The Religion Clause Blog has this news on the Grace Church case I worked on. And here's another piece on it. As a student working with Claremont's Center for Constitutional Jurisprudence at Chapman Law School, I explained to the San Diego Planning Commission what RLUIPA (the Religious Land Use and Institutionalized Persons Act) was, and why denying Grace Church a use permit because "we have enough churches" was an impermissible burden on religious exercise. Local politicians generally don't like being told they can't do whatever they want.
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