Newsom sides with developer on Beverly Hills apartment highrise

Gov. Gavin Newsom has put Beverly Hills on notice for violating state housing law in rejecting a 19-story apartment tower proposed by developer Leo Pustilnikov.

The governor and state housing regulators urged Beverly Hills to approve the 200-foot residential and hotel tower at 125-129 South Linden Drive, Politico’s Playbook reported. It would replace a parking lot.

Newsom, in a statement to Politico’s Playbook, referred to opponents of the project as NIMBYs (Not in My Back Yard), an acronym for homeowners against growth.

“We can’t solve homelessness without addressing our housing shortage,” the governor said. “Now is a time to build more housing, not cave to the demands of NIMBYs.”

The state Department of Housing and Community Development was expected to send a Notice of Violation to the wealthy city on Thursday, Aug. 8, asserting the city broke state law by denying Pustilnikov’s permit, filed under the state builder’s remedy.

The remedy, a loophole in state housing law, allows builders to bypass local zoning rules in cities that fail to certify their Housing Element, or blueprint for future housing development, providing projects meet a 20-percent threshold for affordable housing.

In June, the Beverly Hills City Council rejected developer Pustilnikov’s proposal to build what would be the city’s tallest building. The proposed project includes 132 market-rate apartments, plus 33 affordable units for lower-income households and a 73-room hotel and restaurant.

“The City Council should reverse its decision and direct city staff to process the project without further delay,” states the letter from the housing department obtained by Playbook. 

If the city doesn’t move forward with the project, the state is threatening to sue the city.

Beverly Hills officials argue the builder’s remedy provision doesn’t apply in this case because their housing plan was approved by the state in May. 

State officials are siding with Pustilnikov, arguing the project must be approved because he proposed the tower before the city finished its housing plan. 

It’s the latest in a string of cases where Newsom’s administration has admonished cities, including Millbrae and Woodside, for stymying construction during a statewide housing crisis.

“While I’m glad Beverly Hills has finally adopted a compliant housing plan, their attempt to block this housing project violates the law,” Newsom said.

— Dana Bartholomew

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