Oconomowoc Residential Programs v. City of Milwaukee

The City of Milwaukee (city) (defendant) enacted an ordinance that prohibited a group home from operating within 2,500 feet of another group home. Oconomowoc Residential Programs, Inc. (Oconomowoc) (plaintiff) intended to operate a group home for individuals with traumatic brain injuries. The city denied Oconomowoc’s application for an occupancy permit because there were already two group homes operating within 2,500 feet of Oconomowoc’s proposed group home. Subsequently, Oconomowoc requested that the city grant it an exception (or variance) to the ordinance. Oconomowoc produced evidence indicating that the existing group homes in the city largely lacked the supportive services needed by individuals with brain injuries. Thus, there was a shortage of group homes in the city for individuals with brain injuries. But the city denied Oconomowoc’s request for a variance. The city asserted that the overconcentration of group homes would impose additional costs on the city for emergency services. However, the city failed to explain why two group homes located close together would have a greater need for emergency services than two group homes located 2,500 feet apart. Oconomowoc brought suit against the city, contending that the city violated the Fair Housing Act (FHA). The city filed a motion for summary judgment, which was denied by the district court. The city appealed.