Bay Area developers and officials in Dublin and Fremont are locked in a battle over fees to help the area's overcrowded schools.

In a precedent-setting act—after repeated pleas by the Dublin and Fremont school districts —a state board overseeing school construction declared in May that state funds for new school construction are not available, triggering the highest-level fees on home builders that the law allows, reports Joyce Tsai of the Bay Area News Group.

In Dublin Unified, the district could bump its fees from $10.66 to $21.32 per square foot of residential construction. And in Fremont Unified, fees could go up from $8.19 to $16.38 per square foot, according to Tsai.

The California Building Industry Association responded by slapping the State Allocation Board with a lawsuit that claims the the increased fees would cause "between 216,345 and 435,690 families seeking to purchase a home in California" to be "priced out of the market."

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