The Price Must Be Right: U.S. Supreme Court Extends “Nexus” and “Rough Proportionality” Requirements to Monetary Exactions Linked to Development Proposals

It has long been the law that regulators may not condition the grant of a land-use permit on the owner’s relinquishment of an interest in the property unless there is both a “nexus” and “rough proportionality” between the government’s demand and the effects of the proposed land use. In a case that may have been overlooked amidst several landmark decisions handed down in the same week, the U.S. Supreme Court ruled that these requirements also apply to monetary exactions.