Californians for Homeownership, a nonprofit organization sponsored by the California Association of Realtors, has announced that it has filed a lawsuit against the city of Beverly Hills to enforce state housing element law. The lawsuit challenges the city’s decision to list sites including retail centers and office buildings as areas for future housing development, without any evidence that housing will be developed on those sites by 2029.
The organization is seeking a determination that the city is subject to penalties for failing to comply with the law. These penalties include the requirement that the city exempt mixed- and moderate-income projects from certain development standards—a provision often called the “Builder’s Remedy.”
“Californians for Homeownership has taken up the mantle as a leading enforcer of the state’s housing element laws, which require cities and counties to ensure that their zoning requirements will allow enough housing to be built over the next decade,” said CAR President Jennifer Branchini. “Beverly Hills is a major job center in Southern California and needs to do its fair share by allowing new housing in areas of the city where development is actually likely to take place.”
Under state law, Beverly Hills is required to identify sites that can accommodate approximately 3,100 new units of housing by 2029, including nearly 1,700 affordable units for lower-income families. The city must demonstrate that its existing zoning rules are flexible enough to facilitate the development of these units, or rezone parts of the city to allow more flexibility.
“The city’s allocation reflects its status as a high-opportunity area with access to jobs and other critical resources,” said Matthew Gelfand, the in-house litigator for Californians for Homeownership. “And by 2025, the city will be served by Metro rail, offering transit to downtown Los Angeles in around 20 minutes and to Century City in just a few minutes. This is exactly where new housing is needed the most.”
The state Department of Housing and Community Development rejected the city of Beverly Hills’ housing element in January 2022, citing the city’s unreasonable assumptions about the redevelopment of its commercial corridors, as well as other problems with the city’s plan. Among these, the Department expressed concerns about the city’s fair housing analysis.