▪ Nollan/Dolan Challenge to Maui's Forty Percent Affordable Housing Exaction

The Maui News reports that Maui's "workforce housing" ordinance has been challenged:

Lawyers for a Canadian condominium developer, who is seeking to build two multiunit projects in the Kamaole area, are seeking a court order to block the county from implementing the law that the developer says is defective.

The lawsuit alleges the housing policy adopted by the council last year failed to include a “close nexus” between new developments and the need for affordable housing, is “an arbitrary, unreasonable impairment” of property rights and violates due process rights.

It also charges that the county policy does not meet the standards for imposing impact fees allowed by a state law.

Complete story here.  The Maui ordinance, enacted last year, imposes a 40% to 50% affordable requirement on new housing developments. 

The Complaint for Declaratory and Injunctive Relief (filed Aug. 23, 2007) is posted here.

I also discussed the ordinance earlier here and here.