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LTC 130-2017 FHA ADA Complaint and New Litigation Filed by Normandy Living, LLCMIAMI BEACH OFFICE OF THE CITY ATTORNEY LTC No, # 130 -2017 LETTER TO COMMISSION TO: Mayor Philip Levine and Members of the City Commission FROM: Raul J. Aguila, City Attorne ,� CC: Jimmy L. Morales, City Manager Rafael E. Granado, City Clerk DATE: March 9, 2017 SUBJECT: FHA/ADA Complaint and new litigation filed by Normandy Living, LLC On January 20, 2017, I advised the Mayor and City Commission that, pursuant to the Settlement Agreement between the parties, Normandy Living, LLC ( "Normandy Living ") dismissed its complaint against the City in the State court case captioned Normandy Living, LLC v. City of Miami Beach (11th Jud. Cir. Case No. 16- 23618). The narrow issue in this case was the Planning Board's jurisdiction to hear Normandy Living's administrative appeal from the decision of the Planning Director. The merits of Normandy Living's administrative appeal were resolved on November 15, 2016, when the Planning Board affirmed the Planning Director's determination that Normandy Living's land development application did not meet the definition of an adult congregate living facility ( "ACLF ") under the City Code. The 30 -day period for Normandy Living to appeal the Planning Board's determination to circuit court has expired, and the Planning Director's original determination stands. There are currently no pending land use applications by Normandy Living before any of the City's land use boards. Notwithstanding the final resolution of the merits of Normandy Living's administrative appeal, on January 20, 2017, Normandy Living filed an administrative complaint with the U.S. Department of Housing and Urban Development ( "HUD "), alleging violations of the Fair Housing Act ( "FHA ") and the Americans with Disabilities Act ( "ADA ") by the City, the Planning Director, the City Attorney, and four members of the Planning Board ( "FHA /ADA Complaint "). The City was served with a copy of the FHA /ADA Complaint on January 24, 2017, directly from counsel for Normandy Living. Normandy Living's FHA /ADA Complaint may proceed as follows: (1) Now that the FHA /ADA Complaint has been filed, Normandy Living may proceed immediately with filing suit as to its FHA and ADA claims in State or Federal court; and /or (2) If HUD determines that it has jurisdiction and accepts Normandy Living's FHA /ADA Complaint for investigation, HUD will serve the City with the complaint and a request for information and a position statement. HUD may then interview representatives of Normandy Living and the City, and may collect relevant documents or conduct onsite visits. The City will have the opportunity to file a March 9, 2017 Normandy Living, LLC Page 2 of 2 response to the HUD complaint. (a) If HUD issues a "for cause" determination, the parties will be required to attempt voluntary conciliation. If, following conciliation, the parties do not reach a settlement, a complaint may be filed in State or Federal court for claims under the Florida Fair Housing Act, in addition to any Federal claims Normandy Living may have. If Normandy Living files in State or Federal court, Normandy Living may seek actual and compensatory damages, as well as attorney's fees. Normandy Living would be able to bring its Federal claims at the same time as the State claims. The U.S. Department of Justice ( "DOJ ") may also file suit upon a "for cause" determination and referral by HUD. (b) If HUD determines that there is no reasonable cause to believe that discrimination has occurred or is about to occur, Normandy Living may proceed with a claim before an administrative law judge ("All"), to seek reconsideration of the administrative decision. During this administrative stage, Normandy Living may seek actual damages and attorney's fees. After the filing of the FHA /ADA Complaint, on February 9, 2017, the City was served with a State court complaint filed by Normandy Living, in a case captioned Normandy Living, LLC v. City of Miami Beach, Florida, et al. (11th Jud. Cir. Case No. 17- 2060), alleging causes of action against the City, the Planning Director, the City Attorney, and the Planning Board, for estoppel, negligent /fraudulent misrepresentation, and "money had and received." We intend to present a vigorous defense to both the FHA /ADA proceeding and the new State court litigation. Notwithstanding these new proceedings, my legal opinion is that the City may proceed with the moratorium adopted by the City Commission on March 1, 2017. If you would like to further discuss either of these matters, please do not hesitate to contact me.