Here’s one we’ve been meaning to post for a few days. In California Building Industry Ass’n v. City of San Jose, No. H0338563 (June 6, 2013), the California Court of Appeal (6th District) held that the city’s affordable housing exaction might survive judicial scrutiny because it was designed to promote the development of affordable housing, and not to mitigate the impacts of developing market priced (“unaffordable?”) housing.
San Jose is one of the most expensive markets in the country, where homes don’t come cheap. The city’s “inclusionary housing” ordinance requires developers of residential projects of more than 20 units to set aside 15% for purchase at below-market rates by those earning no more than 110% of the area median income. Alternatively, a developer could either construct affordable housing on a different site, dedicate land, or pay an in lieu fee “not to exceed the difference between the median sale