Beverly Hills Faces Lawsuit for Blocking 165-Unit Mixed-Use Development

Californians for Homeownership, a nonprofit backed by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), has filed a lawsuit against Beverly Hills for rejecting a 165-unit mixed-use development proposal. This marks the second lawsuit against the city, following a favorable court ruling for the nonprofit last year.

Builder's Remedy Provision

This is the first lawsuit the organization has filed under the "builder's remedy," a state law requiring the approval of mixed-income projects in cities that violate state housing element laws. The lawsuit was filed after Beverly Hills denied the project at a city council meeting on June 27, seeking court approval for the development.

C.A.R. President's Statement

C.A.R. President Melanie Barker emphasized the importance of cities like Beverly Hills contributing to solving California's housing crisis. She highlighted that this lawsuit aims to enforce compliance with state housing laws.

Previous Lawsuit Context

In the prior lawsuit, a judge ruled that Beverly Hills had based its housing plans on unrealistic sites, including established medical clinics and well-leased office buildings. The city was criticized for overestimating the number of units likely to be developed on these sites.

Nonprofit's Perspective

Matthew Gelfand, the in-house litigator for Californians for Homeownership, stated that the previous case was won due to the city's unreasonable housing plans. He explained that the current lawsuit was necessary after Beverly Hills rejected a genuine development proposal that included affordable units.

Project Details

The proposed development is a mixed-use project for a vacant lot on Linden Drive, near Beverly Hills' Golden Triangle. It includes 165 residential units, with 33 reserved for lower-income households. This project is among several "builder's remedy" proposals in the city.

Legal and Legislative Context

State law increasingly prohibits local agencies from rejecting housing projects. Beverly Hills attempted to avoid a formal decision on the project by deeming the developer's application incomplete. This tactic, often used by cities to block housing projects, was previously struck down in a similar case involving La Cañada Flintridge.

Legal Basis of the Lawsuit

The new lawsuit is based on the Housing Accountability Act, which includes the "builder's remedy" provision. The city must prepare the case record quickly and may be ordered to approve the project without further hearings if found to have acted in bad faith.

Case Details and Organizational Mission

The lawsuit, Californians for Homeownership v. City of Beverly Hills, is filed in Los Angeles County Superior Court (Case No. 24STCP02082). Californians for Homeownership, a 501(c)(3) nonprofit, aims to enforce housing laws and increase housing availability. Sponsored by the CALIFORNIA ASSOCIATION OF REALTORS®, the organization uses legal tools to address the state's housing crisis.