Kaufman & Broad-South Bay, Inc. v. Morgan Hill Unified School District

This case arises out of a school district’s attempt to create a Mello-Roos district to finance anticipated future needs due to population growth within its boundaries. Formation of the Mello-Roos district was successfully challenged by a developer on California Environmental Quality Act (CEQA) grounds. The primary issue on appeal is whether the formation of a community facilities district is a “project” within the meaning of CEQA.

Background

The California Environmental Quality Act

The Legislature enacted CEQA in an effort to interpose some mandatory level of institutional concern for the environment into the public agency decisionmaking process. (CEQA; Pub. Resources Code, § 21000 et seq. ) Essentially, CEQA requires government agencies to prepare an environmental impact report (EIR) for any project they carry out or approve which may have a significant effect on the environment. (§21151.) “The purpose of an [EIR] is to provide public agencies and the public in general with detailed information about the effect which a proposed project is likely to have on the environment; to list ways in which the significant effects of such a project might be minimized; and to…