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This book shows how State housing policy in California has forced most cities into imposing rent controls on new housing construction, with disastrous results, by causing California housing inflation far in excess of U.S. housing inflation. A case study documents how much inclusionary rent controls increase the rents for the unsubsidized market rate units in the rent controlled project. This book describes housing policies that will enable a surplus small housing units that are affordable by design rather than by subsidy.