Our clients often ask whether they can prohibit drug rehab businesses or assisted living facilities from operating in single-family homes, especially when their CC&Rs state “single family homes only” and “no businesses.” Many managers and board members believe that federal law — specifically HUD rules and the government’s definition of disability — prevents associations from taking any action. The reality is that the Federal Housing Act Amendments of 1988 expanded protections for individuals with all types of disabilities, effectively banning the prohibition of “group homes” (meaning a group of unrelated disabled individuals living together in a dwelling) in community associations. This means that associations generally cannot prohibit legitimate group homes that serve people with disabilities, even if their governing documents restrict homes to single-family use or prohibit business operations
However, not all group homes are protected under Fair Housing laws. Associations should request documentation from the group home operator verifying the existence of a disability-related need for any requested variance. It is important to distinguish between legitimate group homes and those that are not protected. For example, current addicts, current substance abusers, current alcoholics, criminals, those with bad credit, and sex offenders are not considered to have a disability under Fair Housing laws and are not entitled to these protections.
A legitimate group home that serves the disabled cannot be prohibited, but the association does retain the right to enforce the same rules and restrictions that apply to all residents. This includes requirements such as maintenance of buildings and landscaping, pre-approval of architectural modifications, adherence to parking restrictions, and compliance with noise or nuisance policies. In other words, a group home must be treated like any other residence in the association.
In summary, while federal law limits a community association’s ability to prohibit legitimate group homes or assisted living facilities for the disabled, associations still have the right to enforce their rules equally. It is essential to distinguish between protected and non-protected uses and to require proper documentation when necessary. For further guidance, associations should contact Mulcahy Law Firm, P.C. to ensure compliance with both federal law and their governing documents.
For more information, review our firm’s Cheat Sheet on Federal Laws for Community Associations.
