California family wins settlement after City charges $55K to build ADU - Pacific Legal Foundation

Wesley Yu sued the City of East Palo Alto after the City refused to grant a building permit unless he either dedicated his planned accessory dwelling unit to become affordable housing for the City or agreed to pay $54,891 in “in-lieu” fees.

California family wins settlement after City charges $55K to build ADU.

“This settlement is a victory for the Yu family and their right to build a better life without unnecessary government interference,” said Austin Waisanen, an attorney at Pacific Legal Foundation, which represented Mr.

However, the City’s inclusionary zoning law mandates that residential building projects with fewer than five units—like the Yus’ two-unit project—set aside one unit as affordable housing for the City or pay a hefty fee, known as an exaction. “The City’s commitment to no longer imposing extortionate fees for some ADU projects is a step in the right direction.