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City attorney briefs Commission on California Supreme Court inclusionary‑housing ruling; Planning Commission waives review of two budget ordinances
Summary
The City Attorney explained a California Supreme Court decision upholding local inclusionary housing rules; the Commission also voted to waive its 90‑day review so two budget‑related ordinances (fee waiver for legalizing accessory units and administrative code clarification for the Affordable Housing Fund) can proceed with the budget.
City Attorney staff briefed the Planning Commission on a California Supreme Court ruling that affirmed the constitutionality of certain local inclusionary‑housing requirements, and the Commission took action on two budget‑related ordinances.
Kate Stacy of the City Attorney’s Office summarized the decision: the California Supreme Court held that local inclusionary housing requirements can be adopted as general police‑power regulations—so long as they bear a reasonable relationship to the public welfare and are not confiscatory—rather than as land‑use exactions requiring a nexus study. The decision grew from litigation over San Jose’s ordinance (which required a 15% on‑site set‑aside for for‑sale projects), and the court’s opinion clarifies that such requirements are permissible when properly calibrated.
Stacy said San Francisco’s framework is not immediately altered: the city already uses a nexus study for its fees, operates within constraints of Proposition C and applies a fee‑first approach with on‑ or off‑site options as secondary. She warned the decision is not unlimited—the court said inclusionary rules must avoid confiscatory effects—and noted the Building Industry Association and others were considering further appeals.
Separately, the Commission considered two Board‑sponsored ordinances that needed to be in place for budget timing: (1) a temporary waiver of planning and building fees to encourage legalization of accessory dwelling units built without permits, and (2) a clean‑up that makes the citywide Affordable Housing Fund self‑appropriating in the administrative code. Planning staff and the Mayor’s Office of Housing and Community Development described the changes as clarifying and low‑fiscal‑impact; the Commission voted unanimously to waive its 90‑day review so the ordinances may proceed with the budget schedule.
Commissioners asked for future briefings on how housing fees are administered and spent and voiced concern about waiving review absent broader public notice; staff noted the waiver related to newspaper‑notice timing and that the items will still be heard publicly by the Board of Supervisors.
Provenance: City Attorney briefing and waiver resolutions (Planning Commission hearing, June 18, 2015).
