Do Inclusionary Housing Policies Promote Housing Affordability? Evidence from the Palmer Decision in California

Working Paper WP15AH1, December 2015

By: Lincoln Institute of Land Policy

https://www.lincolninst.edu/sites/default/files/pubfiles/hollingshead-wp15ah1.pdf
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Table of Contents

Affordable Housing Programs

This report considers whether inclusionary housing policies support affordable housing goals. It looks at the consequences of a 2009 court ruling in California, showing that weakening inclusionary housing policies is not associated with a decrease in rental price. It also suggests that the inclusionary housing policies in place before the decision were promoting affordability, especially in the low-cost market.

Inclusionary Housing

This report studies the effects of inclusionary housing policies on housing affordability using the 2009 ruling by California’s Second District of Appeal, Palmer/Sixth Street Properties LP v. City of Los Angeles, which substantially weakened inclusionary housing policies in the rental market. This analysis fails to find evidence that weakening an inclusionary policy is associated with a decrease in the rental price of high-cost housing units, and suggests that inclusionary housing policies pre-Palmer, in general, did promote housing affordability in the low-cost market.