The Court of Appeals ruled today (3-0) that Madison's inclusionary zoning ordinance is preempted by the state law that prohibits rent control. This decision only impacts the rental housing portion of the ordinance; the owner-occupied portion remains in effect.
I plan to file a petition for review of this decision with the State Supreme Court. The petition is due in 30 days. This is clearly a decision of statewide impact and a decision of first impression. As you recall, the Circuit Court ruled in the City's favor.
In the interim, we will also look at the decision to see if we can make some minimal changes in the ordinance to meet the ruling of the Court of Appeals. I do not view the ruling as having any impact on existing leases, but new developments could decline to provide rental housing at lower rates until we either change the ordinance or get the decision reversed.