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Appellate Court Ruling Removes Obstacles to Districts Imposing Level 3 Developer Fees

  • November 02, 2016

November 02, 2016

On November 1, 2016, the Sacramento Superior Court entered its order 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) that had stopped the SAB from taking further action to allow school districts to charge Level 3 school impact fees.  On the same day, the SAB delivered to the State Senate and Assembly notice of the SAB’s May 25 action which authorized districts to charge Level 3 fees. These actions follow a 2-month delay in the court proceedings.

As we have been reporting, the trial court initially issued its ruling denying the preliminary injunction on August 29, 2016, following extensive briefing and oral argument.  However, on that same day and before the trial court entered the order to effectuate its ruling, the CBIA filed a Writ of Supersedeas and an appeal with the Third District Court of Appeal and requested that the court of appeal issue an immediate stay—a request that was previously made to, but denied by, the trial court.

Shortly after CBIA filed the writ and appeal, September 1, 2016, the court of appeal issued a stay of all proceedings in the trial court pending receipt of the SAB’s opposition to the Writ of Supersedeas.  The Writ of Supersedeas, if granted, would have stayed the implementation of Level 3 fees while CBIA’s appeal was pending.  On October 28, 2016, the court of appeal summarily denied CBIA’s Writ of Supersedeas and vacated the stay of proceedings in the trial court.  Sacramento Superior Court Judge Michael P. Kenny then issued his November 1st Order terminating the TRO.

Although CBIA’s underlying appeal is still pending, this latest order officially clears the path for eligible school districts to adopt and/or impose Level 3 fees.  Please contact legal counsel to determine whether your District is eligible to charge Level 3 fees.

PRACTICE AREAS
  • Business and Property
  • Construction

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