the City of Friendswood and Kevin Holland v. Paul and Carolyn Horn, Mike and Lucy Stacy, Pete and Judy Garcia and Janice Frankie

489 S.W.3d 515, 2016 Tex. App. LEXIS 1469, 2016 WL 638471
Court of Appeals of Texas·Decided February 11, 2016·No. NO. 01-15-00436-CV·Published·Cited by 8 cases

Opinion

OPINION

Jane Bland, Justice

After Tropical Storm Allison destroyed the Imperial Estates Section One subdivision, the City of Friendswood acquired most of the subdivision’s 42 lots through a federally-subsidized flooding mitigation program. The program required the local government to use the subsidy to buy out homeowners and then leave the lots — purchased with'the subsidy funds and within the federally and state declared disaster areas — as open space for the public benefit. The owners of four of the 42 , lots declined to participate in the program. These homeowners, Paul and Carolyn Horn, Mike and Lucy Stacy, Pete and Judy Garcia, and Janice Frankie, rebuilt their homes. The surrounding lots remained undeveloped.

About 10 years later, the City decided to develop the property it had acquired into a public park, within the parameters of the uses permitted by federal regulation. The plans for a park did not comport with the subdivision’s original deed restrictions, which contemplate residential development only. The City then amended the restrictions as to its 38 lots.

The homeowners sued the City and its mayor, Kévin Holland, challenging their actions to develop the City’s property. The homeowners sought declaratory relief based on a breach of the subdivision’s original deed restrictions and damages for claims of misrepresentation, inverse condemnation, and nuisance. ■ The City and Mayor Holland filed a plea to the jurisdiction in the trial court, contending that governmental and official immunity bar the homeowners’ suit. The trial court denied the plea, and the City and Mayor Holland appeal. See Tex. Crv. PRAC. & Rem. Code Ann. § 51.014(a)(5). Because the City is immune from' the homeowners’ suit, we vacate the trial court’s order and dismiss the suit for lack of subject-matter jurisdiction.

BACKGROUND

I. Friendswood’s acquisition of property in Imperial Estates

Imperial Estates Section One was platted in 1958, bordering on Clear Creek. In June 2001, Tropical Storm Allison caused catastrophic flooding in the area, which severely damaged or destroyed the then-existing homes in the subdivision. The federal and state governments declared the subdivision a natural disaster area. As a result, federal funds became available through the Federal Emergency Management Agency (FEMA). FEMA in turn subsidized a buyout of private property through a hazard mitigation program. The State of Texas and the local governments in areas subject to severe or repetitive flooding administered the program. Using these funds, the City of Friends-wood acquired the flood-devastated properties in Imperial Estates from all but the homeowners who bring this suit.

Through its Federal Insurance and Mitigation Administration, FEMA manages both the federal flood insurance and haz *520 ard mitigation programs, which are programs designed to reduce or eliminate the long-term risk to people and property from natural hazards. The goal of these programs is to reduce the impact of flooding on private and public structures through (1) providing affordable insurance for property owners; (2) encouraging communities to adopt and enforce floodplain management regulations, and (3) promoting and subsidizing state and local hazard mitigation. 1 States may apply for federal hazard mitigation funds and qualify for those funds based on an approved state mitigation plan. 44 C.F.R. 206.435(a). The State “establishes procedures and priorities for the selection of mitigation measures” for distribution of those funds to local governments. 44 C.F.R. § 206(b).

Commensurate with the hazard mitigation program’s goals, federal law conditions receipt, of funding on limiting the property’s use to open space for the public benefit. See 42 U.S.C. § 5170c(b)(2)(B)(i). The governmental entity using the FEMA subsidy to buy property under the program must agree that:

(ii) no new structure will be erected on property acquired, accepted or from which a structure was removed under the acquisition or relocation program other than—
(I) a public facility that is open on all sides and functionally related to a designated open space;
(II) a rest room; or
(III) a structure that the [FEMA] Director approves in writing before the commencement of the construction of the structure.

42 U.S.C. § 5170c(b)(2)(B)(ii).

The restrictions imposed permit the property to be used for

[p]arks for outdoor recreational activities; wetlands management; nature reserves; cultivation; grazing; camping (except where adequate warning time is not available to allow evacuation); unimproved, unpaved parking lots; [and] buffer zones....

44 C.F.R. § 80.19(a)(1). But they prohibit the property’s use for

[w]alled buildings, levees, dikes, or floodwalls, paved roads, highways, bridges, cemeteries, landfills, storage of any hazardous or toxic materials, above or below ground pumping and switching stations, above or below ground storage tanks, paved parking, off-site fill or other uses that obstruct the natural and beneficial functions of the floodplain.

Id. § 80.19(a)(l)(i). By accepting the subsidy, the State of Texás authorized FEMA to periodically inspect the subsidized property. See id. § 80.19(c)-(e). If FEMA finds a violation of the use restrictions, it may enforce the terms of the grant by withholding future FEMA assistance from the state and the local governments; by requiring transfer of title and a return to compliance; or by bringing suit against the grantee. Id.

II. The Deed Restrictions

The 1958 deed restrictions for Imperial Estates dictated that lots were dedicated “for residential purposes only.” The restrictions expressly prohibit the development of any lots for “hospital, clinics, duplex houses, apartment houses, [or] hotel[s] ... [or other] commercial [or] professional uses.... ”

The deed restrictions contain a procedure for their amendment. After July 1, 1983, they may be

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

the City of Friendswood and Kevin Holland v. Paul and Carolyn Horn, Mike and Lucy Stacy, Pete and Judy Garcia and Janice Frankie, 489 S.W.3d 515, 2016 Tex. App. LEXIS 1469, 2016 WL 638471 (Tex. Ct. App. 2016).

489 S.W.3d 515 (the City of Friendswood and Kevin Holland v. Paul and Carolyn Horn, Mike and Lucy Stacy, Pete and Judy Garcia and Janice Frankie) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related