A developer has filed suit against the City of Huntsville and its Board of Zoning Adjustment (“BOZA”) for withholding building permits and occupancy certificates to penalize the developer for violating a tree regulation. The developer claims the BOZA could not impose these punitive measures because the City’s zoning ordinance allows for fines, not punitive action.
The developer created two neighborhoods offering estate-style homesites within city limits. More than a year after clearing land for those projects, the City claimed the developer had removed trees beyond approved limits, which violated the City’s Slope Development District (“SDD”) regulations. As a result, it placed a hold on building permits and occupancy certificates, halting home construction and closings.
In response, the developer proposed three remediation plans, including one endorsed by City staff. Other developers and homeowners had been permitted to implement this type of remediation in the past. However, citing its desire to “penalize” the developer, tie up the investment, and deter future violations by others, BOZA denied the remediation request so it could continue to hold up occupancy and building permits for the entirety of both subdivisions.
The lawsuit argues that because punitive measures are not permitted under the City’s zoning ordinance, BOZA’s actions exceeded its authority and violated due process and equal protection rights under both Alabama and U.S. law.
The complaint seeks a declaratory judgment overturning BOZA’s denial, lifting the City’s development hold, and awarding damages for lost sales, legal exposure, and financial harm caused by what the developer describes as “disparate treatment” compared to other developers and homeowners.
The resolution of this case could set an important precedent on whether municipal boards can impose punitive restrictions on citizens outside those allowed in a city’s law.