Home Builders Association v. American Fork

Utah Supreme Court

1999 UT 7, 973 P.2d 425

     The factors listed for consideration of Impact Fees are not exclusive and should not be read as limiting the ability of local governments to deal with differing circumstances.  Local governments have the flexibility to deal realistically with questions not susceptible of exact measurement. Local officials possess the power to deal creatively with extraordinary or unforseen circumstances in the provision of municipal services.

     Impact Fees are constitutionally permissible if the benefits derived from their exaction are of  “demonstrable benefit” to the subdivision, and if newly-developed properties are not required to bear more than their equitable share of the capital costs in relation to the benefits conferred.  The fees must be reasonable, which is a higher standard that the requirement that they not be arbitrary and capricious.

Full text of Home Builders Association v. American Fork

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