Maricopa v. Rana

Court of Appeals of Arizona·Decided February 25, 2020·No. 1 CA-CV 18-0256·Published

Opinion

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

MARICOPA COUNTY, Plaintiff/Appellee,

v.

TARIQ M. RANA, et al., Defendants/Appellants.

No. 1 CA-CV 18-0256 FILED 2-25-2020

Appeal from the Superior Court in Maricopa County No. CV 2017-012602 The Honorable Randall H. Warner, Judge

VACATED AND REMANDED

COUNSEL

Scharff PLC, Phoenix By Spencer G. Scharff Counsel for Defendants/Appellants

Maricopa County Attorney’s Office, Civil Services Div., Phoenix By Wayne J. Peck, Joseph Branco, D. Chad McBride Counsel for Plaintiff/Appellee

Arizona Center for Disability Law, Tucson By Rose A. Daly-Rooney, Maya S. Abela Counsel for Amicus Curiae MARICOPA v. RANA, et al. Opinion of the Court

OPINION

Judge Michael J. Brown delivered the opinion of the Court, in which Presiding Judge Diane M. Johnsen and Judge Jennifer M. Perkins joined.

B R O W N, Judge:

¶1 Tariq M. and Shahnaza Rana (“Ranas”), and their lessee, Ascend Behavioral Health and Wellness, LLC (“Ascend”),1 appeal the superior court’s judgment granting Maricopa County’s request to permanently enjoin alleged violations of the County’s zoning ordinance (“MCZO”) relating to group homes. The Ranas argue their group home does not violate the MCZO. They raise other issues that we address in a separate memorandum decision. For the following reasons, we vacate the judgment and remand for further proceedings.

BACKGROUND

¶2 The Ranas own a nine-bedroom house located on 1.25 acres in an unincorporated area of the County where group homes are an as-of- right use.2 The applicable zoning regulations limit such homes to no more than ten residents and provide that if licensing is required by the State of Arizona, proof of such licensure must be provided before the use is established. MCZO §§ 201, 501.2(4), 503.2. The MCZO defines a “group home” as follows:

A dwelling unit shared as their primary residence by minors, handicapped or elderly persons, living together as a single housekeeping unit, in a long term, family-like environment in which staff persons provide on-site care, training, or support for the residents. Such homes or services provided therein shall be licensed by, certified by, approved by, registered with, funded by or through, or under contract with the State.

1 For ease of reference, we refer to the Ranas and Ascend collectively as “the Ranas,” unless otherwise noted.

2 Absent material revisions after the relevant date, we cite the current version of a statute, ordinance, or administrative rule.

2 MARICOPA v. RANA, et al. Opinion of the Court

(Group homes shall not include homes for the developmentally disabled, defined as persons afflicted with autism, cerebral palsy, epilepsy or mental retardation, as regulated by Arizona Revised Statutes, § 36-582.)

MCZO § 201.

¶3 In 2014, the Ranas submitted an application to the County for approval to use the house as an assisted living group home (“the Home”) for the elderly. After administrative review, the County issued a “zoning clearance,” which is “a permit or authorization . . . indicating that a proposed building, structure or use of land meets all the standards contained in this ordinance.” MCZO § 201. The zoning clearance stated that before the Ranas could begin operating the group home, they were required to submit a copy of their “State of Arizona license.”

¶4 The Ranas then leased the Home to Ascend, which in turn obtained a license from the Arizona Department of Health Services in May 2016 to operate a “behavioral health residential facility,” defined by state regulations as a “health care institution that provides treatment to an individual experiencing a behavioral health issue” that “[l]imits the individual’s ability to be independent” or “[c]auses the individual to require treatment to maintain or enhance independence.” See A.A.C. R9- 10-101(36); see also A.R.S. § 36-407(A).3

¶5 In January 2017, the County issued a “Notice and Order to Comply,” alleging the Ranas were operating “a group home for adjudicated persons or a drug rehabilitation home without a special use permit” in violation of the MCZO. Several months later, the Ranas entered into a compliance agreement with the County that stated they had violated the MCZO by operating “a group care facility for a variety of patient residents” where the approved permit “only permits care for the elderly.”4 The Ranas

3 Under a regulation issued by the Arizona Department of Health Services, “‘[b]ehavioral health services’ means the assessment, diagnosis, or treatment of an individual’s mental, emotional, psychiatric, psychological, psychosocial, or substance abuse issues.” A.A.C. R9-1-301(1).

4 The term “group care facility” was added to the MCZO in May 2017 as a catch-all term to refer to any “dwelling unit shared as their primary residence by any class of patient residents under supervised care who do not qualify as a group home.” MCZO § 201. This amendment changed only the label, not the substance, of the Ranas’ alleged zoning violations.

3 MARICOPA v. RANA, et al. Opinion of the Court

agreed to stop “all supervised care . . . for other than up to ten (10) elderly patient residents and to use the Home in accordance with pertinent zoning regulations.”

¶6 Around the same time, the Ranas sought approval to use the Home to provide group care for six to ten disabled residents. The County approved the application but required Ascend to submit a “State of Arizona license” to the County before commencing operation as a group home for disabled individuals. The County’s approval was also subject to the earlier compliance agreement, including the requirement that “[Ascend] maintain a log of the number of patient residents indicating each age and condition,” as well as “vehicles on site by license plate and drivers, who must be either a caregiver, family, or visitor of a caregiver or patient resident.” Ascend was also required to ensure that residents would be long-term, meaning they would live in the Home for at least one year.

¶7 After an inspection, the County informed the Ranas they were not complying with the second zoning approval and were again violating the MCZO. The County then filed suit under A.R.S. § 11-815(H), which allows a county attorney to seek an injunction to “prevent, abate or remove” any use or proposed use of land that violates a zoning ordinance.

¶8 The superior court held a trial on the County’s request for a permanent injunction, hearing testimony from Ascend’s executive director and Carol Johnson, the County’s Planning and Development Director. The court ruled in the County’s favor, finding that based on the totality of circumstances, the residents of the Home did not live in a “family-like environment,” in part because Ascend was operating the Home too much like a traditional in-patient treatment facility. The court also found that in the absence of a special use permit, the MCZO does not allow “a facility whose main purpose is to provide treatment to residents” because the word “treatment” is not included in the MCZO’s group home definition.

¶9 After entry of a final judgment outlining the general terms of the permanent injunction, the Ranas timely appealed. The superior court stayed the injunction pending appeal, subject to several conditions, including the prohibition of (1) any on-site staff meetings for employees other than those working at the Home and (2) any non-emergency “in- home treatment,” which the court “defined as any physical, psychological, or mental health treatment or therapy from any licensed professional.”

4 MARICOPA v. RANA, et al.

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