El Dorado Hills, CA – (Jan 23, 2025) – By Cris Alarcon
After more than nine years of litigation, the El Dorado Hills Community Services District (EDHCSD) and the Austin family have reached a $5.25 million settlement concerning fees levied on building permits issued between 2013 and 2016. This development was announced in a news release from the Dordick Law Corporation, representing the Austins.
Attorney Mark Leonardo of Dordick Law Corporation described the settlement as “a major victory for homeowners,” noting that many El Dorado Hills residents are expected to receive refunds for the improperly collected fees. The exact timeline for these refunds has yet to be determined.
The litigation began in 2015 when residents Thomas and Helen Austin sued El Dorado County, EDHCSD, and the El Dorado Hills Fire Department. The Austins argued that these agencies violated the California Mitigation Fee Act by collecting permit fees without preparing and approving the required nexus studies every five years. These studies are essential to justify the fees collected and outline how the funds will be utilized to benefit the public and mitigate impacts from new development.
In April 2024, El Dorado County Superior Court Judge Gary Slossberg ruled in favor of the Austins, stating, “Defendants have failed to substantially comply with the five-year findings requirement.” He further noted the absence of any finding that “demonstrate(s) a reasonable relationship between the fee and the purpose for which it is charged,” as mandated by government code. This ruling mandated refunds, with the exact amounts to be determined in subsequent trial phases.
Following the settlement’s announcement, EDHCSD General Manager Mark Hornstra stated that the district did not have a final written settlement agreement and would refrain from commenting until all parties had executed the agreement. A hearing on the matter was held on January 9, with a judge’s written ruling expected within 90 days.
Leonardo emphasized the Austins’ intentions, stating, “The Austin family’s only motivation in filing the lawsuit was to force the CSD and the county to comply with state law and make the required refunds to homeowners. CSD denies liability… Property taxes are already high in EDH, and local government should not enrich itself by levying fees without complying with the MFA.”
Estimates suggest that if all involved agencies issue refunds, the total amount could reach approximately $30 million.
We invite our readers to share their thoughts on this settlement. How do you feel about the outcome, and what impact do you think it will have on the community?
