Lafayette has cut a deal that could noticeably reshape its downtown, agreeing to study upzoning across roughly 130 acres along Mount Diablo Boulevard as part of a settlement with the Housing Action Coalition. The agreement ends a lawsuit that challenged the city’s housing element and sets a deadline for the city to study specific zoning changes by the end of the year.
The settlement also requires Lafayette to pay about $120,080 in attorney fees and to evaluate rezonings that city officials say could add hundreds of homes to the downtown corridor, as reported by Patch. The city’s 2023–2031 housing element already commits Lafayette to entitle 2,114 new units by 2031, according to Patch.
What The Settlement Would Change
The agreement locks the city into formally considering higher density on several parcels along the Mount Diablo Boulevard corridor. That includes increasing allowable density from 60 to 65 dwelling units per acre on land north of Mt. Diablo Boulevard, and boosting 35 to 45 dwelling units per acre on multiple parcels along and adjacent to the boulevard, as outlined by The Real Deal. If those rezonings move through Lafayette’s usual discretionary review and public hearings, city staff say downtown development potential could grow by hundreds of units.
This settlement agreement was made "as part of a compromise in order to avoid time-consuming and costly litigation,” Mayor Carl Anduri said in a statement to The Real Deal. He added that Lafayette remains committed to adding housing, including much‑needed affordable housing.
Housing Action Coalition leaders praised the agreement and said planning for homes near transit in a high‑resource community like Lafayette advances fair‑housing aims, according to ContraCosta.news. Under the deal, the group has agreed to dismiss the lawsuit without prejudice if the city adopts the recommended rezonings by year end, ContraCosta.news reports.
Where This Intersects With Projects Already Approved
The settlement lands while several sizable projects are already moving through Lafayette’s planning pipeline. The city lists a seven story, 90 unit mixed use building at 1001 Oak Hill Road and a six story Mount Diablo Condominiums approval among recent actions. The City of Lafayette project page also shows two developments completed this spring that together added 85 condominiums, 13 of them below market rate, suggesting the proposed rezonings would layer on top of housing production that is already underway.
Legal And Next Steps
Under the settlement, Housing Action Coalition agreed not to fund or support further legal challenges to Lafayette’s Sixth Cycle Housing Element. In return, the city must consider the zoning changes through its regular public hearing process by December 31, 2026, according to Patch. Any formal zoning amendments will still require staff analysis, environmental review where applicable, and public testimony before the council can adopt changes.
Whether the rezonings actually materialize will depend on the city council and how those public hearings play out. For a city that has long favored lower density development, the settlement turns upzoning into a live option for meeting state housing requirements. We will be watching council agendas and planning filings as Lafayette moves toward the settlement’s deadlines.
