Fred E. NASSER, Sr., Nassery Nasser, Mona Nasser Hersheway,
Marie Nasser Weigand, and Jeanette Nasser Acton,
Plaintiffs-Appellants,
v.
The CITY OF HOMEWOOD, a municipal corporation, Robert G.
Waldrop, as Mayor of the City of Homewood, Leon Chambers, as
Chairman of the City Council of the City of Homewood,
Charles Sutton, Ralph Lurie, H. J. Wurtele, Margaret
Robertson, Pauline Montgomery, Edna McCune, William W. Cox,
Frank M. Dichiara, E. L. Harris, and Charlie Weidman, as
members of the City Council of the City of Homewood,
Defendants-Appellees.
No. 80-7805.
United States Court of Appeals,
Eleventh Circuit.
March 22, 1982.
Corretti & Newsom, Douglas Corretti, Donald H. Brockway, Jr., Birmingham, Ala., for plaintiffs-appellants.
James W. Porter, II, Birmingham, Ala., for defendants-appellees.
Appeal from the United States District Court for the Northern District of Alabama.
Before TUTTLE, HENDERSON and HATCHETT, Circuit Judges.
HENDERSON, Circuit Judge:
The plaintiffs are the owners of some 9.5 acres within the corporate limits of the city of Homewood, Alabama. They brought this action challenging the action of the defendants in rezoning of their property from multi-family residential to single-family residential, alleging violations of Title VIII of the Civil Rights Act of 1968 (the Fair Housing Act), 42 U.S.C. §§ 3601-3619; the just compensation and due process clauses; and Alabama zoning statutes. The district court granted the defendants' motion for summary judgment, and the plaintiffs appeal that decision of the district court.
Prior to annexation into the city of Homewood in 1979, the plaintiffs' property had been zoned R-4 (multi-family residential) on the recommendation of the Jefferson County Planning Commission. By Act No. 79-255 (June 26, 1979), the Alabama legislature extended the boundaries of Homewood to include five parcels of land. The plaintiffs' property was located in Parcel V, and comprised roughly one-half of that tract's area. Parcel V was zoned R-2 (single-family residential) by the Homewood City Council, based on the recommendation of the Homewood Planning Commission, in Ordinance No. 1385 (Jan. 14, 1980).
The plaintiffs then filed this action for declaratory, injunctive and monetary relief, claiming that Ordinance No. 1385: (1) violated the Fair Housing Act; (2) constituted an unlawful taking without just compensation in violation of the Fifth and Fourteenth Amendments; (3) was arbitrary and capricious because it did not bear a substantial relationship to the health, safety and welfare of the public; (4) violated due process and (5) contravened state statutory notice requirements for zoning changes. The defendants moved to dismiss the complaint on several grounds, three of which are pertinent here: lack of standing under the Fair Housing Act, failure to state a claim of an unlawful tаking and abstention. The district court converted this motion to dismiss to one for summary judgment pursuant to the provisions of Fed.R.Civ.P. 12(b), and the parties filed affidavits in support of their contentions.1THE UNDISPUTED FACTS
Although the parties differ as to the conclusions to be drawn, the evidence submitted on the defendants' motion is without controversy. In 1976 the plaintiffs entered into an agreement with a developer for the construction of a multi-family housing complex on the property.2 The developer "looked into the possibility of having the said real property developed under some program supported by the Housing and Urban Development Department." Robert D. Barbour, an urban planner, stated in an affidavit that "(i)t was the intent of the owner of said property to develop a multi-family housing project on said property that would make some units available to low- and moderate-income families through rent subsidies."3 Nasser conceded that "(t)he development did not materialize even though the developer spent some time in pursuing the project." There is no evidence that the 1976 plans progressed beyond the plaintiffs' agreement with the developer, and the developer's inquiry of the Department of Housing & Urban Development. In particular, there is no indication that the 1976 plans were viable in any way in 1979, or that the plaintiffs pursued, or even contemplated, any low or moderate income development other than the one in 1976.
Ralph J. Lurie, a member of both the planning commission and the city council, made a detailed affidavit concerning his contact as a member of those bodies with Nasser. He stated that "(a)t no time during his several appearances before Homewood authorities, however, did Mr. Nasser state or suggest that his purpose in seeking an R-4 classification was to build a multi-family project for the use and benefit of low income or minority groups." According to Lurie, at every point when the plaintiffs' plans were discussed Nasser or his attorney represented that they wished to build "an exclusive-high rent apartment complex of the type and sort which would only appeal to the upper income bracket." The plaintiffs neither impeached nor contradicted this evidence.
Neither was there any evidence that the 1976 project was in any way affected by or related to racial or other minority interests. Affidavits of the plaintiffs' witnesses contain the implicit assumption that "low and moderate-income housing" is synonymous with housing for minorities protected by the Fair Housing Act. The defendants do not attack this apparent deficiency in the plaintiffs' evidence. We would not lightly, if at all, indulge such an assumption. See Warth v. Seldin,
The just compensation attack is predicated on the fact that the proрerty had a fair market value of $285,000.00 when zoned R-4 but was reduced to a value of only $135,000.00 after it was rezoned to an R-2 classification. One expert for the plaintiffs, Dr. L.T. Reeves, Jr., represented that the highest and best use of the property from an economic point of view was that of multiple family use. There is no indication that the property was deprived of its entire value as a result of the rezoning.THE DISTRICT COURT ORDER
In granting the defendants' motion for summary judgment, the district court first held there was no legal basis for the cause of action alleged under the Fair Housing Act because the lack of a "proposed project" precluded a finding of injury in fact under the tests set out in Village of Arlington Heights v. Metropolitan Housing Devel. Corp.,
The district court then abstained from deciding the other constitutional claims, specifying three considerations for its conclusion. First, it found that a determination of the state law issues could eliminate the need to decide the federal constitutional questions, or could present the federal issues in a different posture. Second, the plaintiffs had not exhausted their remedies bеfore the zoning authorities and in the state courts. Finally, the court reasoned that intervention into zoning matters was inappropriate because zoning is "a sensitive matter subject to comprehensive local regulation," and resulting federal-state conflict would be "unseemly" and unnecessarily impair the state's zoning function. Believing the last ground for abstention was governed by Burford v. Sun Oil Co.,
STANDING UNDER THE FAIR HOUSING ACT
The plaintiffs assert that the demise of their 1976 "proposed project" constitutes an injury permitting them to sue under the Fair Housing Act. As noted earlier, this project was no longer in existence at the time this action was filed. Warth v. Seldin is dispositive of this claim. There a building developer applied in late 1969 for a zoning variance to allow construction of a housing project. The Court noted that:
The complaint, however, does not allege that the Penfield Better Homes project remained viable in 1972 when this complaint was filed, or that respondents' actions continued to block a then-current cоnstruction project. In short, neither the complaint nor the record supplies any basis from which to infer that the controversy between respondents and Better Homes, however vigorous it may once have been, remained a live, concrete dispute when this complaint was filed.
The plaintiffs contend further that the diminution in value of their property as a result of the defendants' conduct is an injury in fact, and thus they have standing under §§ 812(a) and 817 of the Fair Housing Act, 42 U.S.C. §§ 3612(a) and 3617. We consider these sections in turn. Sеction 812(a) of the Fair Housing Act provides, in pertinent part:
The rights granted by sections 3603, 3604, 3605, and 3606 of this title may be enforced by civil actions in appropriate United States district courts without regard to the amount in controversy ....
The Supreme Court held in Gladstone, Realtors v. Village of Bellwood,
the person aggrieved may ... commence a civil action in any appropriate United States district court, against the respondent named in the complaint, to enforce the rights granted or protected by this subchapter, insofar as such rights relate to the subject of the complaint.
42 U.S.C. § 3610(d) (emphasis added).4
The policy behind the Fair Housing Act emphasizes the prevention of discrimination in the provision of housing on the basis of "race, color, religion, sex, or national origin." E.g., 42 U.S.C. § 3604(a); see id. § 3601. Simply stated, thе plaintiffs offered no evidence that they possess "rights granted" by the Fair Housing Act. Their interest in value of the property in no way implicates values protected by the Act. Section 810(d), 42 U.S.C. § 3610(d), goes further, however, to grant standing "to enforce the rights ... protected " by the substantive provisions. (Emphasis added.) Recent decisions of the Supreme Court shed some light on these words.
The Court first considered standing under § 810 of the Fair Housing Act in Trafficante v. Metropolitan Life Ins. Co.,
showed "a congressional intention to define standing as broadly as is permitted by Article III of the Constitution" ... insofar as tenants of the same housing unit that is charged with discrimination are concerned.
The Court then focused on the scope of Fair Housing Act standing in Gladstone, Realtors v. Village of Bellwood,
In our view, the decision in Gladstone may not be taken so far. The Court held that parties who demonstrate an interest in "racial balance and stability," as did the Village of Bellwood, or "the social and professional benefits of living in an integrated society," as did the individual plaintiffs, who also show an economic injury, may bring an action under § 812. There is no indication that the Court intended to extend standing, beyond the facts before it, to plaintiffs who show no more than an economic interest which is not somehow affected by a racial interest. There is no suggestion, either in the Act or its legislative history, that Congress intended to entrust the enforcement of the Fair Housing Act to such plaintiffs. Accord, Amdur v. City of Chicago,
The plaintiffs also urge that they may sue under § 817 of the Act, which provides:
It shall bе unlawful to coerce, intimidate, threaten, or interfere with any person in the exercise or enjoyment of, or on account of his having exercised or enjoyed, or on account of his having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by section (sic ) 3603, 3604, 3605, or 3606 of this title. This section may be enforced by appropriate civil action.
42 U.S.C. § 3617. Apart from the citation of the section, there is no allegation of interference with the plaintiffs' rights or that they have aided or encouraged any other person in the exercise or enjoyment of any right protected by the Act. Consequently, this avenue is closed to the plaintiffs.
JUST COMPENSATION
The plaintiffs' own evidence as contained in Nasser's affidavit establishes that they have no claim for a taking without just compensation. Neither deprivation of the most beneficial use of the land, United States v. Central Eureka Mining Co.,
ABSTENTION
The district court abstained with respect to both the arbitrary and capricious and procedural due process сauses of action. The plaintiffs appeal the decision to abstain only on the ground that the district court should have heard the arbitrary and capricious claim. No contention is made that the purported due process violation should have been entertained by the district court. The abstention as to federal procedural due process is therefore affirmed. See Kemlon Prod. & Devel. Co. v. United States,
Abstention from the exercise of federal jurisdiction is confined to three general categories of cases. See Colorado River Water Conserv. Dist. v. United States,
A federal action may be stayed pending state proceedings "in cases presenting a federal constitutional issue which might bе mooted or presented in a different posture by a state court determination of pertinent state law." County of Allegheny v. Frank Mashuda Co.,
A second category of abstention stems from Burford v. Sun Oil Co.,
Because abstention on Burford grounds is a refusal to exercise federal jurisdiction in an entire class of cases, it is perhaps the most potent device in an area of "extraordinаry and narrow exception(s) to the duty of a District Court to adjudicate a controversy properly before it." County of Allegheny v. Frank Mashuda Co.,
Alabama has not established a single forum for resolution of zoning disputes. Each city may establish zoning commissions and a board of zoning adjustment. Ala.Code §§ 11-52-79, 11-52-80 (1975). We therefore perceive no state interest in uniformity which would be disrupted by federal review of zoning ordinances. The federal issues in this cаse are easily distinguishable from the state issues, since review of zoning under the arbitrary and capricious standard is strictly limited. E.g., Couf v. DeBlaker,
The defendants argue that South Gwinnett Venture v. Pruitt,
EXHAUSTION AND RIPENESS
This court recently held, sitting en banc, that exhaustion of administrative remedies may be required in an action brought pursuant to 42 U.S.C. § 1983 under certain conditions. Patsy v. Florida Internat'l Univ.,
REASONABLENESS OF THE ZONING
In ruling on the defendants' motion for summary judgment, the district court did not reach the merits of the plaintiffs' contention that the zoning ordinance was arbitrary and capricious because it did not bear a substantial relation to public health, safety and welfare. The defendants argue here that the dismissal of the arbitrary and capricious claim should be affirmed on the merits in this court. We have the authority to affirm a summary judgment on a ground raised but not considered in the trial court in an appropriate case. Dandridge v. Williams,
Federal review of zoning decisions under the arbitrary and capricious standard is extremely narrow:
A zoning commission is a quasi-legislative body. It is not required to make findings of fact or state the reasons for the action taken. Its actions are entitled to a presumption of validity. The only question which federal district courts may consider is whether the action of the zoning commission is arbitrary and capricious, having no substantial relation to the general welfare.
South Gwinnett Venture v. Pruitt,
AFFIRMED IN PART, REVERSED IN PART AND REMANDED IN PART.
Notes
When a motion to dismiss is transformed into a motion for summary judgment under Fed.R.Civ.P. 12(b), and the moving party supports the motion as provided in Fed.R.Civ.P. 56, the burden shifts to the opposing party to produce specific facts showing that there is a genuine issue of a material fact requiring a trial. See Cole v. Elliott Equip. Co.,
The record does not clearly indicate whether the property is presently used for single-family occupancy. Fred Nasser, one of the appellants, referred to the property as the family "homestead," and one witness described it as a "tract of land." There is no suggestion, however, that any development on the property would bear on the issues before us
It is not clear that Barbour's statement regarding Nasser's intent was admissible in opposition to the motion for summary judgment. No objection was made to the statement on this ground, however, and we assume for purposes of this appeal that the statement was properly before the district court
The "complaint" to which the statute refers in the language, "insofar as such rights relate to the subject of the complaint," is the administrative complaint filed before the Secretary of Housing and Urban Development under § 810(a) of the Act, 42 U.S.C. § 3610(a). It is not a limitation upon a party's standing in the district court. Cf. 114 Cong.Rec. 2270, 2271 (1968) (early version of the Act permitted suit "insofar as such rights relate to the subject of the charge")
The plaintiffs' brief states the abstention issue as
whether it is proper for a federal court to abstain (in a just compensation case) until the state cоurts are given an opportunity to determine whether the defendants' actions were unconstitutional under their own constitutional provisions.
Appellants' Brief at 19. We can identify a potential federal procedural due process violation only by a very liberal reading of the complaint and other documents filed in this action and appeal. It may be that the plaintiffs' procedural due process cause grows out of state rather than federal law. Neither the complаint nor the district court's order is specific on this point. The challenges under procedural due process and Alabama notice provisions are pled separately in the complaint, which alleges only
That the attempted passage of said Ordinance No. 1385 was violative of procedural due process and contrary to the prescribed state law procedure and is therefore void.
Each mention of procedural due process in the plaintiffs' brief suggests that it is based on state law. Id. at xi, xxi-xxii, 20, 22. If the plaintiffs intended to contest the dismissal of any federal procedural due process claim, it was incumbent upon them to specifically point to that issue.
Our disposition of the federal procedural due process question, of course, does not affect any issue arising under the Alabama Constitution.
In determining to abstain on Burford grounds, the district court followed Kent Island Joint Venture v. Smith,
We have held in prior cases that Pullman abstention may be appropriate in a zoning dispute involving federal constitutional claims. E.g., Hill v. City of El Paso,
