Cities can require affordable housing from developers – California Supreme Court

Reuters / Lucy Nicholson

Reuters / Lucy Nicholson

The California Supreme Court has ruled that cities and counties have broad authority to require builders to include affordable housing units in new projects. Local ordinances requiring units to be set aside at below market price are thus constitutional.

California has a housing shortage, with demand exceeding supply.
As a result, scores of local governments have passed ordinances
requiring developers to provide below-market-rate residences to
ensure cities and counties remain affordable.

The case before the California Supreme Court considered whether a
2010 San Jose law, which required some new residential
developments to set aside 15 percent of their units for sale at
below-market rates, was unconstitutional.

The California Building Industry Association, an organization
comprised of real estate groups, argued that the city failed to
justify the requirement, while developers argued the law was an
unconstitutional “taking” of private property.

READ MORE: US child homelessness at all-time
high

The court saw it differently.

There is no reason why a municipality may not … [require]
new developments to set aside a percentage of its proposed units
for sale at a price that is affordable to moderate or low income
households,”
Chief Justice Tani Cantil-Sakauye wrote for the
court, according to the Associated Press.

In a concurring opinion, Justice Ming W. Chin observed that the
San Jose ordinance permitted developers to build the affordable
units more cheaply than the market-rate housing.

Providing affordable housing is a strong, perhaps even
compelling, governmental interest. But it is an interest of the
government,”
Chin wrote. “The community as a whole
should bear the burden of furthering this interest, not merely
some segment of the community.”

Andrew L. Faber, who represented the city before the court, said
the ruling would encourage more cities and counties to require
developers to build affordable housing.

“It is very important because no one disputes that there is a
huge affordable housing crisis in California,”
Faber
told the Los Angeles Times. “Housing
prices have gone up, and incomes haven’t risen to meet
them.”

READ MORE: Us housing bubble fallout: Elderly and
renters hit the most

Developers disagreed and said the ruling would allow local
governments to impose financial penalties on providers of new
housing, which would consequently further deter efforts to ease
the state’s housing shortage.

The decision exposes every homeowner
and property owner in California to limitless potential fees and
other property demands any time they ask for a permit of any
kind, because the local government is allowed to use the permit
process to raise money for any purpose whatsoever, whether it
relates to the property owner or not,
” Tony Francis, a senior staff
attorney for Pacifica Legal Foundation, which is a developer
representative, told the LA Times.

Francis said the
building industry was considering its options, which could
include an appeal to the US Supreme Court.

Monday’s ruling keeps
affordable housing requirements approved in more than 170
California cities intact.



Source Article from http://rt.com/usa/267430-affordable-housing-victory-california/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

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