Victory: Laguna Beach couple granted permit for ADU

Laguna Beach, California; July 10, 2025: Laguna Beach homeowners Steve and Karen Reinecke are finally able to build an accessory dwelling unit (ADU) on their property after the City of Laguna Beach had been poised to deny their rights. The Reineckes filed a lawsuit in January challenging the City in state court after being denied the coastal development permit (CDP) exemption to which the couple was entitled. The Reineckes put that lawsuit on hold to try to obtain the permit anyway in the hopes they could proceed with their project quickly.

“The City’s attempt to block the Reineckes’ ADU was an affront to property rights and a classic example of government overreach,” said Pacific Legal Foundation attorney David J. Deerson. “This outcome is a testament to the Reineckes’ perseverance and our commitment to ensuring that homeowners can build much-needed housing without facing arbitrary obstacles.”

During Tuesday’s council meeting, Mayor Alex Rounaghi indicated that the City “looked at every single possible way” to block the ADU, but he admitted that there was no legal basis to deny the permit. Even though the City’s staff found that the couple was entitled to a permit because the project fully complied with all local coastal policies, the City Council initially yielded to pressure from neighbors and sought ways to block the permit. The Reineckes hope to use the ADU as a rental unit, and in the future as a possible living space for family members or other caretakers so they can remain in the home they love as they age.

The case is Reinecke v. California Coastal Commission and the City of Laguna Beach.