Cupertino settles housing lawsuit, agrees to ‘builder’s remedy’ penalty

The Mercury News – January 17

Last February, two pro-housing groups sued a dozen Bay Area jurisdictions, including Cupertino, over their failure to meet the January 31, 2023, state deadline for housing elements detailing how they plan to approach development in the next eight years. But Cupertino, along with cities like Palo Alto, Richmond, and Daly City, missed the deadline, prompting the groups to file suits compelling them to comply with state law, and reminding them that they’re subject to the “builder’s remedy,” which allows developers to push through projects that are larger than local zoning laws would otherwise permit. Cupertino has now settled its lawsuit, agreeing to revise its plans for housing in accordance with state law and to follow the “builder’s remedy” for the time being.

As explained in our prior alert, the “builder’s remedy” applies when a local jurisdiction has not adopted a revised housing element in compliance with state law, in which case the local jurisdiction cannot deny a qualifying housing development project even if it is inconsistent with the general plan and zoning ordinance (subject to limited exceptions).

News

Huntington Beach appeals housing decision to Ninth Circuit

Los Angeles Times – January 11

Huntington Beach is continuing its fight against the state of California’s housing mandates. The city filed an appeal in the Ninth Circuit Court of Appeals last Thursday, hoping to reverse a November decision against it by a federal judge. U.S. District Judge Fred Slaughter ruled then that Huntington Beach did not have standing in federal court to file suit against the state, despite City Attorney Michael Gates’ claims that Regional Housing Needs Allocation requirements to zone for 13,368 units in this housing cycle — and the requirement to sign a Statement of Overriding Considerations — violated the city’s 1st Amendment protection for compelled speech and 14th Amendment due process protections.

Newsom administration makes progress on tiny home promise

CalMatters – January 11

Nearly a year ago, Governor Gavin Newsom promised to deploy 1,200 tiny homes to help shelter the state’s growing population of homeless residents. Now, the state has chosen who will build those tiny homes and what they will look like — but there’s still no word on when people will be able to move in. Now that the contracts have been awarded, other cities not included in this state program can use their own funds to purchase the tiny homes without going through a lengthy process of seeking bids from multiple vendors.

Hermosa Beach tries novel “land value recapture” fee policy

The Real Deal – January 11

The small, exclusive South Bay city of Hermosa Beach has struggled in recent years to meet state demands for new housing, so its City Council has approved a unique policy to spur more affordable development. Last month the council voted 3-2 in favor of a land value recapture program. Land value capture is a policy where a city government seeks to recover and reinvest land value increases, according to a definition from the Organization for Economic Co-operation and Development. In the case of Hermosa Beach, the program aims to capture value in commercial districts with older buildings deemed suitable for redevelopment, said Carrie Tai, the city’s community development director.

California’s ‘utopia’ plan to offer $400M in homebuying aid for new residents

San Francisco Standard – January 17

A wealthy investor-backed group with plans to build a new city in Solano County has revealed a $400 million down payment assistance fund it hopes will attract residents to the proposed community that could one day be home to up to 400,000 people. The new details come as California Forever, a company funded by a consortium of tech billionaires vying to build what some have dubbed a “utopia” between San Francisco and Sacramento, lobbies for public support of its plan. On Wednesday, the group formally filed a ballot initiative with the county so it can begin to collect signatures to put the proposal before voters. The company said it needs around 13,500 signatures to qualify the initiative for the November ballot. Solano County’s Orderly Growth Initiative requires voter approval to rezone the area for housing development.

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