Property owners in a subdivision had the right to amend covenants, even to make them more restrictive, by a three-fourths vote of the property owners.
The property owners amended the restrictions to "prohibit the use of any subdivision lots for a state licensed residential facility" for the mentally handicapped.
The Court says that this is generally okay because property owners took with notice of the fact that the restrictions could be amended under the policy. p. 655
However, amended restrictions may not be applied retroactively:
"Even with the knowledge that deed restrictions can be amended, lot owners have a right to rely on those restrictions in effect at the time they embark on a particular course of action regarding the use of their property, and subsequent amended deed restrictions should not be able to frustrate such action already begun." P. 655-656.
Finally, notice that restrictions designed to prohibit group homes for the mentally handicapped may be "unenforceable on public policy grounds." P. 656
What about a group home for recovering drug addicts or a half-way house for convicted prisoners about to be paroled?
