California court to rule on affordable housing requirements

The California Supreme Court is set to decide a case with the potential to invalidate affordable housing requirements in cities across the state.

At issue in the ruling expected Monday is a 2010 San Jose law that requires some new residential developments to set aside 15 percent of their units for sale at below-market rates.

The California Building Industry Association says the city has failed to justify the 15 percent requirement and should base any requirement on an assessment of any negative effects the market-rate housing would have.

The city says the law should be viewed as a land-use restriction that is well within its authority to enact.

The city’s supporters say a ruling in favor of builders could derail similar housing requirements in nearly 200 California cities.