Pulte Home Corporation v. Montgomery County, Maryland

909 F.3d 685
CourtCourt of Appeals for the Fourth Circuit
DecidedNovember 29, 2018
Docket17-2112
StatusPublished
Cited by60 cases

This text of 909 F.3d 685 (Pulte Home Corporation v. Montgomery County, Maryland) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pulte Home Corporation v. Montgomery County, Maryland, 909 F.3d 685 (4th Cir. 2018).

Opinion

JONES, District Judge:

In this case involving a land use dispute, Pulte Home Corporation and Shiloh Farm Investments LLC (collectively "Pulte") ask us to revive their dismissed federal and state constitutional claims and wade into the waters of local government decisions and zoning regulations. That we decline to do. This court has stated repeatedly in similar cases, and as recently as last year, that federal courts are not the appropriate forum to challenge local land use determinations.

We again conclude that the landowner has failed to state viable constitutional claims against local entities based on zoning actions. Because Pulte had no constitutional property interest in developing its land as it had contemplated, and the local authorities had a plausible, rational basis for their actions, we affirm the district court's entry of judgment on the pleadings.

I.

Pulte is a residential real estate developer. Between November 2004 and January 2006, Pulte purchased or contracted to purchase 540 acres of real property in Clarksburg, Maryland, which is located in Montgomery County ("County"). At the time Pulte purchased the land, development of it was governed by the 1994 Clarksburg Master Plan & Hyattstown Special Study Area ("1994 Master Plan"). The 1994 Master Plan divided development of Clarksburg into four stages. In the fourth stage, the part of Clarksburg containing Pulte's land was to be developed into residential communities at specified densities.

Pulte's land was designated as a receiving property for Transferable Development Rights ("TDR"). The land was zoned to allow for one dwelling unit per acre, but Pulte could increase the allowable density to two units per acre by purchasing TDRs from agricultural properties in a different area of Montgomery County. The purchase of the TDRs would place a covenant on the agricultural property that would restrict its ability to be developed in the future. In essence, the TDR process was adopted by the County in order to encourage residential development in some areas while discouraging it in others.

Pulte invested more than twelve million dollars to purchase several hundred TDRs. It recorded its ownership of the TDRs. Its intention was to use the TDRs to build between 954 and 1,007 detached homes and townhomes on the land it had purchased in the TDR receiving area.

Under the 1994 Master Plan, there were several prerequisites for the commencement of Stage 4 development. These included a baseline biological assessment of the Little Seneca Creek and Ten Mile Creek watersheds; the issuance of at least 2,000 building permits in the areas that were to be developed in Stages 2 and 3; and the release of a report analyzing water quality management practices in analogous developments in similar watersheds and recommending best practices for water quality management and mitigation of potential environmental damage. All necessary triggers had occurred by 2009.

The 1994 Master Plan stated that "[i]ndividual developments within [Stage 4] can proceed once public agencies and the developer have complied with all of the implementing mechanisms." J.A. 311 n.2. One of the listed implementing mechanisms was that once all of the prerequisite conditions had been met, "the County Council will consider Water and Sewer Plan amendments that would permit the extension of public facilities to the Ten Mile Creek area." Id. at 311. Another listed implementing mechanism was that "[p]roperties in this stage are subject to ... approval by the Planning Board." Id.

Pulte submitted its Water and Sewer Category Change Request application for review by the County and the Maryland-National Capital Park and Planning Commission ("Commission") in May 2009, along with a required ten thousand dollar filing fee. The County, however, has never acted on Pulte's application. In September 2010, the County returned the filing fee and told Pulte that it would review the application in the spring of 2011. But 2011 came and went, and the County did not consider the application. Pulte resubmitted its application and filing fee in 2012, along with a water quality management plan, but the County still took no action on it.

In December 2012, Pulte submitted a Pre-Application Concept Plan to the Commission as required by the County Subdivision Ordinance. Pulte contends that the plan fully conformed with the governing Zoning Ordinance, yet the Commission rejected the plan as not ripe for review. The County and Commission refused to meet with Pulte to discuss the plan and stopped responding to Pulte's detailed letters and other communications.

Rather than proceeding with Stage 4 development, the County and Commission reopened the 1994 Master Plan to study the Ten Mile Creek watershed, in which Pulte's land is located. The 1994 Master Plan stated: "Master plans ... are intended to be updated and revised about every 10 years. It is recognized that circumstances will change following adoption of a plan and that the specifics of a master plan may become less relevant over time." Id . at 527. Regarding water and sewer change applications, the Master Plan provided that the County Council may undertake several alternative actions after completing assessments, including to "[d]efer action on a Water and Sewer Plan category change, pending further study or consideration as deemed necessary and appropriate by the Council" or to "[c]onsider such other land use actions as are deemed necessary." Id . at 312.

In October 2013, the Commission's Montgomery County Planning Board ("Planning Board") submitted to the County a draft amendment to the 1994 Master Plan, which the County extensively revised and approved ("Amendment"). Pulte asserts that the Amendment was aimed specifically at Pulte's land and was based on pretextual and faulty science regarding the proposed development's impact on water quality. The Amendment implemented a variety of regulatory changes that severely reduced the number of dwellings Pulte could build on its land and placed additional costly burdens on Pulte, such as a requirement to dedicate parkland.

Pulte had submitted its own expert reports to counter those of the experts retained by the Commission. Pulte's evidence indicated that the planned development would implement state-of-the-art environmental site design measures that would not only satisfy all state and local laws and regulations to protect water quality, but would actually improve the water quality of Ten Mile Creek over its pre-development condition. According to Pulte, the County ignored Pulte's expert reports entirely, failing to discuss them at all during work sessions on the proposed Amendment. Pulte has alleged that the County instead bowed to political pressure from environmental groups and set out to develop whatever evidence it could to support the actions it had already determined it would take. After the public record had closed, the County solicited new testimony in an effort to justify the changes it intended to make to the draft Amendment.

The County approved a version of the Amendment that departed significantly from what the Commission had proposed. The Commission then adopted the version of the Amendment that the County had approved. The adopted version of the Amendment imposed a six percent cap on impervious surface cover and an eighty percent open space requirement on Pulte's land.

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Bluebook (online)
909 F.3d 685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pulte-home-corporation-v-montgomery-county-maryland-ca4-2018.