Condo Owners Sue Coastal Agency

In the first of what is expected to be a wave of litigation against the California Coastal Commission, lawsuits were filed Monday by 11 Dana Point condominium owners who have been accused by the agency of abusing a low-income housing program.

Attorneys for the property owners complain they should no longer be required by the Coastal Commission to rent or sell the condominiums at below-market value, a condition when the condos were first occupied 20 years ago.

As many as 60 others who bought units at the Niguel Beach Terrace complex, which were initially designated low-cost housing, are expected to join the litigation in coming weeks, attorneys said Monday.

The Coastal Commission has issued cease-and-desist orders to 139 owners, accusing most of them of renting the units to tenants at market rates in violation of their purchase agreements, and accusing others of improperly selling them at full-market prices.

Under purchase terms, qualified buyers agreed to personally occupy the condos for at least 20 years, unless given permission to do otherwise by the Coastal Commission or the program’s administrator.

But the program administration changed hands several times during the years, and some owners have said that when they tried to get permission to sell or rent their condos, officials did not respond or assist them.

Most of the cease-and-desist orders were issued within days of the program’s end, following a flurry of notices requiring owners to demonstrate that they had not violated the purchase agreements.

Attorneys contend the owners they represent did nothing wrong.

“The homeowners essentially made a deal that these would be affordable housing units for a limited term,” said attorney Tom Roth, who is representing some of the owners.

“For each of these homeowners, those 20 years have expired. The question is why the commission is pursuing this now.”

Filing the complaint within 60 days of the orders is necessary to maintain the owners’ legal rights throughout the resolution process, attorneys said.

That process “is likely to take some time,” Roth said.

He declined to speculate how much time, but said all of the attorneys involved are in “active discussion” with the commission.

Peter Douglas, the commission’s executive director, did not return calls seeking comment Monday.

Attorneys also are negotiating an agreement to pause the legal process, giving them more time to discuss the matter with commission officials, they said.