A local organization appealed the denial of its challenge to the approval of an affordable housing project and disputed the trial court’s order requiring it to post a bond. The Court of Appeal rejected plaintiff’s contentions on the merits and held that the plaintiff was properly required to post a bond because it was delaying
California Allows Housing on Commercial Lands and Limits Required Parking
In what has become a near-annual ritual, California Governor Gavin Newsom has signed into law a large package of bills aimed at addressing the state’s glaring housing shortage. This Update summarizes two key bills in this package (AB 2011 and SB 6) that enable housing development on commercial lands, as well as another important land…
Maximum State Density Bonus Increases for Primarily Market-Rate Housing Projects under AB 2345
The State Density Bonus Law, Government Code section 65915, provides the opportunity to develop additional market-rate housing and receive other benefits in exchange for including affordable units in a project. Governor Newsom recently signed legislation, Assembly Bill 2345, that makes several amendments to the Density Bonus Law, the most significant of which will increase how…
New California Law Restricts Municipalities’ Ability to Limit Housing
California Governor Gavin Newsom has signed into law a major set of restrictions on the actions California cities and counties may take to impede housing development. Senate Bill 330 broadly aims to prevent local agencies from putting up new barriers to housing production. The legislation declares a statewide housing emergency and, on that basis, amends
State Authorizes Rental Inclusionary Housing Requirements
One of the 15 housing-related bills signed recently by Governor Brown could have especially significant implications for market-rate, residential rental projects in many jurisdictions, as the new legislation, AB 1505, will authorize cities and counties to adopt inclusionary housing requirements for rental units. AB 1505 takes effect January 1, 2018.
Nearly a decade ago, the…
Governor Signs Housing Legislation, Including Streamlining Bill
Governor Brown has signed 15 bills designed to address the State’s severe shortage of affordable housing. Among its other effects, the legislation will (1) generate funds for affordable housing developments; (2) require cities and counties, as they approve new development, to maintain a supply of adequate housing sites for all levels of income; (3) tighten…
California Coastal Act Trumps Statutes Awarding Density and Height Increase Bonuses
Statutes awarding housing density and height increase bonuses do not take precedence over the California Coastal Act, according to a decision of the Second Circuit Court of Appeal. Kalnel Gardens, LLC v. City of Los Angeles, No. B264434 (2nd Dist. Sept. 29, 2016).
Kalnel Gardens, LLC, proposed to build a 15-unit housing complex in…
Failure to Challenge Affordable Housing Condition Barred Subsequent Claim of Invalidity of Enabling Ordinance under Costa-Hawkins Act
While acknowledging that the City’s affordable housing ordinance was no longer enforceable under the Costa-Hawkins Act, an appellate court dismissed a challenge to a permit condition requiring compliance with the ordinance because the owner failed to seek timely review of the permit condition through administrative mandamus. City of Berkeley v. 1080 Delaware, LLC, 234 Cal.App.4th 1144 (2015).
In 2004, the City issued a conditional use permit for construction of 51 residential rental units. One of the permit conditions required that 20% of the units be rented at rates affordable to below-median-income households pursuant to the City’s affordable housing ordinance. Market conditions delayed construction of the building for several years, after which the owner declared bankruptcy and the property was acquired by 1080 Delaware through foreclosure. In the interim, the court in Palmer/Sixth Street Properties, L.P. v. City of Los Angeles, 175 Cal. App. 4th 1396 (2009), invalidated an affordable housing ordinance similar to the City’s under the Costa-Hawkins Act, which generally precludes cities from restricting the initial rents that may be charged by landlords.
After 1080 Delaware notified the City that it viewed the affordable housing requirements as unenforceable in light of Palmer/Sixth Street, the City filed suit seeking a declaratory judgment that the permit condition remained valid and enforceable. In response, 1080 Delaware argued that the invalidity of the ordinance on which the permit condition was based necessarily rendered the condition itself invalid.
Continue Reading Failure to Challenge Affordable Housing Condition Barred Subsequent Claim of Invalidity of Enabling Ordinance under Costa-Hawkins Act
California Supreme Court Makes It Easier To Challenge Local Affordable Housing Requirements
Under the Mitigation Fee Act, when a city imposes a fee, dedication, reservation or other exaction on a development project, the developer has the right to pay under protest, obtain the necessary project approvals and proceed with construction, while at the same time disputing the legality of the requirement. In Sterling Park v. City of …
County Could Not Make Density Bonus Conditional Upon Compliance With Local Affordable Housing Requirements
A local agency may not condition the availability of a density bonus upon provision of more affordable housing than the minimum required under the State Density Bonus Law. Latinos Unidos Del Valle De Napa Y Solano v. County of Napa, No. A135094 (First District, July 11, 2013).
California’s Density Bonus Law, Government Code § …