Realtor-backed group sues three California cities over housing laws

The litigation, brought by Californians for Homeownership alongside the California Housing Defense Fund and YIMBY Law, targets specific local ordinances that attempt to bypass state mandates. Senate Bill 79, passed in 2025, requires cities to allow housing projects on sites within proximity to major transit stations, provided they meet clear criteria. While the law permits cities to refine local implementation, the plaintiffs argue that these three cities have overstepped by creating restrictive exemptions or outright bans.

In San Diego, the lawsuit challenges the city's use of a "walking path" exemption, which the plaintiffs claim uses poor infrastructure as a pretext to limit density. The suit also cites errors in city-published maps that have created uncertainty for developers. Meanwhile, San Francisco faces allegations of improperly designating land as "industrial employment hubs" to avoid housing requirements, while Montebello is being sued for imposing a complete development moratorium that allegedly violates the 2019 Housing Crisis Act. These cases, filed in their respective county superior courts, signal a hardening stance against local governments that treat state housing directives as optional.