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Legal Action Committee Approves Litigation Grants
Supporting litigation by state and local home builders associations and individual builders in cases with national significance for the industry, NAHB’s Legal Action Fund recently approved grants in four local cases.
Applications are reviewed three times a year during the meetings of the NAHB Board of Directors.
The following received funding in September in Reno, Nev.:
- Eminent Domain. The New Jersey Builders Association and the Builders League of South Jersey sought assistance to appeal an adverse ruling by the Superior Court of New Jersey in an eminent domain case. In 2001, to add to its inventory of open space, Mount Laurel Township exercised eminent domain on an approved, partially improved, residential subdivision under development by one of the association’s members. The member contended that the condemnation did not serve a valid public purpose for exercising eminent domain and the builders league intervened in support. The trial court ruled that the real purpose was “to prevent yet another residential development in the township already under severe development pressure.” Mount Laurel appealed and, in August, the Superior Court of New Jersey reversed the earlier decision. The member filed a petition for the New Jersey Supreme Court to review the superior court’s decision.
In the New Jersey case, NAHB’s Legal Action Committee recommended that the association file an amicus brief in support of the member if the court agrees to review the case.
- Application of Permit and Inspection Fees. In Tennessee, the Memphis Area HBA requested funding to challenge an ordinance and resolution adopted jointly by the City of Memphis and Shelby County to appropriate $12 million from the budget of the Department of Construction Code Enforcement to fund five unrelated programs. In its suit, the association said that the initiative was illegal because: (1) the diversion of funds is unrelated to the code office’s mandate; (2) none of the programs are related to the cost of administering and enforcing the construction code; and (3) the permit and inspection fees collected from builders are not related to the cost of the services provided by these programs, therefore constituting an unlawful tax.
- Michigan Uniform Energy Code. The Michigan Association of Home Builders requested additional funding to challenge a statewide revision to the Michigan Uniform Energy Code that would increase the cost of constructing a 1,000-square-foot home by $2,000-$4,000. The association is seeking to stop the Michigan Department of Labor and Economic Growth from implementing the code revisions, and has received a preliminary injunction against them.
- Arbitration. The Sevier County Home Builders Association in Tennessee requested additional assistance to appeal a trial court decision barring enforcement of an arbitration clause in a residential construction contract that was not separately signed or initialed by the home buyers. The appeal contends that the court erred in disallowing the provision because arbitration is a substantial federal right and this error, “more probably than not,” affected the judgment, which was awarded against the builder.
Nov. 18 is the deadline for Legal Action Fund applications for January’s International Builders’ Show in Orlando, Fla.
Members and HBA staff can click here to download applications and guidelines for the funds.
For more information on the specific grants above, e-mail Mary Lynn Pickel at NAHB, or call her at 800-368-5242 x8485.
For information on submitting an application to the fund, e-mail Felicia Watson, or call her at 800-368-5242 x8229.
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