Challenges to housing and community-serving projects.

Assembly Member Bonta's legislation expands California's legal protections for community development projects by allowing defendants to seek security bonds from plaintiffs challenging certain public service initiatives. The measure builds upon existing provisions that permit courts to require undertakings in cases involving low- and moderate-income housing developments.

Under the proposed changes, defendants could request that plaintiffs furnish financial security when filing legal challenges against projects providing essential community services like healthcare facilities, food banks, recovery support centers, and public infrastructure. To obtain an undertaking order, defendants must demonstrate that the lawsuit lacks merit and was filed in bad faith or to deliberately delay the project. Courts may require plaintiffs to provide up to $500,000 in security for potential costs and damages resulting from project delays.

The bill maintains current provisions allowing courts to reduce or waive undertaking requirements if plaintiffs demonstrate undue economic hardship. For housing developments, developers who modify plans in bad faith to fall below low-income requirements after an undertaking is filed must reimburse plaintiffs for the security costs. The measure defines qualifying community-serving projects as those undertaken by nonprofit organizations or government entities to provide basic necessities including shelter, food, healthcare, and public safety infrastructure.