Appellant Nicholas Honchariw filed a vesting tentative map application with the County of Stanislaus that proposed subdividing a 33.7-acre parcel
This appeal concerns Honchariw's motion for attorney fees under subdivision (k) of section 65589.5 (section 65589.5(k)), which states that the court "shall award reasonable attorney's fees and costs of suit to the plaintiff or petitioner who proposed the housing development. ..." (Italics added.) The superior court concluded that the phrase "the housing development" (1) was ambiguous and (2) was intended to include only affordable housing developments.
In Honchariw v. County of Stanislaus, supra, 200 Cal.App.4th 1066, this court held that Honchariw's project was a "`proposed housing development project'" for purposes of subdivision (j) of section 65589.5. That interpretation is not controlling in this appeal because the attorney fees provision in section 65589.5(k) uses different language (i.e., "the housing development"). This slight difference in language is important because the phrase "housing development project" is defined by section 65589.5, subdivision (h)(2). (Honchariw v. County of Stanislaus, supra, 200 Cal.App.4th at pp. 1072-1073.) In contrast, the phrase "housing development" is not defined by the Housing Accountability Act.
We conclude that the attorney fees provision in section 65589.5(k) is ambiguous and, therefore, we must adopt the interpretation that best effectuates the Legislature's purpose. The legislative history for the bill that added the attorney fees provision to section 65589.5(k) states that the bill strengthens current law "by requiring a court to award attorney's fees to an affordable
From a textual perspective, we conclude the term "the housing development" contained in section 65589.5(k) refers to the housing development that is the subject of the "order or judgment" mentioned earlier in that section. That "order or judgment" is issued only in cases where a local agency has rejected an affordable housing project or emergency shelter without making the required findings or without substantial evidence to support its findings. Because the "order or judgment" referred to in the statute reaches only affordable housing and emergency shelters, it follows that the term "the housing development" used in the attorney fees provision is limited to affordable housing developments.
We therefore affirm the superior court's order denying attorney fees.
Honchariw proposed to divide a 33.7-acre parcel in the Knights Ferry area of Stanislaus County into eight parcels that would be used for residential purposes and one remaining parcel that would contain 12.03 acres of undeveloped land. In connection with this proposal, Honchariw submitted vesting tentative map application No. 2006-06 to the county planning commission.
In February 2009, the planning commission considered Honchariw's application and his request for an exception to the county's rule requiring that all subdivision lots be connected to a public water system whenever such a system is available. The county planning commission voted to deny Honchariw's application and the request for an exception.
Honchariw filed an administrative appeal. In March 2009, the Board voted five-to-zero to disapprove the subdivision project application and to deny the request for an exception to the rule requiring connections to an available public water system. The Board did not make any of the findings specified in subdivision (j) of section 65589.5.
Honchariw challenged the Board's disapproval by filing a petition for writ of mandamus. Honchariw, in his capacity of trustee of the Honchariw Family
The superior court denied the petition, concluding that the Board was not required to make written findings under subdivision (j) of section 65589.5 when it denied the application.
In November 2011, we reversed the superior court's judgment and ordered the court to issue a writ of mandate directing the Board to vacate its denial of Honchariw's subdivision project application, reconsider the application, and make certain determinations and findings in the event that it again denied the application. (Honchariw v. County of Stanislaus, supra, 200 Cal.App.4th at pp. 1081-1082.)
In January 2012, the superior court issued the writ of mandate and directed the Board to file a return to the writ within 90 days.
In February 2012, Honchariw filed a motion for attorney fees that proposed an award of $611,400 to cover the time he had acted as the attorney for petitioner-trustee. Honchariw's calculation of the award was based on 530 hours spent on the litigation
In March 2012, the Board filed its opposition to the motion for attorney fees. The Board argued that section 65589.5(k) applied only to litigation involving certain low-income or affordable housing projects and, therefore, the motion should be denied. To support its interpretation of the statute, the Board requested the superior court to take judicial notice of three items of legislative history concerning section 65589.5.
The Board also argued that Honchariw could not recover attorney fees because he simultaneously acted as the petitioner-trustee and as the attorney for the trust. As to the amount claimed, the Board asserted the fees were
In late April 2012, the superior court held a hearing on the motion for attorney fees and a motion to tax costs filed by the Board.
On June 22, 2012, the superior court filed its written ruling on the motions. The court denied Honchariw's motion for attorney fees, concluding "that the attorney fee provision of Government Code section 65589.5(k) is inapplicable in this case." As a rationale for the statute's inapplicability, the court stated that the wording of section 65589.5(k) seemed to limit the recovery of attorney fees to cases involving affordable housing and emergency shelters and the legislative history confirmed such an intention.
Later in June, the Board filed a supplemental return stating that (1) in May 2012 it approved Honchariw's application in a four-to-one vote and (2) no findings were required under subdivision (j) of section 65589.5 because of the approval.
In July 2012, Honchariw filed a notice of appeal from the order denying the motion for attorney fees.
This appeal concerns the scope of the attorney fees provision in the Housing Accountability Act and whether, properly interpreted, reasonable attorney fees are required in cases where the proposed development does not include affordable housing.
It is well established that questions of statutory construction present issues of law subject to independent review on appeal. (E.g., Twedt v. Franklin (2003) 109 Cal.App.4th 413, 417 [134 Cal.Rptr.2d 740].) Therefore, we will conduct an independent review of this appeal.
The "plain meaning" rule, however, does not require courts to automatically adopt the literal meaning of a statutory provision. (Goodman v. Lozano (2010) 47 Cal.4th 1327, 1332 [104 Cal.Rptr.3d 219, 223 P.3d 77].) For example, when a literal construction would frustrate the purpose of the statute, that construction is not adopted. (Arias v. Superior Court (2009) 46 Cal.4th 969, 979 [95 Cal.Rptr.3d 588, 209 P.3d 923] [nonliteral construction of Prop. 64 adopted based on evidence of underlying purpose and voter intent]; Bob Jones University v. United States (1983) 461 U.S. 574, 586 [76 L.Ed.2d 157, 103 S.Ct. 2017] [a well-established canon of statutory construction provides that literal language should not defeat the plain purpose of the statute].) Also, courts will not adopt a literal construction when it produces absurd consequences. (Provigo Corp. v. Alcoholic Beverage Control Appeals Bd. (1994) 7 Cal.4th 561, 567 [28 Cal.Rptr.2d 638, 869 P.2d 1163] [Court of Appeal's plain meaning approach to constitutional provision rejected to avoid absurdity]; see generally Manning, The Absurdity Doctrine (2003) 116 Harv. L.Rev. 2387.)
Courts determine the apparent intent of the Legislature by reading the ambiguous language in light of the statutory scheme rather than reading it in isolation. (Lungren v. Deukmejian, supra, 45 Cal.3d at p. 735.) In other words, the ambiguous language must be construed in context, and provisions relating to the same subject matter must be harmonized to the extent possible. (Ibid.) In addition, courts may determine the apparent intent of the Legislature by evaluating a variety of extrinsic aids, including the ostensible objects to be achieved by the statute, the evils to be remedied, the statute's legislative history, and public policy. (Honchariw v. County of Stanislaus, supra, 200 Cal.App.4th at p. 1073.)
Ordinarily, we would begin our analysis by setting forth the words in the attorney fees provision contained in the third sentence of section 65589.5(k) and then would set forth the remaining text of that subdivision to establish the context for the attorney fees provision. Here, because of the length and complexity of the language used in section 65589.5(k), we will take a chronological approach to section 65589.5(k) and begin by describing the bills and legislative history relevant to its enactment.
Section 65589.5 did not contain a subdivision (k) until 1999, when it was added by Senate Bill No. 948 (1999-2000 Reg. Sess.). The initial version of subdivision (k) did not contain an attorney fees provision. (Stats. 1999, ch. 968, § 6, p. 6999.) Instead, it addressed the relief a court was required to implement if it found that a local agency failed to make certain findings supported by substantial evidence in connection with the disapproval of a project for affordable housing.
Two years later, the Legislature enacted Assembly Bill No. 369 (2001-2002 Reg. Sess.) (Assembly Bill 369), which added an attorney fees provision to section 65589.5(k). (Stats. 2001, ch. 237, § 1, p. 2128.)
Three items of legislative history were included in the request for judicial notice that the Board filed to support its opposition to the motion for attorney fees. One of the items was the report on Assembly Bill 369 prepared for the Assembly Committee on Judiciary hearing on May 2, 2001, which included a synopsis that began: "This Measure Requires A Court, When It Finds That A Local Agency Has Disapproved A Housing Development Project For Very Low, Low- Or Moderate-Income Households Without Making Sufficient Findings Supported by Substantial Evidence, To Award Reasonable Attorney's Fees, Actual Damages, And Costs Of Suit To The Plaintiff." (Assem. Com. on Judiciary, Rep. on Assem. Bill No. 369 (2001-2002 Reg. Sess.) as amended Apr. 30, 2001, p. 1, italics added.)
This statement supports the conclusion that the attorney fees authorized would be limited to situations where a wrongful denial of approval involved affordable housing. The report also contains comments from the author of Assembly Bill 369, which refer to prior amendments that strengthened the Anti-NIMBY law and then stated:
"Unfortunately, the law still is in need of improvement. Low and moderate income housing is still being denied or saddled with so many conditions that it is effectively denied, despite the applicant's compliance with the local government's general plan, zoning and development requirements.... While an applicant is empowered to sue, it is extremely costly to litigate and current law does not permit recovery of litigation costs. Too many appropriately zoned and desperately needed housing developments are not getting built because the applicant cannot afford the cost of litigation.
"... The intent of the bill is to hold governments accountable for their actions if the following is true: the low and moderate income housing development application is in compliance with current local government standards and the local government denies the application. To help put some teeth into the affordable housing law, AB 369 provides that a prevailing plaintiff who is wrongfully denied warranted approvals for affordable housing construction to receive reasonable attorney fees, actual damages, and costs." (Assem. Com. on Judiciary, Rep. on Assem. Bill No. 369 (2001-2002 Reg. Sess.) as amended Apr. 30, 2001, p. 3.)
The author's statement about the intent of Assembly Bill 369 specifies that one of the conditions for the recovery of attorney fees is that "the low and
The report also states that the "author and sponsor argue that the measure is an attempt to hold local governments accountable for improperly denying low-income housing projects. They argue that many projects are often denied because of `NIMBY' fears, and state that the bill `provides an effective remedy for applicants who otherwise cannot afford to sue and "eat" their costs....'" (Assem. Com. on Judiciary, Rep. on Assem. Bill No. 369 (2001-2002 Reg. Sess.) as amended Apr. 30, 2001, p. 4.) The report's description of the opponents' view of Assembly Bill 369 indicates that they, like the bill's proponents, believed the attorney fees award was limited to developments involving housing for very low, low- or moderate-income households. The opponents believed the attorney fees proposed were too broad because they included moderate-income housing projects and, as a result, could allow a "Fortune 500" home developer of such a project to recover costs and attorney fees from a small city if the developer prevailed in a lawsuit. Neither side took the position the bill's attorney fees provision covered housing for persons with incomes above the moderate-income range.
Honchariw's discussion of the legislation that added the attorney fees clause to section 65589.5(k) is limited. His opening brief did not mention Assembly Bill 369 or the contents of any legislative history for that bill.
Honchariw's reply brief mentions Assembly Bill 369 and the report to the Assembly Committee on Judiciary relied upon by defendants. His reply brief asserts that the report "elaborates statements of the Sponsor expressing concern about housing generally" and then quotes parts of two different
In addition to the legislative history presented by defendant, we will consider the last report or analysis for Assembly Bill 369 available on the Legislative Counsel's official Web site. That analysis was prepared for the Assembly's concurrence in the Senate amendments to Assembly Bill 369 and summarizes the bill as follows: "Strengthens the state affordable housing law by requiring a court to award attorney's fees to an affordable housing developer that has had a project unfairly denied by a local agency." (Conc. in Sen. Amends. to Assem. Bill No. 369 (2001-2002 Reg. Sess.) as amended July 17, 2001, p. 1, italics added.)
The comments in the analysis reiterate the supporters' position that the bill "is an attempt to hold local governments accountable for improperly denying low-income housing projects." (Conc. in Sen. Amends., Assem. Bill No. 369 (2001-2002 Reg. Sess.) as amended July 17, 2001, p. 2, italics added.) The comments also include the statement that the Senate's amendments are consistent with Assembly actions and clarify what the extraordinary circumstances are that allow a court to not award attorney fees. (Ibid.)
Next, we turn to the words of the statute to see if those words are compatible with the conclusions we draw from the legislative history.
Section 65589.5(k) contains four sentences. The most important sentence is the third because it authorizes the award of reasonable attorney fees. Next in importance is the second sentence because of the parties' disagreement about its affect on the meaning of terms used in the attorney fees provision. The first and fourth sentences are not directly involved in the interpretation of the attorney fees provision
This sentence's length (it contains over 100 words) and structure present complexities, a few of which we must resolve to decide this case. The most important complexity concerns whether the project referred to in the phrase "disapproved a project" means the disapproval of any housing development or, alternatively, is limited by the subsequent prepositional phrase to projects "for the development of an emergency shelter, or housing for very low, low-, or moderate-income households...." (§ 65589.5(k).)
The attorney fees provision states that the court "shall award reasonable attorney's fees and costs of suit to the plaintiff or petitioner who proposed the
The Legislature's two uses of "the" indicate it was referring to a specific type of petitioner and a specific type of "housing development." To illustrate
When a court determines that statutory language is ambiguous, the sentence in question "must be read not in isolation but in light of the entire statutory scheme." (Lungren v. Deukmejian, supra, 45 Cal.3d at p. 735.) In addition, courts may ascertain the intent of the Legislature by looking to the ostensible objects to be achieved by the statute, the evils to be remedied, the statute's legislative history, and public policy. (Honchariw v. County of Stanislaus, supra, 200 Cal.App.4th at p. 1073.)
This conclusion leads to the next new question: What order or judgment? The Legislature used the phrase "its order or judgment" immediately after a sentence that specifies the circumstances in which "the court shall issue an order or judgment compelling compliance with this section within 60 days...." (§ 65589.5(k), italics added.) Thus, it is reasonable to interpret the
This interpretation explains the absence of an express requirement that the plaintiff or petitioner be a prevailing or successful party. Because the plaintiff or petitioner and the housing development are the plaintiff or petitioner and the housing development referred to in the order or judgment, it naturally follows such plaintiff or petitioner authorized to recover attorney fees was a prevailing party.
The last step of our statutory analysis is to determine whether the second sentence of section 65589.5(k) can be interpreted so that the phrase "an order or judgment compelling compliance with this section" is limited to developments involving affordable housing. The answer to this question depends on whether a long prepositional phrase in the second sentence is read to modify both "disapproved a project or conditioned its approval" or, alternatively, is read to modify only "conditioned its approval" and is not concerned with project disapprovals. The former reading can be described as a parallel construction.
We conclude that either interpretation is possible. The second sentence of section 65589.5(k) can be read as stating: If "a court finds that the local agency disapproved a project ... without making the findings required by this section ..., the court shall issue an order or judgment compelling compliance with this section within 60 days ...." Under this reading the phrase "disapproved a project" would not be limited by the prepositional phrase included in the following interpretation and, thus, the resulting "order or judgment" would appear to cover any type of project, not just projects containing affordable housing.
The following interpretation of the second sentence of section 65589.5(k) also is reasonably possible: If "a court finds that the local agency disapproved a project ... for the development of an emergency shelter, or housing for very low, low-, or moderate-income households, including farmworker housing, without making the findings required by this section or without making sufficient findings supported by substantial evidence, the court shall issue an order or judgment compelling compliance with this section within 60 days...." (Italics added.) The italicized clause, which was omitted from the other interpretation, would limit the type of project referenced in the second sentence to projects that include affordable housing and, therefore, would limit the resulting "order or judgment" to those concerning projects that include affordable housing.
As we previously discussed, the legislative history for Assembly Bill 369 supports the view that the Legislature intended to limit the attorney fees provision to lawsuits involving affordable housing. For example, one item of legislative history summarized Assembly Bill 369 as follows: "Strengthens the state affordable housing law by requiring a court to award attorney's fees to an affordable housing developer that has had a project unfairly denied by a local agency." (Conc. in Sen. Amends. to Assem. Bill No. 369 (2001-2002 Reg. Sess.) as amended July 17, 2001, p. 1, italics added.)
The order denying Honchariw's motion for attorney fees is affirmed. Respondents shall recover their costs on appeal.
Gomes, Acting P. J., and Poochigian, J., concurred.