Home Builders Association v. City of Napa

108 Cal. Rptr. 2d 60 (2001)

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Home Builders Association v. City of Napa

Court of Appeal of California
108 Cal. Rptr. 2d 60 (2001)

Facts

The City of Napa (Napa) (defendant), after extensive study and dialogue with community groups concerning the shortage of affordable housing, passed an inclusionary zoning ordinance requiring that 10 percent of a developers' newly constructed units be affordable, as defined in the ordinance. The developers of single-family units had a right to fulfill this requirement by (1) donating land or constructing affordable units on another site or (2) paying an in-lieu fee. The developers of multi-family units only had these options if Napa’s city council, in its sole discretion, permitted those options. Any developments that included affordable housing were made eligible for a variety of benefits, including expedited processing, fee deferrals, loans, grants, and density bonuses. The ordinance also permitted developers to apply for a reduction, adjustment, or complete waiver of the 10 percent obligation, based on the lack of a relationship between the impact of the development and the inclusionary requirement. The Home Builders Association of Northern California (HBA) (plaintiff) brought suit, asserting that the inclusionary ordinance was facially invalid as an unconstitutional taking under the federal and state constitutions. The trial court sustained a demurrer and dismissed HBA’s complaint. HBA appealed.

Rule of Law

Issue

Holding and Reasoning (Jones, J.)

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