Flagler HBA Prepares for Lawsuit Against Palm Coast

The Flagler Home Builders Association is preparing to take legal action against the City of Palm Coast over impact fee increases, the organization announced this week. Executive Officer Annamaria Long shared with local media a letter written to the City Council explaining their organization’s grievances and the actions they’re considering taking. The Flagler HBA is alleging that three specific impact fee hikes by the city were adopted illegally. They accuse the city of violating SB 180 (signed by Gov. Ron DeSantis in June) and the Florida Impact Fee Act which outlines limitations for the usage of locally-imposed impact fees. Impact fees are one-time charges imposed by local governments on developers intended to offset the added strain on local infrastructure and facilities. They’re known to sometimes draw resistance from groups with ties to builders, and are often passed on to the buyer instead of the developers themselves. While the Flagler HBA has at times expressed willingness to cooperate with what they see as sensible impact fee assessments and increases, some of the more aggressive hikes have driven them to strong resistance. “We believe the notice of violation accurately states the law as well as the defects and deficiencies of these ordinances,” Long said. “We are committed to protecting citizens and ensuring a fair business environment in our community.” As of Wednesday, August 27th, the Flagler HBA has issued the City of Palm Coast a 14-day notice of violation over changes which they say will more than double impact fees. They say this is in illegal excess of a 50% statutory limit on increases. If their accusations are substantiated, the city would’ve adopted fees increases of over 100%. Among the relevant statutes that would presumably be cited in a lawsuit would be 163.31801(5)(d) of the Florida Impact Fee Act: “An impact fee may not exceed 50 percent of the current impact fee rate.” The HBA believes they have adequate precedent from Florida Supreme Court rulings to back up their argument – specifically Lake County v. Water Oak Management Corp (1997), Collier County v. State of Florida (1999), and Volusia County v. Aberdeen at Ormond Beach (2000). “It is unfortunate that the consultants hired by the City, undoubtedly at a substantial cost to tax payers, failed to address the fundamental requirements required under the State’s legal precedent,” wrote attorney Daniel J. Webster on the HBA’s behalf. “Additionally, the studies failed to mention or address the statutory changes, which were pending before the legislature, and approved by the Governor on June 26, 2025 – – which was four (4) days before the Ordinances were adopted.”