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You no longer need to pay impact fees! Below is an excerpt of a letter from a developer that sued the City of Oakland over impact fees and won (project specifics omitted for privacy). Big changes coming to a city near you. "We need you to let the public know about our lawsuit and its effect on the ability of the City of Oakland to participate in affordable housing construction. We filed a lawsuit against the City of Oakland’s... affordable housing impact fee. We believe that the collection of these fees is unconstitutional. The recent supreme court ruling in Sheetz v. County of Al Dorado reaffirmed that there must be a direct relationship between the impact fee and the adverse impact on the City or County. In our case the city must prove that our building...will cause the adverse impact of increasing the need of affordable housing. Obviously, the need for affordable housing is in no way related to the construction of... new housing units. We were informed on Tuesday morning, January 7th that our impact fees had been waived. We are now able to receive our building permits without paying any of these affordable housing impact fees. However, we believe that the City of Oakland will continue to require these fees be paid by anyone who is unaware of the unconstitutionality of the fees themselves. The City Council recently discussed taking all of the money out of the affordable housing fee trust fund and using this money towards the $130 million budget deficit. The individual and companies who have paid these affordable housing impact fees may be eligible for a refund if these monies are used for other purposes. Should the City of Oakland unconditionally admit that the affordable housing impact fee is unconstitutional. Oakland’s ability to fund affordable housing construction would be severely impaired or ended entirely."
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David Watson 🥑
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Also. The developer is a client that reached out to help me on a project I recently posted for entitlement. She’s willing to discuss with others, so if you’re a developer and interested I can connect you.
Would I make something like this up? Ok don’t answer that. Yes it’s real. Let me know if you want to discuss further.
No, it’s specific to inclusionary housing. But as I understand it there are discussions happening around other impact fees as well. Not sure what will happen with Prop 13 when local government can’t pass all of their funding burden on to developers / new residents.
I would not use Oakland as any kind of example for legal precedent, but if other cities follow suit that would be encouraging
Hi Matt, apologies for my cynicism, but do you think this is related to why we've seen cities move away from the option of in lieu fees and towards mandatory affordable housing unit construction?
They weren’t totally clear when I spoke to them. It may have even been just the threat or possible filing of a lawsuit, not an actual suit or settlement (this developer has embellished on occasion). They have offered to provide details to developers looking for info.
They actually said the fees were used for extortion in this article. SF non profits are notorious for threatening developers unless they give up more free units
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Pacific Legal 🗡⚖️
@PacificLegal
Building housing doesn't make housing less affordable, which means there's no nexus that justifies slapping $20k inclusionary zoning fees on new housing. S/o to @reason for covering our post-Sheetz challenge to these unconstitutional fees ⚔️ reason.com/2024/09/10/the
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Was there a judgement, or did the city just drop the fees?? Sheetz didn’t necessarily determined that AH impact fees are improper. Only that fees overall must be proportional and the use must have a relationship to development.
When I was an aspiring developer in SF… these fees directly increased the price of each unit by 8% The city didn’t understand when I told them they were driving current and the new housing less affordable.
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