Cameron Kalunian Speaks with LA Business Journal on Builder’s Remedy Provision of California’s Housing Accountability Act

Los Angeles, Calif. (July 31, 2023) – Los Angeles Partner Cameron Kalunian recently spoke with the Los Angeles Business Journal for an article titled, “Builder’s Remedy.” The article discusses how developers are using the Builder’s Remedy provision of California’s Housing Accountability Act to their advantage when they hit roadblocks in their projects.  

As the article describes, the developer of a project known as The Villages at The Alhambra - which initially involved plans for building 1,061 residential units on unused land - recently used the Builder's Remedy provision. Specifically, after the city council adopted a resolution denying the project, and the Superior Court of Los Angeles upheld that decision, the developer re-filed its application for the project under the Builder’s Remedy provision of the state’s Housing Accountability Act. The provision permits developers that meet certain affordable housing requirements or other criteria to bypass a city’s existing zoning laws when a jurisdiction has not complied with state housing-element requirements. During the time that Santa Monica’s housing element failed to meet state requirements, the city received several applications for projects that bypassed existing zoning rules. 

Mr. Kalunian told the LA Business Journal that when Santa Monica’s housing element was approved last October, it could not simply dismiss the applications that previously had been filed. He explained, “HCD recently clarified that a developer who submits a preliminary application under the Builder’s Remedy maintains a vested right to develop that property even if a city or county becomes in compliance prior to the project’s approval.”  

Nevertheless, Mr. Kalunian further described that although the Builder’s Remedy removes a significant obstacle for developers, other challenges may still arise. He noted, “There are five reasons that a jurisdiction can deny an application, ranging from a failure to meet state or federal law to the preservation of agriculture or natural resources.” Mr. Kalunian added, “The Builder’s Remedy prohibits a jurisdiction from denying a project using the fifth reason, inconsistencies with zoning and land use based on a municipality’s failure to comply with the housing element. . . . This is extremely consequential because municipalities most typically and easily use zoning and land use to control development within their borders.” 

Mr. Kalunian is a vice-chair of Lewis Brisbois’ nationwide Construction Practice and a member of the Complex Litigation Practice. His practice is focused on multi-party litigation in a wide variety of cases involving claims related to breach of contract, fraud, unfair business practices, real estate, construction defect disputes, and various tort claims. 

Read the full LA Business Journal article here.