KB2S, Inc. v. City of San Diego (Fair Housing Discrimination)


Court of Appeals for the Ninth Circuit

NAHB Involvement


An LIHTC developer purchased property to build 50 units of low- and very low-income housing. The contract was contingent upon the award of tax credits, and the tax credits were contingent upon development approvals and a showing of further progress. The city refused to review the development application, and the developer ultimately failed to secure the tax credit financing. The developer sued the city alleging discrimination based on race, national origin and familial status. The U.S. District Court for the Southern District of California found that: (1) the developer had no standing to sue; and (2) because the neighborhood was already diverse and integrated, the developer could not prevail on a disparate impact claim.

NAHB's amicus brief was filed on June 19, 2007, and all briefing was completed in October 2007. On May 7, 2009, in a one-paragraph opinion, the Ninth Circuit agreed that the plaintiff lacked standing. NAHB's participation is now complete.