California Court of Appeal Limits Mandatory Inclusionary Housing Rule


On July 22, 2009, the California Court of Appeal ruled that a provision of a City of Los Angeles (the “City”) specific plan requiring the inclusion of affordable units in certain new for-rent projects is unenforceable because such a rental restriction is preempted by the Costa-Hawkins Act (Cal. Civ. Code §§ 1954.50 et seq.).

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