California Impact Fees Reach Supreme Court

The U.S. Supreme Court will weigh in on a California law that charges developers an impact fee for new construction. As Bob Egelko explains in the San Francisco Chronicle, the case, brought by property owner George Sheetz, “will determine how far a local government must go to show that fees charged for construction projects are needed to cover the costs that the construction is likely to cause. It could also affect the types of housing that cities and counties allow to be built.”

Sheetz is being charged $23,420 by El Dorado County to mitigate the impact of new traffic on roads leading to the home he plans to build on his property. “Sheetz paid the fee, was granted the permit and then sued for a refund, claiming a violation of his property rights,” but his lawsuit was denied by state courts.

Now, his appeal to the nation’s highest court is being supported by the California Building Industry Association and the National Association of Home Builders.

The ruling could have a ripple effect on all development in the state, such as ‘inclusionary zoning’ regulations that require affordable units in new multifamily developments. According to law professor Chris Elmendorf, a ruling in favor of Sheetz could, in the long run, make local governments more resistant to approving new housing.