- August 10, 2026
The Flagler Home Builders Association got a favorable ruling from a circuit judge in its lawsuit against Palm Coast's 2025 impact fee hikes, an early win in a case that is not over yet.
Circuit Judge Sandra Upchurch granted the FHBA's motion for summary judgment on its Senate Bill 180 claim, finding the city's increased impact fees constitute a land development regulation that is more burdensome than what was previously in place.
FHBA Executive Officer Annamaria Long said the ruling addresses the first portion of the association's lawsuit. Other claims challenging how the fees were calculated under the Florida Impact Fee Act remain pending.
"I'm clearly very pleased with the judge's decision," Long said. "It's not so much a win or lose sort of feeling so much as it's the judge following the law."
Long said the ruling is the first step toward getting the fees corrected and ultimately ensuring Palm Coast's impact fees are both accurate and legal.
The dispute goes all the way back to 2025, when Palm Coast raised its fire, parks and transportation impact fees. The three fees combined increased by $5,881 for a single-family home. At that time, the city justified the increase by saying rapid growth and rising infrastructure costs created the "extraordinary circumstances" necessary under state law to justify increases beyond the normal statutory limits.
The city said in a statement following Upchurch's ruling that it disagrees with the decision and is reviewing its legal options, including an appeal. The city also said the ruling does not immediately change its current impact fee schedule.
Vice Mayor Theresa Carli Pontieri said she supports an appeal.
"I think we did everything right," Pontieri said. "We got the studies that we needed to get. We showed that we have incurred an extreme amount of growth in a short period of time, that the costs of improvements have skyrocketed."
Pontieri said her larger concern is ensuring existing residents are not left responsible for the infrastructure costs created by new development.
"We're seeing the cost of growth falling on the shoulders of our current residents," she said. "That's not how growth and development should operate."
Long emphasized that the FHBA does not oppose impact fees themselves. The organization previously supported the city's utility impact fee increase because, she said, it complied with state law.
"We are not against impact fees," Long said. "If it's legal and it's accurate, we're good."
Long said litigation was not the association's first choice and that the FHBA attempted to resolve its concerns with city staff and the City Council before filing suit.
"We never wanted to be here, but we are," Long said. "So we're going to continue this fight because it is a fight for housing affordability for all."
A written order is expected soon. The remaining claims in the lawsuit are still pending, and the city has not yet made a final decision on whether it will appeal.
