PLF statement on CA Supreme Court ruling on San Jose’s new-housing penalty

June 16, 2015

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SACRAMENTO, CA – June 16, 2015 – (RealEstateRama) — Tony Francois, Senior Staff Attorney with Pacific Legal Foundation (PLF), issued this statement today after the California Supreme Court issued an adverse ruling in PLF’s challenge to San Jose’s “Inclusionary Housing Ordinance” — a law that imposes a significant financial penalty on the providers and purchasers of new homes:<span id="more-3571"></span></p> <p>“This is a very disappointing decision from the standpoint of property rights generally, and specifically for those who want to build homes for the public, and for people who aspire to buy a new home,” said PLF Senior Staff Attorney Tony Francois. “The ruling allows government to impose financial penalties on providers of new housing — a penalty that can only deter efforts to ease the state’s housing shortage, and make it even harder and costlier for average families to afford a home in California. Even more broadly, the decision exposes every homeowner and property owner in California to limitless potential fees and other property demands any time they ask for a permit of any kind, because the local government is allowed to use the permit process to raise money for any purpose whatsoever, whether it relates to the property owner or not. Consequently, we are considering all of the issues involved and with our clients we are reviewing all legal options.”</p> <p>Donor-supported PLF is the leading watchdog organization that litigates for limited government and property rights nationwide. In challenging the San Jose ordinance, PLF represents the California Building Industry Association — free of charge, as with all PLF clients.</p> <p>The ordinance at issue requires builders of developments with 20 homes or more to set aside 15 percent of the new units at below-market prices. As an alternative, a builder would have to pay an “in lieu” fee of $122,000 for each of the below-market units that would otherwise have to be supplied.</p> <p>PLF’s challenge argues that the ordinance violates constitutional property rights because it imposes a financial penalty on builders with no showing that their new home construction creates a need for new affordable housing. In essence, the program transfers the cost of “affordable” units from the public generally to homebuilders (and to the buyers of new, market-priced homes).</p> <p>The case is California Building Industry Association v. City of San Jose. More information, including PLF’s briefs and a blog post on today’s ruling, may be found at: <a href="http://www.pacificlegal.org" target="_blank">www.pacificlegal.org</a>.</p> <p>About Pacific Legal Foundation<br /> Donor-supported PLF (<a href="http://www.pacificlegal.org" target="_blank">www.pacificlegal.org</a>) is the leading watchdog organization that litigates for limited government and property rights in courts nationwide. 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Grace F. Napolitano (D-El Monte), issued the following statement after the Trump administration announced a new proposal—claiming it to be pro-industry—which would weaken federal clean water rules, putting at risk the health and safety of millions of Americans </div> </div> </div>  <div class="td-block-span12"> <div class="td_module_6 td_module_wrap td-animation-stack td_module_no_thumb"> <div class="item-details"> <h3 class="entry-title td-module-title"><a href="https://california.realestaterama.com/flood-protection-and-water-storage-ID09937.html" rel="bookmark" title="Flood Protection and Water Storage">Flood Protection and Water Storage</a></h3> <div class="meta-info"> <div class="td-post-author-name"> <span>- </span> <a href="https://california.realestaterama.com/author/realestaterama-2">RealEstateRama</a> <span>- </span> </div> <div class="td-post-date"><time class="entry-date updated td-module-date" datetime="2019-07-04T03:31:39+00:00" >July 4, 2019</time></div> </div> </div> </div> </div>  <div class="td-block-span12"> <div class="td_module_6 td_module_wrap td-animation-stack td_module_no_thumb"> <div class="item-details"> <h3 class="entry-title td-module-title"><a href="https://california.realestaterama.com/senators-include-legal-protections-for-military-families-in-privatized-housing-in-defense-bill-ID09930.html" rel="bookmark" title="Senators: Include Legal Protections for Military Families in Privatized Housing in Defense Bill">Senators: Include Legal Protections for Military Families in Privatized Housing in...</a></h3> <div class="meta-info"> <div class="td-post-author-name"> <span>- </span> <a href="https://california.realestaterama.com/author/realestaterama-2">RealEstateRama</a> <span>- </span> </div> <div class="td-post-date"><time class="entry-date updated td-module-date" datetime="2019-04-01T10:24:14+00:00" >April 1, 2019</time></div> </div> </div> </div> </div>  <div class="td-block-span12"> <div class="td_module_6 td_module_wrap td-animation-stack td_module_no_thumb"> <div class="item-details"> <h3 class="entry-title td-module-title"><a href="https://california.realestaterama.com/mccarthy-introduces-legislation-to-repurpose-high-speed-rail-funding-to-water-infrastructure-projects-ID09929.html" rel="bookmark" title="McCarthy Introduces Legislation to Repurpose High-Speed Rail Funding to Water Infrastructure Projects">McCarthy Introduces Legislation to Repurpose High-Speed Rail Funding to Water Infrastructure...</a></h3> <div class="meta-info"> <div class="td-post-author-name"> <span>- </span> <a href="https://california.realestaterama.com/author/congressman-kevin-mccarthy">Congressman Kevin McCarthy</a> <span>- </span> </div> <div class="td-post-date"><time class="entry-date updated td-module-date" datetime="2019-04-01T10:20:36+00:00" >April 1, 2019</time></div> </div> </div> </div> </div> </div></div> <aside class="widget widget_archive"><div class="block-title"><span>Government & Nonprofit Press Release Archive</span></div> 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