On Friday, October 28, the Third Court of Appeals denied California Building Industry Association’s (CBIA) appeal against the State Allocation Board’s action on May 25, 2016.
On Tuesday, November 1, 2016, the State Allocation Board issued a letter pertaining to its action on May 25, 2016 determining that state funds are no longer available for school facility construction. This determination is required in order for school districts to charge Level III developer fees. Per the requirements of Government Code Section 65995.7(a), the letter was sent to the Secretary of the Senate and the Chief Clerk of the Assembly, and it indicates that funds are no longer available effective May 25, 2016.
For more information, see the Board’s letters and the May 25 agenda item here:
The Third Court of Appeals has put Level 3 fees on hold until further notice. This action continues the on/off nature of whether Level 3 can be levied by school districts. Come to the CASH September Workshops (September 247 in Sacramento and September 30 in Ontario) to learn more about what could be the next step in this process. For more information, please visit the cash website, http://www.cashnet.org/meetings/2016_Workshops/Sept16Workshops.html
After CASH provided an update on the litigation related to the State Allocation Board (SAB) action for Level III fees and the subsequent Temporary Restraining Order (TRO) issued by a Sacramento court, we heard from other member legal firms with a different opinion on the meaning of the TRO. For example, some have concluded that the TRO does not prohibit school districts from levying Level III fees.
The issues regarding the action by the SAB and the TRO’s effect on Level III fees raise complicated legal questions, and we recommend that school districts communicate with their legal counsel regarding this matter.