Laguna Beach council delays ruling on two‑story ADU coastal permit amid legal concerns

Mayor Alex Renaghi said the Laguna Beach City Council continued an appeal of a coastal development permit for a proposed two‑story attached accessory dwelling unit (ADU) so staff could provide more analysis about public‑view impacts and secure input from the California Department of Housing and Community Development (HCD).

“Ultimately, the city council decided…to continue the item to get more analysis on two questions,” Renaghi told radio host Tom Johnson, describing the council’s action as a pause to gather legal and planning guidance. The transcript did not record a formal vote tally or a mover/second for the continuation.

The exchange summarized a detailed council discussion about a 2024 state law that generally allows two‑story attached ADUs by right when zoning permits but includes a savings clause for the Coastal Act. Renaghi said that clause requires the city to apply its certified Local Coastal Program (LCP) when a property falls within the coastal zone.

The central planning question before the council, Renaghi said, was how the LCP defines an “adverse impact” on public views. Laguna Beach’s LCP protects public — not private — views, and the city’s design review process can limit two‑story construction using subjective criteria such as view equity. Renaghi said the ambiguity about public‑view impacts and feasibility was a key reason for seeking more analysis.

Renaghi also cited legal and fiscal risks that factored into the decision to continue the appeal. He referenced a prior settlement in which the city paid $2,500,000 related to a duplex where subjective design review criteria had been applied. Renaghi said the council did not want to issue a decision that could expose the city to litigation or risk decertification of its housing element, which could trigger the state’s builder’s remedy and reduce local zoning control.

The permit in question had been issued by the director of community development and was appealed to the council. The council asked staff to return with clearer findings on (1) whether the two‑story ADU would create a minor or significant public‑view impact given available one‑story alternatives on the same lot, and (2) any guidance from HCD that bears on compliance with state ADU law and coastal resource protections.

Renaghi said the goal is to follow both state ADU law and the Coastal Act through the city’s certified LCP and to avoid decisions that could lead to costly litigation or a housing‑element decertification.