On April 8, 2015, the California Supreme Court heard oral argument on the California Building Industry Association challenge to San Jose’s inclusionary housing ordinance. The ordinance required residential developments proposing 20 units or more to set aside 15% as below market units. Alternate compliance methods were also allowed, such as dedications of land or in-lieu fees. These requirements are pretty typical of many local inclusionary ordinances. The trial court upheld the challenge, but the appellate court reversed and found for the City. At the appellate level, the CBIA claimed that the inclusionary ordinance imposes an exaction on the developer, while the City claimed the ordinance was permissible as a land use regulation under its police power, needing only a reasonable relation to the public welfare.