California cities face lawsuits over housing developments

Two separate legal battles have emerged in California regarding housing developments and compliance with state housing laws.

In Saratoga, investor Michael Burry, through his nonprofit Citizens for Responsible and Equitable Development, has filed a petition in Santa Clara County Superior Court against the city. The lawsuit challenges the approval of Masson Estates, a 25-unit project located in a state-designated ‘Very High Fire Hazard Severity Zone.’ Burry argues the development poses significant public health and safety risks, specifically regarding wildfire hazards and emergency evacuation access. The group contends the project utilizes the ‘builder’s remedy’ loophole to bypass local zoning.

In Menlo Park, developer N17 has filed a lawsuit against the city over the proposed Willow Park high-rise development at 80 Willow Road. The developer alleges that Menlo Park delayed reviews and failed to comply with state housing reform laws, specifically Assembly Bill 2011, which allows for streamlined ministerial review of certain projects. The proposed mixed-use development includes 665 housing units, a 130-room hotel, and office space, with buildings reaching up to 39 stories.