577 U.S. 1179
SCOTUS2016Background
- San Jose enacted Ordinance No. 28689 requiring developers of new residential projects (20+ units) to reserve at least 15% of for-sale units for low-income buyers.
- Reserved units must be sold at an "affordable housing cost" (capped at 30% of buyer median income) and remain subject to affordability controls for 45 years.
- California Building Industry Association (CBIA) sued to enjoin the ordinance as an uncompensated taking under the Fifth Amendment.
- Trial court enjoined the ordinance; California Court of Appeal reversed; California Supreme Court affirmed the reversal.
- The U.S. Supreme Court denied certiorari. Justice Thomas concurred in the denial, emphasizing an unresolved, important Takings Clause issue on whether Nollan/Dolan apply to legislative exactions but concluding this case was not a suitable vehicle to resolve it.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether legislative exactions are subject to Nollan/Dolan nexus and rough-proportionality test | CBIA: Ordinance is a taking; Nollan/Dolan should apply to legislative measures | City: Different standard applies to legislative measures; measure survives if reasonably related to public welfare | Court denied cert; did not reach or resolve the question |
| Whether this case is a proper vehicle to decide the legislative-vs-administrative question | CBIA: Sought review to resolve conflict in lower courts | City: Raised threshold timeliness and procedural issues; petitioner disclaimed reliance on Nollan/Dolan below | Certiorari denied; procedural defects and posture made it unsuitable for resolving the split |
Key Cases Cited
- Nollan v. California Coastal Comm’n, 483 U.S. 825 (1987) (established nexus requirement for land-use exactions)
- Dolan v. City of Tigard, 512 U.S. 374 (1994) (established rough-proportionality requirement for exactions)
- Koontz v. St. Johns River Water Management Dist., 570 U.S. 595 (2013) (applied Nollan/Dolan framework to monetary and permit-denial contexts)
