California Nixes Mandatory Inclusionary Zoning

California Governor Jerry Brown recently vetoed a bill that would have permitted local authorities to impose mandatory inclusionary zoning statewide. The proposal was opposed by California realtors as a violation of the Costa-Hawkins law which since 1995 has prevented localities from imposing rent regulations on new construction.

The situation in California may foreshadow future action in New York as Mayoral candidate Bill De Blasio has supported the concept of mandatory inclusionary zoning. This concept may be in violation of New York’s Urstadt Law which, similar to Costa-Hawkins, does not allow local rent regulations which are more stringent than State rent laws. No problem for Bill, since he also favors repealing the Urstadt Law, thereby  allowing the NYC City Council to govern the rent laws.