Couple sues Bay Area city over $254,000 home remodeling fine ...Middle East

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A Belvedere couple has sued the city challenging its “excessive fines and arbitrary deadlines,” alleging that their home remodeling project was put through the wringer of bureaucracy.

Laurent and Marguerite Lefouet argued in their federal lawsuit that the construction delays that led to a $254,400 fine and a lien on their property, “endangering their ownership of their own home,” were caused by city officials. The home is at 22 Eucalyptus Road.

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“We believe the sheer size of the penalties imposed on Laurent and Marguerite Lefouet — over a quarter of a million dollars for a simple construction delay — is draconian and inherently unfair,” Greg Walston, the attorney for the couple, said in an email. “In fact, there is compelling evidence they did everything they could to get this project done on time, only to be delayed over and over again by the City’s own red tape.”

Walston said that the city has no legal authority to impose fines for delays that it caused.

The suit says that the couple have “always wanted to live in Belvedere and grow old together there,” and they spent their life savings to purchase the house, “which they consider their dream home.”

According to city documents, the home renovation included a 662-square-foot addition and a 793-square-foot accessory dwelling unit. The project included a complete interior renovation, retaining walls, stairways, fencing, new decks, a new swimming pool and landscape plantings.

The couple obtained a building permit for the project on June 22, 2021, the suit says. They were given an 18-month deadline, pursuant to city code, because of an anticipated cost exceeding $500,000.

The suit says the delays caused by city bureaucracy began in October 2021 following demolition. It took 45 days for the city to approve a project revision after contractors found problems with the foundation. It then took 79 days for the city to process and approve a second revision for additional piers under a deck and for a retaining wall, the suit says.

The residents applied for and obtained a six-month extension from the city, moving the construction deadline to July 22, 2023, the suit says.

The delays continued. It took the city 59 days to approve a revision for building code compliance issues, the suit says.

Then, in July 2023, the residents received notice they had exceeded the construction time limit and that after a one-month grace period, daily penalties would begin to accrue, the suit says.

At that point, the suit says, “Belvedere’s inactions and delays in processing required permit revisions totaled 183 days.”

The couple hit another bump when seeking to retain a landscaper. The city took more than 90 days to approve a landscape revision, but work was delayed because the rainy season began, the suit says.

In all, the suit says that Belvedere’s inactions led to 380 days of delay, and inclement weather added several months more.

Last May, the residents were notified they had incurred a $254,400 penalty. They appealed to the City Council. In August, the council rejected the appeal, saying the couple “‘should have been aware of the potential challenges in proceeding with the project in these circumstances,’” the suit says.

The city then filed a lien on the property, “thus restricting Plaintiff’s title to their own home — thus preventing Plaintiffs from obtaining financing for the penalties,” the suit says.

“Because the penalties and concomitant lien were increasing by ten percent interest, Plaintiffs thereafter went to great lengths to pay off the lien and did so,” the suit says.

In an email, City Manager Robert Zadnik said the city’s construction time limit policy “was implemented to limit the construction impacts on the community from traffic, road closures, noise, dust, etc. The city diligently processed this project as with any construction project.”

“I’ll also clarify that the Lefouets received an additional 6-month extension and a 30-day grace period before the penalties started to accrue, and thus had over two years to complete the renovation of their single-family home,” he said.

Records show the home was purchased in April 2019 for $4.6 million. It listed for sale last April for $13.5 million. It appears to be off the market.

The Lefouets filed the lawsuit in U.S. District Court in San Francisco on April 25. An initial case management conference is set for July 24.

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