School Facilities Update – Level III Developer Fees Authorized
After initially issuing a restraining order to temporarily halt the SAB action to authorize Level III Developer Fees, the Superior Court on August 22 issued a final ruling denying CBIA’s request for a preliminary injunction and terminated the temporary restraining order. Authorized districts may now levy Level III fees.
The dispute was focused on the definition of when the SAB could declare when the School Facilities Program was out of money. The developers argued that since there were still programs with available dollars (Seismic Mitigation Program), the state was not out of money. Ultimately, the court decided that the SAB could make this determination when they are no longer able to apportion the entire next project on the Unfunded List. This has occurred.
Apparently, If Prop 51 passes in November, the SFP will again be funded. Witnesses have stated at a recent SAB meeting that once the Level III fees are authorized there is no mechanism to rescind this action. We will participate in this and other discussions on this recent court action.
More to come…
Susan Stuart, Partner
Capitol Advisors Group, LLC.