Dispute Between City and Developer Highlights Tensions Between SGMA and State Housing Policy

November 2025

California Water Law & Policy Reporter, Volume 36, Number 2

On September 22, 2025, the California Department of Housing and Community Development (HCD) issued a technical assistance letter that questions the City of Patterson’s decision to reject a developer’s tentative subdivision map for a proposed housing development. The Keystone Ranch development project (Project) sought to subdivide 95 acres into 719 single- and multifamily housing units in Stanislaus County. At a meeting in April 2025, the Patterson City Council rejected the subdivision map, finding groundwater supplies were insufficient to meet demands. The developer filed suit, arguing the City violated housing law by demanding an unreasonable condition to fund a $20 million groundwater recharge facility.

Subscribers to the California Water Law & Policy Reporter and California Land Use Law & Policy Reporter can read the full article here.