"Builder's Remedy" Bypassing City Approval Processes

The “Builder’s Remedy” as it has been dubbed is the process of filing a development application with a City Planning agency for a project where the city does not have its Housing Element approved by the State of California. The city who has such an application is powerless to stop that development for reasons other than “health and safety”, and that 20% needs to be affordable housing. The California Housing Accountability Act set up the “Builder’s Remedy” as the penalty of not getting timely state approval of their City Housing Elements.

The” Builder’s Remedy” process is playing out now in the City of La Habra where Lennar has submitted a project application for developing the Westridge Golf Course, where the City of La Habra’s Housing Element has not been approved. A project which had been declined by the La Habra City Council for 448 homes in 2021, has been recently submitted as a new application for 530 homes, 20% being affordable by Lennar. Lennar has not said that this is a “Builder’s Remedy” application but it certainly appears to be. Add to that is the $100 million lawsuit that was filed by Lennar against the City of La Habra regarding the initial project submission decline. With the “Builder’s Remedy”, Lennar can bypass the city, even bypass the City of La Habra’s Measure X, which requires any previously zoned “open space” be brought to the voters for any development project.

There are also two “Builder’s Remedy” development project applications that have been filed in the City of Orange.

The City of Huntington Beach is pushing back on “Builder’s Remedy” and The State of California’s Department of Housing & Community Development. The City’s Planning Commission recently passed a recommendation to City Council of a zoning text amendment to ban “Builder’s Remedy” applications. Prior to the vote the State of California sent the City a warning letter not to enact this type legislation.

Housing advocates are supporting the “Builder’s Remedy” as a means to get more affordable housing built. These advocates have also made statements that allude to the State Legislature using this as a blueprint for future housing legislation.

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Undoubtably, this will all end up in court, so, stay tuned. For further information, you can check out articles in the OC Register.

Homeowner invokes ‘builders remedy’ to build 20-unit housing complex in Bay Area – Orange County Register (ocregister.com)

Lennar defies La Habra’s Measure X, files what could be ‘builder’s remedy’ application – Orange County Register (ocregister.com)