California Building Industry Association, Plaintiff and Respondent v. City of San Jose, Defendants And…

Summary

The court upheld San Jose’s inclusionary housing ordinance against a facial takings challenge. It held that requiring developers to sell a portion of new units at affordable prices regulates property use rather than exacting a property interest, so the heightened unconstitutional-conditions test does not apply. The ordinance instead is reviewed under the deferential standard applicable to ordinary legislative land-use regulations and serves constitutionally permissible public-welfare objectives. Justice Werdegar and Justice Chin concurred, with Werdegar addressing the future treatment of the reasonable-relationship standard and Chin cautioning that a requirement to sell units below cost could present a different issue.