Apartment building developers sue Santa Monica over affordable housing provision

Associated Press -- Riverside Press ^ | 15 September, 2006 | Associated Press

[freedomdefender]

SANTA MONICA --

Apartment building developers sued the city, seeking to overturn an ordinance that requires them to provide affordable housing.

The lawsuit, filed Monday, in Superior Court claims the provision violates clauses of the state and federal constitutions, which prohibit the government from taking private property without providing compensation.

The ordinance requires developers with four or more residential units to also build some affordable housing sold at below-market prices, according to the Sacramento- based Pacific Legal Foundation.

Money that builders lose constructing below-market homes would be passed along in higher prices for new housing that is not price-controlled, said attorney James Burling who represents local landlords.

The provision will potentially discourage home construction and raise costs for most home buyers, he said.

Messages left for the city attorney's office were not immediately returned.

[GOP Poet]

Oh yeah. I was hoping they would fire back at this insane communist requirement held as a gun to their heads. And for what? Because they want to build in Santa Monica. Horrid people!

[elkfersupper]

I have to deal with this as part of my job in several different markets.

It's about time somebody took on this crap. We'll be watching this one carefully.

[umgud]

Apartment building developers sued the city, seeking to overturn an ordinance that requires them to provide affordable housing.

How does the City of Santa Monica define "affordable housing"?

[freedomdefender]

I think they define "affordable housing" by some calculation based on a definition of "lower income" - which is in turn defined as a specified percentage of media income. It all sounds very arbitrary - like under Soviet Five Year Plans.

[freedomdefender]

I wrote "media" income - but meant, of course, median income.

[Abathar]

Affordable housing, in Chicago we called them that for a few years, then we just started calling them Slums or The Projects".

[RightWhale]

Public property versus private property conflict thread. Form quasi-public non-profit groups and meet the public zoning agency equally on their own turf.

[Gay State Conservative]

Until recently,I lived in one of the most wealthy and liberal towns in Massachusetts (I'm neither rich nor liberal...for the record).Whenever a builder wanted to build an "affordable" complex in the town (which is required under a state law called the "snob zoning" law) the neighbors would raise holy hell.

Such a rukus from residents who still sport "if you want peace,work for justice" and "Kerry/Edwards" bumper stickers on their Range Rovers is beyond comical,IMO.

[taxcontrol]

LOL - Oh I would just LOVE to see the court say to the city... ok, you can keep your rule.

BUT

You have to compensate the builders for the difference between what the low cost housing was sold for, and the current market price (the delta) PLUS a 2% fee to go to offset the cost of the additional paper work.

Oh, and you can not refuse to pay the builder nor can you raise taxes on any home sales without voter approval.

[freedomdefender]

You have to compensate the builders for the difference between what the low cost housing was sold for, and the current market price (the delta) PLUS a 2% fee to go to offset the cost of the additional paper work.

Actually, that would be the proper ruling, it seems to me. Why should the city be allowed to steal from certain business people just because their business is homebuilding? (A real dirty, anti-social business, that)

[freedomdefender]

We need more lawyers and judges who have your kind of common sense.

[Mrs. Darla Ruth Schwerin]

"The provision will potentially discourage home construction and raise costs for most home buyers, he said."

Well golly gee. Wonder what tipped 'em off...

[onedoug]

Starting with the bum spread on the palisades across PCH from the beach.

[CottonBall]

You have to compensate the builders for the difference between what the low cost housing was sold for, and the current market price (the delta) PLUS a 2% fee to go to offset the cost of the additional paper work.

That would be fair. How can any court force a business to intentionally lose money? They'll eventually leave CA and go elsewhere (along with all the milions of others).

[Larry Lucido]

I wonder how our "housing-bubble-sky-is-fallng" folks will handle this one? Good news or bad news? I mean, "affordable housing" would burst the housing bubble, no? But then it would make mortgages "affordable," no? And after all, they must want "something done" about housing (since folks can't be trusted to handle their own affairs), no?

[Petronski]

Remember that movie "Scanners" where the guy's head just explodes?

[Kenny Bunk]

Anyone who knows the Peoples Republic of Santa Monica will quickly realize that this affordable housing is intended for the hordes of illegal aliens for whom Santa Monica long ago rolled out the welcome mat.

In my day, the city was caught placing illegal alien Sandinistas on the city payroll ... O, did I mention that illegals vote here?

I'll be back for a visit ... and for lunch on the lawn at City Hall.

[RobRoy]

What do you call a government where everything is privately owned but the government regulates even what kind of shower heads you have to put in your house?

Fascist.

[monday]

The communists in Santa Monica will never give up. Even if it means killing all new housing in Santa Monica.