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V .). <br /> 5 <br /> d <br /> LAND USE , <br /> •[4] [51 E 149 • <br /> '` <br /> _ the free-enterprise system. Despite its relative success and rela- <br /> tivelY low governmental cost, the system is in the process of -I I.• <br /> g t; l'.' <br /> a <br /> being phased out.5 ;. • r. <br /> In New Jersey, the state's highest court,in effect,ordered t at <br /> it , 'iI ii <br /> h all municipalities in that state enact mandatory inclusionary or- <br /> I_ dinances requiring the construction her-density zones, ;�'!I <br /> _ and moderate-income units in hlg needs of that state's `'��' �' • } <br /> n sufficient to meet the theoretical housing <br /> n l <br /> s <br /> lower-income populations, or face total loss of their land use �I`is li ' 1 <br /> ,f powers.6 ;,..∎ ,i , <br /> iil: . ..t <br /> Inclusionary Systems: Two Examples I�, 1,,, - <br /> g stem <br /> Y The Orange County Sy i.' ' <br /> y I Orange County, where more than half of California's inclu- <br /> Y Orange <br /> units have been built? adopted its mandatory set-aside Ti <br /> n ordinance in 1979, pursuant to the new enabling legislation, to <br /> it. <br /> settle a class-action suit filed by the Legal Aid Society and the I.1 1. <br /> a The Orange County legis- `d;, <br /> Western Center on Law and PoVe ro'ects of five or more units " <br /> lotion requires that all housing p J '�'' <br /> contain at least 25 percent affordable dwellings for rent or for ,i Y I. !I <br /> I.a' <br /> sale. The affordable units, which are deed rest ict ao keep the ;i1., 'f, , <br /> sale price controls to prevent windfall p 1, <br /> units affordable, are available for purchase by only two groups Ii!i ii <br /> h t; I. <br /> of families, designated as either medium 1 or medium 11 income ' <br /> 7e families. The builder is obligated, in the absence of federal �i,' <br /> -e percent of his housing units for medium 1 <br /> subsidies, to build 1 S p <br /> , <br /> e income families (those who make between 80 and 100 percent of <br /> e, the county's median income) and 10 percent for <br /> miuf the um II <br /> •i ;� ' <br /> s (those who make between 100 percent to 120 <br /> percent <br /> is county's median income)9 ' <br /> n- . <br /> The most interesting aspect of the Orange County system is {i <br /> the transfer credit program. This prog ram allows builders of five : !i; ; <br /> nt or more units who choose not to build affordable housing to .11 <br /> s, \i'.1 <br /> M5 Breckenfeld. " 'Rubin Hood' Subsidies: A Dubious New F..u. Fortune. <br /> of March 21. 1983. at 152. :i <br /> s 92 NJ. 158 at 258-290. esp. 267-274. lit <br /> 9- 7 Schwartz & Johnson. note 2 sigma, at 7. 13ff: A. Mallach, inclrrsiunnry t <br /> Housing: Policies and Practices (furthcorninB 191id1- <br /> .t <br /> j 5 supra. at 149. <br /> ,ty I l3reckenfeld, note . xrr/ i <br /> of !!` <br /> e Schwartz & Johnson, Hole 2.ar/rrn, at K. , <br /> i.l <br />