Laguna Hills City Council Approves Senior Housing

An apartment complex for senior citizens is headed for construction thanks to builder’s remedy.

Laguna Hills City Council members voted to approve the project at the La Paz Village shopping center, Voice of OC reported. The project applicant is Nick Buchanan of Cape Point Development, which bought La Paz Village in 2022 for $23.5 million.

The project is expected to replace some retail spaces in the mall with 180 studio, one- and two-bedroom apartments for tenants ages 55 and up. Of the units slated for construction, 10 percent of them, or 18 total, are set aside for very-low-income residents. In Orange County, very-low-income generally falls under annual incomes of $59,250 or less for one person. For two people, the maximum annual income must not exceed $67,700.

In addition to the apartments, the 61-foot-tall project would include activity areas, a theater, gym, pool, salon and community courtyards.

While the City Council voted 3-1 in favor of the development, the officials who approved the project said they felt their hand was forced thanks in part to builder’s remedy and other state-level laws.

“Your concerns about this project’s density, the height, the potential strain on traffic and resources, they’re not just valid, but they’re the same worries that keep me up at night,” Mayor Joshua Sweeney said, per Voice of OC. “But here’s the painful truth that we must face together as a community: The state of California, through Sacramento’s relentless push of laws like the Housing Accountability Act, AB 1893 and now AB 130, which was the final nail in the coffin, has systematically stripped away all our local control, and they have tied our hands in a way that feels profoundly unfair, leaving us in checkmate.”

Because the concept of builder’s remedy is part of California’s Housing Accountability Act, cities aren’t allowed to deny builder’s remedy projects just because they don’t believe it’s a good fit for their communities or are concerned about density or parking issues. As a result, denying a builder’s remedy project would open the door to lawsuits from groups including affordable housing organizations and the California attorney general.

Sweeney said the project “clashes with the community’s heart and soul” but also believes it isn’t worth it to risk being sued by denying it.

“If we fight it outright, we’d invite lawsuits from the attorney general, advocacy groups and many others, and we simply cannot risk bankrupting Laguna Hills and draining our city’s funds,” he said. Councilmember Dave Wheeler echoed that sentiment, calling the proposal a “monstrosity” before voting to approve it.

— Chris Malone Méndez