Beverly Hills Faces Crisis as Judge Orders New Affordable Housing, and Residents are Furious

For decades, the exclusive neighborhood has managed to avoid meeting its requirements for new housing. However, California has started taking its housing crisis more seriously — and Beverly Hills residents are furious.

Outrage

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“People are furious,” one resident told The Hollywood Reporter. “They’re infuriated that a judge has the right to put a moratorium on residents on something that’s not their fight and not their fault.”

The moratorium

In December, a judge put a hold on Beverly Hills’ right to approve new home additions or project proposals. That means no kitchen remodels, no pool installations — no home renovations at all in a wealthy area famous for its passion for extravagant remodeling.

The reality

Of course, Beverly Hills residents are somewhat responsible, having avoided creating an adequate plan for affordable housing for decades. That’s left the almost 6-square-mile city covered mostly in large single-family homes, with rents soaring over double the national average.

Growing crisis

Beverly Hills isn’t the only place in California to have spent decades refusing to build more housing. In 2018, the state ranked second-last in terms of housing units per resident. Experts believe it could be up to four million housing units short of where it should be based on its population.

No argument

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Residents frequently complain that their exclusive neighborhood lacks the space for new development. “Other cities may sort of have that argument,” Matt Gelfand of Californians for Homeownership explained. “Beverly Hills definitely does not.”

Simple argument

“There is plenty of interest, and there are plenty of places to put it,” Gelfand said. “Beverly Hills is obviously a job center. It’s got enormous commercial use. So it needs to have housing.”

Freezing time

Residents furiously oppose any new buildings that would impact the “character” of the area, including even modestly-sized apartment buildings. As a result, the area’s population has actually declined over the last five decades — while California’s doubled.

Tricky issue

Beverly Hills “needs to find a way to sufficiently address state needs without undermining its character,” the chief of Wilshire Skyline told The Hollywood Reporter. “Unfortunately, until now, it hasn’t done enough, legally and politically, to address the state’s concerns. As a result, its attempt to preserve that character has backfired.”

End of the road

A 2017 California law called the Housing Accountability Act introduced what is called the “Builder’s Remedy.” According to this new rule, any city or county that refuses to sufficiently build more housing cannot veto proposed housing projects.

Sore thumbs

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Thanks to its refusal to build enough housing, Beverly Hills has been pounced on by developers, who have been able to submit proposals for over a dozen apartment buildings. One of them is 17 stories tall.

Making compromises

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One option for Beverly Hills is to try to compromise with developers. For example, one firm proposed a modest seven-story apartment building, which the city approved unanimously. Only six of the 54 units in the building are reserved for low-income residents, appeasing wealthy locals who worry about sharing their precious, exclusive neighborhood with others.

No choice

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“If [Beverly Hills] is going to grow, it has to grow vertically,” one developer told The Hollywood Reporter. “It’s going the way of Hollywood and Santa Monica, for better or for worse. It’s just the new reality of things.”

Ongoing battle

That doesn’t mean Beverly Hills will give up fighting to preserve its status as an exclusive area. On March 5, city council members are up for election. They’ve already filed a legal challenge to the judge’s December moratorium.