Developer Sues L.A. After Area Planning Commissioners Reject Multi-Family Project

A development controversy also now an expanding legal controversy, after a local planning commission rejected a controversial development proposal allowed by zoning.

2 minute read

February 24, 2020, 9:00 AM PST

By James Brasuell @CasualBrasuell


"A West Hollywood-based real estate company has sued the city of Los Angeles, saying appointees of Mayor Eric Garcetti violated state law by rejecting plans for a 577-unit apartment complex in South Los Angeles," reports David Zahniser.

"Lawyers for District Square LLC said in their lawsuit that the South Los Angeles Area Planning Commission, a five-member panel made up of mayoral appointees, violated the Housing Accountability Act by denying their client’s application to build a six-story residential project."

As a market-rate development attracted gentrification and displacement controversy before the South Los Angeles Area Planning Commission (APC), in an advisory role, rejected the plan in November. Herb Wesson, who represents the area and serves as the president of the Los Angeles City Council, proposed an "anti-displacement zone" in response to the controversy.

The developer is already in legal hot water, according to Zahniser: "District Square LLC is managed, at least in part, by real estate developer Arman Gabay, who is facing bribery and wire fraud charges in a federal criminal case involving county leases. The developer has pleaded not guilty and is awaiting trial."

"Gabay and his company have also received multiple default notices from the city, saying he has failed to repay $6.3 million in taxpayer loans," adds Zahniser. Community leaders are calling for the city to seize the property and build affordable units on the site.

The state law cited in the developer's lawsuit is the Housing Accountability Act, sometimes referred to as the "Anti-NIMBY" Act. Planetizen correspondent Irvin Dawid detailed that state law in an article from August 2017

Friday, February 21, 2020 in Los Angeles Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

7 hours ago - Diana Ionescu

Front of Walmart store with sign.

Walmart Announces Nationwide EV Charging Network

The company plans to install electric car chargers at most of its stores by 2030.

May 7, 2025 - Inc.

Aerial view of Chicago with river in foreground.

Chicago Approves Green Affordable Housing Plan

The Mayor’s plan calls for creating a nonprofit housing corporation tasked with building affordable housing that meets Green Building standards.

May 8, 2025 - CBS News Chicago

Close-up on e-scooters parked in painted designated parking area on city street.

E-Scooter Parking: A Guide

How smart planning — and ample designated parking — can end conflicts over shared scooters.

4 hours ago - Streetsblog USA

Aerial view of Bozeman, Montana with mountains in background.

‘It’s Been 50 years’: Public Transit Law Passes in Montana

Legislation would fix transportation district issue, allow for greater reach on city bus routes.

5 hours ago - Daily Montanan

Illustration of nighttime city with white lines connecting nodes to illustrate technology and connectivity

Top 10 Tech-Ready Cities

An index ranks U.S. cities based on their preparedness for the ‘smart city future.’

6 hours ago - Smart Cities Dive