Inclusionary Zoning Ordinance Ruled Unconstitutional In San Diego

"San Diego's affordable housing law, which requires homebuilders to subsidize affordable housing, is unconstitutional, a judge ruled May 24.

The ruling comes years after the case was filed by the Building Industry Association of San Diego County and just months after the conflict between the city and developers hit a fevered pitch, as a tentative settlement between the council and the builders became unhinged weeks ago.

'This could bankrupt the affordable housing fund,' said Pam Hardy, spokeswoman for Council President Scott Peters. 'Rather than get something, we get nothing.'"

The law being challenged, known as the 'inclusionary zoning ordinance,' requires that 10 percent of a residential developer's project fit be deemed affordable housing. To avoid that benchmark, developers can also pay what's known as the in-lieu fee, a surcharge that is used to construct affordable housing throughout the city.

The judge ruled that the law is unfairly cumbersome to builders, as developers who would be damaged by the law are forced to jump through too many hoops to acquire a waiver."