city council meetings? A. Charging Party's Position Statement: On or about April 28, 2010, Freedom House contacted MFH and relayed that the City of Kalispell had a zoning ordinance preventing more than four unrelated people from residing in a single-family dwelling. Freedom House intended to provide housing for eight unrelated people in a single-family dwelling. On or about April 29, 2010, an attorney for Freedom House sent Kalispell a letter requesting that the city waive application of the zoning ordinance as a reasonable accommodation for its disabled residents. Kalispell City Attorney, Charles Harball, sent a reply letter requiring Freedom House to submit an application for a conditional use permit (CUP). Freedom House complied with that request and submitted a CUP application in June 2010. 1 The Governmental Code of Fair Practices, Title 49, Chapter 3, only allows for the naming of individuals under the employment provision, Section 49-3-203, MCA. Therefore, the individuals named are only viable Respondents under allegations brought under the Montana Human Rights Act, Title 49, Chapter 2. 2 In July 2010, Kalispell amended its zoning ordinance, removing the limitation on four unrelated people.2 Despite that amendment, in August 2010, the city council considered limiting the number of residents at Freedom House to a maximum of four unrelated people, or mandating the transfer of Freedom House to a new location. The city council voted to table further consideration of the CUP application. In September 2010, Harball recommended approval of the CUP, but with certain conditions. One condition recommended by Harball was a requirement that all Freedom House residents register with the Chief of Police. Kalispell did not act on this recommendation from Harball. In both September 2010 and October 2010, the Kalispell again voted to table further consideration of the CUP application. MFH believes Kalispell discriminated against Freedom House by (1) denying a reasonable accommodation to waive the zoning ordinance limiting occupancy to four unrelated people; (2) tabling the CUP application; and, (3) making discriminatory comments targeting Freedom House during city council meetings. B. Respondent's Position Statement: Freedom House first came to the city's attention when neighbors complained to the Kalispell Planning Department about a business operating in a residential neighborhood. Neighbors advised the city that Freedom House erected a sign in the front yard and on its website advertised onsite support and therapy for residents. Zoning for this property is residential and does not allow for signage or nonresidential use without a CUP. In April 2010, the Kalispell Planning Department made contact with then -president of Freedom House, Randy Marr (Mary), to gather more information about the use of the property. Marr confirmed there was a sign erected at Freedom House and the information provided on the website was accurate. The city asked Marr to provide further information regarding use of the property to determine whether it complied with residential zoning ordinances. Following that conversation with Marr, the city received a letter from Attorney Steven Polin requesting waiver of the limitation on four unrelated people as a reasonable accommodation for the disabled residents of Freedom House. However, the city considered Freedom House to be a "community residential facility" not a family residence, so that ordinance limiting occupancy to no more than four unrelated people was not applicable. Rather, the city asked Freedom House to submit a CUP application because it appeared the property was being used for both residential and nonresidential purposes. Kalispell did have in place an ordinance limiting the number of residents in a single-family dwelling by defining a "family" as follows: "One or more persons related by blood, marriage, adoption or a group of not more than four (4) persons excluding servants, not related by blood or 2 From the complaint, it does not appear that MFH is alleging that the zoning ordinance was a per se violation of Section 49-2-305(3), MCA. marriage, living together as a single housekeeping unit in a dwelling unit." h7 June 2010, Kalispell adopted an amended zoning ordinance which no longer contains a nonrelated persons restriction within the definitions. Kalispell made no attempt to limit the number of residents at Freedom House or to transfer it to a new location. The CUP application was discussed at several city council meetings between July 2010 and November 2010, with residential neighbors offering statements of concern regarding Freedom House operations. The actual use of the property remained unclear to Kalispell, so the council voted to table the application to allow the city to gather more information. At all times, Kalispell allowed Freedom House to continue operations unimpaired by any city regulation. After further investigation, Kalispell determined Freedom House was being used solely as a residence and did not provide onsite therapy, as advertised on the organization's website. The City Zoning Administrator therefore advised Kalispell that the matter was no longer appropriate to be treated as a conditional use and CUP requirement was immediately withdrawn. C. Charging Party's Rebuttal: MFH failed to provide a Rebuttal. D. Charging Party's Witnesses: MFH failed to provide witnesses. E. Respondent's Witnesses: 1. City Attorney Charles 1Harball: interviewed via telephone on January 21, 2011. The city never told Marr that Freedom House was in violation of the ordinance limiting residential occupancy to four unrelated people. In fact, the city did not consider that ordinance to be applicable because Freedom House appeared to be operating for nonresidential purposes. In April 2010, the city asked Marr to provide further information regarding use of the property, but he failed to do so. Instead, the city received a letter from Attorney Polin asking for waiver of the residential occupancy ordinance as a reasonable accommodation for the disabled residents of Freedom House. This letter was confusing to the city because that ordinance did not apply to Freedom House, as Marr provided information that Freedom House was operating for nonresidential purposes. In late -May 2010, Harball held a telephone conference with Polin and Marr to clarify the city's position. Marr agreed to remove the sign from the front yard and submit a CUP application, which he did in June 2010 and the city waived the application fee. The CUP application stated that Freedom House was solely a residential facility and did not provide onsite treatment, which contradicted earlier information provided by Marr. The city council discussed Freedom House during several meetings between July 2010 ZD and November 2010, receiving numerous comments from concerned neighbors. The council voted to table the application in order to gather more information regarding N operations at Freedom House. During one city council meeting a council member expressed concern over the number of residents at Freedom House. Harball advised the council that Freedom House complied with occupancy limitations and the matter was dismissed. At no time did the city council discuss mandating the transfer of Freedom House to a new location. Harball did draft a memorandum proposing a possible condition on Freedom House residents requiring them to register with the Chief of Police. However, at the next council meeting Harball advised the council that such a condition would be unlawful and the matter was dismissed. Kalispell was faced with a unique situation regarding Freedom House operations. It received conflicting information from Freedom House regarding use of the property. Additionally, state laws were unclear as to whether a "clean and sober" house fit within the parameters of a "community residential facility," which requires a CUP. Upon further investigation, Tom Jentz, Kalispell Planning Director, determined that Freedom House was operating solely as a residence and could not be classified as a community residential facility; therefore, a CUP was not necessary. On November 16, 2010, Jentz sent the City Manger a memorandum advising termination of the CUP process for Freedom House based upon his findings. Kalispell immediately acted on that advice and dropped the CUP requirement for Freedom House. Currently, Freedom House is operating as a residence without any oversight by the city. Kalispell has required, and granted, CUPs for other organizations similar to Freedom House. Specifically, Kalispell has granted CUPs for the Wilderness Treatment Center (WTC), a treatment facility for adolescent men struggling with chemical dependency issues. WTC operates multiple treatment homes for nonresidential purposes within residential neighborhoods. Those homes each obtained CUPs and now operate uninhibited by the local government. F. Documents: Submitted by Charging Party: MFH failed to submit documents for consideration. Submitted by Respondent: April 26, 2010, letter from Sean Conrad, Senior Planner for Kalispell, to Randy Marr, Freedom House Board Member. This letter reads, in part, as follows: Based on our conversation with you and lack or any licensing or other compliance of state regulations for community residential facilities, it appears that the use does not fall under the state statute as a community residential facility and therefore, appears to not be a protected use at this time. 5 Based on our discussion last week, we will need the specific citations from the Fair Housing Act and/or Americans with Disabilities Act that you have determined allow for such a use to be protected from the city's zoning regulations. This information is needed by this Thursday, April 29"' so that city staff can determine whether the laws cited provide the Freedom House with the aforementioned protections. If the city determines the use is protected then we will still require a conditional use permit to be applied for and obtained prior to any further residents moving into the Freedom House. If, however, the use is not deemed to be protected then all activities at the Freedom House must cease and desist immediately until a conditional use permit is issued by the city council April 29, 2010, letter from Steven Polin, Attorney for Freedom House, to Sean Conrad. This letter reads, in part, as follows: This letter is to request a reasonable accommodation pursuant to the Federal Fair Housing Act, U.S.C. §3604(f)(3)(B) for Freedom House of Kalispell and its residents. Specifically, it is requested that the City treat Freedom House of Kalispell as a family by waiving the number of unrelated persons that can reside together as a family. May 18, 2010, letter from Charles Harball, Kalispell City Attorney, to Steven Polin. This letter reads, in part, as follows: I appreciate the analysis that you have put into this matter and believe that it will provide a helpful framework as we go forward with this issue. However, as you state in the premise of your letter, it is hinged upon the assumption that your client has made a request for a reasonable accommodation from the City's zoning regulations. In fact, this has not happened. The process that the City has for this is application for a conditional use permit. After the City was put on notice that the subject property was being put into a use not otherwise permitted, the property owner was contacted by the City Planning Department as part of due diligence. Based upon that information provided to the City by the property owner it became apparent that the conditional use permit process is the most apt means of addressing this issue. Therefore, your client was advised to make such application. To date, no application has been made. Unfortunately your client seems to be charging forward with their business plan of using the property in violation of the existing land use regulation 0 without the benefit of a conditional use permit. Certainly the City cannot be charged with denying reasonable accommodation when it has not had the opportunity to consider a request that was never made. Application for conditional use permit submitted to the Kalispell Planning Department by Freedom House on June 17, 2010. Amended application for conditional use permit submitted to the Kalispell Plamaing Department by Freedom House on June 23, 2010. July 7, 2010, Staff Report 1iKCU-10-4 recommending approval of a conditional use permit for Freedom House. This report reads, in part, as follows: [U]nder the Federal Fair Housing Act, the city's zoning regulations are required to provide reasonable accommodations for such uses. Because of this requirement, no conditions may be placed on the conditional use permit that would not otherwise apply to residences in general. Also, as stated above, the conditional use permit cannot be denied by the city council. The Freedom House conditional use permit request is to have up to eight persons with the home. The planning department has determined the use of the home most resembles a community residential facility. Based on the zoning ordinance definition of community residential facility a maximum of eight persons are allowed within a home. Therefore, since the use is determined to be a community residential facility, it already implies that up to eight unrelated persons may occupy the home and no waiver is needed from this definition of the zoning ordinance. The staff recommends that the planning board adopt the staff report 9KCU-10-4 as findings of fact and recommend to the Kalispell City Council that the Conditional Use Permit be approved subject to the following conditions: It is suggested that Freedom House hold a neighborhood meeting to foster improved neighborhood relations, to increase awareness of the operations and activities of Freedom House and to create a forum to accept neighborhood concerns or issues in the future. 2. The Freedom House sign shall be removed within 10 days of approval of the conditional use permit. July 28, 2010, memorandum from Charles Harball to Jane Howington, City Manager. This memorandum reads, in part, as follows: 7 Strictly speaking, the intended use [of the property by Freedom House] does not comply with the statutory definition of a community residential facility as follows: [MCA 76-2-411 omitted] It does however serve some of the primary needs for the rehabilitation of alcoholics or drug dependent persons. Further, and most importantly, the conditional use permit procedure affords the applicant and the City the necessary process to determine the extent to which reasonable accommodation is necessary within the residential community it will be situated. ® August 3, 2010, letter from Pam Bean, Montana Fair Housing Executive Director, to the Kalispell Mayor and City Council. This letter reads, in part, as follows: It is our belief that Mr. Polin's correspondence [dated April 29, 2010] served as a request for a reasonable accommodation for waiver of the City's Conditional Use Permit process. Mr. Harball's letter [dated May 18, 2010] to Mr. Polin serves as a denial for that request. It is the position of Montana Fair Housing, as we currently understand the facts arising in this case, that the City of Kalispell is declining to comply with [Montana Code Annotated, Section 76-2-412]. September 7, 2010, report from Sean Conrad to the Kalispell Mayor and City Council. This report reads, in part, as follows: Staff did not consider the use of Freedom House to fall under the definition of a single-family residence thereby limiting the number of persons in the house to that of a family, defined in the previous zoning ordinance as a group of not more than four persons not related by blood or marriage. Staff recommended the council consider the use of the Freedom House similar to a community residential facility. A community residential facility is permitted through state law and allows up to eight unrelated persons living in a single-family home. In staff s opinion, a community residential facility most closely resembles the use of the property requested by Freedom House. ® September 7, 2010, memorandum from Charles Harball to the Kalispell Mayor and City Council. This memorandum reads, in part, as follows: This matter was tabled at the regular meeting of Council on August 2, 2010 to September 7, 2010 for the purpose of allowing the property owner to file an agency letter indicating approval and interest in the conditional use permit as applied for by Freedom House of Kalispell, Inc. [Freedom House]. That agency letter has now been received by the City. 3 The City required Freedom House to apply for a condition use permit because the use to which the property is being put does not cleanly fall within any categories of the City's zoning code. It does not fall within the category of a residence of the fact that its occupants must be recovering from alcohol or drug addiction (a legal discrimination), there is a stated purpose for the facility beyond that of a residence, and, presumably, the rules of eviction under the Landlord/Tenant Act would not apply. The definition of a Community Residential Facility, which is a condition use in this zone, does not strictly apply to this use for the fact that the facility is not licensed or overseen by any State agencies. However, the Zoning Administrator, whose function under KMC 27-02-050 is to interpret land uses, determined that a safe harbor under housing discrimination rules and most apt fit for this use was to consider it a Community Residential Facility. This determination allowed the CUP process to be used to give the applicant a forum to request reasonable accommodation and for the City to take comment from the public. An adequate legal record is being made through this process to demonstrate the City's response to the request for reasonable accommodation. It is recommended to Council that the City Council approve the request for a conditional use permit with reasonable conditions attached. The conditions previously discussed by the Planning Board and already implemented by the applicant are the removal of signage and a plan to improve communications between the facility and the neighborhood. To address the concerns of the neighborhood about oversight of the facility the Council could consider a condition that a resident sober manager be required at the facility (currently a rule at the facility) and/or that a current list of residents be provided to the Kalispell Chief of Police and that residents give consent to that facility to this disclosure. ® November 16, 2010, memorandum from Tom Jentz, Kalispell Planning Director, to Jane Howington. This memorandum reads, in part, as follows: Based on recent events in the community, I am recommending that the conditional use permit process to allow "the Freedom House" to operate as a residential facility in Kalispell be suspended and that this application process be closed. I do this based on the following facts: 1. In recent months, the not -for -profit board of Freedom House who submitted the conditional use permit has dwindled and apparently now there are no functional board members to represent Freedom House. 0 2. The "Freedom House" sign has been removed from the property [.] The current resident Bill Hawk stated that there are no on -going professional services or treatment programs being offered at [Freedom House]. 4. The web page that previously advertised "Freedom House" in Kalispell along with a list of services, bylaws, etc. has been removed. Several site visits conducted by my staff on the property at [Freedom House] note that it appears to be a quiet, well kept property with no unusual circumstances or issues. In conclusion, the basis for which we originally requested a conditional use permit no longer appears to be there. November 22, 2010, letter from Sean Conrad to Tara Norick, Freedom House property manager, informing her that a conditional use permit is no longer required by Kalispell. G. Comparative Evidence: City Attorney Harball identified the Wilderness Treatment Center (WTC) as an organization similarly situated to Freedom House. WTC is a 60 day licensed, residential chemical dependency treatment program for young men ages 14 to 24. WTC has multiple treatment homes within Kalispell city limits. Those treatment homes are located in residential neighborhoods, similar to the location of Freedom House. Likewise, Kalispell has required WTC to obtain CUPS because they engage in nonresidential use of the property, including onsite treatment and counseling, in neighborhoods specifically zoned for residential purposes. Kalispell granted CUPS for the WTC treatment homes and they continue to operate uninhibited by the local government. H. Omissions: As presented in the introduction of this Report, MFH failed to cooperate with the Human Rights Bureau during investigation of these claims. On December 20, 2010, the Investigator sent MFH a copy of Kalispell's Response along with a Request for Rebuttal. On January 3, 2011, the Investigator received a telephone call from MFH's counsel, Tim Kelly, requesting an extension of the Rebuttal deadline, which was granted. MFH failed to provide a Rebuttal or witness list by the extended deadline. On January 10, 2011, the Investigator sent MFH an email noting the missed deadline and requesting correspondence. As of the date of this Report, MFH has not submitted any additional information or made any attempts to correspond with the Investigator. 10 Analysis I — Failure to Provide a Reasonable Accommodation MFH alleges Kalispell discriminated against Freedom House in the area of housing when it failed to accommodate the disabilities (drug and alcohol addiction) of Freedom House residents. MFH establishes it filed timely complaints. The Montana Human Rights Bureau has jurisdiction over the complaints. To establish a prima facie case of failure to accommodate a disability, MFH must show that (1) Freedom House residents are qualified individuals with disabilities; (2) Freedom house requested an accommodation or that Kalispell knew or had reason to know Freedom House needed an accommodation in order to use the housing unit and facilities; and, (3) Kalispell refused to provide a reasonable accommodation. The first issue to decide is whether Freedom House residents are qualified individuals with disabilities. A "qualified individual with a disability" is generally defined as a disabled individual who, with or without a reasonable accommodation, is able to pay for rent or purchase housing and follows the rules of tenancy or purchase. The determination of whether an individual has a disability is not necessarily based on the name or diagnosis of the impairment, but rather on the effect of that impairment on the life of the individual. MFH asserts that Freedom House residents are qualified as they are renters in compliance with applicable city and state laws. Kalispell does not contest whether Freedom House residents are qualified. MFH asserts that Freedom House residents each have an addiction to drugs and/or alcohol. Addiction to drugs and/or alcohol is considered to be a disability under State and Federal laws. Kalispell does not contest whether Freedom House residents are disabled. Based on the above -cited information, MFH establishes that Freedom House residents are qualified individuals with disabilities. The second issue to decide is whether or not Freedom House requested an accommodation or if Kalispell knew or had reason to know Freedom House needed an accommodation in order to use the housing unit and facilities. In his April 29, 2010 letter to Kalispell, Steven Polin, Attorney for Freedom House, wrote: This letter is to request a reasonable accommodation pursuant to the Federal Fair Housing Act, U.S.C. §3604(0(3)(B) for Freedom House of Kalispell and its residents. Specifically, it is requested that the City treat Freedom House of Kalispell as a family by waiving the number of unrelated persons that can reside together as a family. Based on the above -cited information, MFH establishes that Freedom House requested an accommodation from Kalispell. The third issue to decide is whether or not Kalispell refused to provide the accommodation requested or provide an alternative accommodation to meet the needs of Freedom House. Kalispell asserts that it did not fail to provide the accommodation requested by Freedom House. Rather, the accommodation request was misguided because it requested waiver of a city ordinance that was inapplicable and was never enforced by the city. MFII failed to provide a response to this defense raised by Kalispell. Evidence supports the position of Kalispell. Documents along with testimony from City Attorney Harball show that Freedom House first came to the attention of Kalispell after neighbors complained of it improperly operating a business within a residential neighborhood. From that point forward, Kalispell considered whether or not Freedom House was operating for nonresidential purposes, which would require a CUP. Kalispell exercised due diligence in its pursuit of information regarding the operations of Freedom House. If, in fact, Freedom House were operating as a nonresidential facility the city had a duty to require a CUP. At no time, did Kalispell assert that the ordinance limiting occupancy in a single-family dwelling applied to Freedom House. Both Freedom House and MFH appear to be confused on this issue, and MFH failed to cooperate with the Investigator to clarify its position. Kalispell did not refuse to provide a reasonable accommodation, because the accommodation requested pertained to an ordinance that did not appear to be applicable and was never enforced by the city. Further, the ordinance restricting unrelated persons was amended in June 2010. Based on the above -cited information, MFH fails to establish that Kalispell refused to provide a reasonable accommodation to Freedom House. Because MFH cannot establish this required element, it fails to establish a prima facie claim of discrimination. Analysis Ii —'Fabling of the Conditional Use Permit Application MFH alleges Kalispell discriminated against Freedom House in the area of housing based on disability (drug and alcohol addiction) when the city council tabled the conditional use permit application filed by Freedom House. MFH establishes it filed timely complaints. The Montana Human Rights Bureau has jurisdiction over the complaints. MFH alleges disparate treatment. To establish a prima facie case of discrimination for disparate treatment in the terms and conditions of housing, MFH must show that: (1) Freedom House residents are members of a protected class; (2) MFH applied to Kalispell for a CUP; (3) Kalispell denied the CUP for Freedom House, whereas similarly situated individuals not within the same protected class as Freedom House residents were not denied a CUP under similar circumstances. 12 As addressed in the previous analysis, MFH establishes that Freedom House residents are persons with disabilities, therefore, members of protected classes identified under State and Federal laws. On or about June 17, 2010, Freedom House submitted a CUP application to the City of Kalispell. On numerous occasions between July 2010 and November 2010, the Kalispell City Council tabled the CUP application filed by Freedom House. Kalispell never approved the CUP, because it eventually dropped the requirement in November 2010. Based on the above -cited information, MFI-I successfully articulates a prima facie case. Once MFH articulates a prima facie case, the burden of production shifts to Kalispell to articulate a legitimate, non-discriminatory reason for tabling the CUP application filed by Freedom House. According to Kalispell, the City received conflicting information from Freedom House regarding its use of the property. It was unclear to Kalispell whether the property was operating for residential or nonresidential purposes. Additionally, state laws were unclear as to whether a "clean and sober" house fit within the parameters of a "community residential facility," which requires a CUP. The City Council voted to table the CUP application in order to gather more information regarding operations at the Freedom House. In November 2010, when Kalispell received sufficient information to conclude that Freedom House operated for solely residential purposes it dropped the requirement for a CUP. Based on the above -cited information, Kalispell successfully articulates a legitimate, non- discriminatory reason for tabling the CUP application filed by Freedom House. Once Kalispell articulates a legitimate, non-discriminatory reason for tabling the CUP application filed by Freedom House, MFH may still prevail by proving by a preponderance of the evidence that the reason offered was not the true reason for tabling the CUP application; rather, that it was a pretext for discrimination. Pretext may be proven by evidence that a discriminatory motive was the reason for Kalispell's actions or that Kalispell's explanations are not credible and are unworthy of belief. MFH failed to provide any evidence suggesting a discriminatory motive by Kalispell or that Kalispell's explanations lack credibility. On the other hand, Kalispell supported its explanations with documentation, including applications, letters and memorandums preserved by city officials. Likewise, Harball provided credible testimony on the matter. While, in some instances, a local government's intentional delay of the approval of a CUP will constitute an unlawful adverse act, that is not always the case. When the government has a legitimate, non-discriminatory reason for such a delay, the act is lawful. 13 Kalispell tabled the CUP application filed by Freedom House in order to gather more information regarding its operations. The question Kalispell wanted answered was whether Freedom House operated for a residential or a nonresidential purpose. Such a question is legitimate because a nonresidential operation requires a CUP. Further, Kalispell had reason to believe Freedom House operated for nonresidential purposes. Freedom House erected a sign in the front yard suggesting commercial use of the property; the Freedom House website advertised onsite support and therapy for residents; and, Freedom House Director, Marr, confirmed to city officials the accuracy of the website information. Kalispell delayed approval of the CUP from June 2010 to November 2010, a period of five months. During that period, Kalispell allowed Freedom House to operate its business as usual without any oversight by the city. In November 2010, Kalispell Planning Director, Jentz, determined that Freedom House was operating solely as a residence and could not be classified as a community residential facility. His November 16, 2010 letter states, "the basis for which we originally requested a conditional use permit no longer appears to be there." Among other reasons, Jentz cited the removal of the Freedom House yard sign and webpage, as well as, confirmation that no professional services or treatment programs were being offered onsite. Evidence shows that Kalispell had a legitimate reason to believe Freedom House was operating for a nonresidential purpose, and once the city determined the purpose was purely residential it immediately dropped the CUP requirement. Based on the above -cited evidence, I find Kalispell's explanations to be credible and worthy of belief. MFH fails to prove by a preponderance of the evidence that the reason offered by Kalispell for tabling the CUP application was a pretext for discrimination. Analysis III — Discriminatory Comments MFH alleges a violation of the Human Rights Act by Kalispell when it made numerous discriminatory comments targeting Freedom House at city council meetings. MFH establishes it filed timely complaints. The Montana Human Rights Bureau has jurisdiction over the complaints. The Human Rights Act of the Montana Code Annotated reads as follow: 49-2-305. Discrimination in housing -- exemptions. (3) It is an unlawful discriminatory practice to make, print, or publish or cause to be made, printed, or published any notice, statement, or advertisement that indicates any preference, limitation, or discrimination that is prohibited by subsection (1) or any intention to make or have a prohibited preference, limitation, or discrimination. 14 MFH assert that Kalispell made numerous discriminatory comments targeting Freedom House at city council meetings.. However, MFH failed to provide specific details regarding what comments were made, by whom the comments were made, or how the alleged comments fit within the parameters of §49-2-305(3). MFH vaguely alleges that "the City Council for Kalispell attempted to limit the number of people residing at Freedom House to four unrelated people Kalispell calls this allegation by MFH f« Ise and misleading. In its Response, Kalispell_ explained as follows: At the August 2, 2010 meeting several members of the Council made statements and discussed whether or not it would be prudent to limit the number of residents, not only in facilities such as this, but within residential structures in the city in general for the purpose of controlling density issues, such as parking, that arise from high density. No motion in this regard was passed. This is the nature of legislative debate and function.4 Additionally, MFH vaguely alleges "The City of Kalispell suggested the House move to an area better suited for its purposes, and identified housing available in a separate location."5 Kalispell calls this allegation false. In its Response, Kalispell explained as follows: No such suggestion was made. Individuals claiming to be on the board of directors communicated with the planning staff and indicated that they were looking at another facility. No one from the City suggested or advised these individuals one way or the other. They were simply told to keep the City advised.6 The clearest example set forth in MFH's complaint comes from a memorandum promulgated by the City Attorney, Harball, to the Mayor and City Council. In a September 7, 2010 memorandum, Harball advised that possible conditions placed on Freedom House could include that "a current list of residents be provided to the Kalispell Chief of Police and that residents give consent to that facility to this disclosure." On its face, this suggests that Harball is making an assumption about the lawfulness of the residents based on their disability. However; it is unclear how a memorandum from an attorney to his clients is a "notice, statement, or advertisement" under the statute and, moreover, whether Harball's memorandum can be attributed to the named Respondents. Further, according to Harball, at the next council meeting he advised the councilors that such a condition would be unlawful and the matter was dismissed. The above -cited allegations by MFH fail to clearly articulate how the disputed comments by 3 Complaint of Housing Discrimination, page 3, section VI. 4 Followup Response to Complaint of Housing Discrimination, page 4, section 6. 5 Complaint of Housing Discrimination, page3, section VIII. 6 Followup Response to Complaint of Housing Discrimination, page 6, section 8. 15 Kalispell constitute a violation of §49-2-305(3)'s "make, print, or publish" provision. MFH fails to prove by a preponderance of the evidence that Kalispell's actions constitute a per se violation of the Human Rights Act. Conclusion Based on my analysis of the evidence gathered during investigation, I find no reasonable cause to believe unlawful housing discrimination occurred as set forth in Charging Party's Complaints. r r r Timothy Little �'{�=` t= Date Montana Human Rights Bureau 16 A.R.M. HUMAN RIGHTS COMMISSION 24.9.111 24.9.111 DOCUMENT FORMAL FILING AND SERVICE (1) All documents, pleadings, and papers to be filed shall be eight and one-half inches by eleven inches (8'/z" x 11 ") in size, standard quality, opaque, unglazed paper, with a minimum 50% recycled content, of which least 10% shall be postconsumer waste, and in 12-point font or larger, double-spaced, and clearly legible. Exhibits or other documents shall be reproduced in like size unless the original exhibit is required. The commission may require the reproduction of an oversized demonstrative or other exhibit in a size appropriate for the record. (2) The place of tiling is the offices of the Human Rights Bureau, Department of Labor and Industry, P.O. Box 1728, Helena, Montana 59624-1728. The offices are located at 1625 1 lth Avenue, Helena, Montana, The telephone number is (406) 444-2884; fax (406) 444-2799; TTY (406) 444-0532. (3) Filing with the commission is effective upon actual receipt at the offices of the department and not upon mailing. (4) Parties shall submit the original (or original copy) and six copies of all submissions for the record, unless otherwise directed by the commission. (5) Copies of all submissions filed must be served upon all parties of record, including intervenors or other parties allowed to appear for special purposes, and all submissions must contain or be accompanied by a certificate of service showing proof of the method of service and the date upon which such service was made. Service of copies of submissions upon parties shall be made in accordance with Rule 5 of the Montana Rules of Civil Procedure and may be made by means of first class mail, postage prepaid, unless the commission designates another manner of service. (6) Filing of a facsimile copy of a document of no more than 20 pages, which is an exact duplicate of the original, shall meet the filing requirements of these rules only if the facsimile copy is followed within five days by filing of the original or original copy of the document and required copies. (History: 49-2-204 and 49-3-106, MCA; IMP , 2-4-106, 49-2-204, 49-2-505, and 49-2-509, MCA; NEW , 1998 MAR p. 3201, Eff. 12/4/98; TRANS, to 24.9.111, and AMD , 2008 MAR p. 2636, Eff. 12/25/08.) A.R.M. IHUMAN RIGHTS COMMISSION 24.9.121 24.9.121 OBJECTIONS TO DISMISSAL OF COMPLAINT (1) A party who is dissatisfied with a department decision to dismiss a complaint may seek commission review of the decision by filing a written objection within 14 days after the issuance of the notice of dismissal. (2) A party who makes an objection and wishes to file a supporting brief must file and serve an original and six copies of the brief within five days of filing the objection. Any opposing party who wishes to file an answer brief must file and serve an original and six copies of the brief within ten days of service of the initial brief. A party malting an objection who wishes to file a reply brief must file and serve an original and six copies of the brief within ten days of service of an answer brief. If a party making an objection does not file a supporting brief, any opposing party may file a brief in opposition to the objection. Briefs on objections to the dismissal of a complaint may not exceed ten pages in length and comply with the formatting requirements set forth in ARM 24.9.111. Each party's brief should attach copies of any specific exhibits which the party believes are essential in the commission's consideration of the matter. (3) Requests for oral argument must be made in writing at the time of filing the first brief of each party. If the request is contained in a brief, the caption should indicate that oral argument is requested. If a request for oral argument is timely made, ten minutes for each party will be reserved for oral argument during the commission meeting at which the objection will be considered. (4) The objection will be considered at the next commission meeting after conclusion of the briefing schedule. Consideration of the objection will be based upon the written record unless oral argument is requested by a party and authorized by the commission. The commission may request that the parties present oral argument. (5) The commission will review an objection to the Human Rights Bureau's decision to dismiss a complaint under an abuse of discretion standard. (6) If the commission sustains an objection to the dismissal of a complaint, it will reopen the case by remanding it to the department. (a) If the complaint has not yet been informally investigated, and not more than 90 days (housing cases) or 120 days (nonhousing cases) have passed since the date of filing, it will be remanded to the Human Rights Bureau for investigation. (b) If the complaint has been informally investigated, or if more than 90 days (housing cases) or 120 days (nonhousing cases) have passed since the date of filing, it will be remanded to the hearings bureau to give notice of a hearing. (7) If the commission affirms the dismissal of a complaint, it will notify the parties of its decision in writing within seven days. The charging party has 90 days after receipt of the commission's order affirming the dismissal of a complaint to file the complaint in the appropriate district court. History: 49-2-204, 49-3-106, MCA; IMP, 49-2-204, 49-2-511, 49-3-315, MCA; NEW, 1998 MAR p. 3201, Eff. 12/4/98; TRANS, from 24.9.1714, and AMD , 2008 MAR p. 2636, Eff. 12/25/08.