Parking-Fee Ruling a Win for Homeowners

Law360 (September 15, 2015) An agency’s failure to justify properly or use development-impact fees could result in the loss of such fees, even several years later, Allen Matkins partner Matthew Fogt tells GlobeSt.com exclusively. The California Court of Appeal recently affirmed the trial court’s judgment against the City of San Clemente, which ordered the City to refund approximately $10.5 million in unexpended development-impact fees relating to beach parking that the City assessed against non-coastal residential development since 1989. The refund represents a significant loss of funding for the City and a windfall for thousands of unsuspecting homeowners. The takeaways from this case are many, says Fogt. “An agency’s failure to follow specific legal requirements with respect to fees could result in the loss of such fee revenue. Courts are not always deferential to agencies, especially when an agency fails to follow clear requirements of the law. Also, an agency must have a well-defined purpose when charging development-impact fees on new development.”