Developers Prevail In Dispute Regarding Key Housing Legislation

California's First District Court of Appeal recently issued a lengthy and consequential decision reaffirming the State's ability to pass housing legislation limiting local governments' discretion to deny housing projects. In Ruegg & Ellsworth v. City of Berkeley (Case No. A159218, April 20, 2021), the court was specifically tasked with interpreting and applying – for the first time – SB 35 (codified at Gov. Code. § 65913.4). However, Ruegg & Ellsworth will likely have implications for developers seeking to benefit from other pro-housing statutes.

Background of SB 35

Enacted in 2017 and effective January 1, 2018, SB 35 is one of a number of bills passed in recent years which seek to address the ongoing housing crisis in California and penalize local governments that fail to meet their obligations to increase statewide housing supply. SB 35 provides a streamlined, ministerial approval process for certain residential projects in localities that fail to