In a clash between big developers and small-town preservationists, the preservationists emerged victorious on Tuesday, Aug. 29, as a judge upheld the city of La Habra’s decision to block a large housing development overlooking the town.
While this ruling may have put an end to homebuilder Lennar’s $100 million lawsuit against the city, it likely won’t be the final chapter in the developer’s eight-year crusade to build homes on the lush Westridge Golf Course.
Leveraging La Habra’s failure to adopt a state-approved housing plan on time, Lennar submitted a second application in January to construct an even larger housing development on the 151-acre golf course. This time, the city cannot reject the application based on zoning or the general plan.
In the recent ruling, Orange County Superior Court Judge Sheila Recio rejected Lennar’s petition to overturn the city’s 2020 decision to block its Rancho La Habra development.
The gated housing project consisted of 448 houses and townhomes, along with a community center, parks, pools, and trails. More than half of the land would have been preserved as open space.
Judge Recio also denied Lennar’s request to reverse Measure X, a referendum passed in November 2020 that prohibits development on open space without voter approval.
Lennar, the second-largest homebuilder in the country, argued that Council member Jose Medrano’s alleged bias tainted the city’s denial and that the denial lacked a legal foundation.
Lennar’s attorneys claimed that Measure X constituted “spot zoning” since Westridge Golf Course is the city’s only privately owned open space.
However, Judge Recio concluded that the evidence did not support the allegations of bias and that the denial of the project was not arbitrary or capricious.
Quoting the judge from a court minute order, “In sum, the evidence presented does not support (Lennar’s) arguments, and it would be improper for this court to supplant the decision of the city council.”
In a press release, the city celebrated the ruling as “a significant victory,” and comments on the city’s Facebook page echoed the sentiment.
“Good news!” expressed one commenter. “They invested a lot of money to overpower our small town, and they failed.”
Another commenter stated, “This is an incredible triumph for the residents of La Habra! No developer should be able to overturn the will of the people!”
The city’s statement revealed that Tuesday’s ruling likely nullifies Lennar’s damage claim of $100 million, which equates to almost two-thirds of La Habra’s 2022-23 budget.
Nevertheless, Lennar has an alternate plan for developing the golf course. In January, the developer submitted an application under the “builder’s remedy” provision.
According to this 1990 state law, developers can construct residential projects, including affordable housing, virtually anywhere in a city if there is no compliant “housing element” at the time of the application.
Although La Habra’s housing plan obtained state approval, it came three months after Lennar’s builder’s remedy application and 18 months after the deadline.
The city’s staff recently determined that Lennar’s builder’s remedy application was incomplete, as confirmed by Craig Steele, the city’s attorney in the case. However, the city later received a letter indicating additional information necessary to complete the application.
Under Lennar’s new proposal, the developer plans to construct 530 homes, which is 82 more than the original Rancho La Habra plan.
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