Potomac Group Home Corp. v. Montgomery County, Maryland

Potomac Group Home Corporation (Potomac) (plaintiff) operated four group homes for elderly persons in Montgomery County, Maryland (defendant), one of which was the Golden Guardian. Betty Neuhaus (plaintiff) and Ruth Stokoe (plaintiff) were Golden Guardian residents. The Golden Guardian was staffed around-the-clock and was suitable for residents who needed supportive care. Montgomery County zoning regulations allowed group homes for the disabled elderly to be established by right in any residential zone. However, unlike any other permitted residential use, Montgomery County imposed additional licensing requirements on proposed group homes. Proposed group homes needed to (1) notify the neighborhood about the proposed group home; and (2) limit residents to “exceptional persons,” defined as disabled persons in need of supervision or assisted living who could nevertheless independently exit the group home in an emergency. The exceptional-person requirement was originally imposed as a fire safety regulation, but improved building safety eventually rendered it functionally obsolete. Regardless, after Neuhaus and Stokoe became physically incapable of exiting the group home without assistance, Montgomery County sought to evict them from the Golden Guardian for failing to meet the exceptional-person requirement. Potomac, Neuhaus, and Stokoe sued Montgomery County, arguing that Montgomery County’s group home licensing requirements violated the Fair Housing Act. Neuhaus’s and Stokoe’s physicians testified their care needs were properly met by Golden Guardian. Montgomery County countered, arguing that the licensing requirements were not discriminatory because (1) the notification requirement helped group homes integrate into the community; and (2) the exceptional-person rule ensured group home residents received an appropriate level of care.