By Vanguard Staff
LAFAYETTE, Calif. — The City of Lafayette has reached a settlement with the Housing Action Coalition (HAC) in a lawsuit alleging the city’s Housing Element failed to comply with California housing law, agreeing to consider significant zoning changes and pay $120,080 in attorney fees to resolve the litigation.
Under the settlement agreement, Lafayette will consider upzoning approximately 130 acres of land through its regular public hearing and discretionary review process by the end of the year. The city also agreed to pay attorney fees associated with the lawsuit.
“While we dispute HAC’s contentions, this settlement agreement was made as part of a compromise in order to avoid time consuming and costly litigation. Lafayette has been and continues to be committed to providing for more housing in our community, including much-needed affordable housing,” said Mayor Carl Anduri.
City officials said the settlement not only resolves the pending lawsuit but also helps shield the city from future legal challenges tied to evolving housing laws and recent court decisions. By addressing disputed issues now, the city said it can reduce future litigation risk, avoid additional challenges to its Housing Element and focus resources on long-term planning efforts.
As part of the agreement, Lafayette will consider increasing residential density in several areas along and near Mt. Diablo Boulevard. The city will evaluate increasing density on land north of Mt. Diablo Boulevard currently zoned for 60 dwelling units per acre to as much as 65 dwelling units per acre. It will also consider increasing densities from 35 to 45 dwelling units per acre on multiple parcels north and south of Mt. Diablo Boulevard, including areas between El Nido Ranch Road and Pleasant Hill Road and portions of the downtown corridor near Golden Gate Way. In addition, the city will consider adding two acres to the De Silva South parcel at a maximum density of 35 dwelling units per acre.
Housing advocates praised the agreement as an important step toward increasing housing opportunities in a high-resource community.
“Planning for more homes near transit in a high-resource community like Lafayette is exactly the kind of action the Bay Area needs to address the housing crisis and advance fair housing,” said Ali Sapirman, advocacy and policy manager at HAC.
Tom Mayhew of Farella Braun & Martel, who represented HAC on a pro bono basis, said the agreement would expand access to housing opportunities.
“We’re glad to see Lafayette taking this important step to give more people who can’t afford single-family homes the opportunity to live in a community with great schools, jobs, parks, access to transit, and other amenities,” Mayhew said.
City Manager Niroop K. Srivatsa said the proposed zoning changes align with Lafayette’s broader vision for downtown development and transit-oriented growth.
“The City of Lafayette envisions a vibrant, connected downtown where new residential growth along Mt. Diablo Boulevard will create more opportunities for people to live close to restaurants, shops, the library, parks, and other gathering places. Through this upzoning effort, the City will allow greater residential density within the commercial core with convenient access to the BART station, Highway 24, and the Lafayette-Moraga Regional Trail. We are committed to partnering with housing developers to deliver housing that will strengthen the economic health and vibrancy of our downtown,” Srivatsa said.
The settlement also includes changes to how Lafayette plans to meet its state-mandated housing obligations. If the proposed upzoning measures are approved, the city will no longer rely on five faith-based organization properties identified in its Housing Element to satisfy its Regional Housing Needs Allocation requirements.
In exchange, HAC agreed not to fund or support future litigation challenging Lafayette’s Sixth Cycle Housing Element or actions taken by the city pursuant to the settlement agreement.
Lafayette, a city of approximately 25,000 residents located along Highway 24 between Orinda and Walnut Creek, is required to plan for 2,114 new housing units under its 2023-2031 Housing Element. The city describes the Housing Element as a strategy to address California’s housing shortage while accommodating future growth.
Although Lafayette does not directly build housing, it establishes zoning and land-use regulations that determine where development can occur. The city’s housing stock consists primarily of post-World War II single-family homes, along with multifamily housing concentrated near downtown transit and services.
Several higher-density housing projects have recently been completed or approved in Lafayette. The Brant by Lennar opened in spring 2026 with 66 condominiums, including 10 below-market-rate units. Blue Oak by Griggs Group also opened in spring 2026 with 20 condominiums, including three below-market-rate units. The city approved the Mount Diablo Condominiums project in 2026, consisting of 31 condominiums, three below-market-rate units and a commercial space. In 2025, Lafayette approved the 1001 Oak Hill Road project, which includes 90 rental units, 11 below-market-rate units and ground-floor commercial space.
The Housing Action Coalition is a nonprofit organization that advocates for increasing housing production at all affordability levels across California to address housing shortages, displacement and rising housing costs.
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