The city of San Mateo said it would not appeal a ruling by the California Court of Appeals in September over its denial of a 10-unit market-rate housing development in an announcement of a settlement that includes paying $450,000 in attorneys’ fees and costs to the petitioners.

Those petititioners include the California Renters Legal Advocacy and Education Fund, which filed the lawsuit claiming the city violated the Housing Accountability Act in denying the condominium development on West Santa Inez Avenue and El Camino Real in 2018. The rejected was based on neighbor concerns and the city’s multifamily design guidelines that included a requirement for a stepback or transition from the four-level development and the adjacent single-story homes. Instead, the city encouraged the developer to resubmit an application that complied with the step back requirement.

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