San Jose will start requiring builders of new for-sale housing to include affordable units or pay a fee, now that the US Supreme Court has let stand the state Supreme Court's decision from last year.

The nation's highest court declined to hear the Building Industry Association's appeal of the California Supreme Court's unanimous decision to uphold the ordinance. The ordinance, first approved in 2010, requires developers of projects with more than 20 units to make 15% of for-sale units affordable, build affordable units off-site or pay a fee, according to the Silicon Valley Business Journal. Other cities may follow the approach.

The program will affect projects approved after June 30 of this year. The city has a separate program for rental housing that includes a $17 per SF affordable housing impact fee. [SVBJ]