Homebuilders Win Impact Fee Lawsuit Against Palm Coast: 8-8-26 Podcast

Real Estate Matters has been the voice of real estate in Palm Coast and Flagler County, Florida, for more than 12 years.

Circuit Court Judge Sandra Upchurch ruled on Friday in favor of the Flagler Homebuilders’ Association’s lawsuit challenging the legality of last year’s doubling of three impact fees. Her order is being drafted and is expected to be signed next week. The city will then decide whether or not to appeal the ruling.

The city has been collecting the new fees for a year. The fee increases add approximately $12,000 to the price of each new house in the city and, by extension, all existing homes. 

Watch the Podcast and read the Show Notes below for more details.

Be sure to check out the continually updated interactive Flagler County Map of Developments and Subdivisions.

Raw Show Notes

Our behind-the-scenes guide to the show’s flow, including topics we didn’t have time to get to on the show. This is raw and likely contains typos. Data reflects the date the show was recorded.

With the late-breaking lawsuit news, the planned show notes were not used. Co-host Annamaria Long, who played a major role in guiding the lawsuit, gives her perspective.

“This morning, Circuit Judge Sandra Upchurch ruled in favor of the Flagler Home Builders Association and our co-plaintiffs, finding that the City of Palm Coast’s 2025 impact fee increases violate Florida law.

Judge Upchurch granted our Motion for Summary Judgment on our SB 180 claim, finding that the new impact fees constitute a land development regulation and are considerably more burdensome than the fees previously in place.

This is a HUGE victory — not only for our builders and developers, but for housing affordability, future homeowners, businesses and responsible growth in Palm Coast.

From the very beginning, our position has been consistent: we support impact fees. We support growth paying its fair share. But those fees must be lawful, justified and based on defensible data.

We tried to resolve this before litigation. We asked questions. We presented data. We spoke at meetings. We urged the City to stay within the limits of Florida law.

When that didn’t happen, your Association stood up.

And today, the Court agreed with us.

There is still more ahead. The written order is expected next week, the City has indicated it is considering its legal options, and additional claims in our case remain pending. We will continue to keep you informed as we determine exactly what today’s ruling means for fees already paid and fees moving forward.”

Wrap-up:

Video podcasts of Real Estate Matters are available on GoToby.com. Click on Podcasts on the top navigation bar. Show notes are included so you can see what we didn’t get to on the show. Also, on GoToby.com, the Flagler County Interactive map of residential developments and subdivisions is updated regularly. Currently viewed over 11,000 times.

Let me be your consultant, at no additional cost to you. Owners’ associations and Florida’s property tax system are largely misunderstood by buyers and sellers, leading to undesired outcomes. I have served on homeowner and condo association boards and a CDD commission. I served for more than ten years on the Flagler County Value Adjustment Board. I understand the world of deed-restricted communities.

If you are thinking about buying or selling property in Flagler County, call me first. Based on your goals, I’ll connect you with an appropriately qualified Realtor or builder and serve as your consultant throughout the transaction, at no additional cost to you. Call me at 386-931-7124 or email me at Toby@GoToby.com.