Hayden Lake Recreational Water & Sewer District v. Haydenview Cottage, LLC

835 F. Supp. 2d 965, 2011 WL 6370569, 2011 U.S. Dist. LEXIS 147117
CourtDistrict Court, D. Idaho
DecidedDecember 20, 2011
DocketCase Nos. 2:11-cv-264-CWD, 2:11-cv-00284-CWD
StatusPublished
Cited by1 cases

This text of 835 F. Supp. 2d 965 (Hayden Lake Recreational Water & Sewer District v. Haydenview Cottage, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hayden Lake Recreational Water & Sewer District v. Haydenview Cottage, LLC, 835 F. Supp. 2d 965, 2011 WL 6370569, 2011 U.S. Dist. LEXIS 147117 (D. Idaho 2011).

Opinion

MEMORANDUM DECISION AND ORDER

CANDY W. DALE, United States Chief Magistrate Judge.

INTRODUCTION

Before the Court are three motions for summary judgment filed by the parties in two related cases which were joined for the purpose of proceeding before a single judge on September 7, 2011.1 (Dkt. 14.) In the first case, (2:ll-cv-00264-CWD), Hayden Lake Recreational Water and Sewer District (the “District”) asks the Court to grant summary judgment on two issues: (1) whether the District may, in accordance with state law, increase sewer fees charged to two assisted care facilities located within its district; and (2) whether the District’s attempt to increase the fees of the two assisted living facilities violated the Fair Housing Act. {Pet’s Mot for Sum. /., Case No. 2:ll-cv-00264, Dkt. 15.)

In the second case, (2:ll-cv-00284-CWD), Intermountain Fair Housing Council, Inc., (“IFHC”), a non-profit organization dedicated to advancing equal access to housing, brought an action against the District, alleging that the District’s attempted increase in sewer fees charged to the assisted care facilities — Haydenview Cottage Assisted Living (“Haydenview”)2 and By the Lake Assisted Living Homes (“By the Lake”)3 — violated the Fair Housing Act. The District filed a motion for summary [969]*969judgment regarding IFHC’s claims. (Case No. 2:ll-cv-00284-CWD, Dkt. 28.) The District’s motion is nearly identical to its motion for summary judgment filed in the first case, arguing that the Court should declare as a matter of law that the increase in fees does not violate the Fair Housing Act, and raising the additional argument that IFHC lacks standing. In response, IFHC filed a cross motion for summary judgment, arguing that it is entitled to judgment as a matter of law on its claims against the District. (Case No. 2; 1 l-cv-00284-CWD, Dkt. 27.)

The parties presented oral arguments on the motions for summary judgment on November 17, 2011. Prior to the hearing, the District filed motions to strike in both cases.4 All the motions now have been fully briefed and are ripe for adjudication.

FACTUAL BACKGROUND

The material facts in this case are largely undisputed. The Hayden Lake Recreational Water and Sewer District is a municipal entity created for the purpose of providing water and sewer services to users within the District’s geographic boundaries. In 1989, the District approved Ordinance 89-2, which, among other things, provides for the allocation of operation and maintenance (“0 & M”) expenses to users and for capitalization fees. Under the Ordinance, a capitalization fee is a one-time fee paid by a user for the fair share of the cost of constructing the infrastructure that supports the District’s sewer services. 0 & M expenses are fees assessed to the District’s users on a monthly basis. The Ordinance provides a system for calculating capitalization fees and 0 & M charges.

The Ordinance uses a unit of measurement known as an “Equivalent Residence,” which the Ordinance defines as “[t]he basic unit of measurement utilized by the District to establish relative waste water disposal requirements of various property uses, with one (1) Equivalent Residence or ‘ER’ being defined as one (1) typical single-family residence.” (Hayden Lake Rec. Water and Sewer Dist. Ordinance No. 89-2, Dkt. 25-1.) The Ordinance also contains a schedule for non-residential users, which seeks to approximate water use by assigning an ER factor to a particular user based on certain factors. The validity of Ordinance 89-2 is not at issue in this case. The District’s interpretation and application of the Ordinance is, however, one of the main issues in this case, and the specific provisions of the Ordinance will be discussed in more detail below.

A. By the Lake Assisted Living Homes

By the Lake is a privately-owned for-profit assisted care facility located in Hayden, Idaho, within the geographic boundaries of the District and subject to Ordinance 89-2. The facility is located in a 4,700 square foot single family residence, constructed in 1996, and operated as an assisted care facility for the elderly since 1997. (Aff. of Kathleen Chmura, Case No. ll-cv-284, Dkt. 27-1, ¶ 2.) It appears undisputed that at least some of By the Lake’s residents are disabled. The building permit issued for the property by the County in 1996 reflects that the dwelling was built as a group home with an occupancy load of 17 persons. (Id. at 6.) The permit contains a notation that the building will house “8 or fewer residents.” (Id.) The District alleges that By the Lake currently houses twelve patients. (Statement of Material Facts in Supp. of Def.’s Mot. for Sum. J., Case No. ll-cv-284, Dkt. 25 at 4.) IFHC alleges that By the Lake “historically has housed on average 8-9 [970]*970residents who are elderly, disabled adults most of whom suffer from dementia.” (Aff. of Kathleen Chmura, Case No. llcv-284, Dkt. 27-1, ¶ 3.)

The District began supplying sewer services to the By the Lake property in 1996 pursuant to a permit issued to the prior owner of the property. The permit issued by the District states that it was “good for 1 Equivalent Residence (ER) only, up to 250 gallons per day,” and that, “[a]fter 1 year the District will review water meter usage and may charge an additional capitalization fee if water usage exceeds the Districts definition of 1 ER.” (Statement of Material Facts in Supp. of Def’s Mot. for Sum. J., Case No. ll-cv-284, Dkt. 25 at 3-4.) The District concedes that the contemplated follow-up review was not conducted. (Id. at 4.)

B. Haydenview Cottage Assisted Living

Haydenview is a privately-owned for-profit assisted care facility located in Coeur d’Alene, Idaho, within the geographic boundaries of the District and subject to Ordinance 89-2. The Haydenview facility is licensed to hold up to eight patients and IFHC asserts that the facility currently houses seven disabled elderly residents. Haydenview has operated as an assisted care facility for handicapped adults since the mid-1990’s and has been assessed sewer fees by the District at a rate of one ER since its inception.

C. Dispute over increased fees

In August of 2008, the District became aware of an assisted care facility (unrelated to the present litigation) that had been assessed one ER and had purportedly underpaid for its share of use of the District’s services. Specifically, the District received a notice from the Kootenai County Building and Planning Department that a request had been made by an assisted care facility to increase its occupancy limit from eight to sixteen persons. (Statement of Material Facts in Supp. of Def. ’s Mot. for Sum. J., Case No. ll-cv-284, Dkt: 25 at 5.) In response to the information supplied by the County, the District alleges that it began reviewing the ER assessments for other commercial businesses, focusing on the type of business already identified as having underpaid — assisted care facilities. (Id.) Upon review, the District identified By the Lake and Haydenview as facilities that had not paid the appropriate amount under Ordinance 89-2.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alpha Mortgage Fund v. Drinkard
Idaho Supreme Court, 2021

Cite This Page — Counsel Stack

Bluebook (online)
835 F. Supp. 2d 965, 2011 WL 6370569, 2011 U.S. Dist. LEXIS 147117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hayden-lake-recreational-water-sewer-district-v-haydenview-cottage-llc-idd-2011.