Legal Action Committee Awards Nearly $100,000 in Legal Support Grants at FLM

At its recent meeting during the NAHB Fall Leadership Meetings, the NAHB Legal Action Committee reviewed seven requests for Legal Action Fund assistance and recommended assistance in six.

The recommended funding supports cases involving issues that directly affect housing production and affordability, which for this round included impact fees, fuel-choice restrictions, water rights, and construction-defect liability challenges.

Recommended Funding Actions

Boone Development (Kentucky) - This case involves a subdivision and a stream crossing in Nicholasville, Kentucky. The city required Boone Development to either construct a stream crossing or pay-in-lieu. Boone paid the fee, but the city is still requiring the developer to construct the stream crossing, withholding building permits in the subdivision until the matter of the stream crossing is resolved. Boone is challenging that action in circuit court.

Via Vitae Development (Kentucky) - Via Vitae is the builder in the Nicholasville subdivision developed by Boone, and the city has stopped issuing its building permits because of the dispute with Boone over the stream crossing. The Board of Adjustment found that Via Vitae itself was not responsible for constructing the crossing but still upheld the city’s decision to withhold permits. The broader issue is whether a municipality can withhold a builder’s permits because of an obligation imposed on a separate developer.

Flagler HBA (Florida) - Flagler HBA is back for support in its litigation against the city of Palm Coast over increased transportation, parks and recreation, and fire impact fees. The HBA has already prevailed in part of their litigation. The trial court declared the challenged ordinances invalid, enjoined their enforcement, and ordered refunds or reimbursement, and the city has appealed.

The current request concerns the remaining claims, including whether the fees are tied to the impact of new development and whether the city complied with Florida’s statutory requirements and limits on fee increases.  

Montana Building Industry Association - Montana BIA is returning for additional assistance in the constitutional challenge to Montana’s exempt-well law. The law allows certain small groundwater wells without the full water-right permitting process, which makes it particularly important for housing outside municipal water systems. MBIA requested additional support for hydrology and groundwater experts and continuing litigation costs.

Housing & Building Association of Colorado Springs - The Colorado Springs HBA has intervened in a challenge to a new residential impact fee imposed by the Black Forest Fire Rescue Protection District. The district adopted a fee of $1.94 per square foot on new homes to fund fire stations, equipment, and other capital improvements. That is about $4,850 on a 2,500-sq. ft. home.

The issue is whether the district’s methodology ties the amount charged to the additional demand created by new development.

Southern Nevada HBA - The Southern Nevada HBA is requesting assistance with a regulatory proceeding involving proposed changes to NV Energy’s rules governing electric infrastructure for new development. NV Energy’s proposed changes would make certain builder-requested modifications non-refundable, narrow what qualifies as a Standard Project, and shorten some project timelines. The HBA is concerned that these changes would shift more infrastructure costs and risk onto builders, particularly on large, phased projects.

Why It Matters

These cases involve legal and regulatory decisions that can increase the cost of housing, delay development, or create uncertainty for builders.

Through the Legal Action Fund, NAHB supports litigation that can help clarify statutory limits, challenge unlawful local actions, and protect a more predictable environment for housing production. This round of recommendations reflects that continued focus.

The next deadline for funding consideration at the 2027 International Builders Show is scheduled for Wednesday, Jan. 6, 2027. Please visit nahb.org/legalfund for an application and the full guidelines.