Legislation Addressing Mixed-Income Housing Dies in Senate
Wednesday, February 15, 2012
By: Zack Olmstead

Future of policy providing quality affordable homes remains in doubt

Legislative deadlines made a victim of SB 184 (Leno), which sought to restore the ability of local governments to enact mixed-income housing programs that were put in doubt by a 2009 appellate court decision. SB 184 failed to pass out of the Senate by January 31st, the deadline for bills to pass out of their house of origin. The bill was not taken up on the Senate floor by Senator Leno due to the fact that it didn't have the majority vote necessary for passage.

Mixed-income (or inclusionary) ordinances require a percentage of all new developments to include homes affordable to lower-income households. Mixed-income housing programs have been in place in California for decades, and at least 170 exist throughout the state. However, a recent appellate court decision, Palmer/Sixth Street Properties L.P. v. City of Los Angeles, 175 Cal. App. 4Th 1396 (2009), created uncertainty and confusion for local governments and housing advocates regarding the future viability of this important local land-use tool.

The Palmer court decision ruled that the state's Costa-Hawkins rent-control law prohibits local governments from creating affordable rental homes through local inclusionary programs. Suddenly, this well-established policy that provided quality affordable homes to over 80,000 Californians was -- and remains -- in doubt.

Housing California is committed to working with other supporters of SB 184 to find an opportunity to overturn the court decision.

Contact: Zack Olmstead, 916.447.0503 x108 or zolmstead@housingca.org.