Lafayette City Council Considers Settlement Over Growth Plan Tonight

LAMORINDA, CA — Lafayette officials are poised to settle a lawsuit over the city's Housing Element after negotiating an agreement that would increase residential densities along portions of Mt. Diablo Boulevard, add land for future housing development, and pay more than $120,000 in legal fees to the Housing Action Coalition.

The proposed settlement, scheduled for City Council consideration tonight, stems from litigation filed by the Housing Action Coalition, which challenged whether Lafayette's Housing Element provides enough realistic development sites to meet state housing requirements, according to a city staff report.

State-required housing elements explain how a city will accommodate its share of future housing needs across income levels. In California, every city and county must update the blueprint regularly and submit it to the California Department of Housing and Community Development (HCD) for review and certification.

The Housing Action Coalition argued that the city lacked sufficient suitable sites and overstated the development potential of properties identified to satisfy its Regional Housing Needs Allocation obligations, according to a city staff report to the city countil.

Rather than continue the court fight, city officials entered settlement negotiations and crafted an agreement intended to reduce legal risks while preserving Lafayette's Housing Element's overall framework. Under the deal, neither side admits wrongdoing.

The agreement calls for Lafayette to increase the maximum density on some properties already zoned for 60 dwelling units per acre to 65 units per acre. The city would also increase allowable densities from 35 units per acre to 45 units per acre on multiple sites north and south of Mt. Diablo Boulevard, along with corresponding height increases.

In addition, Lafayette would rezone roughly two acres of the De Silva South property for residential development at up to 35 dwelling units per acre. A map attached to the agreement identifies the affected areas, including stretches of property along the Mt. Diablo Boulevard corridor and the De Silva South site.

The settlement would also prevent the city from relying on several faith-based properties in future "no net loss" housing calculations. The affected sites include Calvary Baptist/Living Hope, Our Savior Lutheran, Sun Valley Bible Chapel, Temple Isaiah, and Lafayette United Methodist properties.

At the same time, the Housing Action Coalition agreed not to oppose the city's use of several alternative sites to bolster its housing inventory buffer, including 100 Lafayette Circle, office properties at 3736 and 3746 Mt. Diablo Blvd., and parcels at Mt. Diablo Boulevard and Second Street.

If Lafayette adopts the agreed-upon zoning changes by Dec. 31, 2026, the coalition would dismiss the lawsuit with prejudice, ending the case permanently. The city's Housing Element would remain in effect without requiring a formal amendment.

As part of the settlement, Lafayette would pay the Housing Action Coalition $120,080 in attorney fees, plus 10% annual interest accruing from March 24, 2026, until payment is made.

City of Lafayette City Council Meeting: 7 p.m.