A wealthy LA suburb sat on a homeowner's backyard-unit permit for three years. Now it may have to pay
California law says a permit for an accessory dwelling unit (ADU, a backyard home or granny flat) must be approved ministerially, with no discretionary review or hearing, within 60 days.
Wei Shi applied to build one at his Palos Verdes Estates home in 2020. He says the city demanded a conditional use permit, sent him through discretionary review and the local Homes Association "Art Jury," and a planning commissioner lobbied his neighbors against it. Approval finally came in 2023. Shi says the delay cost him more than $1 million in construction costs, interest, lost use, and property value.
A trial judge threw out his damages suit, saying the ADU law exists to help housing supply in general, not individual homeowners. On Oct. 23 the 2nd District Court of Appeal unanimously reversed: protecting permit applicants from exactly this kind of delay "is the point" of the statute, so Shi can sue the city under the Government Claims Act.
Why it matters: until now, a city could ignore the 60-day deadline and the worst outcome was being ordered to do its job late. Now stalling a homeowner can come with a bill. UC Davis law professor Chris Elmendorf says the same logic could reach other California housing laws that impose similar ministerial duties.
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