United States v. City of Hayward, United States of America v. City of Hayward

In response to the 1988 Fair housing Act (“FHA”) Amendments prohibiting discrimination based on familial status, a mobilehome park owner terminated the park’s adults-only status. A city-appointed arbitrator concluded that this change in policy decreased the housing services provided by the park to its tenants and accordingly required the owner to reduce the rent pursuant to a city rent control ordinance. The United States sued the City of Hayward in federal court for violating § 3617 of the FHA. The district court granted summary judgment for the United States because it concluded that, as a matter of law, the City may not penalize the mobilehome park’s owner for complying with federal law. The district court permanently enjoined the City from interpreting its ordinance in a manner that conflicts with the FHA and ordered the park’s base rent restored to the level it would have been absent the arbitrator’s ruling, but did not award compensatory or punitive damages. 805 F.Supp. 810 . The City appeals summary judgment, and the United States cross-appeals the court’s refusal to award compensatory damages. We affirm summary judgment but reverse the district court’s denial of…