Los Angeles faces $20M fine over delay of new housing project

Los Angeles could be fined nearly $20 million for delaying approval of a housing development at Woodland Hills Country Club, according to a letter from the club's attorney reported by HousingWire.

The city has 60 days to approve the construction of 398 homes or face a lawsuit that may result in punitive damages and an order to proceed with the project.

The letter states that the city’s denial violated Assembly Bill 2011 and the Housing Accountability Act, exposing Los Angeles to fines of at least $19.9 million plus attorney fees and compensatory damages.

The fines could reach $50,000 per housing unit if the city is found to have acted in bad faith or has lost similar cases during the same housing cycle, according to the attorney’s calculations.

The state housing department has set a November 25 deadline for Los Angeles to respond and may refer the case to the state attorney general if unresolved.

This legal action follows a recent appellate court ruling that allows homeowners to seek damages when cities miss mandatory permit deadlines, potentially expanding the scope of such claims.