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Lawsuit challenges fast-track approval for Marina Safeway housing plan

Lawsuit challenges fast-track approval for Marina Safeway housing plan

Rule Changes San Francisco, CA local

San Francisco approved the 848-unit Marina Safeway project on November 6. Neighbors are still fighting it in federal court.

5 days ago: San Francisco grants final approval to Marina Safeway project

Overview

Updated 2 days ago

San Francisco gave final approval on November 6 to an 848-apartment redevelopment of the Marina Safeway, clearing it under a 2022 state law that skips public hearings and environmental review. Developer Align Real Estate would build 22- and 18-story towers above a rebuilt grocery store. Setting aside 86 apartments for low-income households earned a 49.3% density bonus, which let the project exceed the site's 40-foot zoning limit.

Neighborhood groups and four residents sued the city, Align and PG&E in September, saying contamination from the site's industrial past was never tested beneath the store. Align has asked a judge to dismiss the neighbors' due-process claim, arguing that the 1871 civil rights law they invoke is meant to protect people from discrimination and that letting neighbors sue over routine land-use decisions would undercut state housing law. The judge hears that motion on February 4, 2027.

Why it matters

This case decides whether California's streamlined housing law can deliver large projects in a city required to build 82,000 homes by 2031.

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Key Indicators

848
Planned apartments
Number of homes in Align Real Estate's proposed development at the Marina Safeway site.
86
Affordable units
Below-market-rate homes in the plan, required for the density bonus.
82,000
City housing mandate by 2031
Number of new units San Francisco must accommodate under state law.

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People Involved

LB
Lori Brooke
Board member of YesAND Foundation, founder of Neighborhoods United SF
Leading the federal lawsuit; the city approved the project on November 6, 2026, and a judge hears the developer's motion to dismiss on February 4, 2027
 Stephen Sherrill
Stephen Sherrill
San Francisco Supervisor for District 2 (Marina)
Opposed the project and asked the city in June 2026 to reject its AB 2011 eligibility; the city approved the project on November 6, 2026
SG
Stuart Gross
Attorney for plaintiffs in the federal lawsuit
Representing the plaintiffs; the developer has moved to dismiss the federal due-process claim, with a hearing set for February 4, 2027

Organizations Involved

YesAND Foundation
YesAND Foundation
Housing nonprofit
Lead plaintiff in the lawsuit; the city approved the project on November 6, 2026, and a judge hears the developer's motion to dismiss on February 4, 2027

New nonprofit that supports housing but wants proper environmental and health review.
Neighborhoods United SF
Neighborhoods United SF
Coalition of neighborhood groups
Co-plaintiff in the lawsuit; the city approved the project on November 6, 2026, and a judge hears the developer's motion to dismiss on February 4, 2027

Coalition representing local business and community organizations in San Francisco.
Align Real Estate
Align Real Estate
Developer
Won city approval for the project on November 6, 2026; has not said whether it has financing; named in the federal lawsuit

Real estate developer proposing to replace the Marina Safeway with two residential towers.
San Francisco Planning Department
San Francisco Planning Department
City agency
Granted final approval to the project on November 6, 2026; defendant in the federal lawsuit

City agency that reviews land use permits and planning applications.
Pacific Gas and Electric Company (PG&E)
Pacific Gas and Electric Company (PG&E)
Investor-owned utility
Named as defendant in the federal lawsuit over the Marina Safeway site

Utility named as a defendant in the lawsuit over the Marina Safeway project.

Timeline

December 2025 November 2026

8 events Latest: 5 days ago
Tap a bar to jump to that date

  1. San Francisco grants final approval to Marina Safeway project

    Latest Government approval

    The city formally signs off on the 848-unit project under AB 2011, a process that skips public hearings and California Environmental Quality Act review. A 49.3% density bonus, earned by setting aside 86 low-income homes, let the developer exceed the site's 40-foot zoning limit. Planners judged added shadow on Marina Green and Fort Mason not significant. Align would not say whether it has secured financing or when construction could start.

  2. Developer moves to dismiss neighbors' due-process claim

    Legal filing

    Lawyers for Marina Property Owner LLC, an entity linked to Align, ask a federal judge to throw out the neighbors' due-process claim. They argue the 1871 civil rights statute it relies on is meant to protect victims of discrimination, not to force hearings on a permit. A hearing is set for February 4, 2027.

  3. Lawsuit filed against city and developer

    Legal filing

    YesAND Foundation, Neighborhoods United and four residents sue in federal court, naming the city, its planning and public health directors, PG&E, and developer Align Real Estate. The suit says the 2.6-acre site is contaminated by past industrial use and that the city should not have fast-tracked the project under AB 2011.

  4. City decides project qualifies for streamlining

    Administrative decision

    Planning Department announces the project can proceed through AB 2011 ministerial approval, skipping hearings and CEQA review. The department must formally approve or deny the project within 90 days.

  5. Community meeting draws hundreds of opponents

    Public meeting

    A packed community meeting hears strong opposition to the project's scale and environmental risks.

  6. Planning director defends site's eligibility

    Official determination

    Planning Director Sarah Dennis Phillips writes that the site is not on a hazardous waste list and considers surrounding parcels to be urban uses.

  7. Supervisor and residents question AB 2011 eligibility

    Political action

    Supervisor Stephen Sherrill and a coalition of residents ask the city to declare the site ineligible for streamlined approval, citing maritime zoning restrictions.

  8. Developer applies to redevelop Safeway site

    Application

    Align Real Estate files plans to demolish the Marina District Safeway and build two residential towers with 790 units.

Scenarios

1

Court vacates streamlining, project faces full environmental review

Possible Resolves by End of 2027

Discussed by: Plaintiffs and neighborhood groups

If the judge finds the city misapplied AB 2011 or ignored the site's contamination history, the approval could be set aside and the project sent through full environmental review under CEQA. That would likely delay construction for years and could force Align to redesign. The first test is the developer's motion to dismiss, argued February 4, 2027.

2

Court upholds streamlined approval, project proceeds to construction

Likely Resolves by End of 2027

Discussed by: Pro-housing advocates and the city attorney's office, which argues the law was applied correctly.

If the court concludes the site qualifies for AB 2011 and that the city's review was sufficient, the lawsuit collapses. The city approved the project on November 6, 2026; construction would then depend on financing, which Align has declined to discuss.

3

Parties settle, project modified with added mitigation

Unlikely Resolves by Q2 2027

Discussed by: Local mediators and some community leaders who see room for compromise.

Under pressure from a pending vote and litigation costs, the developer might agree to lower the towers, add open space, or fund environmental remediation in exchange for withdrawal of the lawsuit. A settlement would let some housing proceed without a protracted court fight.

4

Project approved but never built for lack of financing

Possible Resolves by End of 2027

Discussed by: Align Real Estate, which declined to say whether it has secured financing or when work could start

The city approval removes the permitting hurdle, but the developer still has to fund two towers and a rebuilt grocery store while a federal lawsuit is pending. If money does not come together, the approved project could sit unbuilt.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2019-2021

Simi Valley senior housing case (2019-2021)

YIMBY Law sued Simi Valley after the city council rejected a 108-unit residential care facility for seniors, claiming the units didn't qualify as housing because they lacked kitchens. The court ruled in 2021 that assisted living units are housing under the Housing Accountability Act.

Then

The city was forced to approve the project and pay legal costs.

Now

Established that state housing law can override local rejection of projects containing care facilities.

Why this matters now

Shows how pro-housing groups use lawsuits to enforce state housing laws against resistant cities. Here the roles are reversed: the lawsuit seeks to block a project, testing the limits of streamlining laws.

2023-

Sausalito housing element lawsuit (2023)

YIMBY Law and Californians for Homeownership sued Sausalito, California, for adopting a housing element they argued was noncompliant with state law, including unrealistic site inventories and missing environmental reviews.

Then

The city faced court pressure to revise its housing plan and land-use policies.

Now

Reinforced that cities must comply with state housing element law or face litigation.

Why this matters now

Illustrates the broader legal battle over how much control cities have in shaping housing. The Marina Safeway case is the inverse: a neighborhood group using courts to challenge a city's pro-housing decision.

Sources

(13)
+7
KQED Yahoo News (repost of KQED) New York Post YIMBY Law NBC Bay Area San Francisco Chronicle The Real Deal The San Francisco Standard HousingWire The American Developer SFist San Francisco Chronicle San Francisco Chronicle