On July 22, 2009, a California State Appeals Court ruled in favor of developer Geoffrey Palmer, in effect throwing out portions of the L.A. City West Specific Plan that mandated affordable housing be set aside for large rental developments. The following are reactions to this ruling by a sample of TPR readers who each have a significant stake in the ruling's impact on the planning and development of affordable housing in both Los Angeles and California.
TPR question: How important for California and Los Angeles' affordable housing policies and development plans is the recent ruling by State Court of Appeal Judge Steven Suzukawa that the City of L.A.'s Central City West Specific Plan-which requires developers of large projects to set aside a minimum number of affordable residences-violates the Costa-Hawkins Act?
"In this time of economic uncertainty for LA's families and workers, it is incumbent upon city government to ensure the production of affordable housing units; a single law suit for one project does not change this urgent need.
As the Mayor's Office considers a Mixed Income Housing Ordinance for the city, we will take into consideration Costa-Hawkins, the ruling in the Palmer case, and any other applicable legal opinions, but our commitment to provide all families with a place to live in Los Angeles, regardless of income, is unwavering."
–Casey Hernandez, Office of Mayor Antonio Villaraigosa
"Extremely important. Inclusionary zoning is morally satisfying, but it's a completely unsustainable way to make housing in general more affordable. The only way to change the market-the only goal those of us who truly care about broad affordability should accept-is to lower the cost of housing production. It's worked in other cities. Let's make it work here."
–Mott Smith, Principal, Civic Enterprise Development and former TPR Editor
"The Palmer decision is clearly significant and appears to affect not only the Central City West Specific Plan but other citywide efforts to address the need for affordable housing in Los Angeles. We are working closely with the city attorney to understand the implications of the decision and to assess the regulatory opportunities that are available to cities looking for ways to address the lack of affordable housing.
The Department of City Planning is also working together with other city departments, City Council, and the mayor to explore ways in which incentives and regulations can work together so that we can provide housing that is affordable to all Angelenos."
–S. Gail Goldberg, AICP, Planning Director, City of Los Angeles
"The ruling is especially significant because it refocuses the execution of mixed income housing policies in Los Angeles and across California by requiring that implementation be incentive based. As opposed to the court-rejected mandatory set asides that could further stifle housing production and increase costs, incentive-based programs can provide sorely needed workforce housing opportunities without those effects."
–Daniel T. Gryczman, Esq., Executive Vice President, Land Use & Planning TriCal Construction, Inc. and Los Angeles Area Chamber of Commerce Land Use, Construction and Housing Chair
"It appears that we have been caught up in a failed work-around to our dissension over how to include in the city's future people from a spectrum of circumstances. Is it conceivable that we could address this question squarely?"
–James Bonar, FAIA, Executive Director, Clifford Beers Housing, Inc.
"This decision is a big deal. In finding that inclusionary housing is ‘clearly hostile' to the Costa-Hawkins Act, this court called into question the enforceability of all inclusionary housing requirements, at least as to rental housing. Inclusionary requirements for for-sale housing are likely unaffected by this decision. I think we can expect a legislative response."
–Amy Forbes, Partner, Gibson, Dunn & Crutcher
"It obviously has a big impact. This is a policy that the commission is very interested in-how to do mixed-income housing. It is an issue that the mayor is interested in and the whole city is interested in-not just the social contracts we are talking about, but how to ensure that there is affordable housing for everyone. It is also a sustainable policy of how to make sure that people who work in a certain area can also afford to live there. It impacts, really, the entire workforce."
–Bill Roschen, President, L.A. City Planning Commission
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