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Lafayette council authorizes settlement with Housing Action Coalition that requires targeted downtown upzones

Lafayette City Council · June 8, 2026
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Summary

The council approved a settlement that would resolve litigation over the city's 2024 housing element by upzoning specific downtown parcels, adding acreage to a named property, and paying roughly $120,000 in opposing counsel fees if conditions are met by year's end; the housing element will remain certified by HCD.

The Lafayette City Council voted unanimously to authorize a settlement agreement with the Housing Action Coalition aimed at ending a lawsuit challenging the city's 2024 housing element. Under terms described to the council, the agreement would conditionally require targeted upzoning in parts of downtown and payment of the coalition's attorneys' fees.

City staff told the council the settlement would convert some downtown properties from 60 to 65 dwelling units per acre and others from 35 to 45 dwelling units per acre, and add two acres of a specified property to be rezoned at 35 units per acre. In return, the coalition would dismiss its suit if the zoning changes and payment of roughly $120,000 in attorneys' fees are completed by the end of the year. The city attorney clarified the settlement does not require an amendment to the certified housing element, which would remain as approved by the California Department of Housing and Community Development.

Miss Subramania, who presented the item, said the upzones shown in the agreement are identified in an exhibit attached to the settlement and represent a compromise to avoid the uncertainty and risk of protracted litigation. Public commenter Elliot Hudson urged additional protections, noting the settlement lacks an escape clause should state law change and arguing for carve-outs for historic properties. City staff and the city attorney responded that some property protections would require additional negotiation and that changes in state law could affect the timing and desirability of moving forward; they also said zoning actions, once adopted, must follow state procedures and cannot be reversed solely by the settlement.

Council members said they had spent months discussing options and weighed the risks of prolonged litigation, including exposure to builder's-remedy development should the housing element be overturned. After questions and public comment, the council voted to authorize the city manager to execute the settlement agreement.

The vote authorizes staff to complete the upzoning and fee payment steps outlined in the agreement; staff said HAC would dismiss the suit only after those conditions are satisfied. The council directed staff to monitor developments in state law and report back if circumstances change.

What happens next: staff will return with maps and implementing zoning amendments for the parcels specified in the settlement and with a schedule for completing required steps before the year's end. If the city completes the zoning and fee payment as agreed, HAC is expected to file a dismissal of its lawsuit.

Speakers quoted in this article are listed in the meeting speaker roster and appear in the transcript.