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In the latest episode of Â鶹ÊÓƵ’s podcast, Housing Developments, hosts CEO Jim Tobin and COO Paul Lopez are once again joined by Tom Ward, vice president of legal advocacy, to discuss the outcome of the Supreme Court’s Sheetz decision and the National Association of Realtors (NAR) settlement.

Earlier this month, as Â鶹ÊÓƵ had predicted, the Supreme Court concluded that an impact fee authorized by legislation must still comply with the Takings Clause of the Fifth Amendment.

So how does this apply to Â鶹ÊÓƵ members? There are a number of states that follow this type of rule — that if it’s from the legislature, it would be shielded from a Takings claim, Ward explained. The ruling also applies to states in the Tenth Circuit.

States directly impacted include:

• Arizona
• California
• Colorado
• Kansas
• Maryland
• New Mexico
• Oklahoma
• Oregon
• Utah
• Washington
• Wyoming

In these states, members realistically could challenge what they believe to be overly burdensome impact fees and see if they pass the Nollan/Dolan test, which will determine if the impact fees assigned are proportional to the impact the development will have on the locality.

Ward discusses the implications further with Tobin and Lopez.

He also notes the policy changes that will be required of NAR as a result of its recent settlement, which he will delve further into in an upcoming Shop Talk on April 30, and impending investigation of NAR by the Department of Justice.

Watch the latest episode below and subscribe to Housing Developments through your favorite podcast provider.