The California Supreme Court recently ruled that the state’s cities and counties can require developers to sell a percentage of the units they build at below-market rates as a condition of a building permit. Developers also could be given the option of paying into a low-cost housing fund.
Describing a shortage of affordable housing in the state as a crisis of “epic proportions,” the court ruled in favor of the City of San Jose in a challenge to an affordable housing ordinance passed five years ago. The law required developers building 20 or more housing units to offer 15% of them at below-market rates or pay into a city fund. Nearly 200 other cities and counties in the state have similar ordinances, according to the Los Angeles Times.
The state building industry sued the city to block it from enforcing the law. Developers contended it amounted to an unconstitutional taking of private property. According to the ruling, municipalities have “broad discretion to regulate the use of real property to serve the legitimate interests of the general public.”
The court’s decision is expected to encourage other cities to adopt similar programs now that legal uncertainty has been addressed. According to a recent legislative report, the average California home costs $440,000, about two and a half times the average national home price ($180,000).
Related Stories
Codes and Standards | Dec 8, 2016
WELL and BREEAM to align standards
The goal is to make it easier for projects pursuing both standards.
Codes and Standards | Dec 7, 2016
U.S. lumber industry pushes for import duties on Canadian softwood
The industry claims the product is being sold below fair market value.
Codes and Standards | Dec 5, 2016
International Construction Measurement Standards draft released
The goal is to improve consistency for calculating costs and reducing risk.
Codes and Standards | Dec 2, 2016
D.C. Council passes bill to reduce number of blighted properties
The new legislation reduces the amount of time a vacant property can qualify for a lower tax rate.
Codes and Standards | Dec 1, 2016
Passive House standard gaining influence in commercial sector
Some industry watchers predict it will become the base building code.
Codes and Standards | Nov 30, 2016
Researchers finding solutions to bird/building collisions
Glass facades pose a serious risk to birds and cause millions of avian deaths each year.
Codes and Standards | Nov 29, 2016
New OSHA rules to reduce fall and trip hazards
Employers can choose from a variety of fall protection systems.
Codes and Standards | Nov 29, 2016
Seattle imposes new construction regulation to address rat problem
The city ranks first in U.S. in rat population.
Codes and Standards | Nov 28, 2016
Construction groups sue New York City over crane safety regulation
The rule bans cranes from operating when wind exceeds 30 mph.
Codes and Standards | Nov 28, 2016
Marines plan first net zero energy military base
The Albany, Ga., site will have ground source heat pumps and a biomass generator.