• Land Use Attorney Capitola

Posts Tagged ‘in-lieu fees’

Case Update: Appellate Court Holds That Affordable Housing “In-Lieu” Fees Are Not Exactions And Thus Not Subject To The Reasonable Relationship Test (Following California Building Industry Assn. v. City of San Jose (2015) 61 Cal.4th 435).

In 616 Croft Ave., LLC v. City of West Hollywood, (2016) 3 Cal.App.5th 621, the court of appeal held that the City’s in-lieu affordable housing fee was not subject to the reasonable relationship test under the Nollan/Dolan line of cases.  The subject project, an 11-unit condominium development on two combined lots, was approved in 2005, but because of the economic downturn the developer did not request building permits until 2011.  During that time, the City’s in-lieu housing fee under its 2011 fee schedule had increased to $540,000.00.  The developer paid under protest, and then sued the City for a refund in 2012, arguing that the fee was an illegal “exaction”.

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Miles J. Dolinger
Attorney at Law

314 Capitola Avenue Capitola, CA 95010
Phone: (831) 477-9193
FAX: (831) 477-9196
miles@dolingerlaw.com

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