Some developers are fighting the rules that require them to set aside some units of new buildings as affordable housing.
Popular Bay Area laws that require home builders to set aside a percentage of units in each new building to "low-cost housing" will be challenged before the state Supreme Court, according to reports.
"Inclusionary housing" laws have been fought by developers for over a decade, according to the San Francisco Chronicle. That said, they now exist in 150 California cities and counties.
San Jose's ordinance -- which requires developers building buildings of 20 or more units to set aside 15 percent to be sold at below market rates or otherwise pay a fee -- is being challenged specifically by the California Building Industry Association.
If it is shot down, it could spell trouble for similar rules in San Francisco and beyond.
A Santa Clara County judge last year sided with the developers, who then lost on appeal, the newspaper reported.
In other to get the law shot down, the appeals court said that the developers must show that low-cost housing "does not serve the city's purpose of meeting its housing needs," the newspaper reported.