The City Council on Tuesday modified a condition that all houses on the final 25 lots in the controversial Oakmont View hillside subdivision be built by the developer, Gregg-Gangi.
The action allows the developer to sell the lots to buyers and private developers who can then build their own homes, subject to approval by city design review boards.
The condition was one of 28 imposed on the developer in June, 1989, when the council reluctantly granted approval to cut 70 feet from a prominent ridge in the Verdugo Woodlands area. Despite widespread opposition, officials said the grading was the only feasible way to obtain dirt needed to fill in a hole and complete the 197-lot subdivision.
The grading has since been completed, but Gregg-Gangi has been unable to obtain financing to build houses for speculation, officials said.