Brown vetoes bill requiring affordable-rental units

Gov. Jerry Brown has vetoed legislation that would have allowed cities and counties to require housing developers to provide affordable rental units for low- and moderate-income people, an approach called "inclusionary housing."

The inclusionary housing requirement was common in many California cities until a 2009 court decision said it conflicts with a state law limiting local rent-control ordinances.

Assembly Bill 1229 from Assemblywoman Toni Atkins, D-San Diego, sought to clarify that municipalities still had the discretion to require developers to set aside affordable units or pay a fee.

The governor's veto message last weekend said his experience as mayor of Oakland influenced his thinking.

"I saw how difficult it can be to attract development to low and middle income communities," he wrote.

"Requiring developers to include below-market units in their projects can exacerbate these challenges, even while not meaningfully increasing the amount of affordable housing in a given community."

Brown also said he wants to see how the California Supreme Court rules on a pending case about inclusionary housing before making any adjustments in this area.

Affordable-housing proponents said they were dismayed by the veto, citing the governor's earlier decision to stop funding local redevelopment authorities.

"Gov. Brown talks about decentralizing power from Sacramento to cities to solve problems, but in housing he's taking every tool away," said Kevin Zwick, CEO of Housing Trust Silicon Valley.

"When he got rid of redevelopment, he got rid of our biggest funding source. By this veto, he's taking away our biggest zoning tool. The question is: What tools will he give us to solve affordable housing?"

Realtors, builders and apartment managers had opposed the bill, saying it would stifle new construction and drive up prices.