Simple Word Ends Los Gatos’ Builder’s Remedy Lawsuits

A Santa Clara County judge has put the kibosh on a lawsuit by the town of Los Gatos all because of a simple three-letter word.

Santa Clara County Superior Court Judge Helen E. Williams dismissed a lawsuit from the town that aimed to clarify the state’s housing law and potential application of builder’s remedy in the Bay Area enclave, the Mercury News reported.

The lawsuit centered around the meaning of the word “the” in a certain portion of the Permit Streamlining Act, which dictates rules for the approval process for housing developments across the state. The town of Los Gatos interpreted the law to mean that developers only get one 90-day resubmittal period to fix incomplete applications. The California Department of Housing and Community Development said the opposite, stating developers can have an indefinite number of 90-day periods to resubmit amended applications.

Los Gatos filed the lawsuit last April against Arya Properties LLC, the developer behind the Arya, Luxe and Vista Capri projects. The developments were proposed under builder’s remedy, which allows developers to construct buildings of any desired height and size in cities that don’t have a state-certified housing element. Los Gatos filed the suit after the town deemed the developer’s Arya and Luxe preliminary applications were incomplete after two resubmittals.

The judge sided with the state’s view. The judge said the town of Los Gatos interpreted the law based on the phrase “the 90-day period,” where “the” meant the resubmittal period itself was a one-off. Williams ruled that “the” is written in the law to reduce repetition and ensure coherence in the legislation without limiting the number of 90-day periods allowed. The law also suggests that “multiple resubmissions in response to succeeding incompleteness determinations may be made without a preliminary application expiring,” she said.

Following the judge’s ruling, the town vowed to continue processing Arya Properties LLC’s applications and committed to complying with state housing requirements, saying it has approved or is processing applications for developments that would make up more than 80 percent of the units called for in the town’s Regional Housing Needs Allocation.

“We respect the court’s role in interpreting state law and appreciate the clarity provided by this order,” Mayor Rob Moore in a statement. “We will carefully review the decision with our legal counsel and continue to fulfill our responsibilities to the community to provide affordable housing and implement the Housing Element.”

— Chris Malone Méndez