What is the legal test for compensating a property owner for a violation of a zoning restriction?

California, United States of America


The following excerpt is from Monks v. City of Rancho Palos Verdes, B237221 (Cal. App. 2013):

the option of compensating the property owner or repealing the offending regulation. "If the alleged taking is a 'regulatory taking,' i.e., one that results from the application of zoning laws or regulations which limit development of real property, . . . the owner must afford the state the opportunity to rescind the ordinance or regulation or to exempt the property from the allegedly invalid development restriction once it has been judicially determined that the proposed application of the ordinance to the property will constitute a compensable taking. . . . Compensation must be paid for a permanent taking only if there has been a final judicial determination that application of the ordinance or regulation to the property is statutorily permissible and constitutes a compensable taking. Even then the state or local entity has the option of rescinding its action in order to avoid paying compensation for a permanent taking." (Hensler v. City of Glendale (1994) 8 Cal.4th 1, 13-14, italics added.)

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