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San Diego Builders Overturn Inclusionary Zoning Law
San Diego’s controversial inclusionary zoning ordinance was declared unconstitutional and invalid in a May 24 decision by the San Diego Superior Court, which has shut down the program and put in question the approximately $7 million collected from more than 20,000 home owners under the ordinance.
The law forced builders to rent or sell a portion of the homes in their projects at reduced prices to low-income households or pay a fee, in effect taxing the remaining buyers with the cost of the subsidy.
“This ruling makes the city do the right thing,” said Paul Tryon, chief executive officer of the Building Industry Association of San Diego County. “Our customers — today’s new home buyers — will no longer be illegally taxed to pay for someone else’s home.”
Home builders sued because the city ignored the direction of the city council when it changed language in the ordinance.
“We tried to work with the city on a compromise that preserved the city’s ability to implement inclusionary zoning lawfully but also respected the direction from the city council vote in 2003,” said Tyron.
The city agreed to settle in 2004, but never finalized that agreement and failed to provide an amended ordinance for public comment or action by the city council.
The San Diego association has worked with academic institutions, chambers of commerce and the city’s own task force on affordability to identify better alternatives for providing housing for low-income families than inclusionary zoning. For a list of these approaches, click here.
 ‘Inclusionary Zoning for Affordable Housing’ Available at BuilderBooks.com
“Inclusionary Zoning for Affordable Housing,” available through BuilderBooks.com, describes best practices and techniques for creating an effective inclusionary zoning program based on the experiences of industry experts; evaluations of state, regional, and local programs; and case studies of 15 communities across the nation.
To view or purchase this publication online, click here, or call 800-223-2665.
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