Against the backdrop of a deepening affordable housing crisis in California, the U.S. Supreme Court recently declined to review a decision of the California Court of Appeal upholding the City of West Hollywood’s inclusionary zoning ordinance. The ordinance was challenged by a developer, 616 Croft Ave LLC (the “Developer”), who, after declining to provide the affordable housing units required by the ordinance, paid an in-lieu fee under protest. The Developer filed a lawsuit, claiming that the City’s ordinance is an unconstitutional condition/exaction and that the burden was on the City to prove the “reasonableness” of the fee under the Mitigation Fee Act and other authorities. The trial court ruled for the City and, in a published opinion, the court of appeal affirmed.

Originally published in California Real Property Law Journal VOL. 36, NO. 2 - 2018.