PALM COAST, Fla. — August 11, 2026 — The Flagler Home Builders Association (Flagler HBA) prevailed Friday in its legal challenge to the City of Palm Coast’s 2025 impact fee increases, with Circuit Judge Sandra Upchurch ruling in favor of the Association and its co-plaintiffs on their claim under Florida’s Senate Bill 180.
The ruling found that the City’s increased impact fees constitute land development regulations and are considerably more burdensome than the fees previously in effect, placing them in violation of SB 180.
The Flagler HBA emphasized, following the ruling, that its challenge was never an effort to eliminate impact fees.
“Growth should pay its fair share, and we absolutely support impact fees,” said Annamaria Long, Executive Officer of the Flagler Home Builders Association. “Palm Coast needs roads, parks, fire protection and other infrastructure to serve a growing community. Our position has always been that we need to collect the right amount — based on accurate data, adopted through a lawful process and tied to the infrastructure that growth actually requires.”
What are impact fees?
Impact fees are one-time charges assessed on new development to help fund infrastructure needed because of growth. In simple terms: when new homes and businesses create additional demand for public infrastructure, impact fees help pay for that additional demand.
For one actual home evaluated by the Flagler HBA, total impact fees before the City’s 2025 increases were $23,454.89. Under the increased fee schedules, the same home was assessed $33,527.53 — a difference of $10,072.64.
Impact fees are a cost of producing new housing and ultimately affect the price at which homes can be brought to market.
“At a time when housing affordability is one of the biggest challenges facing working families, adding more than $10,000 in government-imposed fees to the same house is burdensome,” Long said. “We don’t have to choose between adequate infrastructure and housing affordability. Responsible public policy requires us to address both.”
Association Raised Concerns Before Filing Suit
The Flagler HBA raised concerns regarding the City’s proposed fee increases for months, including through public meetings, review of the City’s impact fee studies and data, and direct communication with City officials.
After those efforts did not resolve the Association’s concerns, the Flagler HBA and its co-plaintiffs sought judicial review.
“This ruling is also an important reminder of why transparency, fiscal responsibility and checks and balances are vital in local government,” Long said. “When government imposes a fee, the public should be able to understand why that amount is being collected and trust that it was calculated and adopted according to law. When there is disagreement about whether government has stayed within those boundaries, our judicial system provides a place to resolve it. That process worked.”
The Flagler HBA is encouraging Palm Coast to move forward with legally compliant impact fee studies that accurately identify the infrastructure needs created by new growth and establish appropriate fees to fund those needs.
On Tuesday, August 11, the Palm Coast City Council voted to appeal the Circuit Court’s decision. The Flagler HBA respects the City’s right to pursue the appellate process and is prepared to continue defending its position.
“We would have preferred to see the City use this ruling as an opportunity to move forward, develop legally compliant studies and determine the appropriate impact fees our community needs,” Long said. “Instead, the City has chosen to continue the litigation. We remain confident in our position and are prepared to defend it through the appellate process.”
The Court’s ruling addressed the Association’s SB 180 claim. Additional claims raised in the litigation have not been decided. The Association continues to work with legal counsel regarding the remaining issues and next steps.
“Our message to the City remains simple: let’s get it right,” Long said. “Palm Coast needs infrastructure, growth should pay its fair share, and our residents need housing they can afford. We can accomplish all three while following Florida law.”
About the Flagler Home Builders Association
The Flagler Home Builders Association is a professional trade association representing the residential construction industry and related businesses in Flagler County. The Flagler HBA advocates for responsible development, housing opportunities, industry professionalism and public policies that support a strong and sustainable community.
Palm Coast – The City of Palm Coast does not agree with today’s court ruling in the City’s legal case involving development impact fees and is reviewing all available legal options, including an appeal.
The case stems from the City’s 2025 adoption of increased fire, parks and transportation impact fees. Before adopting the fees, the City commissioned an independent impact fee study to evaluate the infrastructure needs associated with new development. The City’s consultant determined that extraordinary circumstances existed that supported increases beyond the limits otherwise established under state law, and the City Council relied on that professional analysis when adopting the new fees.
Today (Friday, August 7, 2026), the court ruled in favor of the Flagler County Home Builders Association on its motion for summary judgment regarding its claim that the City’s impact fee ordinances violate Senate Bill 180 (SB 180).
The case remains ongoing, and today’s ruling does not result in any immediate change to the City’s current impact fee schedule. The City will continue reviewing the ruling and its legal options as the case moves forward.
Court records are available to the public through the Flagler County Clerk of the Court and Comptroller at flaglerclerk.gov under Case No. 2025 CA 000621.
