The City of Athens (D) zoned an area for single-family occupancy. Elliott (P) and Davis (P) challenged this ordinance as a violation of the Fair Housing Act. P wanted to sell their houses to The Potter's House. The houses would have been used as group homes for recovering alcoholic and drug addicts. P claimed that the ordinance discriminated against handicapped people. D refused to either rezone the area or amend the ordinance to allow this kind of group home. P sued for declaratory and injunctive relief. The district court held for D, stating that the ordinance was reasonable and fell within the Fair Housing Act exemption for maximum occupancy restrictions. P appealed.

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