Local
California appeals court says Palos Verdes Estates unlawfully delayed backyard-home permit
A state appeals court ruled that Palos Verdes Estates violated a homeowner’s rights by taking more than three years to approve an accessory dwelling unit. The decision could expose cities to damages for improperly rejecting housing applications and may influence other state laws designed to speed construction.
A California appeals court has ruled that Palos Verdes Estates violated state law when it took more than three years to approve a homeowner’s application for an accessory dwelling unit, a decision housing advocates say could strengthen efforts to limit local delays in building homes.
The 2nd District Court of Appeal issued the unanimous ruling Friday, reversing a Superior Court decision in favor of the city. The case involved Wei Shi, who applied in 2020 to build an ADU beside his home in the Los Angeles County coastal suburb. The city approved the project in 2023, around the time it repealed its regulations, and the unit has since been built.
Shi said the delay cost him hundreds of thousands of dollars in property value, lost use, construction expenses and other costs. The ruling allows him to seek damages, though the amount, if any, has not been determined.
State law requires local governments to promptly review and approve qualifying ADU applications, the court said. Such approval is “ministerial”: if a proposed unit meets basic legal requirements, including applicable design standards and zoning rules, officials cannot add discretionary hurdles.
The law is intended to help homeowners build ADUs “without undue interference from local governments” and protect against delays like the ones Shi experienced, Justice Nicholas Daum wrote for the three-judge panel.
Christopher Elmendorf, a UC Davis law professor, said the decision could mean a city found to have wrongly rejected a housing application would face damages. Previously, he said, damages were available in limited circumstances when a city unsuccessfully appealed a Superior Court order approving construction.
The ruling may also matter beyond backyard homes. Elmendorf pointed to state laws that streamline approval of other housing, including SB 423, which allows state housing officials to approve certain multifamily projects outside coastal areas, and AB 2011, which eased some construction barriers in business districts.
ADUs can be rented to any tenant, but are also used to house relatives and caregivers. State law requires residents to stay in them for more than 30 days.
Shi’s attorney, Jeffrey Lewis, said the decision bars local governments from creating new obstacles for homeowners. Palos Verdes Estates’ lawyers were not immediately available for comment. The city could ask the California Supreme Court to review the case.