San Diego

Encanto Hillside Showdown as Neighbors Try to Stall D.R. Horton Buildout

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Published on May 10, 2026
Encanto Hillside Showdown as Neighbors Try to Stall D.R. Horton BuildoutSource: Google Street View

Encanto neighbors are not quietly accepting a big new housing project on their local hill. Residents have filed an appeal to pause a recently approved subdivision they say leans on a now-repealed zoning loophole called “Footnote 7” to cram dozens of homes onto a long-vacant slope, and they want those approvals put on hold while the challenge runs its course at City Hall.

What the plan would build

The proposal would carve the property into roughly 130 lots and allow about 123 single-family homes, with 13 of those units deed-restricted as affordable housing, according to the City of San Diego. D.R. Horton Los Angeles Holding Company is listed as the applicant, and the plan also calls for seven private open-space lots and a scattering of pocket parks. The staff report notes that the Chollas Valley community planning group voted in October 2024 to recommend denying the project.

Why Footnote 7 matters

Footnote 7 was a tweak to the city’s zoning rules that shrank minimum lot sizes in parts of Encanto from about 20,000 square feet to roughly 5,000, opening the door to denser single-family subdivisions. After months of angry public testimony, the City Council voted last year to repeal the provision, according to 10News. Some neighbors and local advocates have long argued that the Old Memory Lane parcel should stay as community open space instead of turning into what they see as a pocket subdivision, reporting by Voice of San Diego says.

Residents' appeal

Neighborhood groups and nearby homeowners filed an administrative appeal this week seeking to halt the permits, arguing that the city’s approvals rely on the Footnote 7 pathway and that the public was not given adequate notice, CBS 8 reported. Organizers say the hillside is one of the few remaining pieces of open land in Southeast San Diego and warn that converting it into tightly packed private lots would burden local streets, schools and parks.

Legal questions and next steps

The appeal triggers an administrative review that can lead to a City Council hearing if the filing meets all procedural rules. City guidance notes that the public has only a short window to submit appeals and that council hearings are typically scheduled after that deadline passes, according to the City of San Diego. The core dispute is whether applications deemed complete before Footnote 7 was repealed must still be judged under the old rules, a position city staff acknowledged in reporting by Voice of San Diego. If the administrative appeal comes up short, opponents could still seek court review of environmental or procedural issues, though such litigation is often lengthy and uncertain.

What to watch next

Neighborhood groups say they plan to press their case at city hearings and, if necessary, keep fighting in other legal arenas to preserve what they view as critical open space. CBS 8 reports that residents are organizing to attend upcoming public meetings and are closely watching the city’s calendar for when the appeal will land on the docket.