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court observed that, "local governments may not choose a means of achieving that goal that is <br /> prohibited."32 <br /> The Court of Appeal's decision in Palmer uses language very similar to that in the <br /> Colorado and Wisconsin cases. The state Costa-Hawkins Act provides that, barring an exception, <br /> for any building completed after February 1, 1995, "an owner of residential real property may <br /> establish the initial and all subsequent rental rates for a dwelling or unit.i33 The Palmer court <br /> held that the language of the statute was "clear and unambiguous" and that forcing Palmer to <br /> provide affordable housing at regulated rents was "clearly hostile" to his right under Costa- <br /> Hawkins to establish the initial rental rate for the dwelling unit. Further, in an analysis similar to <br /> the Colorado court's treatment of Telluride's fee and dedication alternatives, and without any <br /> acknowledgement of the contrary language in Napa, the Court found that because the objective <br /> of the Specific Plan was to impose affordable housing requirements and the amount of the fee <br /> was based on the number of affordable units required, the in-lieu fee option was "inextricably <br /> intertwined" with the preempted rent control option and similarly preempted. The Court went <br /> even further and stated in a footnote that if the base requirement had been a fee, with voluntary <br /> provision of rental affordable units as an alternative, both the fee and the voluntary provision of <br /> units would be part of"an overall plan that is preempted by [Costa Hawkins]" and illegal. <br /> 32 See Apt. Ass'n ofS.Cent. Wis., inc. v. City of Madison, 722 N.W.2d 614(Wi. Ct. App.2006). <br /> 3 Cal. Civ. Code Section I954.52(a)(I). There is a fair amount of evidence that Costa-Hawkir s was never intended <br /> to apply to inclusionary ordinances. Mike Rawson of the California Affordable Housing Law Project stated in an <br /> interview that Costa-Hawkins proponents specifically asserted that the bill would not cover inclusionary units. <br /> However, he acknowledges that no such agreement is reflected in the legislative history. (Telephone Interview with <br /> Michael Rawson, Nov. 12, 2001.) See also Mallakh, supra note 28, at 1870-72. Mallakh also discusses the <br /> numerous statements of the bill's authors that Costa-Hawkins would affect only the five California cities that did not <br /> permit vacancy decontrol (Berkeley, Santa Monica, West Hollywood, Cotati, and East Palo Alto), see id at 1870 <br /> n.149,although 64 cities at the time had inclusionary programs, and notes that nowhere in the legislative history was <br /> the act described as having a"prohibitive effect"on inclusionary programs. See id. at 1871 n.154. <br /> 12 <br /> 990051A1 A720372.3 <br /> 8/72009 <br />