A U.S. magistrate judge issued a decision declaring that a Hayden Lake sewer district exceeded its authority in charging higher sewer fees to a small assisted living facility.

According to the memorandum of decision and order filed by Judge Candy Dale, the Hayden Lake Recreational Water and Sewer District "did not have authority" to charge tens of thousands of dollars in additional sewer fees to Haydenview Cottage LLC.

Because of the facility's small population, the decision states, state law requires it be charged the same as a single family residence, as it was before the fee increase.

"I think it's a very important decision," said attorney Ken Nagy representing the Intermountain Fair Housing Council, which had joined in the legal battle over the fees. "A federal judge has decided you may not treat a group home with eight or fewer residents any differently, and that includes charging higher sewer rates."

The federal judge found that the district did not overstep its authority, however, in charging similar fees to a facility housing a higher number of residents, By the Lake Assisted Living Home, LLC.

The decision responded to two suits filed after the district charged upward of $100,000 in additional fees last year to the assisted care homes, both of which lie in the district boundaries.

The district's attorneys have said the municipality was making up for several years of undercharging the homes, which the district had only recently discovered were for-profit establishments using two and three times more water than single-family residences.

When the facility owners objected to paying, the district sued them last fall in state court. The case was removed to federal court when IFHC filed a suit soon after, accusing the district of discriminatory treatment of disabled clients and group homes with eight or less residents.

Judge Dale was asked to grant summary judgments determining if the district could increase sewer fees to the two facilities, if the district's attempt to hike the fees violated the Fair Housing Act and whether IFHC's argument lacked standing.

Dale's decision states that Haydenview Cottage should be charged as a single-family residence.

The Coeur d'Alene facility meets the Idaho Code definition of single-family dwelling, the document reads, with eight or fewer individuals living there.

"The district should not have deemed the facility a non-residential use simply because the facility is for profit," the decision states.

But the same doesn't apply to By the Lake, Dale stated, which has historically housed 8 or 9 individuals and currently houses 12.

"By the Lake does not fall within that definition (of single-family residence)," the decision reads. "Thus, the district may consider By the Lake a special use within the meaning of the ordinance, and assess it accordingly."

Dale also stated that IFHC has sufficiently demonstrated standing because of its connection with the case.

The judge did not provide a summary judgment on whether the district intentionally discriminated against the group homes under Fair Housing Act standards, as it isn't clear if the district acted because of the disabled clients' protected status.

Due to disputed material facts, Dale didn't provide summary judgment on whether the district's actions violated FHA requirements for reasonable accommodation for handicapped individuals.

Dale deemed that the district's actions did not have disparate impact on the facilities.

Joseph Skala, who owns Haydenview with his wife, Rebecca, said he was ecstatic at the decision.

"I think it was uncalled for from the start," he said of the $48,024 in fees charged to Haydenview last March, and the $74,592 charged to By the Lake. "I'm sure the people at our place are going to be pretty happy."

Chuck Dean, the attorney representing both facilities, said there are still lingering FHA issues related to the treatment of By the Lake, owned by Laurence and Kathleen Chmura.

"I'll be bringing that to the court's attention," Dean said. "The district should be worried about what may come down from that."

Michael Schmidt, the district's attorney, could not be reached for comment.

Kathleen Chmura also could not be reached.

Nagy said he plans to file a motion for the judge to reconsider the decision to also include By the Lake as a single family residence.

"I believe (Dale) should have granted summary judgment for both (facilities), not just the one," Nagy said. "But at the same time, we will invite the district to engage in settlement negotiations, to see if we can get the case resolved without more litigation."