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Schreiber v. City of Los Angeles

Schreiber v. City of Los Angeles

Court of Appeal of California, Second Appellate District, Division Six

September 28, 2021, Opinion Filed

B303642

Opinion

TANGEMAN, J.—CA(1)(1) The density bonus law (Gov. Code, § 65915)1 requires that cities and counties allow increased building density, and grant concessions and waivers of permit requirements, in exchange for an applicant's agreement to dedicate a specified number of dwelling units to low-income or very-low-income households. Here we hold that neither the statute nor the Los Angeles City ordinance implementing it requires the applicant to provide financial documentation to prove that the requested concessions will render the development [**2]  “economically feasible.”

Appellants Scott Schreiber and Jessica Sabbah-Mani appeal denial of a petition for writ of administrative mandamus challenging the City of Los [*553]  Angeles's approval of a development project. Appellants contend: (1) the city abused its discretion when it approved incentives and waivers without obtaining the required financial documentation, and (2) the city's approval of the project was not supported by substantial evidence. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

Kiwi Neman and 488 San Vicente LLC (Neman) proposed a mixed-use development in the city of Los Angeles. Retail space and a residential lobby were planned for the ground floor and residential units above. Appellants reside in a single-family home nearby.

Existing zoning requirements would limit the building to three stories, a height of 45 feet in the front and 33 feet in the back, a total of 40 units, and a maximum floor area of 21,705 square feet (floor area ratio (FAR) of 1.5 to 1). Neman initially applied to build 53 units including five very-low-income units. The proposed building was 75 feet tall in seven stories, and 60,388 square feet of floor area (FAR 4.2 to 1). The proposal was modified in October [**3]  2017 to build 54 units including five very-low-income units, five moderate income units, and 59,403 square feet of floor area (FAR 4.1 to 1).

The original application included a financial feasibility analysis prepared by RSG, Inc. (RSG analysis). It included estimated development costs, net operating income, and financial feasibility. It calculated the cost per unit as $1,106,847 without the requested incentives, and $487,857 with the incentives.

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69 Cal. App. 5th 549 *; 2021 Cal. App. LEXIS 800 **; 284 Cal. Rptr. 3d 587; 2021 WL 4436987

SCOTT SCHREIBER et al., Plaintiffs and Appellants, v. CITY OF LOS ANGELES, Defendant and Respondent; KIWI NEMAN et al., Real Parties in Interest and Respondents.

Prior History:  [**1] APPEAL from the Superior Court of Los Angeles County, No. BS173256, Mitchell L. Beckloff, Judge.

CORE TERMS

substantial evidence, cost reduction, reductions, ordinance, economically feasible, density, waivers, documentation, development standards, density bonus law, costs, affordable housing, feet, trial court, floor area, very-low-income, households, off-menu, italics

Business & Corporate Compliance, Real Property Law, Zoning, Ordinances, Governments, Local Governments, Ordinances & Regulations, Civil Procedure, Appeals, Standards of Review, De Novo Review, Legislation, Interpretation, Administrative Law, Judicial Review, Abuse of Discretion, Growth Control, Evidence, Burdens of Proof, Allocation, Historic Preservation, Substantial Evidence, Inferences & Presumptions, Inferences, Presumptions, Particular Presumptions, Regularity, Admissibility, Expert Witnesses