Encinitas, CA — The city of Encinitas announced Tuesday that a settlement agreement was reached Monday in a lawsuit brought against the city regarding local housing needs, including the Encinitas Housing Element and residential developments requesting density bonuses.

Developer DCM Properties, Inc. filed the lawsuit against the city in January. DCM’s suit challenged the city’s failure to update its Housing Element, provisions of its density bonus ordinance, and Encinitas’ Proposition A as inconsistent with state law.

DCM argued that the city enacted an ordinance with an incorrect interpretation of the state’s density bonus law. Enacted in 1979, the law, which gives housing developers the ability to build more units if they set aside a percentage of the units for senior citizens or low- to moderate-income earners, involves a multiplication formula that often results in a fractional number.

Encinitas City Council’s ordinance currently calls to round down in that event, whereas, DCM contended, state law requires rounding up.

Here are the provisions of the settlement agreement effective Monday, according to a city statement:

David Meyer, president of DCM, provided this statement to Patch regarding the settlement:

Encinitas Mayor Kristin Gaspar sent this statement to Patch about the matter:

The city’s prepared statement continues:

City Councilwoman Catherine Blakespear also sent a statement to Patch. Here’s what she had to say about the Council’s decision: