AIDS Healthcare Foundation v. City of L.A.
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AIDS Healthcare Foundation and Coalition to Preserve LA (CPLA) (collectively, “Plaintiffs”) filed a petition for writ of mandate in the superior court challenging the approval by the City of Los Angeles (the “City”) of a real estate development project ( the “project”) proposed in an area covered by the Hollywood Redevelopment Plan. Plaintiffs argued that the City’s approval of the project violated the 15 percent requirement because it did not commit 15 percent of the residential units for affordable housing. The court denied the petition and entered judgment for the City and 6400 Sunset, LLC (the “real party”).
The Second Appellate District affirmed the Superior Court’s order denying Plaintiff’s writ of mandate arguing that the City’s approval of the project violated the 15 percent requirement. The court held that Dissolution Law rendered the 15 percent requirement inoperative and, even if it had remained operative, it does not apply. The court reasoned that the Dissolution Law renders the 15 percent requirement inoperative because complying with that requirement depends upon the allocation of tax increments to redevelopment agencies. Further, the Dissolution Law did not grant to the housing successor any powers the former redevelopment agency did not have (Sec. 34176, subd. (a)(1)), and former redevelopment agencies did not have general police powers. Thus, because general police powers were not available to redevelopment agencies under the Community Redevelopment Law and the Dissolution Law granted housing successors no greater powers, the City could not, as a housing successor, invoke such powers to require a developer to comply with the 15 percent requirement.
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