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Nussbaum et al. v. City of Los Angeles et al. / 3340 Shelby Drive

Council File 26-1030

Under review — the city is defending a lawsuit challenging its funding of a Project HomeKey housing site on Shelby Drive, with settlement talks underway and two committees weighing in on the fiscal and housing implications.

Introduced
2026-07-28
Last changed
2026-08-28
Status
open
Expires
2028-07-28
Committee
Budget and Finance Committee
Initiated by
City Attorney
References
City Attorney Report: R26-0440Los Angeles County Superior Court Case: 26STCV04081

Brief

The City Attorney has submitted a report regarding Nussbaum et al. v. City of Los Angeles, a lawsuit filed in Los Angeles County Superior Court. The matter was referred on July 28, 2026, to the Budget and Finance Committee and the Housing and Homelessness Committee for review. No details about the claims, defendants, or relief sought are publicly available at this time.

Full summary

On July 28, 2026, City Attorney Hydee Feldstein Soto submitted a report to the City Council concerning a lawsuit that challenges the City's funding and approval of a Project HomeKey site currently under construction at 3340 Shelby Drive in Council District 5. Project HomeKey is a state-funded program that converts existing buildings into permanent or interim housing for people experiencing homelessness. The plaintiffs — identified collectively as Nussbaum et al. — are contesting the City's decisions around this specific site, though the precise legal claims, the full list of defendants, and the relief being sought are not disclosed in the public-facing portion of the City Attorney's report. The City Attorney's office is requesting that the Council hold a closed session under California Government Code Section 54956.9(d)(1), which authorizes confidential discussions with legal counsel regarding pending litigation. The report also references a settlement proposal, indicating that early-stage settlement discussions may already be underway alongside active litigation. Deputy City Attorney Elaine Zhong is the lead attorney on the matter. The report was referred to both the Budget and Finance Committee and the Housing and Homelessness Committee, reflecting that the case carries both fiscal exposure and direct implications for the City's homelessness housing pipeline. The file remains open and pending committee action, with no expiration until July 28, 2028. No further public activity has been recorded since the initial submission.

Activity (3)

  • 2026-08-28 City Clerk rereferred item to Budget and Finance Committee; Homelessness and Health Committee, pursuant to Council File No. 26-2000.
  • 2026-07-28 City Attorney document(s) referred to Budget and Finance Committee; Housing and Homelessness Committee.
  • 2026-07-28 Document submitted by City Attorney, dated July 28, 2026.

Documents (1)

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