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Real Estate/Development,
Civil Litigation

Aug. 6, 2025

Lawsuit challenges city housing fees as unconstitutional exactions

A property owner is suing East Palo Alto in federal court, claiming the city's inclusionary housing ordinance imposes unconstitutional fees or rental mandates unrelated to his proposed modest development.

Lawsuit challenges city housing fees as unconstitutional exactions
East Palo Alto City Attorney John D. Le

A property owner in East Palo Alto has filed a federal lawsuit challenging the city's Inclusionary Housing Ordinance, arguing that it unlawfully demands tens of thousands of dollars in fees or mandates low-income rentals unrelated to the impacts of the modest residential development.

Represented by the Pacific Legal Foundation, Wesley Yu contends the city's policy constitutes an unconstitutional "extortion" of property rights, citing recent U.S. Supreme Court pre...

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