California is no longer just passing housing laws — it is enforcing them.
Attorney General Rob Bonta has entered one of the Bay Area biggest housing battles, accusing Menlo Park of violating multiple state housing laws in its handling of the proposed 665-unit Willow Park development at the former Sunset Magazine headquarters.
What Happened
In a letter to the city, the AG argued Menlo Park:
- Improperly rejected the project
- Kept changing its objections during the review process
- Required the developer to pay the city outside legal fees while the application was being reviewed
The state says those actions appear to violate California housing law.
Why This Matters
For years, Bay Area cities have slow-walked or outright blocked housing projects through lengthy approval processes, shifting requirements, and procedural roadblocks. Everyone knew it was happening. Now the state is calling it out by name.
The Willow Park proposal is massive — 665 homes plus office, retail, hotel, and preschool space — making it one of the Peninsula most closely watched development fights. This case could set a precedent for how much authority California has to override local governments on housing.
Coming just weeks after SB 79 triggered 341 housing proposals in Palo Alto, the message from Sacramento is clear: build housing or we will make you.
What This Means for Buyers
If 665 units actually get built in Menlo Park, it would be one of the largest new developments on the Peninsula in decades. But don not hold your breath — legal battles like this can take years to resolve.
In the meantime, existing homes in Menlo Park, Atherton, Palo Alto, and Redwood City remain the available inventory. And they are not cheap.
With ShopProp, a buyer on the Peninsula pays a flat fee starting at $1,995 and gets a rebate of up to 2.5% of the purchase price minus the flat fee. On a $2.5M Menlo Park home, that is a $60,505 rebate back at closing.
What This Means for Sellers
If you own near the Willow Park site, watch this case closely. If the development proceeds, nearby property values could shift — up (more demand for the area) or sideways (more competition). Either way, understanding your position now gives you leverage.
ShopProp lists Peninsula homes for a flat fee of $7,995 (homes over $2M). A traditional 2.5% commission on a $3M Menlo Park home is $75,000. You keep $67,005 more with ShopProp.
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Source: SF Chronicle. As featured in NPR, USA Today, and New York Post.