Local ordinances requiring units being developed to be set aside at below market price are now constitutional in California, Russian Times reports.
The California Supreme Court ruled on Monday that cities and counties have the authority to require affordable housing from builders, which proponents say will help the state’s housing crisis.
However, developers argued that the ruling would further deter efforts to ease the state’s housing shortage, as local governments could impose financial penalties.
“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,” Tony Francis, a senior staff attorney for Pacifica Legal Foundation representing a developer, told the L.A. Times.
