State housing density rules will apply fully in Beverly Hills after the City Council voted Tuesday, Oct. 20, to abandon its custom alternative plan for Senate Bill 79.
The council also voted 4-0 to advance a program that would let up to 44 luxury condominiums at One Beverly Hills be rented through the Aman hotel for stays as short as one night. City Manager Ryan Gohlich estimated the rental program could generate $10 million to $20 million annually for the city.
SB 79 rescission
The council followed staff's recommendation to rescind the Transit-Oriented Development Alternative Plan (TODAP), which Beverly Hills adopted earlier this year to keep some local control over where additional housing density near the Wilshire/La Cienega Metro station would go. The plan had shifted density away from single-family neighborhoods toward mixed-use properties east of La Cienega Boulevard.
That effort collapsed after the California Department of Housing and Community Development (HCD) reversed key interpretations of the law, according to the Beverly Press. City staff met with HCD at least 14 times between late 2025 and July, according to an Oct. 20 staff report. HCD informed the city in a Sept. 3 letter that the revised plan did not comply with state law.
Principal Planner Chloe Chen said the biggest problem involved HCD's interpretation of height limits. Beverly Hills had sought certainty over maximum building heights, but HCD determined that developers could still seek additional height through state density bonus law.
"We've gone back and forth and round and round with HCD," Gohlich said, adding the city could pursue litigation but does not see a clear path to success.
Councilwoman Rebecca Pynoos, Councilwoman Sharona Nazarian, Councilman Lester Friedman and Vice Mayor Mary Wells all supported rescission. Mayor Craig Corman was absent due to illness. Resident Kourosh Beroukhim urged the council not to abandon the plan, calling the move premature and requesting an independent legal review of HCD's changed positions.
Rescinding the plan does not exempt Beverly Hills from SB 79. Standard state provisions will continue to apply to qualifying properties near transit. Staff will prepare a repeal ordinance for Planning Commission review before it returns to the council.
One Beverly Hills rental program
The council's 4-0 vote directs staff to draft legislation allowing condo owners at One Beverly Hills to place units into an Aman-managed rental pool, the Beverly Press reported. Under previous approvals, those residences could not be rented for fewer than 180 days. Units would not be listed on third-party platforms.
A combined 19% transient occupancy tax and municipal surcharge would apply to stays under one year.
The Beverly Hills Planning Commission deadlocked 2-2 on the rental program in August, according to the Beverly Press, though commissioners unanimously recommended approval of medical uses also proposed for the site. The Oct. 20 council action moves the proposal closer to approval.
Council members discussed safeguards including a cap on how many days each condo could participate annually and a minimum nightly rate to avoid undercutting Beverly Hills hotels. Pynoos raised concerns about setting a precedent, suggesting the council reconsider its citywide short-term rental ban if it grants One Beverly Hills an exception.
The council also advanced about 11,000 square feet of outpatient surgical space at the site, to be led by orthopedic surgeon Dr. Neal ElAttrache, and considered changes to the project's $8.5 million fine art obligation.
The Peninsula Beverly Hills, a neighboring luxury hotel, raised concerns about the rental proposal. Attorney Victor De la Cruz, representing The Peninsula, said the hotel and developer Cain International were in discussions to resolve the issue.
City Clerk Huma Ahmed reported 91 written comments supporting the proposals and two opposing them. The council will take a final vote Tuesday, Nov. 10.
