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.