2910 Georgia Avenue LLC v. District of Columbia

234 F. Supp. 3d 281, 2017 WL 598469, 2017 U.S. Dist. LEXIS 20467
CourtDistrict Court, District of Columbia
DecidedFebruary 14, 2017
DocketCivil Action No. 2012-1993
StatusPublished
Cited by3 cases

This text of 234 F. Supp. 3d 281 (2910 Georgia Avenue LLC v. District of Columbia) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
2910 Georgia Avenue LLC v. District of Columbia, 234 F. Supp. 3d 281, 2017 WL 598469, 2017 U.S. Dist. LEXIS 20467 (D.D.C. 2017).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, UNITED STATES DISTRICT JUDGE

Plaintiff 2910 Georgia Avenue LLC filed suit against the District of Columbia, May- or Muriel Bowser, and Polly Donaldson in her official capacity as Director of the Department of Housing and Community Development (“DHCD”), 1 alleging that the application of the District’s Inclusionary Zoning Program (“IZ Program”) to the development of a 22-unit condominium building near Howard University constituted an unconstitutional taking and violated Plaintiffs due process and equal protection rights. Presently before the Court are Defendants’ [67] Renewed Motion for Summary Judgment and Plaintiffs [68] Motion for Summary Judgment.

Upon consideration of the pleadings, 2 the relevant legal authorities, and the record for the purposes of these motions, the Court finds that Defendants are entitled to summary judgment on each of Plaintiffs claims. In so finding, the Court does not intend to minimize Plaintiffs legitimate grievances with the District’s administration of the IZ Program, or to suggest that the District acted perfectly at all times. The Court merely concludes that at no point did the District’s conduct rise to the level of a violation of the United States Constitution.

First, the Court finds that the economic effect of the challenged regulations on Plaintiffs condominium building is not sufficient to establish a takings claim as a matter of law. Second, Plaintiff has not established an equal protection claim because it has not demonstrated that it was treated differently by the District than any other developer subject to the IZ Program. Third, Plaintiff has not established a substantive due process claim because the conduct of the District at issue demonstrates, at most, confusion or negligence; it does not approach the level of grave unfairness or deliberate flouting of the law *287 that is required for such a claim. Finally, Plaintiffs procedural due process claim also fails because Plaintiff has not established that the IZ Program deprived Plaintiff of any protected property interests without sufficient process of law. Accordingly, Defendants’ motion for summary judgment is GRANTED and Plaintiffs motion is DENIED.

I. BACKGROUND

A. The Basics of the District of Columbia IZ Program

As relevant to the parties’ dispute, the District of Columbia’s IZ Program requires that 8-10 percent of the gross floor area of new residential developments (or substantial additions to existing developments) in the District be used for sale or lease to eligible low- and moderate-income households at certain maximum price levels. D.C. Mun. Regs. tit. 11, § 2603. 3 The affordable units created by the program are referred to as inclusionary units (“IZ Units”). Id. § 2601.1. The District enacted the IZ Program in order to “increas[e] the amount and expand[ ] the geographic distribution of adequate, affordable housing available to current and future residents.” Id. § 2600.1. Under the IZ Program, “no building permit shall be issued” unless the owner of the development subject to the IZ Program “records a covenant in the land records of the District of Columbia that binds all persons with a property interest in any or all of the [property] to construct and reserve the number of inclu-sionary units.” D.C. Code § 6-1041.05(a) (“IZ Covenant”).

B. The History of the IZ Program Rulemaking

The IZ Program was established by the District of Columbia Zoning Commission on August 25, 2006. PL’s Stmt, of Undisputed Material Facts, ECF No. 68-2 (“PL’s Stmt.”), ¶3. The Zoning Commission delegated responsibility for developing the IZ Program to the Council of the District of Columbia (“D.C. Council”) and the Mayor, who subsequently delegated that authority to the Deputy Mayor for Planning and Economic Development (“Deputy Mayor”). Id. ¶¶ 3, 5; PL’s Mot., Ex. 3, ECF No. 68-5 (Delegation of Authority—Inclusionary Zoning Implementation Act of 2006). The program was established pursuant to statutory authority set forth in section 107 of the Inclusionary Zoning Implementation Amendment Act of 2006. Id. ¶ 4.

Although on the books as of 2006, the IZ Program was not implemented until certain rules and regulations were passed regarding its implementation. On April 11, 2008, the District, through the Deputy Mayor, issued a Notice of Proposed Rule-making for regulations that would implement and establish the procedures for the IZ Program. Id. ¶ 8; PL’s Mot., Ex. 6, ECF No. 68-8 (Notice of Proposed Rule-making for Chapter 22 of Title 14 of the District of Columbia Municipal Regulations, entitled “Inclusionary Zoning Implementation”). Among other things, these regulations established the process and the requirements for obtaining building permits for properties subject to the IZ Program. PL’s Stmt. ¶¶ 8, 26; PL’s Mot., Ex. 6. The Notice of Proposed Rulemaking stated that “[f]inal rulemaking action shall be taken in not less than sixty (60) days from the date of publication of this notice in the D.C. Register.” PL’s Mot., Ex. 6 at 1. It also stated that the “[t]he Deputy May- or [ ] intends that the final rules shall not become effective until ninety (90) days af *288 ter publication of the Notice of Final Rule-making in the D.C. Register in order to allow a transition period between publication and implementation.” Id.

In the months after the Notice of Proposed Rulemaking was published, the District began to express its concern, in a series of published resolutions, that the IZ Program was not being implemented quickly enough. On October 21, 2008, the D.C. Council passed Resolution 17-848, which referenced the April 11, 2008 Notice of Proposed Rulemaking and noted that “final rulemaking, including the maximum rent and purchase price schedule [for the IZ Program] has not been published. Because final regulations have not been promulgated ... and the maximum rent and purchase price schedule has not been published ... the Inclusionary Zoning Program has not been implemented.” Pl.’s Mot., Ex. 11, ECF No. 68-13 (D.C. Council Resolution 17-848). This resolution also stated that “Continuing delays [in implementing the IZ Program] have resulted in the loss of affordable mixed-income units being included in many residential developments” and that “[e]mergency legislation is need[ed] to provide that the final rulemaking and publication requirements for- the Inclusionary Zoning Program be met expeditiously.” Id.

On November 18, 2008, the D.C. Council passed Resolution 17-871, again stating that final rulemaking had not been published and again declaring an emergency as to the need to publish final rulemaking expeditiously so as to not lose further affordable housing in new developments. Pl.’s Mot., Ex. 12, ECF No. 68-14 (D.C. Council Resolution 17-871).

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234 F. Supp. 3d 281, 2017 WL 598469, 2017 U.S. Dist. LEXIS 20467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/2910-georgia-avenue-llc-v-district-of-columbia-dcd-2017.