Featured Case

Contact:      James S. Burling or Damien M. Schiff

Status:       Petition for Writ of Certiorari denied in the United States Supreme Court on May 18, 2009.
Case closed on November 13, 2009.

Summary:
Like a growing number of communities in California, the City of Santa Monica has an inclusionary zoning ordinance.  Previously, this ordinance required, among other things, that developers of residential projects either build “affordable” housing units or pay to the City an in-lieu fee.  By definition, “affordable” housing means housing that is sold or rented at a substantially reduced sales price or rental so that individuals or families earning a limited income (defined as a percentage of the mean income) could afford to buy new homes or condominiums.  The reduced price is set to be a fixed percentage of the mean income.  The cost of the subsidy is borne by the developer and, likely, therefore passed on to other home buyers.

In June, the City of Santa Monica amended its ordinance so that developers of four or more units may no longer pay an in-lieu fee; instead they must build affordable units on or off site (with the latter option requiring 25% more affordable housing).  Action Apartment Association contends that this requirement is financially and practically infeasible.  For example, with a typical multiunit condominium project on a typical lot, Action Apartment Association contends that it is impossible to build a financially sound project with the affordability requirement.  It bases its conclusion on the size of the typical lot, the existing setback and parking requirements, the availability of a density bonus, and the costs of compliance.  Moreover, it contends that this impossibility is exacerbated by federal requirements of the Americans with Disabilities Act.