Cal Supremes Decide Whether Inclusionary Housing is a Regulation or Exaction

In a decision that may have far-reaching impacts, California's Supreme Court ruled last week that the City of Palo Alto's inclusionary housing requirement is an exaction rather than a land use regulation, reports William Fulton.

"The California Supreme Court has ruled that an inclusionary housing requirement is an exaction rather than a land use regulation – a distinction that means inclusionary housing could be judged by the same nexus and proportionality requirements as other exactions,"

"The Supreme Court did not decide the merits of the case, in which [developer] Sterling Park challenged [Palo Alto's] inclusionary housing ordinance as an impermissible use of the city’s power to impose exactions in exchange for land-use permits," notes Fulton. "Instead, it remanded the case to the Sixth District Court of Appeal for that decision."

"However, the Supreme Court’s ruling certainly sets the stage for a possible ruling that would outlaw or significantly rein in  inclusionary housing ordinances. Under exaction law, a jurisdiction seeing to impose an inclusionary housing requirement on a developer would have to prove a strong nexus between the construction of the project and the need for affordable housing."

Full Story: Inclusionary Housing Must Be Litigated As Exaction, Cal Supremes Rule


Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
AICP CTP Storefont Display

The first online AICP* CTP exam prep class

Are you ready to take the AICP* Certified Transportation Planner exam?
Priced at $245 for May exam!
Book cover of Contemporary Debates in Urban Planning

Contemporary Debates in Urban Planning

Featuring thought-provoking commentary and insights from some of the leading thinkers and practitioners in the field.

Essential Readings in Urban Planning

Planning on taking the AICP* Exam? Register for Planetizen's AICP * Exam Preparation Course to save $50.
$369 includes free shipping!