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).
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.
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.
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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