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Is San Luis Obispo extorting some developers?

March 5, 2026

Statement from Pacific Legal Foundation

San Luis Obispo told homebuilders they could get their permits, but only if they handed over a home at a massive loss or paid a $98,900 inclusionary housing fee. Today, we filed suit to stop the government from imposing unconstitutional fees on builders.

John Ruda, Jordan Knauer, and Rami Zarnegar bought a rundown house, demolished it, and built 4 homes and 4 ADUs. The city demanded a $98,900 “inclusionary housing” fee or the right to sell one of the units at a massive loss to the builders.

That fee is an exaction — a charge the government attaches to a permit. The Supreme Court has called improperly applied exactions “an out-and-out plan of extortion.” And in 2024, the Court unanimously held that permit fees must be directly related to a project’s actual impact.

We’re representing Ruda, Knauer, and Zarnegar at no cost to challenge this nonsensical housing policy. The government needs to stop imposing unconstitutional fees on builders where more affordable housing is needed.

We’ll see San Luis Obispo in court.

 


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Sounds like City of SLO acts like robin hood in the reverse.


Demand/exact huge affordable housing fees from apparently non political small scale housing producers/property owner to put their money or property into a pot for the City and Marx to promote and sanction huge grants or gift to the politically connected grifters that have destroyed this community using other peoples money and property.


At least Robin Hood had some moral objective.


19

Undoubtedly the plaintiff will reference the SCOTUS case of Dolan v. City of Tigard Iregon, 1994 or 95. In my opinion the concept of rough proportionality comes into play here. I hope the plaintiffs prevail.


5

How dare the city make any attempt to provide affordable housing for locals that do the menial labor these developers benefit from. Profit above all. Profit now, and forever.


-22

“The price for freedom ( from outrageous taxes and fees) , is constant vigilance “ … moving forward.

As reported before- all government and government agencies are technically broke and will continue to prowl for fresh victims indefinitely!

The state budget essentially has doubled in the last 6 years. Doubled.

Federal, State and Local governments have proven to be terrible money managers who just reward there allies and keep looking for more.

Government employees and NGOs come first while our roads and everything else we depend on fails. We will all need elect pragmatic leaders or just plan to lawyer up to fight back.

Or both!


26

Had enough????


Vote republican!!!!


12

Yup! Elections have consequences ( Barack Obama).


9

That’s the same thing they say in Texas. Only the GOP can fix the problems the state has. The only problem is that the GOP has controlled the governor, attorney general, and both state houses for 30 years. If it’s broke, the GOP broke it. But, hey, all you need is a short and stupid slogan to convince uneducated rubes to continue voting against their own interests.


1

Texas is so bad under GOP rule, that people are flocking to live there to get away from freedom…


*sarc/off*


1

Visited there recently, people seem pretty satisfied on the state of their State. About the only negative thing I heard at the two backyard parties I attended was a worry that so many Californians moving there will change things for the worse. Too bad the state is so flat, hot and humid or I would consider it. Doesn’t hold a match to California’s natural beauty and great weather.


0

Well, I moved to Texas 2 1/2 years ago and my property taxes have been cut twice,. Twice! When was the last time any CA government said we have too much money and we’re giving it back?


2

“The government needs to stop imposing unconstitutional fees on builders where more affordable housing is needed”, well first stop government officals from purchaseing affordable housing, even if they pay full price, right Jan Marx? Second where are government officals supposed to get the money they need to pay the outrageous compensations, they certainly have no desire to cut those compensations.


32

City of San Luis Obispo is bad other municipalities aren’t much better!!!

It’s not just the fee’s it’s also the interpretation of rules and design standards that add substantial costs to these projects for no good reason:(

We don’t have a housing problem, we have a government problem!!!


57

Fewer and fewer government pukes have ever had real jobs. That’s a huge problem.


51

Fewer and fewer public office holders have any business sense and no a real stake in the community.


10