Real Estate Update: Supreme Court Declines to Hear Palmer Case Regarding Inclusionary Housing Requirements for Residential Rental Projects
In September, we issued an alert about a recent California Court of Appeal case (Palmer) which struck down an affordable (inclusionary) housing requirement for a market rate residential rental project on the basis that it violated state rental control laws by mandating rent-restricted affordable units or an in lieu fee. On October 22, 2009, the California Supreme Court declined review of the Court of Appeal's decision, which means that Palmer remains as precedent, calling into question inclusionary housing requirements for residential rental projects throughout the state.
