California Supreme Court denies request for review, depublication of appellate decision regarding application of inclusionary housing ordinance to rental developments

The California Supreme Court denied a petition for review and depublication of the Second District's decision in Palmer/Sixth Street Properties v. City of Los Angeles. The appellate court decision was significant in holding that Los Angeles was preempted, by a provision of the state's Costa-Hawkins Act, from enforcing its inclusionary housing ordinance against a development of rental apartments, The state provision in question, Civil Code, Section 1954.53(a), authorizes landlords to "establish the initial rental rate for a dwelling or unit." The appellate court had found that the local requirement to reserve a specified percentage of the rental units as low income units, conflicted with the state provision. The local ordinance was not saved by its "in-lieu" fee, which the appellate court found to be "inextricably intertwined with the invalid portion" of the ordinance.