In the case of James et al. v. Valtierra et al., 1970, the U.S Supreme Court ruled on a challenge to Article XXXIV of California's state constitution which required public housing projects to be approved by a majority vote in a community-wide referendum. The plaintiffs argued that this provision was discriminatory and violated the Equal Protection Clause of the Fourteenth Amendment as it imposed an additional procedural requirement on low-income individuals seeking public housing assistance not placed upon other citizens seeking different types of government benefits. The court held in favor of Valtierra with a 5-4 decision stating that Article XXXIV did not violate equal protection rights because it applied equally to all persons wishing to develop low-rent housing projects, regardless if they were private or public developers. The court also noted that states have broad powers when dealing with local economic and social conditions; thus, requiring voter approval for such projects is within their purview.

In the dissenting opinion for James et al. v. Valtierra et al., Justice William O. Douglas, joined by Justices Hugo Black and Thurgood Marshall, argued that California's constitutional amendment requiring a referendum before public housing could be built was discriminatory against minorities and low-income individuals who were in need of such housing options. They contended that this requirement imposed an unfair burden on those seeking to establish public housing projects, as no other type of property development faced similar restrictions or requirements for approval via popular vote. The justices believed this constituted unequal treatment under the law and violated the Equal Protection Clause of the Fourteenth Amendment because it disproportionately affected racial minorities who are more likely to require affordable housing solutions like those provided by public housing initiatives.