Affordable Housing In Lieu Fees

Although the specific question raised in Building Industry Association of Central California v. City of Patterson involved the interpretation of a development agreement ("DA"), the Court's answer could have far reaching implications for the collection of affordable housing in lieu fees throughout the State. In this case, developers and the City of Patterson entered into a DA for two residential subdivisions in the City. At the time the DA was entered, the City's affordable housing in lieu fee was $734 per unit. The DA, however, recognized that the City was updating its affordable housing in lieu fee and the developer agreed to pay the updated fee so long as the updated fee was "reasonably justified." Click here to read on.