Last week, on August 22, 2016, the court issued its ruling in the case of California Building Industry Association (CBIA) v. State Allocation Board (SAB), denying the CBIA’s request for a preliminary injunction, and terminating the temporary restraining order (TRO), to stop the SAB from taking further action to allow school districts to charge Level 3 school impact fees.  Soon after, on August 24, 2016, the CBIA requested that the court stay the TRO pending CBIA’s appeal.  The court heard oral arguments last Thursday, August 25, 2016, and delayed the final ruling until Monday, August 29, 2016.

At the continued hearing this morning, Judge Michael P. Kenny of Sacramento County Superior Court formally denied CBIA’s request—thereby paving the way for eligible school districts to take any further steps required to begin charging Level 3 developer fees.  Even though CBIA has threatened to file an immediate appeal, this is a victory for school districts that desperately need this additional funding to provide sufficient classrooms for all incoming students. Contact legal counsel to determine whether your District is eligible to charge Level 3 fees.