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I. Introduction <br /> Two published Court of Appeal decisions in the past six months, Badding lnc/nshr Assn <br /> of Cent. California rv. City of Patterson (-Patterson-1i and Palmer/Sixth Sheer Properties L.P. <br /> . <br /> City of Los Angeles ("Palmer")' have together upended previous understandings about the <br /> validity of, and appropriate analysis applied to, inclusionary housing ordinances. For the 170 <br /> communities in the State (nearly one-third of all cities) that had adopted inclusionary ordinances <br /> of some type by 2007: complying with Patterson and Palmer while still procucing affordable <br /> housing has become more difficult. <br /> As a means to understand the issues raised in Patterson and Palmer and to develop a <br /> coherent response, this paper initially discusses the various characterizations of inclusionary <br /> ordinances as either exactions, rent and price controls, or police power land use ordinances. <br /> While most communities in the state have adopted inclusionary ordinances as land use controls, <br /> Patterson found an inclusionary in-lieu fee to be a type of impact fee, and Palmer found that <br /> restricting rents in new developments violates State rent control laws, even though the Los <br /> Angeles plan at issue was adopted as a land use control. (Both cases are discussed in detail in the <br /> companion paper presented by Alan Seltzer, and so not all of the facts and holc.ings are repeated <br /> here.) This paper finally discusses alternative strategies for modifying inclusionary ordinances to <br /> meet the current legal landscape and the numerous associated issues raised by the cases. <br /> Palmer was decided less than a week before this paper was drafted, and the conclusions <br /> reached here should be considered preliminary. In particular, it is to be hoped that the California <br /> 171 Cal. App. 4'h 886(2009). <br /> 2009 Cal. App. LEXIS 1186(B206102, Second Appellate District, Div_4, tiled July 22 2009: <br /> Non-Profit I lousing Association of Northern California, .-1,/Jbrduh/e /iv Choice: Trendy in C.///urnia Inclusiunarr <br /> Housing Programs at 5 (2007)(hereinafter"NMI 2007"). <br /> wino i 72ot-2y <br /> �- 7onv <br />