SANTA ANA, Calif. – The City of Santa Ana has won a nearly three-year legal battle over its denial of a proposed high-density residential development at 2525 N. Main St. in a court ruling that reinforces the City’s land-use authority.
Superior Court Judge Melissa McCormick issued a final ruling on April 1, 2026, against AC 2525 Main, LLC, denying the company’s attempt to circumvent the local development review process. AC 2525 Main had sought a writ of mandate to compel the City to approve a 498-unit multi-family housing project at 2525 N. Main St. after the City denied the application. The developer argued that under the Affordable Housing and High Road Jobs Act of 2022 (AB 2011), the project was entitled to a “use by right” ministerial review process and should have been approved.
“This ruling validates the City’s commitment to responsible development and our right to local land-use control,” Mayor Valerie Amezcua said. “We remain dedicated to ensuring all projects undergo the proper public and ministerial scrutiny required by law, and we will continue to vigorously defend the integrity of our local decision-making process.”
In effect, the ruling upholds the City’s denial of the application, which was based on its use of AB 2011’s exemption process, allowing a city to exempt certain parcels from eligibility for AB 2011 ministerial approval if it made certain written findings. The City’s findings included the designation of replacement parcels for residential development. Subsequent to filing of the lawsuit, the Department of Housing and Community Development (“HCD”) issued the City a “Letter of Technical Assistance” that confirmed the City’s compliance with the law (dated December 20, 2024).
The City successfully defended its position by demonstrating a proactive and consistent approach to implementing state housing regulations.
In June 2023, the City exercised its legislative rights under AB 2011 and exempted eligible sites within the City from the ministerial review process, including 2525 N. Main St. Additionally, the City successfully argued that the lawsuit was moot because the developer did not have full ownership of the property.
The City remains committed to ensuring responsible and sustainable housing development aligning with the City’s General Plan, adopted in 2022, and continued development consistent with State mandates.
The Developer’s Remaining Legal Options
Following the April 1, 2026, ruling upholding the city’s denial of the project, the developer could pursue an appeal to the California Court of Appeal, address the mootness issue regarding site ownership, or submit a revised, discretionary development application.
Additional, though less likely, options include seeking further intervention from the Department of Housing and Community Development (HCD) or attempting a future “Builder’s Remedy” filing if the city falls out of housing element compliance.
How the California State Legislature could Help the Developer
Several pending and recently enacted bills in the California State Legislature could potentially provide new avenues for this developer, particularly regarding streamlined approvals and legal protections.
Key Legislative Opportunities
- Streamlining & Approval (AB 2118, AB 1710, SB 1258): Proposed changes aim to strengthen “use by right” provisions, limiting local subjective design requirements, and easing approval pathways for projects on specific infill sites.
- Legal & Procedural Protections (AB 1621): Pending legislation seeks to accelerate permit processing times, capping the number of required plan checks and enforcing stricter deadlines for appeals to prevent project stalling.
- Financial Assistance (SB 417/AB 736, SB 750): Potential state-backed insurance, credit enhancements, and a proposed $10 billion housing bond could significantly reduce financial risks and development costs.
These measures generally aim to reduce local discretionary control and expedite approval timelines for large-scale developments.