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Court rules against Los Gatos’ interpretation of builder’s remedy law

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Three pro-housing nonprofits filed an amicus brief in support of developers in Los Gatos on Sept. 4 in response to a lawsuit the town filed in March over its interpretation of state housing law. The Luxe, a 117-unit mixed use development proposed for Los Gatos Boulevard, was one of two projects that led the town to file the lawsuit, which seeks clarification as to whether developers can continuously refile incomplete applications for builder’s remedy projects. (Courtesy photo)




A Santa Clara County Superior Court judge on Jan. 29 dismissed a lawsuit filed by the Town of Los Gatos in an effort to clarify the state’s builder’s remedy law.

The ruling came down to semantics, hinging on what “the” means in a particular portion of the law, which allows developers to build a project of whatever height and size they would like in at any location in cities that don’t have a state-certified housing element.

The town interpreted the law to mean that developers only get one 90-day resubmittal period, but the California Department of Housing and Community Development stated that they can have an indefinite number of 90-day periods to fix their applications.

Superior Court Judge Helen E. Williams agreed with the state, saying that the town’s interpretation of the law was based on the phrase “the 90-day period,” where “the” meant that the resubmittal period itself was unique and singular. However, Williams deemed that “the” was being used to reduce repetition and ensure coherence in the law without limiting the number of 90-day periods allowed. The full law also suggests that “multiple resubmissions in response to succeeding incompleteness determinations may be made without a preliminary application expiring,” according to the judgment.

Los Gatos filed the lawsuit last April against Arya Properties LLC, a developer involved with three projects in town: the Arya, the Luxe and Vista Capri. The lawsuit was introduced after the town deemed the developer’s preliminary applications for the Arya and the Luxe incomplete after two resubmittals.

The Town responded to the court’s decision in a press release, saying that they will continue processing Arya Properties LLC’s applications, as they had been while the lawsuit was being settled.

The Town also reiterated its intention to comply with state housing requirements, saying that it had approved or was processing applications for developments that would make up over 80% of stock determined by the 2023-31 Regional Housing Needs Allocation.

“We respect the court’s role in interpreting state law and appreciate the clarity provided by this order,” said Mayor Rob Moore in the press release. “We will carefully review the decision with our legal counsel and continue to to fulfill our responsibilities to the community to provide affordable housing and implement the Housing Element.”


Originally published at Nollyanne Delacruz
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