LA Mixed-Income Housing Ordinance Update: Palmer Decision

As many of you know, market-rate developer Geoff Palmer successfully sued the City of Los Angeles, arguing that the inclusionary requirement in the Central City West specific plan area (CCW) was illegal. On July 22, an appellate court published a decision invalidating the CCW's inclusionary requirement as inconsistent with Costa-Hawkins - the statewide law that prohibits cities from passing rent- control ordinances that prohibit landlords from raising the rent on an apartment when a tenant moves out.

LA City Attorney Trutanich has submitted a petition to the Supreme Court to review the case, and there is an effort to get housing, city, and other statewide organizations to submit letters urging the court to accept the petition - we should hear in the next few months whether it will hear the case. Since the Palmer decision has broad implications that could potentially impact inclusionary zoning requirements throughout California, city attorneys and housing advocates up and down the state are working together to figure out how to move forward in the context of the Palmer decision. SCANPH has submitted its support of the petition as well.

This month, the LA Planning Department was scheduled to report back to Council with recommendations for a Mixed-Income Housing Ordinance. The Palmer decision makes it more difficult for the city to pass a traditional mixed-income housing ordinance that applies to rental developments.

However, due to strong community and labor support for a mixed-income housing ordinance, key Council sponsors and the Mayor's office are committed to passing mixed-income in some form. Housing advocates plan to meet with the City to move the ordinance forward and are hopeful that there will be a proposed ordinance before council committees by Fall of 2009.