The San Francisco Municipal Transportation Agency has already pulled back its plan to enforce new transit impact development fees on residential buildings. But if the agency brings the issue up again, it could be slapped with a lawsuit.
In a letter addressed Thursday to SFMTA chairman Tom Nolan and other members of the board of directors, the Pacific Legal Foundation, a libertarian-leaning law firm, said it would consider taking legal action against the agency if it tried to resume its impact development fee program.
The foundation cited the Fifth Amendment, which states that city municipalities cannot use permitting processes to unduly benefit their coffers, as justification for a lawsuit.
Following outcry from builders, the SFMTA decided to shelve its plan to expand its transit impact development program to include residences.