County of Santa Clara Welcomes Stanford University’s Decision to Withdraw Challenge Opposing Inclusionary Housing Ordinance

Santa Clara County, CA—Today, the County of Santa Clara welcomed Stanford University’s decision to dismiss its lawsuit against the County that challenged County housing regulations intended to ease the housing shortage on Stanford’s campus. Stanford’s voluntary dismissal comes 14 months after the United States District Court for the Northern District of California upheld a County ordinance requiring the University to offset the consequences of its residential development on the affordable housing supply by offering affordable units in its future residential buildings.

“We are pleased with Stanford University’s decision to withdraw its challenge to the County’s housing regulations,” said County Counsel James R. Williams. “The County has an obligation to use the tools it has to alleviate the housing and affordability crisis. One such tool is ensuring that Stanford University does its part to alleviate the housing burden within its community. Stanford’s decision recognizes the County’s authority to legislate to ensure that the impacts of Stanford’s development don’t negatively impact the community. This is a win for the Stanford community and for all of us in the County fighting for housing solutions.”

The County adopted the inclusionary housing ordinance to ensure that Stanford’s future growth does not further exacerbate the lack of affordable housing in the region. The ordinance only requires that Stanford offset the impacts of its own future development of market-rate housing—not the impacts of others.

In December 2018, Stanford University filed a lawsuit challenging Phase I of the County’s multi-year effort to tackle the housing crisis by first addressing areas with the most acute need while gradually working to solve the problem on a greater scale. Despite the County’s clear indication that Phase I—which involved adopting inclusionary housing requirements and an impact fee for development within the Stanford area—was the first step in a multi-phased approach, the University asserted that the County singled out Stanford to shoulder a countywide burden for alleviating the regional affordability crisis. The Court dismissed Stanford’s complaint in October 2019.

In October 2020, and consistent with the County’s stated intentions from the onset, the Board of Supervisors adopted Phase II of the effort, which required the construction of affordable housing throughout all unincorporated areas in the County. This will be followed by Phase III, which will consider the establishment of an affordable housing impact fee for non-residential development in all unincorporated areas.

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About the Santa Clara County Counsel’s Office
The Office of the County Counsel serves as legal counsel to the County of Santa Clara, its Board of Supervisors and elected officials, every County department and agency, and the County’s boards and commissions. With a staff of over 200, the Office is also responsible for all civil litigation involving the County and its officers. Through its Social Justice and Impact Litigation Section, the Office litigates high-impact cases, drafts innovative local ordinances, and develops policies and programs to advance social and economic justice.

About the County of Santa Clara, California
The County of Santa Clara government serves a diverse, multi-cultural population of 1.9 million residents in Santa Clara County, California – more populous than 14 states. The County provides essential services to its residents, including public health protection, environmental stewardship, medical services through the County of Santa Clara Health System, child and adult protection services, homelessness prevention and solutions, roads, park services, libraries, emergency response to disasters, protection of minority communities and those under threat, access to a fair criminal justice system, and many other public benefits.