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Judge rules against city in group home case

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By HILARY KINDSCHUH / Lincoln Journal Star

Thursday, May 03, 2007 - 12:22:01 am CDT

In an order prefaced with strong criticism of Lincoln city officials’ handling of a group home provider’s zoning request, a federal judge Wednesday awarded the provider $331,928 in damages.

U.S. District Judge Richard Kopf awarded the damages to Developmental Services of Nebraska for revenue it lost because of the city’s denial of the request.

Kopf wrote there was evidence of “heaps of red tape … and inconsistent and irrelevant posturing by city officials, elected and otherwise” in the dispute.

The evidence did not prove the city consciously discriminated against people with developmental disabilities.

However, he wrote, it did show that the city denied the group home provider “reasonable accommodations” for its clients.

“As a result, taxpayers will have to pay the provider a lot of money for the city’s violation of federal law,” Kopf wrote. “Sadly, by merely acting reasonably, Lincoln could have easily avoided that expensive outcome.”

Assistant City Attorney Rick Peo said his office would meet with the City Council to decide how to proceed.

Developmental Services of Nebraska sued the city and the state fire marshal in 2004 over the city’s spacing requirements for group homes.

Late last year, DSN settled with the state fire marshal, which was to pay $28,000 in damages.

Lincoln requires group homes with four to 15 residents to be separated by half a mile. Under a settlement approved last year by the City Council, the city would have waived the spacing requirements for DSN homes, duplexes and town homes if they housed no more than four or five people, depending on the type of residence.

 The city attorney’s office recommended approval, but Mayor Coleen Seng vetoed it in October.

DSN said the city failed to make a “reasonable accommodation (or) modification” of its zoning ordinances to give its clients equal opportunities in housing.

Scott Moore, an attorney for DSN, indicated he was pleased with the decision.

“I just really think it’s unfortunate that (the litigation) had to go this far,” Moore said.

Reach Hilary Kindschuh at 473-7120 or hkindschuh@journalstar.com. Journal Star writer Clarence Mabin contributed to this report.


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Good For DSN wrote on May 3, 2007 8:06 am:
" A horrible decision made by the city has resulted in the tax payers paying for their mistake. This is entirely the City Council's fault. Congrats to DSN. "
Carl wrote on May 3, 2007 8:22 am:
" How much more is Seng going to cost the property taxpayers. Time and again this is where and why are taxes are out of control. The money ought to be taken out of Seng's pocket!! See how she like it. After all I think the taxpayers have footed enough of her expensive incompetence!!!! "
Long memory... wrote on May 3, 2007 8:54 am:
" I guess the owner of DSN will be able to afford another Cadillac now... "
Cynic wrote on May 3, 2007 9:03 am:
" The elected officials and codes/planning jacking people around under the guise of making Lincoln safe and repressive. Te money should have come out their personnel pockets instead of the taxpayers! Were is the downside here. Another case of city officials doing what thet please. No professionalism, I do not think they know wantit is! "
Who is to blame? wrote on May 3, 2007 9:11 am:
" Don't blame the entire city council...find out who did NOT vote to overide the Mayor's veto. This was left out of the story. Let's have those names LJS. "
This again?? wrote on May 3, 2007 9:42 am:
" There is no 'owner' of DSN. It is a 501(c)(3) non-profit: "A non-profit organization is an organization whose primary objective is to support an issue or matter of private interest or public concern for non-commercial purposes, without concern for monetary profit. A nonprofit organization may be involved in a wide range of areas relating to the arts, social issues, charities, early childhood education, healthcare, politics, religion, research, sports or some other endeavor." The founder and senior officers of DSN don't get a penny of this money for personal gain. What an ignorant statement. As a taxpayer I do agree, it is very unfortunate that the city keeps wasting money and resources by disregarding their own legal advisors. "
Mayor Seng should Pay wrote on May 3, 2007 9:53 am:
" READ the article again. The city council APPROVED the settlement. The mayor VETOED it and chose to take it to court. Her actions ALONE cost the city over $303,000. The difference between the $28000 settlement and the #331928 lawsuit . Thanks a lot mayor Seng. Good riddance. "
Nebraskan wrote on May 3, 2007 9:58 am:
" This is no small matter. The city violated federal law and now they must pay for ignoring the rights of people with disabilities. Any blame should be placed squarely on the shoulders of Council members Cook, Marvin, and Newman and Mayor Seng. They chose to ignore the city attorney's advise and now we have to pay for their multiple screw ups. This was not a one time thing, this was pattern of behavior. The council and mayor had several opportunities to obey the law and violated each and every time the issue was brought before them. As for the $331,000 in damages. I suspect that number will likely be closer to $500,000 once attorney's fees are added. We need to hold our leaders accountable to all Lincolnites, not just those with money. "
Thumbs down DSN wrote on May 3, 2007 10:18 am:
" Congratulations DSN on winning however make sure you use the money for what it should be used for, not Cadillacs or big fancy houses (anyone ever look at the houses the officers live in?), or really nice cars for the officers, give it the people that call DSN home. Spend some money on the people that make DSN possible!!! I am more than happy to give those people my tax dollars, the officers and employees are another story!!!!! "
"There is no owner of DSN" wrote on May 3, 2007 10:21 am:
" You got that backwards.....do a little investigating. You will find different. DSN is a BUSINESS, don't let them fool you too! "
seen it wrote on May 3, 2007 11:01 am:
" I think people would be interested to see what the state pays DSN to "care" for the folks living in the DSN houses. Seems like a little effort by the state could find a much cheaper, and equal (or better) quality of care. Factor the bottom price DSN pays the employees into the gigantic money the state pays DSN, and you've got a VERY lucrative business. "
AD wrote on May 3, 2007 11:20 am:
" It was discrimination....the City (Mayor & some Council members) deny the request because it involves disabled individuals yet the ordinance which makes it illegal for more than 3 unrelated adults to live in one home is NEVER enforced. I live in a residential area where the townhouses are occupied by 4+ unrelated adults, one next to the other (no spacing involved) - there is not ample parking for this because it was not zoned for that purpose. The large gatherings, parties, disturbance of the peace, illegal parking is NOT enforced even with complaint calls (officers request the cars be moved and do not issue tickets, parties are requested to keep it down, over crowding is not enforced). How often do you think the Developmentally Disabled cause these problems for neighbors??? Society needs to accept these individuals and you think the Mayor and City Council could afford them equal rights. "
Bill wrote on May 3, 2007 11:32 am:
" Way to go Colleen. You can't leave soon enough for me. I said this was going to happen after she vetoed the City Council's measure based on the City Attorney's recommendation. But, the City Council is to blame as well for not overriding her veto. "
familiar with DSN wrote on May 3, 2007 3:18 pm:
" I am quite familiar with DSN and the people who run it. The money won in the settlement will not benefit the individuals with disabilities. Just because an organization says it is "not for profit" doesn't mean that they don't care about paying themselves first. See how many people get raises at DSN...I'm sure it won't be direct line staff who are the ones who most deserve it. The main reason for this lawsuit is that DSN wanted more group homes. DSN GETS MONEY from the state to provide services for individuals with disabilities. They are not just doing it out of the goodness of their hearts. "
Use to like DSN wrote on May 3, 2007 4:47 pm:
" I am also familiar with DSN, the people who deserve the money don't see a dime of it! A 1% raise is a laugh in the face. A 2% raise is a laugh in the face, when the owner lives in a half million dollar home. These people are working their butts off for the consumers. Think he got a 1% rasie? The people he has running that place need to live in one of the stinky group homes just to see what it is like. They need to have their hygiene supplies locked up and have clothes that aren't washed properly. See how they would like that one!! Anyone know what the state pays for each resident? It is more than most people's rent! Probably about a Caddilac monthly payment to be exact. Oh and I bet the officers have 4 roommates in their homes too! Keep moving people in...after all it is their home. Would you CHOOSE to have 4 or 5 roommates??? "
Don't Blame DSN wrote on May 3, 2007 5:24 pm:
" Don't forget, the officers of DSN can and do make money from OTHER business ventures. Their income is not solely from DSN. So the "Cadillac" comments are completely pointless. "
Former DSN Board President wrote on May 3, 2007 6:30 pm:
" DSN is supported by tax dollars in the same way that doctors or hospitals are supported by tax dollars. DSN provides a service and then bills medicaid/insurance companies for that service. I'm not trying to imply that the people whom DSN serves are sick I'm saying that DSN is a fee for service provider. Just like Madonna ProActive, a counselor, doctor, or dentist provides a service for a fee. I for one, think that it is noble that the administration of DSN continues to serve Lincoln at all. The city and state have created such a tangled mess of conflicting regulations and interests that they seem to have forgotten about the service to the people. I applaud the officers of DSN for continuing to work in the nonprofit arena. I was once involved with a nonprofit and found it so cumbersome that I left for the for profit world and have never looked back, but someone has to care for those no one else wants to bother with. When DSN wss founded, Scott LeFevre could have formed the company to make a profit, others have done that and continue to reap those benefits, but he didn't. He chose to focus on services and not making a profit. Scott has always said that if you do the right thing for people, the rest will take care of itself and good things will happen for you. He is a living example of that. As for the continued comments about the car he drives, we the DSN Board of Directors chose to give Scott access to a car similar to the one he donated to the agency. He didn't ask for it, we gave it him for his endless hours of work and dedication. Critcize all you want, but I dare you to compare side by side Scott's accomplishments and good deeds against anyone elses. Most critics out there will never do more for their fellow man in 80 years as he has done in 40. You ought to meet the guy sometime. I'll bet you'd be surprised at how down to earth, intelligent, and kind this man is. He's one of a kind. "
Feed Up wrote on May 3, 2007 7:15 pm:
" The bottom line here folks is the Mayor and the City broke the law. It is called Americans With Disabilities Act and they violated the law. Let's not forget that. Plain and simple if a private individual or company violated a handicapped persons rights then they would have to pay. The City thought that they were above this law and they violated their rights and now the Taxpayers of Lincoln have to pay. "
whatever wrote on May 3, 2007 9:14 pm:
" I can't believe the Lincoln City government, defenders of the downtrodden would stoop so low as to break federal law and stomp on the rights of the less fortunate. Breaking federal law? Sounds like just another day at the office for the City of Lincoln. "
In the buisness wrote on May 3, 2007 11:11 pm:
" Okay lots and lots of stuff being said here and some is right and some is wrong. First and foremost DSN is a nonprofit, but that does not mean that the "owner" or president doesn't draw a huge huge salary. Look at his home. Yes, the city was wrong and did violate the rights of developmentally disabled individuals. You may not want a group home next door but I am sure you would really not want the city to decide where you live because of a medical diagnosis or skin color. Mayor Seng and the city councilmen who supported this decision are showing thier true lack of concern for ALL citizens, but then again why bother being concerned about the dd population as most of them don't vote. The reason group homes such as the 4-15 person group homes have to exist is because the rent that the individuals are charged is very very high. Most of these individuals pay approx 520 dollars a month for room and board, and when you have 3 people in one home and paying a thousand dollars in rent not much left over for bills food etc. I will not comment on Mr LeFarve, except to say that all the owners of these companies in town are close friends and I would remind folks to remmeber back to August of last year when Transfiguration blew apart. Now as far as the $$ that the state pays DSN or another company yes it is alot, but what most people don't recognize is that the "hours of service" and individual has is total payment for the month. The state does not include overnights in the rate and guess what, when a client who has 58 hours a month in resedential services once those hours are provided if they are in a group home they still have to run programs and take care of the individual as if they were being paid for all hours worked. The State of Nebraska should be ashamed of itself for the poor poor conditions they force on the individuals. One thing most people don't know is there are several hundred if not thousands of people out there wnating and needing services and yet the state refuses to live up to its obligation. SHAME SHAME on HHS, the legislature and all of us. "
BLAH BLAH BLAH wrote on May 4, 2007 10:50 am:
" Scott is the best, Brian is the best.....visit a group home! Seriously stop defending them...yes the state pays for the consumers but honestly these people are being ripped off. Thank you Scott for fighting for equal rights but seriously turn your home into a group home. So many people who cared about DSN truely have quite and left because of what it has become....when it is all about the money I was gone! You don't know how terrible it is until you have worked there and seen what REALLY goes on. "
What is this all about? wrote on May 4, 2007 10:54 am:
" Several comments in response to the above article address issues surrounding money; who gets it, who doesn't, where it comes from and where it should go... the fact remains, THE CITY OF LINCOLN VIOLATED FEDERAL LAW. The city of Lincoln had the option to RESPECT AND ADHERE TO THE LAW with respect to "housing" for persons with developmental disabilities. THE MAYOR AND THE CITY COUNCIL CHOSE NOT TO REPSECT THE LAWS; as a result, the tax payers that voted these people to their positions will, as stated by the Judge, "have to pay the provider a lot of money for the city’s violation of federal law,” and “sadly, by merely acting reasonably, Lincoln could have easily avoided that expensive outcome.” As a representative for persons with developmental disabilities, DSN did the right thing ensuring THE CITY BE HELD ACCOUNTABLE FOR THEIR ILLEGAL ACTS. However, as a tax payer, I am truly “sad” that my tax dollars are being spent to remedy an injustice created by elected officials. I guess if the officers of DSN have big houses, at least will be paying their fair share. As the citizens of Lincoln, we should be more concerned with the ongoing dealings of our City Council and new Mayor, this is one very expensive mistake; how many more can we afford for them to make? "
JoJo wrote on May 4, 2007 1:34 pm:
" Just want to point out the law in question was the federal Fair Housing Act, not the Americans with Disabilities Act. It's been law for 20 years now, so you'd think the requirements would be understood! "
HMMM wrote on May 4, 2007 2:20 pm:
" There are holes in walls that go weeks and weeks without fixing. The people that work there get paid little more than minimum wage and don't even have basic CNA teaching so how do they know how to do Home Health? Some are good but some just tease the consumers? And why should secretary's drive Hummers? "
Jared wrote on May 4, 2007 2:30 pm:
" Why are there so many people critical of DSN? Is it possible that maybe something is going on that we don't know? "
What does this have to with DSN? wrote on May 4, 2007 3:54 pm:
" A lot of comments on here about DSN seem misplaced. This whole story was about the city of Lincoln violating Federal Law. That's a fact. The rest of the rumors and gossip being mentioned here have nothing to do with the story. Another fact is that Scott DID turn his house into a group home, that's how DSN was started. Until you've done that, you have no room to criticize Scott. There is absolutely nothing stopping anyone from starting their own group home service. If you think you can do better than Scott, please do so. There's a lot of people with a lot of needs. The more services available, the better. "
Lara wrote on July 7, 2007 1:49 am:
" Who owns the housing that DSN uses? "

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