Court Rejects City Council’s Unlawful Denial of Keystone Ranch Project, Handing City of Patterson Second Resounding Loss in 6 Months
Court holds that Patterson City Council violated multiple state housing laws and failed to make required findings in blocking 719 new homes. The decision marks Patterson’s second major courtroom defeat in recent months and represents a sweeping rebuke of the City’s unfounded attempts to deny new housing.
In a sweeping rejection of the City of Patterson City Council’s arguments, Stanislaus County Superior Court Judge Sonny Sandhu ruled on June 26, 2026, that the City illegally denied Keystone Ranch LLC’s Vesting Tentative Map (VTM) application for a new 719-unit housing project, violating the Housing Accountability Act (HAA).
The Court ordered the City to set aside its April 1, 2025, denial and reconsider the VTM application on its own merits, applying only lawful conditions of approval. The ruling also rejects the Council’s demand that Keystone construct a $20 million groundwater recharge basin before any building permits could be issued for the Zacharias and Baldwin Ranch master plan area. The ruling marks a decisive turning point for the development and reinforces the importance of cities adhering to California’s housing statutes.
