Opinion ID: 1111130
Heading Depth: 2
Heading Rank: 1

Heading: four hills restrictive covenants

Text: 6. The first issue before us is the applicability of the Four Hills restrictive covenant to the Community's group home. As this Court noted in Cain v. Powers, 100 N.M. 184, 186, 668 P.2d 300, 302 (1983), in determining whether to enforce a restrictive covenant, we are guided by certain general rules of construction. First, if the language is unclear or ambiguous, we will resolve the restrictive covenant in favor of the free enjoyment of the property and against restrictions. Second, we will not read restrictions on the use and enjoyment of the land into the covenant by implication. Third, we must interpret the covenant reasonably, but strictly, so as not to create an illogical, unnatural, or strained construction. Fourth, we must give words in the restrictive covenant their ordinary and intended meaning. Id.; see also Wilcox v. Timberon Protective Ass'n, 111 N.M. 478, 483, 806 P.2d 1068, 1073 (Ct. App.1990) (applying four-part test to restrictive covenant prohibiting mobile homes), cert. denied, 111 N.M. 529, 807 P.2d 227 (1991).
7. At issue here is the proper interpretation of the restriction, No lot shall ever be used for any purpose other than single family residence purposes. The trial court held that the Community's use of property as a group home for four, unrelated individuals with AIDS violated this restriction. In reaching its conclusion that the group home violated the residential use restriction, the trial court made two specific findings regarding the nature of the current use of the home. The court found that the Community uses the house ... as a non profit hostel for providing services to handicapped individuals and that the Community uses of the residence are much closer to the uses commonly associated with health care facilities, apartment houses, and rooming houses than uses which are commonly associated with single family residences. Thus the trial court apparently concluded that the property was being used for commercial purposes rather than residential purposes. However, we find that the trial court's conclusions are incorrect as a matter of law. 8. It is undisputed that the group home is designed to provide the four individuals who live in the house with a traditional family structure, setting, and atmosphere, and that the individuals who reside there use the home much as would any family with a disabled family member. The four residents share communal meals. They provide support for each other socially, emotionally, and financially. They also receive spiritual guidance together from religious leaders who visit them on Tuesday evenings. 9. To provide for their health care needs, the residents contract with a private nursing service for health-care workers. These health-care workers do not reside at the home, and they are not affiliated with the Community in any way. The number of hours of service provided by the health-care workers is determined by a case-management group assigned by the state pursuant to a state program. The in-home health services that the residents receive from the health-care workers are precisely the same services to which any disabled individual would be entitled regardless of whether he or she lived in a group home or alone in a private residence. The health-care workers do most of the cooking and cleaning. The residents do their own shopping unless they are physically unable to leave the home. 10. The Community's role in the group home is to provide oversight and administrative assistance. It organizes the health-care workers' schedules to ensure that a nurse is present twenty-four hours per day, and it provides oversight to ensure that the workers are doing their jobs properly. It also receives donations of food and furniture on behalf of the residents. The Community provides additional assistance for the residents at times when they are unable to perform tasks themselves. A Community worker remains at the house during the afternoon and evening but does not reside at the home. The Community, in turn, collects rent from the residents based on the amount of social security income the residents receive, and it enforces a policy of no drinking or drug use in the home. 11. The Community's activities in providing the group home for the residents do not render the home a nonresidential operation such as a hospice or boarding house. As the South Carolina Supreme Court noted when faced with a similar situation involving a group home for mentally impaired individuals: This Court finds persuasive the reasoning of other jurisdictions which have held that the incident necessities of operating a group home such as maintaining records, filing accounting reports, managing, supervising, and providing care for individuals in exchange for monetary compensation are collateral to the prime purpose and function of a family housekeeping unit. Hence, these activities do not, in and of themselves, change the character of a residence from private to commercial. Rhodes v. Palmetto Pathway Homes, Inc., 303 S.C. 308, 400 S.E.2d 484, 485-86 (1991). In Jackson v. Williams, 714 P.2d 1017, 1022 (Okla.1985), the Oklahoma Supreme Court similarly concluded: The essential purpose of the group home is to create a normal family atmosphere dissimilar from that found in traditional institutional care for the mentally handicapped. The operation of a group home is thus distinguishable from a use that is commerciali.e., a boarding house that provides food and lodging onlyor is institutional in character. See also Gregory v. State Dep't of Mental Health, Retardation & Hosps., 495 A.2d 997, 1001-02 (R.I.1985) (finding the group home to be residential and not commercial in nature, and listing cases from other jurisdictions reaching the same conclusion); Blevins v. Barry-Lawrence County Ass'n for Retarded Citizens, 707 S.W.2d 407, 408-09 (Mo. 1986) (en banc) (same, listing jurisdictions). But see Omega Corp. of Chesterfield v. Malloy, 228 Va. 12, 319 S.E.2d 728, 732 (1984) (finding group home for mentally disabled constituted a facility instead of a family residence in violation of covenant), cert. denied, 469 U.S. 1192, 105 S.Ct. 967, 83 L.Ed.2d 971 (1985). We agree with the conclusions reached by the South Carolina Supreme Court and other jurisdictions that the purpose of the group home is to provide the residents with a traditional family structure and atmosphere. Accordingly, we conclude as a matter of law that, given the undisputed facts regarding how the Community operates the group home and regarding the nature of the family life in the home, the home is used for residential purposes in compliance with the restrictive covenant.
12. The Neighbors also argue on appeal that the four, unrelated residents of the group home do not constitute a single family as required by the restrictive covenant. The Neighbors contend that the restrictive covenant should be interpreted such that the term family encompasses only individuals related by blood or by law. We disagree. 13. The word family is not defined in the restrictive covenant and nothing in the covenant suggests that it was the intent of the framers to limit the term to a discrete family unit comprised only of individuals related by blood or by law. Accordingly, the use of the term family in the covenant is ambiguous. As we noted above, we must resolve any ambiguity in the restrictive covenant in favor of the free enjoyment of the property. Cain, 100 N.M. at 186, 668 P.2d at 302. This rule of construction therefore militates in favor of a conclusion that the term family encompasses a broader group than just related individuals and against restricting the use of the property solely to a traditional nuclear family. 14. In addition, there are several other factors that lead us to define the term family as including unrelated individuals. First, the Albuquerque municipal zoning ordinance provides a definition of family that is at odds with the restrictive definition suggested by the Neighbors. The Albuquerque zoning ordinance includes within the definition of the term family, [a]ny group of not more than five [unrelated] persons living together in a dwelling. Albuquerque, N.M., Rev. Ordinances, art. XIV, § 7-14-5(B)(41) (1974 & Supp.1991). 15. The Neighbors argue that the zoning code definition is irrelevant to the scope of the covenant. They point to Singleterry v. City of Albuquerque, 96 N.M. 468, 470, 632 P.2d 345, 347 (1981), in which this Court stated, It is well established that zoning ordinances cannot relieve private property from valid restrictive covenants if the ordinances are less restrictive. However, we agree with the Colorado Court of Appeals which noted, While [the zoning] statute has no direct applicability to private covenants, it is some indication of the type of groups that might logically, as a matter of public policy, be included within the concept of a single family. Turner v. United Cerebral Palsy Ass'n, 772 P.2d 628, 630 (Colo.Ct. App.1988) (construing term family in covenant to include unrelated group home residents), cert. denied, (Apr. 24, 1989); see also Gregory, 495 A.2d at 1002 n. 3 (referring to zoning ordinances when construing the term family, as used in covenant). In the present case, we are not using the zoning ordinances to relieve the Community of its obligations under the restrictive covenant. We are instead looking to the definition of family within the zoning ordinance as persuasive evidence for a proper interpretation of the ambiguous term in the covenant. The Albuquerque zoning ordinance would include the residents of the group home within its definition of family. 16. Second, there is a strong public policy in favor of including small group homes within the definition of the term family. The federal government has expressed a clear policy in favor of removing barriers preventing individuals with physical and mental disabilities from living in group homes in residential settings and against restrictive definitions of families that serve to exclude congregate living arrangements for the disabled. The FHA squarely sets out this important public policy. As the court in United States v. Scott, 788 F.Supp. 1555, 1561 n. 5 (D.Kan.1992), stated, The legislative history of the amended Fair Housing Act reflects the national policy of deinstitutionalizing disabled individuals and integrating them into the mainstream of society. The Scott court further noted that the Act is intended to prohibit special restrictive covenants or other terms or conditions, or denials of service because of an individual's handicap and which ... exclud[e], for example, congregate living arrangements for persons with handicaps. Id. at 1561 (alterations in original) (quoting H.R.Rep. No. 711, 100th Cong., 2d Sess. 23-24 (1988), reprinted in 1988 U.S.C.C.A.N. 2173, 2184-85). It protects against efforts to `restrict the ability of individuals with handicaps to live in communities.' Id. This policy is applicable to the present case because the FHA's protections for handicapped people extend to individuals with AIDS. See Support Ministries for Persons with AIDS, Inc. v. Village of Waterford, 808 F.Supp. 120, 129 (N.D.N.Y.1992) (The legislative history of the 1988 amendments to the FHA reveals that Congress intended to include among `handicapped' persons those who are HIV-positive....). The Developmental Disabilities Assistance and Bill of Rights Act, 42 U.S.C. § 6000 (1988 & Supp. II 1990), and the Rehabilitation Act of 1973, 29 U.S.C. § 701 (1988 & Supp. IV 1992), also identify a national policy favoring persons with disabilities living independently in normal communities and opposing barriers to this goal. See Scott, 788 F.Supp. at 1561 n. 5. 17. In New Mexico, the Developmental Disabilities Act, NMSA 1978, § 28-16A-2 (Cum.Supp.1995), expresses a clear state policy in favor of integrating disabled individuals into communities. The Act provides in relevant part: It is the purpose of the legislature in enacting the Developmental Disabilities Act... to promote opportunities for all persons with developmental disabilities to live, work and participate with their peers in New Mexico communities. Priority shall be given to the development and implementation of support and services for persons with developmental disabilities that will enable and encourage them to ... achieve their greatest potential for independent and productive living by participating in inclusive community activities; and ... live in their own homes and apartments or in facilities located within their own communities and in contact with other persons living in their communities. Section 28-16A-2(A). Although this act is directed at assisting individuals with developmental disabilities, such as autism or mental retardation, we find that this important state policy applies with equal force to individuals with any form of disability or handicap. 18. Furthermore, the state grant of zoning authority to municipalities, NMSA 1978, § 3-21-1(C) (Repl.Pamp.1995), expressly provides: All state-licensed or state-operated community residences for the mentally ill or developmentally disabled serving ten or fewer persons may be considered a residential use of property for purposes of zoning and may be permitted use in all districts in which residential uses are permitted generally, including particularly residential zones for single-family dwellings. Although this section may not necessarily require that municipalities include community residences within single-family residential zones, it clearly indicates a preference for municipalities adopting this inclusionary approach. 19. Both the federal and state governments have expressed a strong policy encouraging locating group homes in single-family residential areas and treating them as if they constituted traditional families. This overwhelming public policy is extremely persuasive in directing us toward an expansive interpretation of the term family. See Crane Neck Ass'n v. New York City, 61 N.Y.2d 154, 472 N.Y.S.2d 901, 904, 460 N.E.2d 1336, 1339 (refusing to enforce restrictive covenant that contravened long-standing public policy favoring the establishment of group homes for the mentally disabled), cert. denied, 469 U.S. 804, 105 S.Ct. 60, 83 L.Ed.2d 11 (1984); Craig v. Bossenbery, 134 Mich.App. 543, 351 N.W.2d 596, 599 (1984) (noting that strong public policy favoring group homes overrides enforcement even of unambiguous restrictive covenant), appeal denied, (Jan. 28, 1986); cf. Jackson v. Fort Stanton Hosp. & Training Sch., 757 F.Supp. 1243, 1312-13 (D.N.M. 1990) (noting importance of community placement for the mentally impaired and identifying shortages of adequate community-based group housing in New Mexico), rev'd in part on other grounds, 964 F.2d 980 (10th Cir. 1992). 20. Third, other jurisdictions have consistently held that restrictive covenants mandating single-family residences do not bar group homes in which the occupants live as a family unit. For example the Williams court noted, When ... the restrictive covenant under consideration prohibits occupancy of more than one family unit but does not address itself to the composition of the family, a court is loathe to restrict a family unit to that composed of persons who are related, one to another, by consanguinity or affinity. Williams, 714 P.2d at 1023; see also Welsch v. Goswick, 130 Cal.App.3d 398, 181 Cal.Rptr. 703, 709-10 (1982) (noting that policy considerations mandate that covenant be interpreted to allow residential care facilities of six or fewer people); Maull v. Community Living for the Handicapped, Inc., 813 S.W.2d 90, 92 (Mo.Ct.App.1991) ([G]roup homes where the residents function in a family setting, interdependent on one another in carrying out the daily operation and routine of the residence meet the single family requirement of the covenant.), transfer denied, (Aug. 8, 1991); Montana ex rel. Region II Child & Family Servs., Inc. v. District Court, 187 Mont. 126, 609 P.2d 245, 248 (1980) (holding group home constituted family as required by covenant). But see Adult Group Properties, Ltd. v. Imler, 505 N.E.2d 459, 465-67 (Ind.Ct.App.1987) (questionable conclusion that the undefined term family in the covenant included only father, mother and children, immediate blood relatives), transfer denied, (Oct. 15, 1987). 21. Accordingly, we reject the Neighbors' claim that the term family in the restrictive covenants should be read to include only individuals related by blood or by law. We agree with the court in Open Door Alcoholism Program, Inc. v. Board of Adjustment, 200 N.J.Super. 191, 491 A.2d 17, 21 (App.Div.1985), which noted, The controlling factor in considering whether a group of unrelated individuals living together as a single housekeeping unit constitutes a family... is whether the residents bear the generic character of a relatively permanent functioning family unit. As we already discussed above, the individuals living in the Community's group home do operate as a family unit. Much of the activities of the residents are communal in nature. More importantly, the residents provide moral support and guidance for each other and together create an environment that assists them in living with the disease that has afflicted them. We find that the Community's group home exhibit[s] [the] kind of stability, permanency and functional lifestyle which is equivalent to that of the traditional family unit. Id., 491 A.2d at 22. We therefore conclude that the Community's use of the property as a group home does not violate the Four Hills restrictive covenant.
22. The Neighbors strenuously argue that the covenant should be interpreted to exclude the group home because the group home's operation has an adverse impact on the neighborhood. In support of this claim, the Neighbors point to the trial court's findings that [t]he amount of vehicular traffic generated by [the] Community's use of the house ... greatly exceeds what is expected in an average residential area and that, as a result, the character of [the] residential neighborhood relative to traffic and to parked vehicles has been significantly altered to the detriment of this residential neighborhood and is [sic] residents. The Neighbors contend that these facts are uncontradicted and point out that this Court is bound by the factual findings of the trial court unless the findings are not supported by substantial evidence. [2] Segal v. Goodman, 115 N.M. 349, 353, 851 P.2d 471, 474 (1993). 23. However, the Neighbors fail to appreciate that the amount of traffic generated by the group home simply is not relevant to determining whether the use of the house as a group home violated the covenant in this case. A review of all the provisions in the covenant reveals that the restrictive covenants for the Four Hills Village, sixteenth installment, are not directed at controlling either traffic or on-street parking. The various covenants and restrictions that attach to the neighborhood homes merely regulate the structural appearance and use of the homes. For example, the covenants regulate building architecture, views, frontage, setback, visible fences and walls, signs and billboards, trash and weeds, trailers and campers parked in yards, maintaining livestock, and of course nonresidential uses of homes. However, not one of the fifteen provisions and numerous paragraphs of the covenants attempts to control the number of automobiles that a resident may accommodate on or off the property nor the amount of traffic a resident may generate. 24. The Neighbors do not contend that the amount of traffic and parking generated by the Community's home violates any covenant in and of itself, nor could they. They also do not argue that the covenants would prevent a traditional nuclear family, related by marriage or consanguinity, from generating a similar volume of traffic. The Neighbors do suggest, however, that the volume of traffic demonstrates that the group home is not functionally equivalent to a traditional single-family residence, as required by the covenants. However, the question whether the group home is equivalent to a traditional family residence must be evaluated in relation to the requirements of the covenants, which in this case are directed to maintaining the structural appearance of the house and restricting nonresidential uses. Cf. Turner, 772 P.2d at 630 (looking to other provisions of covenant to define nature of family restriction). There is no evidence that the volume of traffic generated by the group home interferes with the structural appearance of the house in violation of the covenants. Nor does the amount of traffic or parked vehicles alter the residential nature of the group home or modify the familial relationship of the residents. 25. We note that if we had concluded that the group home did violate the restrictive covenant, the amount of traffic generated by the nonconforming use might then become relevant in evaluating the harm suffered by the other landowners and in determining the appropriate remedy. However, the amount of traffic generated by the group home simply does not affect the threshold question whether Community's use of the property as a group home violates the restrictive covenant requirement that the property not be used for any purpose other than single-family residence purposes. Accordingly, because the covenants do not regulate traffic or off-street parking, and because the amount of traffic generated by the group home is irrelevant to whether the home is used for single-family residential purposes, we conclude that the Neighbors' argument is without merit.