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December 20, 2022 <br /> Page 3 <br /> element lawsuits have been brought by both affordable housing advocates and <br /> private developers, and nothing prevents multiple parties from challenging the <br /> adequacy of the City's Housing Element. <br /> C. Attorneys' Fees. If the City's housing element is found to be <br /> inadequate, a Court will likely order the City to pay attorneys' fees to any <br /> successful party challenging the City's housing element. In housing element <br /> litigation involving the City of Pleasanton, the plaintiffs demanded $4 million <br /> and settled for$1.9 million. Defense costs to Pleasanton totaled$625,000. <br /> D. Continuing Scrutiny and Onerous Settlements. After <br /> referral from HCD, the Attorney General is also authorized to bring suit for <br /> failure to implement the housing element's programs and for violations of <br /> density bonus law, "no net loss" law, the Housing Accountability Act, the fair <br /> housing provisions contained in Section 65008, and other statutes. The Attorney <br /> General has sued Huntington Beach for failing to adopt the zoning promised in <br /> its housing element.4 <br /> If[City]becomes identified as a"bad actor,"anti-housing city,HCD may increase <br /> its scrutiny of all of the City's actions related to housing. HCD staff assigned to <br /> cities they perceive as "bad actors" have watched City Council meetings, <br /> subscribed to Councilmembers' newsletters, responded to developers by <br /> criticizing City review of projects, and threatened additional litigation if any <br /> housing element program was not implemented. In one case a city was ordered <br /> to adopt an adequate housing element and to receive HCD approval for the <br /> element. As a consequence the city was forced to agree to onerous programs that <br /> it believed were unnecessary. <br /> Most communities that are sued based on their housing elements ultimately <br /> reach a settlement with the plaintiffs. These settlements may impose more <br /> stringent conditions on the city than would have been required to achieve an <br /> adequate Housing Element. For instance, in a past settlement agreement, a <br /> county was required to conduct an expensive and detailed survey of <br /> farmworkers' housing needs, complete specified rezonings, and use its local <br /> Housing Trust Funds in ways specified by a settlement agreement. <br /> E. Moratorium on Development and Mandated Approvals. <br /> Courts may apply a broad range of remedies if they find that a housing element <br /> 4 The case was settled after Huntington Beach agreed to rezone sites to meet its housing element <br /> obligations. <br /> 990052\01\3078344.1 <br />