Builder's Remedy

Updated July 21, 2026

The builder's remedy strips a California city of its normal zoning-based veto power over qualifying affordable housing projects when that city's Housing Element is legally out of compliance with state law — letting a developer propose a project regardless of local zoning as long as roughly 20% of units are affordable to lower-income households (or 100% at moderate-income).

What it means in practice

Once HCD certifies a city's Housing Element non-compliant, that city loses the ability to reject a qualifying project on zoning-consistency grounds. The state escalated enforcement in 2026, including direct litigation against noncompliant cities, and SB 1037 (2024) adds civil penalties for continued noncompliance.

Why it matters for LA multifamily

Builder's remedy exposure changes how a site should be evaluated in any city with Housing Element compliance problems — a parcel's real development potential can be much higher than its zoning implies if the local jurisdiction is currently out of compliance. Worth checking before assuming a site's existing zoning is the ceiling.

Related terms


From the Sterman LA Multifamily Glossary — defined the way a broker actually uses these terms.

Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.

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