SB 916: Civil actions: housing development projects.

529.2.

(a) In all civil actions, including, but not limited to, actions brought pursuant to Section 21167 of the Public Resources Code, brought by any plaintiff to challenge a housing project which is a development project, as defined by Section 65928 of the Government Code, and which meets or exceeds the requirements for low- or moderate-income housing as set forth in Section 65915 of the Government Code, or which is a student housing project, a defendant may, if the bringing of the action or the seeking by the plaintiff of particular relief including, but not limited to, injunctions, has the effect of preventing or delaying the project from being carried out, apply to the court by noticed motion for an order requiring the plaintiff to furnish an undertaking as security for costs and any damages that may be incurred by the defendant by the conclusion of the action or proceeding as the result of a delay in carrying out the development project. The motion shall be made on the grounds that the action is without merit and that the action was brought in bad faith, vexatiously, for the purpose of delay, or to thwart the student housing or low- or moderate-income nature of the housing development project.

(b) In responding to a motion for undertaking, the plaintiff may seek to limit the amount of the undertaking by presenting admissible evidence that filing an undertaking will cause it, and in cases where the plaintiff is an unincorporated association, its members, to suffer undue economic hardship. If the court, after hearing, determines that the grounds for the motion have been established, the court shall order that the plaintiff file the undertaking in an amount specified in the court’s order, taking into consideration any admitted evidence of plaintiff’s economic hardship and avoiding causing the plaintiff to suffer undue economic hardship, as security for costs and damages of the defendant. The liability of the plaintiff pursuant to this section for the costs and damages of the defendant shall not exceed five hundred thousand dollars ($500,000). If the court concludes, based on all of the admissible evidence presented, that a bond in any amount would cause the plaintiff undue economic hardship, the court is authorized in its discretion to decline to impose a bond.

(c) If at any time after the plaintiff has filed an undertaking the housing development plan is changed by the developer in bad faith so that it fails to meet or exceed the requirements for low- or moderate-income housing as set forth in Section 65915 of the Government Code, the developer shall be liable to the plaintiff for the cost of obtaining the undertaking.

(d) For purposes of this section, “student housing project” means one or more housing facilities to be occupied by students of one or more campuses and owned by a public university, including dining, academic, and student support service spaces, and other necessary and usual attendant and related facilities and equipment.

529.2.

(a) This section applies to all civil actions, including, but not limited to, actions brought pursuant to Section 21167 of the Public Resources Code, brought by any plaintiff to challenge a housing project that is any of the following:

(1) A development project, as defined by Section 65928 of the Government Code, and which meets or exceeds the requirements for low- or moderate-income housing as set forth in Section 65915 of the Government Code.

(2) A priority care development as defined by Section 425.21.

(3) A student housing project as defined in subdivision (f).

(b) For actions described in subdivision (a), a defendant may, if the bringing of the action or the seeking by the plaintiff of particular relief including, but not limited to, injunctions, has the effect of preventing or delaying the project from being carried out, apply to the court by noticed motion for an order requiring the plaintiff to furnish an undertaking as security for costs and any damages or economic hardships that may be incurred by the defendant by the conclusion of the action or proceeding as the result of a delay in carrying out the development project. The motion shall be made on the grounds that the action is without merit and that the action was brought in bad faith, vexatiously, for the purpose of delay, or to thwart the student housing or low- or moderate-income nature of the housing development project, or the suitability of the priority care development to serve the intended population.

(c) (1) In responding to a motion for undertaking, the plaintiff may seek to limit the amount of the undertaking by presenting admissible evidence that filing an undertaking will cause it, and in cases where the plaintiff is an unincorporated association, its members, to suffer undue economic hardship. If the court, after hearing, determines that the grounds for the motion have been established, the court shall order that the plaintiff file the undertaking in an amount specified in the court’s order, taking into consideration any admitted evidence of plaintiff’s economic hardship and avoiding causing the plaintiff to suffer undue economic hardship, as security for costs and damages or economic hardships of the defendant. The liability of the plaintiff pursuant to this section for the costs and damages of the defendant shall not exceed one million dollars ($1,000,000). If the court concludes, based on all of the admissible evidence presented, that a bond in any amount would cause the plaintiff undue economic hardship, the court is authorized in its discretion to decline to impose a bond.

(2) The amount specified in this subdivision shall adjust annually for inflation, beginning on January 1, 2028, based on the change in the annual California Consumer Price Index for All Urban Consumers, published by the Department of Industrial Relations, for the most recent one-year period ending on December 31 preceding each adjustment, with each adjusted amount rounded to the nearest twenty-five dollars ($25).

(d) If at any time after the plaintiff has filed an undertaking the development plan is changed by the developer in bad faith so that it fails to meet or exceed the requirements for low- or moderate-income housing as set forth in Section 65915 of the Government Code, or it fails to meet the definition of a priority care development set forth in Section 425.21, or it fails to meet the definition of student housing project in subdivision (f), the developer shall be liable to the plaintiff for the cost of obtaining the undertaking.

(e) For purposes of this section, “plaintiff” includes “petitioner,” “cross-petitioner,” and “cross-plaintiff,” and “defendant” includes “respondent,” “cross-respondent,” “cross-defendant,” and “real party in interest.”

(f) For purposes of this section, “student housing project” means one or more housing facilities to be occupied by students of one or more campuses and owned by a public university, including dining, academic, and student support service spaces, and other necessary and usual attendant and related facilities and equipment.