Newsom Government Says Beverly Hills Violating Housing Law By Blocking New High-Rise Developments

California's Department of Housing and Community Development (HCD) has issued a strong warning to Beverly Hills, demanding the city approve a proposed high-rise apartment building or face legal action. The project in question, a 165-unit development near Wilshire Boulevard, has sparked a legal standoff due to the city's failure to process the application, which the state claims violates housing laws.

Governor's Stance on Housing Shortage

Governor Gavin Newsom has emphasized the need for local governments to contribute to solving California's housing crisis. He criticized Beverly Hills for allegedly obstructing the project, asserting that blocking such developments contradicts state law. He underscored the importance of building more housing instead of yielding to NIMBY (Not In My Backyard) opposition.

Beverly Hills' Response

In response, Beverly Hills officials have stated that they have not yet rejected the project outright, explaining that their actions have been procedural. The city has until September 20, 2024, to respond to the state's letter, and they plan to justify their actions as being taken in good faith.

Project Overview and Controversy

The proposed development at 125 Linden Drive, if approved, would be among Beverly Hills' tallest residential buildings at 200 feet. It includes plans for 165 apartments, with 20% designated for low-income renters, and a hotel. The developer, Leo Pustilnikov, submitted the plans under the "Builder’s Remedy," a legal provision allowing developers to bypass local zoning restrictions if cities fail to meet state housing deadlines.

The 'Builder's Remedy' Explained

The Builder's Remedy is triggered when cities fail to meet state deadlines for housing plans. It enables developers to propose projects that might not normally be allowed under local zoning laws. As long as the projects include affordable housing, cities cannot reject them. At the time Pustilnikov submitted the Linden project, Beverly Hills was not in compliance with state housing requirements, and therefore the city must consider the project based on the conditions when it was first proposed.

Developer's Legal Perspective

Dave Rand, the attorney representing the developer, highlighted the state's intervention as a warning to cities that disregard housing laws. He noted that state officials, including the governor, are taking a strong stance against cities that employ delaying tactics to block new housing. Rand emphasized the difficulty of building affordable housing in affluent areas like Beverly Hills and the necessity of enforcing state laws to ensure such projects move forward.

Beverly Hills' Recent Actions and Future Steps

The Beverly Hills City Council recently denied an appeal from the developer, deeming the project application incomplete. This decision came despite the state's housing department siding with the developer. The city now faces a September 20 deadline to respond to the state’s demands, after which legal action could follow if the issue remains unresolved. Beverly Hills is also under pressure to meet a state-mandated goal of planning for over 3,000 new housing units by 2029, with more than half required to be affordable for low-income residents.