San Jose developers on hook for affordable housing requirements

  • In 2010, San Jose's City Council in 2010 approved an ordinance requiring new residential development projects of 20 or more units to sell at least 15 percent of the for-sale units at a price the city would determine to be "affordable" or pay a $122,000 in-lieu fee.
  • The California Building Industry Association (CBIA) filed a lawsuit arguing that the ordinance was invalid.
  • The Supreme Court has declined to hear the case -- meaning the ordinance will move forward, developers are still on the hook, and agents in San Jose might see fewer transactions.

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If local governments strongarm developers into paying for housing viewed as a public need, will that have unintended consequences for the local market? That’s the concern of many real estate agents in San Jose.