BREAKING: Supreme Court GUTS Impact Fees

Sheetz v. El Dorado County, Supreme Court decision has a huge effect on impact fees, school fees, and all kinds of takings that occur when you're trying to get a permit to build a house, an ADU, or any other type of real estate development.
This hugely important decision sends Sheetz back to the state supreme court with explicit instructions that legislative fees (like impact mitigation fees) are subject to the same standards as administrative fees, if they are takings.
Watch the video for a nuanced explanation of my notes from the supreme court arguments, decision, opinions and commentary.
But please note that this video and the words on this page are not legal advice, nor am I providing advice for your specific situation. This video is general information only and may contain inaccuracies or information that is not at all relevant to your specific situation! I'm not a lawyer or legal advisor!
Rough summary:
1. This is not legal advice
2. When the government takes your land, or does something akin to that like ask for use of the land, or ask for money in lieu of that taking, there are some tests it has to pass to show the government is being fair.
3. In this case, George Sheetz was charged a $23k traffic fee. He paid in protest and then sued to be refunded. The state supreme court of California said the fee is a legislative fee and does not need to pass the tests for takings
4. The US Supreme Court said legislative fees and administrative fees all have to pass the same standards, and sent this back to the state court
5. The 2 tests from Nollan and Dolan (and clarified in Koontz) are about essential nexus and rough proportionality.
5a) The state has to show that the project being permitted has an essential nexus with a legitimate public land use concern
5b) The state has to show that the taking is roughly proportional to the impact of the project, and not placing an unfair burden on an individual
6. Now we'll see what the state court says and what arguments the county makes. Some legal scholars seem to think that the county may still argue that this particular impact fee is not a taking at all, or that the fee is roughly proportional and it is on a public land use nexus.
The judges voted 9-0 that this should be remanded to the state court and they should review with the confirmation that legislative fees are subject to the same standards as administrative fees and all takings. But in their many consenting opinions, they give hints to how the state might now go about evaluating this fee, whether it is a taking at all, and whether regulating a class of construction is enough to satisfy proportionality requirements or not, amongst lots of other details. We'll have to wait and see what the California State Supreme Court says and whether this will apply to many impact fees, park fees, school fees, mitigation fees, non-utility fees, non-service fees, and so on.
MORE RESOURCES:
🏠 Subscribe to this channel: kzread.info?su...
🏠 Read the SC opinions yourself: www.supremecourt.gov/opinions...
🏠 My full bibliography: docs.google.com/spreadsheets/...
🏠 An excellent twitter thread from Chris Elmendorf: / 1779601732856881330
🏠 A great blog all about TAKINGS: www.inversecondemnation.com/i...
🏠 Full Fox & Friends segment that I fair use clip: www.foxnews.com/video/6345630...
🏠 The Riverside guys who are facing that $350k park endowment fee: triplexmillionaire.com/tpm-zo... (affiliate link)
🏠 Josef from NEO Builders who provided that fee breakdown: www.neobuildersadu.com/
🏠 2015 Impact Fee study: impactfees.com/publications%2...
🏠 CalMatters article on decision: calmatters.org/commentary/202...
🏠 For more videos about nation-wide housing: • Housing Reform in Wash...
🏠 For more videos about ADUs: • How To ADU - Advanced ...
If you want to get started with an ADU project in California, check out our sponsors at REALM HOME. You can get a free call to answer your questions about budget and what you can do, and then if you like them, you can hire them to help you get bids from multiple general contractors to build your project: f.realmhome.com/?...
Meet more people in the How To ADUniverse:
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🏠 Twitter - @howtoadu

Пікірлер: 61

  • @mariusfacktor3597
    @mariusfacktor35972 ай бұрын

    I'm no free-market libertarian, but this ruling is a good thing. California has a housing shortage so charging excess fees to build more housing is just gonna hold back more potential homes. Also California gets traffic 180 degrees backwards. When more housing is built on a street, you should make that street more pedestrian-friendly, not widen it to make it impossible to get around without a car. California induces more traffic by making it impossible to walk anywhere, and calls that good traffic management. That's the opposite of good traffic management, that's a recipe for creating the most traffic you possibly can.

  • @HowToADU

    @HowToADU

    2 ай бұрын

    It’s crazy true. And cities create extra costs for themselves (like increased traffic) by impeding housing near jobs. Fills the whole city with commuters because so few people can afford to live where they work.

  • @seanm3226

    @seanm3226

    Ай бұрын

    So you’re only a “free market libertarian” when it makes sense? Which is always.

  • @mariusfacktor3597

    @mariusfacktor3597

    Ай бұрын

    ​@@seanm3226 It makes sense here since there is massive demand for homes and the government is deliberately preventing homes from getting built. But free market didn't work so well in healthcare, did it? The US pays 2X the next highest country for healthcare yet we consistently have worse health outcomes than countries with socialized medicine. Why doesn't it work in healthcare? Because you can't do much shopping around when you have a broken femur. When a pharma company owns the patent for the only drug to treat your cancer, you don't have another option. That's a broken market. The market works in certain industries but it breaks in certain other industries.

  • @mozme_UP
    @mozme_UP2 ай бұрын

    About time the courts get involved. Too many inconsistencies with "impact fees" and don't get me started with school districts. Seems like school district s are immune to ADU impact fees.

  • @HowToADU

    @HowToADU

    2 ай бұрын

    It does seem that way!

  • @JosephPeretz
    @JosephPeretz2 ай бұрын

    Fees at 8:59 are typical for cities like Culver City, Burbank and Glendale.

  • @mikef2811
    @mikef28112 ай бұрын

    It's great unfortunately, it is too late for me. I am in Sacramento, CA and I am already in the building process. I initially want to build an 800 Sq Ft but it was a $15,000 increase on the impact fee. So, I settled with 740 sq ft house instead, which was under the outrageous impact fee.

  • @HowToADU

    @HowToADU

    2 ай бұрын

    A common tale! The school district still hitting you for school fee?

  • @mikef2811

    @mikef2811

    2 ай бұрын

    @@HowToADU Yes.

  • @Love4puppies
    @Love4puppies2 ай бұрын

    I am so impressed with George!

  • @MegaBuyer
    @MegaBuyer2 ай бұрын

    Can you give me some advice? I just spent 10 months soliciting various approvals from Sacramento county to put 2 ADU's in my backyard. I spent about $20K in fees between the builder and the various agencies. I got my rejection notice from the fire department yesterday. They want me to widen our easement driveway (to within about 5 feet of the front door of existing house - there are children living there, so this is dangerous) and put in a driveway spur for the firetruck to be able to turn around in my back yard. Firetrucks are BIG. This would turn our backyard into a Frankenstein patchwork and will kill the project. I thought California wanted more ADU's. What can I do?

  • @HowToADU

    @HowToADU

    2 ай бұрын

    Sorry I can’t give specific advice here. But you should forward the emails from fire to me. Ryan@how-to-adu.com - are you in the VHFHSZ or maybe you’re building very far back from the road?

  • @yanceymcdonald6017
    @yanceymcdonald60172 ай бұрын

    My county in Florida just raised their impact fees to $16,000 for a single-family home. 🤯 I’m super curious to see how this plays out.

  • @HowToADU

    @HowToADU

    2 ай бұрын

    Call a lawyer if you’re thinking about building! What county? I’m from Hillsborough originally. There are a lot of good YIMBY chapters in FL if you want help changing things.

  • @MuzixMaker

    @MuzixMaker

    Ай бұрын

    I’m in Citrus, fees have gotten very high.

  • @gregorderas5296
    @gregorderas5296Ай бұрын

    i personally don't like adu's and how they are screwing up the neighborhoods around my area. but wouldn't it be nice if the city/county employees were working for the citizens instead of trying to screw you out of the most money they can get out of you

  • @HowToADU

    @HowToADU

    Ай бұрын

    glad we’re on the same page about crazy fees. Sorry to hear ADUs are messing up your neighborhood. What’s happening? Where abouts are you?

  • @gregorderas5296

    @gregorderas5296

    Ай бұрын

    @@HowToADU westminster ca. Trying to add some space for a single family home. cant do some things for a single family home, but same things are ok for adu. mostly setback and parking issues.

  • @jodykurt9935
    @jodykurt9935Ай бұрын

    Here from your short, good video & thanks for advice. I still plan on building adu on my rear quarter lot but I'm just waiting on interest rates to go down ,

  • @HowToADU

    @HowToADU

    Ай бұрын

    Nice to know the shorts work! Thanks for watching and thanks for trying to build some housing. Fingers crossed on rates. Also, FHFA put out a notice that Freddie is thinking about a second position product which would be very exciting. They have a feedback email that you can write into and say "YES, MORE PLEASE." :D www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Publishes-New-Product-Notice-for-Freddie-Mac-Second-Mortgage-Proposal.aspx

  • @Dsanayei
    @Dsanayei19 күн бұрын

    Is a school fee considered an impact fee? One of the ADU’s I built was under 500 sq ft and the school said I had to pay.

  • @HowToADU

    @HowToADU

    19 күн бұрын

    For the purposes of this case, they didn't say what is or isn't an impact fee. They said any fee, whether it's legislative or administrative, should be held to similar standards. Not a lawyer, but I can tell you that school impact fees are generally legislative fees.

  • @bearprower
    @bearprowerАй бұрын

    Like a number of court rulings its not that great all they said is there can't be excessive fees without defining it. If they can justify the fee with numbers they could still charge 10 -20K for those fees

  • @HowToADU

    @HowToADU

    Ай бұрын

    That’s exactly right. Compared to the previous ruling that these fees were exempt from scrutiny, that would be an improvement! Do you think that things like that $350,000 park endowment I talk about in the video will be challenged.

  • @JAYY_JAYY
    @JAYY_JAYY2 ай бұрын

    Have you done a video on SB9 ? Please correct me if I am wrong in understanding the language. If you have an ADU that is already built . As in you purchased your home with part of the home converted for instance the living room and a bedroom closed off to the rest of house and an outside new front door to unit . With a bathroom and kitchenette . How would you get it legally permitted ? This is my scenario. I am not sure how to proceed to get it legally permitted for occupancy.

  • @gingerhitzke9185
    @gingerhitzke91852 ай бұрын

    MoVal is WILD!

  • @HowToADU

    @HowToADU

    2 ай бұрын

    For real. The way they plan on maintaining parks is to require folks to set up endowment funds 😅

  • @rezatashakori9906
    @rezatashakori99062 ай бұрын

    I'm pulling a permit for apartment building school fees are like 130k when are they gonna implement this?

  • @mwatercress

    @mwatercress

    2 ай бұрын

    In many areas the schools are closing due to declining enrollment. It seems odd to charge a school impact fee in that situation. What is happening in your area?

  • @HowToADU

    @HowToADU

    2 ай бұрын

    Talk to a lawyer about your specific situation - they will be able to look at the details of your project and the school fees to determine if there is a takings and what the risks and rewards are of different actions you can take.

  • @HowToADU

    @HowToADU

    2 ай бұрын

    Unsolicted long answer: In California, we don't increase people's property taxes over time (so schools end up way underfunded if there aren't a lot of new people moving into neighborhoods). The state of California tends to charge about 4-5 times more impact fees for new development, partially to make up for this shortfall. But that makes things worse because it's a one-off fee and it discourages a lot of development.

  • @Tykoon25

    @Tykoon25

    2 ай бұрын

    How big is the place?

  • @rezatashakori9906

    @rezatashakori9906

    2 ай бұрын

    @@Tykoon25 apartment building 22 units

  • @tehmiyuki
    @tehmiyuki2 ай бұрын

    Another interesting case that also came on my radar is SB 9 and charter cities. My understanding is that an LA County judge found that charter cities are not subject to SB 9 and this ruling currently only applies to the 5 cities that were the parties to this case. If an appeal is filed, then the appellate court’s ruling will apply to charter cities statewide? Seeing that you do some SB 9 videos, am wondering if you'll cover this as well

  • @HowToADU

    @HowToADU

    2 ай бұрын

    I am working on it with friends at the moment. But there’s so much news, so please don’t expect it right away 😅

  • @tke-nationupsilonpi9544
    @tke-nationupsilonpi9544Ай бұрын

    Can you just build ADU’s or tiny homes on empty land in the SF Bay Area(Oakland)? Looking to put 4 one a 5000sqft lot

  • @HowToADU

    @HowToADU

    Ай бұрын

    Broadly speaking, there are a bunch of ways people could multiple homes on a 5000 sq ft lot in Oakland. Part of the definition of an ADU is that it's an accessory to an existing primary home or that kind of structure. So that might not be the first structure or the only structure, but you should talk to a zoning specialist about what you can accomplish with your lot. I have some friends who are doing pretty zany stuff in Oakland.

  • @user-rh8qw9gd7q
    @user-rh8qw9gd7q2 ай бұрын

    Hi l put my name on the list for ADU march 2023. So where do l call to find out how much longer l have to wait. Thanks Pamela

  • @HowToADU

    @HowToADU

    2 ай бұрын

    What list do you mean?

  • @user-rh8qw9gd7q

    @user-rh8qw9gd7q

    2 ай бұрын

    @@HowToADU l was on the march 2023 list and was approved then was cxl? So l need to find how this wait list works. I am confused.

  • @user-rh8qw9gd7q

    @user-rh8qw9gd7q

    Ай бұрын

    Last year the ADU program waiting list open up l applied . So l granted the 50k l was happy. Then l was cxl and am told that l am back on the waiting list again. I am sad and confused .

  • @HowToADU

    @HowToADU

    Ай бұрын

    @@user-rh8qw9gd7q Are you talking about the CalHFA grant? If so, who did you apply through?

  • @Yoyo-xr9kc
    @Yoyo-xr9kc2 ай бұрын

    I don’t know any other way to contact you or the ADU community here….. Would you be interested in providing feedback at the city council meeting? A city council is having public hearing regarding a terrible recommendation from staff to reduce the floor area ratio to be 35% of the lot coverage minus 1200 sqft. They are reducing the coverage by 1200 sqft because they have to allow for a potential ADU construction. Obviously, this makes the main house much smaller. So, for instance if the lot is 6000 sqft,you can only build a 900 sqft main house with or without the ADU. This is crazy. Let me know if anyone is interested and I can provide details.

  • @HowToADU

    @HowToADU

    Ай бұрын

    Sure. You can email Ryan@how-to-adu.com and let me know where you are. You may want to send them the model AARP ADU ordinance for best practices.

  • @doyourbest7655

    @doyourbest7655

    Ай бұрын

    6,000 is the standard substandard postage stamp lot in California and almost all have 1400 to 3,000 square foot houses. If arguing or more politely “petitioning “ their position they need to show cause that significant city conditions have changes that new public policy is required. Clearly it is not. That is how I would approach it. If they ask if you are going to sue, say I don’t think it is going to be necessary. That is sort of a veiled threat.

  • @user27278
    @user272782 ай бұрын

    Would this affect school fees?

  • @HowToADU

    @HowToADU

    2 ай бұрын

    Talk to a lawyer about your specific situation. In general, I’ve seen a lot of school fees that are proportional, and also low enough that the lawyer and your time might not be a good trade. But I’ve also seen pretty outlandish situations where converting an attached guestroom into a JADU triggers school fees and I would recommend that person talk to a lawyer. I might bring one on the show to address these kinds of questions.

  • @user27278

    @user27278

    2 ай бұрын

    @@HowToADU my fees were only like 3500 but I'm asking in general for others

  • @gingerhitzke9185

    @gingerhitzke9185

    2 ай бұрын

    I recently paid my school fees under protest for a 400 sq ft ADU.

  • @user-tp1zq6ey9j
    @user-tp1zq6ey9jАй бұрын

    nice shirt

  • @HowToADU

    @HowToADU

    Ай бұрын

    Thanks! I was worried it was going to be too noisy on camera but it was way too hot that day to wear my solid color shirts :D

  • @SimonSozzi7258
    @SimonSozzi7258Ай бұрын

    Where are you? Is that in LA?

  • @HowToADU

    @HowToADU

    Ай бұрын

    I am reporting from Washington DC. This is about the US Supreme Court. The channel is mostly about California and I live up in Nor Cal

  • @SimonSozzi7258

    @SimonSozzi7258

    Ай бұрын

    @HowToADU Nice rooftop park 👌 Interesting channel.

  • @HowToADU

    @HowToADU

    Ай бұрын

    Oh yeah, that is the roof of the MLK Library in DC. It's a Van der Rohe building and it is better than any co-working space :)

  • @SimonSozzi7258

    @SimonSozzi7258

    Ай бұрын

    @HowToADU VERY subscribed. I already binge watched a couple videos and then went to Jenny's (I think) channel. I'm strangely obsessed with "retirement" investments. Etc... I have to sign your petition! Great work, man 👏