PB&J LLC, entities owned by Leo Pustilnikov, have filed an application to build an eight-story, 90-unit multifamily building in the heart of Beverly Hills, according to the plans reviewed by TRD.
This marks the sixth pending case relying on builder’s remedy in Beverly Hills for Pustilnikov, a developer who has become one of the most public advocates for the provision in an effort to get building approvals in jurisdictions resistant to new development.
The latest project, located at 214-216 South Hamilton Drive in a desirable, walkable part of Beverly Hills, would be close to the new Metro D Line extension once it is completed.
Notably, the proposal for the building consists entirely of 90 studio apartments, including 18 affordable housing units.
Builder’s remedy is a legal loophole that becomes available if cities don’t have a state-approved plan to build more housing by the state-mandated deadline. Under builder’s remedy, housing projects that meet affordability criteria are automatically approved for development.
Beverly Hills muffed its deadline in October 2022, allowing Pustilnikov to file multiple builder’s remedy applications, which can be updated later. The Department of Housing and Community Development certified the City of Beverly Hills’ housing plan on May 1, closing the window for new builder’s remedy projects.
“Now that Beverly Hills is certified, it should consider how to deal with those [applications] that were timely submitted,” Pustilnikov told TRD.
The city allocated 3,000 housing units in the plan, with about 1,600 for very low or low income residents.
While the city has expressed support for affordable housing in principle, the outcome of Pustilnikov’s project will be a good indicator of its commitment in practice. The city has 30 days to respond to the application.
“Leo’s six projects collectively offer the city a lot of affordable housing, and the hope is that they’re going to be interested in seeing more affordable housing since they’ve committed to the state to achieve some pretty ambitious RHNA [Regional Housing Needs Assessment] numbers,” said Dave Rand, a land use attorney at Rand Paster Nelson, who is advising Pustilnikov on the Hamilton Drive project. “Thus far they’ve been pretty uninterested in processing these projects.”
While some developers would be inclined to sit out the battles with the city to get their projects built or pursue development elsewhere, Pustilnikov has a long-term conviction when it comes to Beverly Hills — as the Hamilton Drive application shows.
“Because it is so exclusive and desirable, it makes it a very attractive place to invest,” Rand said. “There are cities that most developers would determine are not worth fighting for. Beverly Hills is worth fighting for.”