YIMBY group sues Newsom over SB 9 pause in L.A. wildfire zones

California Gov. Gavin Newsom gave the state’s “yes-in-my-backyard” coalition celebrated wins this year on housing legislation.

Those same pro-housing activists have now sued him over an August executive order that exempts fire-ravaged areas in Los Angeles from a 2021 state law — Senate Bill 9 — that paved the way for higher density on single-family lots. L.A. Mayor Karen Bass mirrored Newsom’s action with her own order, banning projects in the Pacific Palisades.

YIMBY activists argue that Gov. Newsom’s order undermines less-wealthy residents of wildfire-impacted areas in their efforts to rebuild and remain in their communities. They claim the order prevents residents of more modest means from benefiting financially by adding revenue-generating units to their properties and rebuilding their lives. The activists contend that the order unfairly favors the wealthiest property owners in the same areas, who typically prefer larger, more expensive lots and less-dense neighborhoods.

“This case demonstrates the lobbying influence of small, highly-connected, wealthy communities, and their ability to stop a type of housing they dislike, even in the midst of a generational housing crisis,” the lawsuit says.

YIMBY Law, a pro-housing group, argues in state court that the executive order effectively gave the “not-in-my-backyard” crowd an out from Senate Bill 9, which NIMBYs had opposed.

The lawsuit comes as the state awaits a decision on an appeal of a judge’s decision regarding SB 9. Last year, a state court agreed with five charter cities that SB 9 didn’t apply to them.

After the fires, local and state efforts accelerated permitting and eased other red tape. Still, rebuilding has been slower than residents and officials would like.

Just one home in the Palisades has received a certificate of occupancy. A homebuilder-developer, Thomas James Homes, built a showpiece home that no one can buy yet, the Wall Street Journal reported.

In the Palisades, owners and developers began applying SB 9 provisions for density. Residents complained that higher-density projects would change the neighborhood’s character.

Over time, the area has become a wealthy enclave, replete with high-dollar homes. However, it also contains sections of more modest homes that had been passed down through generations.

Those owners have struggled to rebuild. All had the option to rebuild the equivalent of their previous houses and add some square footage. Soaring construction costs and insufficient insurance payouts have prompted owners to sell their cleared lots. Lots regularly fetch more than $2 million.

YIMBY Law’s lawsuit argues Newsom’s order slows and skews wildfire recovery by blocking SB 9’s small‑scale infill options. SB 9 lets underinsured homeowners split lots to sell, the group says. Owners could also build duplexes and ADUs or generate rental income to finance reconstruction. All of which the group says would be advantageous to working- and middle-class residents.

Suspending SB 9 makes rebuilding harder, more expensive, and less equitable, effectively reserving timely recovery for wealthier owners who can afford to rebuild single-family homes on large lots without added units or saleable parcels, the groups says.