Palmer (2009): rentals in inclusionary housing Costa-Hawkins Rental Housing Act

1 palmer (2009): rentals in inclusionary housing

1.1 new construction exemption applies
1.2 2013 attempt partially repeal act
1.3 governor brown s veto message

palmer (2009): rentals in inclusionary housing
new construction exemption applies

in palmer/sixth street properties lp v. city of los angeles (2009), issue involved how apply costa-hawkins inclusionary housing ordinance of city of los angeles. inclusionary housing laws (also called inclusionary zoning) apply construction of new multi-unit developments , seek mandate inclusion of affordable units price controls, along larger number of units sold on free market. one-third of california cities , counties have inclusionary zoning ordinances. such laws might require, beside affordable units sale, units rent. in case, los angeles housing ordinance in effect mandated sixty rentals low-income tenants included in geoff palmer s 350-unit development west of downtown.

the appellate court held, however, exemption rent control of new construction under costa-hawkins applied particular facts of case. city not enforce housing mandate against real estate developer.

2013 attempt partially repeal act

the palmer case removed rentals usual formula of inclusionary housing. critics claimed, however, appellate court s opinion viewed misapplication of costa-hawkins act situation never meant address. sparked political response in 2013. california legislature passed assembly bill 1229 re-establish legitimacy of affordable housing requirements rentals.

jerry brown, c.2015.


governor brown s veto message

in october 2013 governor jerry brown vetoed bill. explained:

mayor of oakland saw how difficult can attract developments low , middle income communities. requirements developers include below-market units in projects can exacerbate these challenges, while not meaningfully increasing amount of affordable housing in given community.

advocates of affordable housing felt stymied. yet available alternatives avoided exemption new construction under costa-hawkins: builder receives either financial assistance or other valuable consideration such density bonus, , agrees contract city restrict rents.