Developers have expressed that the top challenge to production is the difficulty and risk involved in the entitlement process, which is made more strenuous by local groups who delay projects with appeals and court challenges via the California Environmental Quality Act (CEQA). West Coast Land Use and Environment Partner Ryan Leaderman comments on environmental reports required by CEQA and explains that they are expensive and can take more than two years to complete.
“It absolutely is a fear for developers to be stuck in litigation for years,” said Mr. Leaderman.
“It can kill a project or cost a tremendous amount to survive litigation, even if it’s for a bogus reason. It definitely has a chilling effect on development.”
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