Court Delivers Huge Housing Win Thanks to Council-Backed Law

In a newly published decision, the First District Court of Appeal issued an important clarification in Coalition of Pacificans for an Updated Plan v. City Council of the City of Pacifica, reifying a major legislative accomplishment of the Bay Area Council and completely reshaping the landscape of NIMBY litigation brought against housing projects. 

The case utilizes a provision of AB 1633 (Ting) that prevents successful CEQA plaintiffs from receiving attorney’s fees when the lead agency made a good faith effort to do the required CEQA analysis on an infill housing project. These projects have the highest benefit for the environment, and are critically needed for our growing economy, but they are often subject to frivolous lawsuits under the California Environmental Quality Act. Even minor missteps under CEQA used to result in millions of dollars of penalties for local governments who tried to do the right thing, but that is no longer true. This new case, which applies across California, levels the scales. 

The case arose from a CEQA challenge to an eight-unit housing project in Pacifica, where the trial court awarded roughly $1.3 million in attorney fees to project opponents. On appeal, the court held that while trial courts must give “due weight” to housing-friendly considerations under recent Housing Accountability Act reforms, the lower court misapplied that standard. The fee award was sent back for reconsideration under the correct legal framework. The Bay Area Council submitted an amicus brief along with local governments, pro-housing groups, and other business groups supporting this outcome. 

This decision is an important step toward greater predictability and balance in housing entitlements, ensuring CEQA enforcement does not undermine our need to accelerate housing production statewide. While the case has yet to make news, you can read it here. To engage in the Council’s housing work, please contact Senior Vice President of Public Policy Louis Mirante.