Court Decision Sets Precedent, Clears Way for New Fees Nationwide

LOS ANGELES-A little-noticed decision by the California Supreme Court has upheld a Los Angeles program that imposes an inspection fee on apartment buildings, raising fears that owners across the nation could soon find themselves awash in a sea of new charges levied by the government.

Ninety cities across California joined LA in asking the state Supreme Court to uphold the unusual fee plan, which earlier had been tossed out by two lower courts. The state Supreme Court’s reversal now becomes case law and can be cited in similar cases across the country.

“The fact that almost 100 cities backed LA in this suit tells you that owners are going to find themselves facing even more fees in the months ahead,” an attorney who has represented several apartment investors over the years tells GlobeSt.com.