Victory in Laguna Beach! Family can finally build ADU, City (reluctantly) says

The Laguna Beach City Council voted to approve a coastal development permit for Steve and Karen Reinecke to build an accessory dwelling unit on their property, concluding a contentious battle that required legal intervention from the Pacific Legal Foundation.

The decision came after a seven-hour council meeting on July 8, allowing the couple to proceed with their retirement planning strategy of renting the unit short-term before potentially housing family members or caretakers as they age.

ADUs are secondary residential structures built on properties with existing homes, which California lawmakers have designated as an "essential component" in addressing the state's housing shortage.

The Reineckes' case highlights ongoing tensions between local zoning authorities and state housing mandates, as the city initially processed ADUs without requiring coastal development permits under a California Coastal Commission exclusion order.

However, when neighbors objected to the Reineckes' project, city officials worked with the Coastal Commission to reverse their position and require the additional permitting process.

The approval came despite initial concerns from the city council about potential impacts on coastal scenic resources and public views.

City staff and the Community Development director had recommended approval, finding the project complied with all local coastal policies.

The case demonstrates the regulatory hurdles California property owners may face when building ADUs, even with strong state-level support for increasing housing density.