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C.A.R.-Backed Housing Group Achieves Landmark Court Victory in Beverly Hills

In a significant legal victory, a nonprofit organization known as Californians for Homeownership, supported by the California Association of REALTORS® (C.A.R.), has successfully contested the City of Beverly Hills' refusal to approve a development application for a 165-unit mixed-use project. This ruling exemplifies a critical step towards addressing California's worsening housing crisis through legal action. This win marks the group’s second major victory against the city, following a favorable ruling from a Los Angeles County Superior Court judge in 2023 regarding the city's housing planning processes.

Heather Ozur, President of C.A.R., remarked, "This decision is a major win for housing. Cities are increasingly implementing illegal procedural barriers against housing applications. Today's ruling clarifies that cities must appropriately evaluate housing development proposals while adhering to state and local regulations."

The case centers around a proposed mixed-use development set to occupy a vacant lot on Linden Drive, located just south of Beverly Hills' Golden Triangle. The development plan includes reserving 33 of its residential units for lower-income families, serving as part of several so-called 'builder's remedy' proposals aimed at utilizing vacant or underutilized lots in high-density corridors across the city. The builder's remedy is a mechanism within California law that empowers developers to propose projects in cities that have failed to address housing needs, such as Beverly Hills.

As state regulations have begun to restrict cities and counties from outright rejecting housing project proposals, local governments have become creative in their refusal tactics. Beverly Hills, in this instance, chose to characterise the developer's application as 'incomplete' — a maneuver often used to avoid making formal decisions and thereby circumventing accountability under the law. Moreover, the city inappropriately claimed certain aspects of the application had lapsed, which the court recognized as unlawful.

In its ruling, the court not only voided Beverly Hills' previous decision but also mandated that the city process the application as a builder's remedy project, ensuring compliance with state statutes. This resolution is just one of four parallel cases brought by Californians for Homeownership against the city regarding obstructed builder's remedy projects.

Matthew Gelfand, an in-house attorney for the nonprofit, expressed optimism about paving the way for future developments, stating, "We are delighted with the court’s ruling, and we hope it encourages a comprehensive settlement regarding other pending builder's remedy projects in the city. Beverly Hills should collaborate with developers to facilitate the construction of these essential homes."

The successful lawsuit was initiated under California’s Housing Accountability Act, which includes provisions for the builder's remedy, allowing organizations like Californians for Homeownership to take legal action against unjust housing denials. In a simultaneous resolution, the court reached a similar conclusion in a case brought by the developer of the project.

The case, titled Californians for Homeownership v. City of Beverly Hills, is documented under Los Angeles County Superior Court Case No. 24STCP02082. Detailed court decisions can be requested for further insights.

As a 501(c)(3) nonprofit entity, Californians for Homeownership is driven to tackle California's housing issues through legal mechanisms. Historically, cities in California have approached compliance with housing laws as a discretionary obligation. This organization aims to rectify such attitudes by vigorously asserting legal frameworks designed to increase family housing availability across all income brackets. Established under the auspices of C.A.R., this group receives critical funding from the association and various private benefactors. To support their mission, tax-deductible contributions can be made through their website at caforhomes.org.