AHF COMMUNITY DEVELOPMENT, LLC v. City of Dallas

633 F. Supp. 2d 287, 2009 U.S. Dist. LEXIS 49690, 2009 WL 1650485
District Court, N.D. Texas·Decided June 11, 2009·No. Civil Action 3:06-CV-1035-D·Published·Cited by 14 cases

Opinion

MEMORANDUM OPINION AND ORDER

SIDNEY A. FITZWATER, Chief Judge.

Plaintiff AHF Community Development, LLC (“AHF”), a nonprofit organization that provides affordable housing to low and moderate income persons, sues defendant City of Dallas (“City”) and certain City officials alleging that they are liable for violating the Fair Housing Act (“FHA”), 42 U.S.C. §§ 3601-19. Concluding that a reasonable jury could not find in their favor and that the individual defendants are entitled to qualified immunity, the court grants summary judgment in defendants’ favor and dismisses this case with prejudice.

I

In March 2002 AHF acquired several properties through a bond issuance by the Texas State Affordable Housing Corporation, including the Bent Creek Apartments (“Bent Creek”) located in the Lake Highlands area of Dallas, Texas. AHF maintains that the City 1 engaged in unlawful conduct that triggered a decline in oceu- *290 pancy at Bent Creek and caused AHF to default on its bond indebtedness. AHF also avers that the City’s actions were motivated by discriminatory animus toward Bent Creek’s residents, who were largely African-American and Hispanic.

In recounting the factual background, the court summarizes the evidence in the light most favorable to AHF as the summary judgment nonmovant and draws all reasonable inferences in its favor. E.g., Owens v. Mercedes-Benz USA, LLC, 541 F.Supp.2d 869, 870 n. 1 (N.D.Tex.2008) (Fitzwater, C.J.) (citing U.S. Bank Nat’l Ass’n v. Safeguard Ins. Co., 422 F.Supp.2d 698, 701 n. 2 (N.D.Tex.2006) (Fitzwater, J.)). Before AHF acquired Bent Creek in 2002, and for at least some period of time afterward, the complex experienced a high incidence of crime. In November 2004, the City’s S.A.F.E. Team (“SAFE Team”) 2 opened a file on Bent Creek. The stated mission of the SAFE Team, which is composed of officers from the Dallas Police Department (“DPD”) and Building Code and Fire Code Inspectors, is to enlist the cooperation of landowners in abating crime at their properties and to rehabilitate or remove properties that have become havens for criminal activity. A philosophy of the SAFE Team is that properties maintained in compliance with applicable codes are less likely to attract criminal activity. Under the SAFE Team’s standard operating procedures, a file may be opened when a property has experienced three or more site-specific instances of abatable criminal activity 3 in the preceding 12 months. During the relevant time frame, defendant DPD Sergeant Preston Gilstrap (“Sgt. Gilstrap”) was the commander of the SAFE Team, and defendant DPD Senior Corporal Richard Todd (“Cpl. Todd”) was an officer assigned to the Bent Creek SAFE Team case.

The SAFE Team inspected Bent Creek in December 2004, and, in January 2005, met with representatives of AHF and its management company to provide notice of concerns regarding the complex. Subsequent investigations in early 2005 indicated that Bent Creek had corrected Building Code and Fire Code violations but that criminal activity on the premises remained problematic.

In December 2005 a meeting about Bent Creek was convened by the Lake Highlands Area Improvement Association (“LHAIA”), which had become concerned about crime at Bent Creek. LHAIA is composed of Lake Highlands area homeowners’ associations. Attendees included representatives of AHF, LHAIA, the Dallas City Attorney’s Office, the Dallas Code Compliance Department, DPD, and the Chief of Staff for Dallas City Couneilmem-ber Bill Blaydes (“Councilmember Blaydes”), who represented the Lake Highlands area. Attendees discussed strategies for reducing crime at Bent Creek, and interest was expressed in AHF’s evicting tenants with criminal histories, imposing a residential curfew, and repairing a security fence, among other measures.

The LHAIA set up another meeting between largely the same individuals and entities on March 1, 2006. As a result of an agreement reached then, officers from the SAFE Team and the DPD conducted a “community walk” at Bent Creek on *291 March 6 or 7, 2006. Officers visited occupied units to determine whether the persons actually living in each unit were listed on the lease and, if appropriate, to serve criminal trespass notices.

On March 13, 2006 the SAFE Team, along with additional DPD officers, conducted an operation at Bent Creek that is a major focus of the present lawsuit. The stated purpose of the operation was to conduct Building Code and Fire Code inspections of all Bent Creek units. The officers and inspectors divided into four five-member teams, each consisting of three officers, one Building Code Inspector, and one Fire Code Inspector. Of the 318 units inspected, 194 failed, and the City gave Bent Creek a score of zero.

AHF asserts that the City conducted the March 13, 2006 operation as a “raid” designed to search for evidence of “criminals” and criminal activity, harass and intimidate Bent Creek residents and management, and manufacture a file of spurious and frivolous code violations to use in a nuisance abatement lawsuit intended to secure the condemnation and demolition of Bent Creek. AHF posits that the SAFE Team arrived with an unreasonable number of officers dressed in tactical assault gear, and that the officers engaged in unwarranted and reprehensible behavior. Specifically, AHF cites evidence that officers banged on doors with tactical batons or flashlights, barged into apartments without giving residents time to get dressed or secure their children, opened cabinets and drawers and examined residents’ personal effects, spoke disrespectfully to residents, and threatened with arrest those who complained. AHF also maintains that the City gave a failing score to a nonexistent apartment unit, and that it cited AHF for inaccurate violations related to maintenance of the swimming pool.

Following the March 13, 2006 operation, AHF filed a complaint with the U.S. Department of Housing and Urban Development (“HUD”). In subsequent communications with AHF, the City indicated that it might file a nuisance abatement lawsuit if code and criminal concerns at Bent Creek were not resolved. A re-inspection was conducted at Bent Creek in June 2006, and, after several repairs were completed during the inspection, the complex passed. No further SAFE Team activities have occurred at Bent Creek, but the file remains open. AHF alleges that SAFE Team activities at Bent Creek have caused occupancy to decline from around 85% to around 50%.

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AHF COMMUNITY DEVELOPMENT, LLC v. City of Dallas, 633 F. Supp. 2d 287, 2009 U.S. Dist. LEXIS 49690, 2009 WL 1650485 (N.D. Tex. 2009).

633 F. Supp. 2d 287 (AHF COMMUNITY DEVELOPMENT, LLC v. City of Dallas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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