As you will recall, on May 25, 2016 the State Allocation Board (“SAB”) voted to authorize Level III Developer Fees, consistent with Government Code section 65995.7. Shortly thereafter the California Building Industry Association (“CBIA”) filed a lawsuit in the Sacramento Superior Court challenging the action of the SAB, in a case entitled California Building Industry Association v. State Allocation Board.

Today the Court issued a tentative ruling denying CBIA's request for a preliminary injunction. The Court's tentative conclusion, in support of Level III fees, is that SAB may make a finding that state funds for new construction are no longer available and that SAB is no longer approving apportionments for new construction due to lack of funds.

This is a tentative ruling that is scheduled to be argued before the Court tomorrow. A final decision will be issued at a later date.

We will continue to provide ongoing updates on this important case.

Should you have any follow-up questions or comments on this information, please feel free to contact either our Southern California office at (714) 573-0900 or our Northern California office at (916) 245-8677 or visit our website at www.parkercovert.com.