California Supreme Court Upholds San Jose’s Inclusionary Housing Ordinance

California Supreme Court Upholds San Jose’s Inclusionary Housing Ordinance

In California Building Industry Association v. City of San Jose (Case No. S212072, filed June 15, 2015), the California Supreme Court upheld an inclusionary housing ordinance imposing affordable housing requirements as a valid exercise of a municipality’s police power, rather than an exaction subject to a constitutional takings analysis.

California Supreme Court Rules That Ordinance Intended to Increase Number of Affordable Housing Units is a Lawful Exercise of the Police Power

In one of the most widely followed land use cases in recent years, the Supreme Court of California unanimously upheld the City of San Jose’s affordable housing ordinance because it was intended to advance the constitutionally permissible public purposes of increasing the amount of affordable housing in the community and promoting economically diverse developments.