Victory for property owners: Jessica Pilling’s settlement paves the way for challenges to unfair permit denials

Healdsburg, CA; November 7, 2024: The City of Healdsburg, California, is settling a lawsuit brought by homeowner Jessica Pilling, agreeing to refund her the inclusionary housing fee she was required to pay to build a new family home with an accessory dwelling unit. 

“We are pleased that the City has acknowledged Ms. Pilling’s right to a refund of this fee. However, the underlying unconstitutional policy remains in place,” said David Deerson, attorney at Pacific Legal Foundation. “Legally, the government can’t use land-use permitting to force property owners to pay for problems the property owners didn’t create. As a matter of policy, the government can’t make housing more affordable by making it more costly — which is exactly what happens when the government adds legally indefensible fees in exchange for issuing building permits. 

“While Healdsburg’s policy remains on the books for now, future applicants should understand their constitutional rights,” Deerson said. “Families like the Pillings who seek to construct new housing don’t have to let the government bully them into paying for ‘solutions’ to problems they didn’t create — especially when the ‘solution’ doesn’t even solve the problem it aims to treat.”

Jessica and Chris Pilling sought to build a new home and an accessory dwelling unit (ADU) on their property in Healdsburg, California. The City required them to pay a $20,134.75 “inclusionary housing” fee, claiming new housing worsens affordability. The Pillings challenged this fee in a federal lawsuit, arguing that their desire to build a new home with an ADU did not in any way cause the high cost of housing.

“After years of struggle, the City finally acknowledged its misapplication of the ordinance, and we are so glad this chapter is behind us,” said Jessica Pilling. “It’s frustrating that I was dismissed by City officials for over a year — taxpayers deserve better. Unfortunately, the costly Inclusionary Housing Ordinance remains. To others facing this problem: don’t give up. The City must do better.”

As part of the settlement, the City will pay Jessica and Chris Pilling a total of $30,000, which includes a refund of the original inclusionary zoning fee, additional compensation for inconvenience and hardship, and $5,000 in attorneys’ fees.

The case is Pilling v. City of Healdsburg.