Level 3 Litigation Underway, Prohibiting Collection of Level 3 Fees

Lozano Smith Client News Brief
Lozano Smith Alert

May 2016

As Lozano Smith reported yesterday, the State Allocation Board (SAB) took unprecedented action this week authorizing eligible school districts to collect 'Level 3' developer fees. The litigation that was threatened and that was mentioned in our client news brief has become a reality. On the same day that SAB approved Level 3 fees, the California Building Industry Association (CBIA) filed a Petition for Writ of Mandate in Sacramento County Superior Court. Yesterday, CBIA's application for a Temporary Restraining Order was granted by the court, restraining the SAB from implementing or taking further action authorizing imposition of Level 3 fees. The Temporary Restraining Order is only an initial step and does not resolve the CBIA's claims for the long-term. A hearing on a proposed preliminary injunction is set for July 1.

This means that school districts may not levy and collect Level 3 fees at least until July 1, and perhaps not even then, depending on what further court rulings are made. Lozano Smith will continue to monitor this case closely and report on the status of Level 3 fees. If you have any questions regarding these issues or the pending case, please feel free to contact the authors of yesterday's client news brief or any of our other attorneys.

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As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.