San Mateo Backs Down On Housing Ruling With Statewide Impact

SAN MATEO, CA — The city of San Mateo will not appeal a September court ruling that went against the city in a housing case concerning approval of a 10-unit condominium development proposal, a decision that could have ramifications in a state struggling to cope with a housing crisis.

The court upheld the state's Housing Accountability Act, which limits cities' ability to deny development proposals that meet local objective development standards and contribute to housing needs.

The city announced Thursday that it would not appeal the California Court of Appeals’ decision to the state’s Supreme Court, reaching a settlement with the California Renters Legal Advocacy and Education Fund (CaRLA). San Mateo will pay $450,000 in attorney’s fees and costs to CaRLA and the rejected development on W. Santa Inez Avenue will return to council for consideration at a later date, the city said.

Related: San Mateo Loses Housing Case That Could Have Statewide Impact

CaRLA Executive Director Dylan Casey applauded San Mateo for “being transparent about the costs of violating the Housing Accountability Act,” Casey told the San Mateo Daily Journal.

Casey added that the law was created specifically because cities have been using subjective standards to deny housing projects.

“CaRLA is very intentional in the suits it brings and the reason this case drew statewide attention is exactly because this is what is happening up and down California and it’s a message to cities that we are paying attention,” Casey said.

San Mateo officials claimed that the city had a “strong track record of promoting affordable housing through innovative policies and programs,” which was overlooked by state officials and in coverage of the case by the media.

The San Mateo Planning Commission denied the project in 2017 due to height concerns, but the CaRLA sued, citing the Housing Accountability Act. The appeals' court's decision overturned an earlier ruling by a trial court, which sided with San Mateo.

Eric Rodriguez, San Mateo’s mayor, said in a statement that the lawsuit filed by CaRLA was “not reflective of the City’s history of expanding affordable housing opportunities through innovative policies and programs.”

“We remain committed to assisting with development of much-needed affordable housing through inclusionary housing policies, long-range planning informed by community input, allocating local funding where available, and leveraging city-owned land to build affordable homes in our community,” Rodriguez said.

San Mateo has approved over 2,000 new housing units, including more than 430 affordable below-market rate homes, Rodriguez added.

Top state officials, including Gov. Gavin Newsom and Attorney General Rob Bonta, applauded the appeal court’s decision upholding the Housing Accountability Act.

"The court's decision protects our ability to hold local governments to account and ensures that families throughout California won't suffer when those same local leaders refuse to do their part to approve new housing," Newsom said in September.