Yesterday, the California Supreme Court decided one of two pending cases dealing with inclusionary housing, holding that when a public agency requires a developer to convey units at below market rates and make substantial cash payments, the developer may challenge these conditions under the California Mitigation Fee Act. (Sterling Park v. City of Palo Alto (Oct. 17, 2013) 2013 Cal. Lexis 8112.) The California Supreme Court’s decision clarifies the scope of the Mitigation Fee Act, confirming that inclusionary in-lieu fees are subject to the essential nexus and rough ...
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