Commercial Builders of Northern California v. Sacramento

941 F.2d 872 (1991)

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Commercial Builders of Northern California v. Sacramento

United States Court of Appeals for the Ninth Circuit
941 F.2d 872 (1991)

CS

Facts

The City of Sacramento, California, (defendant) sought to determine whether increased commercial development in the city would create a greater need for low-income housing. Sacramento commissioned a study to investigate the issue. The study determined that commercial development would in fact increase the need for more low-income housing in the city. The study also calculated the projected costs for developing sufficient low-income housing and proposed a small portion of a conservative estimate of those costs that could be generated from commercial builders through a fee placed on nonresidential-development permits. Sacramento passed a city ordinance that required that commercial-building permits be assessed this fee, with the funds so collected being placed in a housing trust fund that would assist with the financing of low-income housing. The Commercial Builders of Northern California (commercial builders) (plaintiff), a trade-group association, sued Sacramento, alleging that the fees amounted to an unconstitutional taking under the Fifth Amendment. The lower court held for Sacramento, and the commercial builders appealed.

Rule of Law

Issue

Holding and Reasoning (Schroeder, J.)

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