This Note argues that courts should apply the Contract Clause analysis that is set for by the Supreme Court in Energy Reserves to all home based day care cases regardless of whether it is state legislative or judicial action that prevents enforcement of a restrictive covenant. It begins by explaining the background of restrictive covenants as they apply to group homes and outlines Contract Clause analysis in relation to restrictive covenants. Additionally, this Note explores the Fair Housing Act and how it is becoming the best tool to litigate cases involving covenants and group homes for the mentally ill, but falls short of the the Contract Clause's applicability in child day care homes.



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