REAL ESTATE LAW UPDATE

October 2004

AT WHAT POINT DOES THE GOVERNMENT
HAVE TO PAY YOU FOR RESTRICTING
THE USE OF YOUR PROPERTY?

By Nathan B. Hannah


Last year I told you about a bill that was proposed in the Arizona Legislature titled the Private Real Property Rights Preservation Act. That bill did not pass, but questions about private property rights, and particularly when government regulation of the use of property goes too far, are ongoing (and are a favorite topic of mine, as you, my loyal readers, have no doubt noticed).

I have discussed in past Updates the legal concept of “governmental taking,” that is, when a government body may be considered to have “taken” private property to the point where the government must pay compensation to the property owner. There has long been debate in legal circles about to what extent government can restrict the use of property without “taking” it. The basic concept of zoning as a permissible use of the government’s police power, and not as a “taking,” was not adopted by the courts until the 1930s. More recently there have been several prominent cases, notably one involving a “temporary moratorium” on building in the Lake Tahoe area that lasted some twenty years, in which the courts have tried to draw the line between what is and what is not a compensable “taking.”

Several years ago, the Arizona Legislature tried to rein in local government actions that could be considered a “taking” by adopting a statute that prohibits counties from “downzoning” property without the owner’s consent. “Downzoning” can be defined as a change in the zoning of a property that reduces the permitted uses of that property. A later ruling by the Arizona Court of Appeals, however, undid that statute by ruling that the provision requiring owner consent to a downzoning was an impermissible delegation of a legislative function. That ruling probably also invalidates another statutory provision that says a county cannot rezone private property for “open space, recreation, conservation or agriculture” without the owner’s consent. The ruling doesn’t directly address whether or not such downzonings would qualify as “takings,” but it certainly doesn’t preclude owners whose properties are downzoned from claiming that the downzoning is a “taking.”

The question of whether or not government action constitutes a “taking” has come up recently in Tucson in a slightly different context. The City of Tucson and Pima County, in response to legislation adopted by the Arizona Legislature, are in the process of adopting amendments to their zoning codes to impose new use restrictions on properties in the vicinity of Davis-Monthan Air Force Base. Property owners have, as you might expect, expressed opposition to the proposed new restrictions. A significant segment of the opposition, however, has been directed not to the new use restrictions themselves, but to the designation of certain areas around the Base as an “Airport Environs Zone.” The objecting property owners apparently fear that they will have to disclose such a designation to potential purchasers and that it will stigmatize their property. Some of these property owners have suggested that the imposition of these regulations would amount to a “taking” because they believe it will have a significant negative impact on the value of their property.

Some property owners have even gone so far as to suggest that military airplanes flying over their properties is a “taking,” again because it is a government action that may impair the value of their property. The trouble with this approach is that if any government action that reduces the value of a property qualifies as a “taking,” then there would be no zoning or other use regulations at all. Without zoning, I could theoretically tear down my house and build the Hannah Towers (a proposed 98-story mixed retail, office and residential building complex) on my lot. Since my lot would be worth much more with the Hannah Towers on it instead of my house, the presence of regulations that prohibit buildings taller than thirty feet is a “taking” with respect to my lot, right?

Well, no, it isn’t. As I alluded to above, the law at least since the 1930's has been that government regulation of the use of property is not a “taking” unless it goes too far. How far is too far is, as you can probably guess, a subjective, amorphous line that has been drawn with varying degrees of clarity at various times and places. I’m pretty sure that the presence of airplanes flying into Davis-Monthan, and being required to tell a prospective purchaser that your property is in a zone affected by those airplanes, don’t cross that line.

More on Assistance Animals for the Emotionally Dependent

Two years ago, I told you about an assistance dog whose “emotionally dependent” owner insisted on bringing the dog into a consignment clothing shop. It seems that the use of such assistance animals is becoming more wide spread. The story I told you about was out of Seattle, Washington. Now I have come across a recent report in the San Francisco Chronicle that the City of San Francisco has issued 658 tags for assistance dogs. The Chronicle also says that all it takes to get a tag for an assistance dog in California is a note from a doctor and a signed statement from the owner that the dog has been specially trained. The term “specially trained” seems rather loose, however, as the training can be done by the owner of the dog. At least for now, the process is limited to dogs.

No similar law has been adopted in Arizona as far as I am aware, so property owners in Arizona can still limit access by service animals to those assisting individuals with recognizable physical disabilities. But in California and Washington, if someone shows up at the door of your business with a dog and some form of government issued tag that says the dog is an assistance animal, you apparently have to let the individual and the dog come in, even if the individual shows no sign of disability.

 


 

This communication is designed to bring legal developments of interest to the attention of our clients and others. It should not be relied upon as a substitute for specific legal advice in a particular matter. For further information on any of the subjects discussed, or for legal advice in connection with any particular matter, please contact us.
 
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