The Beverly Hills Architecture Department's transom projects include luxury ones like pool grottoes and bowling alleys, as well as more mundane kitchen and living room upgrades.

In recent months, the city has ordered the construction of an underground spa for $100,000 and exterior upgrades for $80,000 per month in a $125 million mansion owned by WhatsApp co-founder Jan Koum. , approved a $130,000 renovation of the kitchen and bathroom of the home they purchased. A week ago it was $6.7 million.

Now, a similar home renovation that a Beverly Hills property owner wanted is under threat.

Last month, Los Angeles County Superior Court Judge Curtis A. Kinn ruled that as punishment for Beverly Hills' failure to approve sufficient blueprints for affordable housing, the city would be unable to build all but new housing developments. The issuance of permits was prohibited.

Officials have appealed the decision and say they are continuing the permitting process as usual. But civic leaders are appalled by the potential impact on homeowners, business owners and the construction industry.

“I'm shocked by the verdict,” said Murray Fisher, a real estate attorney who has practiced in Beverly Hills for 50 years. “It means the city is stagnant.”

The permit suspension would be one of the most tangible results of California's recent efforts to get cities to permit new housing, including in wealthy communities that have long opposed it.

Few places are as famous for luxury as Beverly Hills. In Beverly Hills, entrepreneurs and entertainers such as Jeff Bezos, Leonardo DiCaprio, and Taylor Swift own mansions, luxury hotels attract wealthy visitors, and glamorous boutiques take Rodeo Drive to the top of the world. It is one of the. The most expensive shopping street in the world.

However, no growth was observed. The population of Beverly Hills in 1970 was 33,400. Today it is 32,400. During the same period, the number of California residents doubled to nearly 40 million.

Homeowners and business owners in Beverly Hills frequently renovate their properties, but the community's structure is comprised of single-family homes on the north side of Santa Monica Boulevard and primarily multifamily housing and commercial development on the south side. has not changed. Some residents claim that the city's fame and beauty are the result of its efforts to maintain the status quo.

“We have intentionally created a desirable environment by intentionally avoiding overdevelopment and overdensification,” said Thomas White, 60-year-old president of the League of Cities, a civic group.

Even though state officials have not previously challenged Beverly Hills. 50-Year-Old Law Mandating Local Governments Plan for population growth so that people of all incomes can live in all communities.

Under the law, the state notifies all cities every eight years how many new housing units they will accommodate. In the cycle before this one, Beverly Hills' total was three, but that number was minuscule considering the severity of California's housing problem. it attracted national attention.

Beverly Hills City Hall.

(Gary Coronado/Los Angeles Times)

In an effort to address widespread housing affordability shortages and reduce carbon emissions, state legislatures have passed a series of laws in recent years. aimed at encouraging further development. Cities close to employment centers and public transportation. They argued that clearances should no longer be given to wealthy enclaves, citing the discriminatory effects of low-density zoning laws. Studies Showing Better Economic and Health Outcomes For low-income families who can move to more affluent areas.

This quarter, Beverly Hills' goal under the Housing Planning Act jumped to 3,104 units, three-quarters of which would be affordable to low- and moderate-income residents.

The state does not require cities to build or approve new projects, it simply requires cities to set zones for their projects. Nevertheless, years of uncertainty ensued after the Beverly Hills number was set in late 2019.

The city's strategy was to continue walling off existing residential neighborhoods filled with mega-mansions and apartment buildings, and instead focus on growing the commercial district through mixed-use development.

The plan didn't work out. The state has rejected five blueprints from Beverly Hills since summer 2021, most recently in December. California Housing Authority officials say the city is overestimating how much of its commercial properties could be added to residential development, and that the plan, based on fair housing, criticized for not allowing more affordable housing in whiter, wealthier areas of the country.

When Beverly Hills was in contention with the state, Californians for Homeownership, a non-profit organization funded by the California State Legislature. A group of real estate agents sued the city last January, asking a judge to force officials to pass a compliant housing plan. Kin cited similar issues as the state and agreed that the Beverly Hills blueprint was flawed.

The judge noted that the city of Beverly Hills expects to convert medical office buildings and car dealerships into housing, even though the city itself has conceded that it is unlikely. For example, the city says in its plans that the recently renovated Audi dealership on Wilshire Boulevard could be turned into 41 apartments.

January 16, 2024 at the Audi car dealership on Wilshire Boulevard in Beverly Hills.

(Gary Coronado/Los Angeles Times)

Matthew Gelfand, an attorney who represents California homeowners, praised Kin's permit suspension, saying the decision could spur more efforts within Beverly Hills to seek an agreement with the state.

“There's going to be some real consequences for the city to continue dragging its feet, and that's going to be that people are going to demand that the city does its part,” Gelfand said.

Gelfand said the permit suspension should be in effect now. But he said he was open to negotiating a moratorium on the case while it was appealed.

Similar permit moratoriums have previously been issued in lawsuits involving local housing plans, and are seen as a tough enough remedy to appease reluctant cities, but they usually force local governments to take another action. It has been put on hold to give it a chance to happen. August legal solution Including state Atty. Gen. Rob Bonta and the City of San Bernardino are asking for the permit to be suspended only if the city fails to pass a state-approved housing plan this year.

But California planning expert Bill Fulton, a fellow at the Turner Housing Innovation Center at the University of California, Berkeley, said targeting an area as affluent as Beverly Hills, where the home improvement industry is busy and expensive is unprecedented.

Fulton attributed the decision to the state setting more aggressive housing goals and an increased appetite for outside parties to litigate.

“It was inevitable that some judges would do something like this,” he said. “But I don't know if this will become the norm.”

In addition to pursuing an appeal of the court's ruling, Beverly Hills officials will provide additional information on the city's housing plans in the coming weeks in hopes of receiving approval soon, City Attorney Larry Wiener said in a statement. He said he plans to submit it to the state.

Beverly Hills faces potential consequences beyond permit suspension. Developers are using Tactics available only if the city does not have a compliant housing plan They basically offer to build whatever they want, as long as they set aside a certain number of units for low- and moderate-income people.

Eight projects totaling 706 units are being developed at heights and densities that would otherwise not be permitted, including the 19-story Waldorf Astoria Hotel and Peninsula Hotel, which will be the tallest building in Beverly Hills. If built, the development would create about 140 units of low-income housing in the city, seven times the number of homes built in his entire eight-year cycle thus far.

in contrast, Silicon Valley's wealthy enclaves or coastal area Beverly Hills has always had some degree of urban and residential mix, with a solid commercial district and central location throughout the state. Nearly 60% of Beverly Hills' housing stock is apartments and condos, and more than half of residents are renters.

Half of renters spend more than 30% of their income on housing. The amount the federal government considers a “cost burden.””, an example of affordable housing issues directly impacting Beverly Hills.

Still, residents opposed to the state's housing regulations say it would require too big a change.

“If you try to cram too many sardines into a sardine can, you end up with something that's inedible,” says White of the City League. “It's the same thing here. We have a fully built city, and the state is trying to force more people to move there. We're seeing our cities grow one square foot at a time. I don’t want to see it destroyed.”

Fisher, a real estate attorney, is part of a group of local attorneys, architects, real estate investors and others who are proposing raising the height limit for prime mixed-use districts to 100 feet to meet state requirements. Be a member. He said he agrees with the city's attempts to limit residential growth and believes the proposal is fair.

“There is very limited space available for larger housing,” Fisher said.

Some, including those who will lose business during the permit suspension, said it is time for Beverly Hills to face sanctions for resisting new development.

Urban development company co-founders Andrew Slocum (left) and Louis Padilla in Beverly Hills on January 16, 2024.

(Gary Coronado/Los Angeles Times)

Andrew Slocum, co-owner of Urban Development, said Beverly Hills' zoning and building restrictions make it difficult for businesses like his to bring small, mixed-income, affordable housing projects to the community. He said it has become too difficult for companies. Slocum, whose company also works on home renovations in Beverly Hills, said he supports a moratorium that would force the city to act.

“It's going to cause some pain for the people who work in that municipality, but I think sometimes pain creates change,” Slocum said.

Slocum said many people are unaware of last month's court ruling as the city continues to process the renovation project. But he said if the situation changes, there will likely be a reaction soon.

“The moment somebody goes in there and doesn't issue a permit, it's going to be a wildfire through the developer, builder and contractor community,” Slocum said. “This is unprecedented.”