It’s one of the most exclusive and expensive area codes in the country and home to stars like Leonardo DiCaprio and Taylor Swift.
But soon Hollywood’s elite may no longer be allowed to customize and upgrade their luxury residences – at least until they address the affordable housing shortage.
That’s according to Los Angeles Superior Court Judge Curtis A. Kin, who claimed the city failed to comply with state law that requires approval of plans to build low- and moderate-income housing.
The ruling, issued in late December, will temporarily suspend Beverly Hills’ ability to issue new building permits.
That means no new pool, kitchen, bathroom or gym for 90210 area code mansion owners.
The decision comes after a lawsuit was filed against the city of Beverly Hills in 2021 by the affordable housing advocacy group Californians for Homeownership, a nonprofit organization sponsored by the California Association of Realtors.
The ruling will temporarily suspend Beverly Hills’ ability to issue new building permits. Atomazul – stock.adobe.com
“The City of Beverly Hills is more than two years late in developing a compliant Housing Element,” Matt Gelfand, an attorney for Californians for Homeownership, said in a statement. “We are optimistic that the sentence imposed by the court will put the city on the right track towards adopting a compliant housing element by early 2024.”
An attorney for Beverly Hills said the city will continue to issue permits pending an appeal of the judge’s decision.
Beverly Hills is required to submit plans to Sacramento for more than 3,000 new affordable housing units, and it has yet to receive state approval.
The city failed to comply with state law requiring approval of plans to build low- and moderate-income housing, according to Los Angeles Superior Court Judge Curtis A. Kin ADLC – stock.adobe.com
The state of California has rejected four previous proposals.
The city has a long way to go to close the gap – over the past eight years, Beverly Hills has only managed to add about 20 units.
City officials argue that the plans for affordable housing would undermine the city’s character.
An attorney for Beverly Hills said the city will continue to issue permits pending an appeal of the judge’s decision. Felix Mizioznikov – stock.adobe.com
“We intentionally created a desirable environment by intentionally avoiding overdevelopment and overdensity,” Thomas White, chairman of the Beverly Hills Municipal League, told the Los Angeles Times.
Real estate professionals in the area are warning that if this decision goes into effect, it could have serious consequences for residents looking to make big changes to their expensive pad.
“About 80% of buyers are looking to do some type of work that requires a permit because they’re spending some money on the house,” said Paul Salazar, director of luxury real estate at Hilton and Hyland. “For these particular buyers in Beverly Hills, they want it the way they want it.”
Salazar told FOX Business that residents and real estate professionals think the responsibility should fall on the state and that a ban on new projects would hurt the local economy.
“Instead of restricting, why not incentivize?” Salazar said. “That’s what I hear the most with homeowners… you’re not only hurting the residents of Beverly Hills, you’re also hurting real estate agents, title people, contractors, architects and subcontractors. You are ruining the whole economy.”
According to Realtor.com, the median listing home price in Beverly Hills was $6 million in December 2023, down 14.3% year over year.
The median home sale price is $3.5 million.
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Source: thtrangdai.edu.vn/en/
