In what may be the only instance in the modern era, a city is currently operating without a zoning code to guide housing development, all because of a technicality.

A missed filing deadline led a Charlottesville, VA, judge to rule against the city in a lawsuit brought last February by several homeowners challenging the first significant overhaul of housing zoning in two decades.

This episode is the latest example of how an activist group of residents can upend new zoning laws designed to increase the housing supply, even when those laws have broad support.

While libertarian types are delighting in the situation, the ruling has plunged the city of Charlottesville into a state of legal and regulatory limbo. The old zoning code was replaced when the new one was implemented, and city leaders have halted the issuance of new building permits that involve zoning.

It is terribly disappointing that a technical error of filing paperwork could lead to the city not having its development regulations available to the 50,000 residents and property owners in Charlottesville,” City Manager Sam Sanders said in a public statement.

How a Missed Deadline Toppled the Code

The unprecedented situation unfolded after Charlottesville Circuit Court Judge Claude Worrell issued a default judgment on June 30.

The city’s outside lawyers missed a deadline for responding to a filing and requested an extension the following day. The plaintiffs quickly sought the default judgment, which voided the new code outright.

New Code, New Controversies: What Changed?

Charlottesville’s new zoning code, adopted in December 2023, aimed to increase residential density citywide and incentivize affordable housing by allowing multi-family units in most neighborhoods.

Large areas previously zoned exclusively for single-family homes could now accommodate multi-family housing, such as duplexes, triplexes, and small apartment buildings—so-called “missing middle housing.”

Residents Push Back

Several homeowners sued, claiming the city didn’t follow state law in ensuring the infrastructure could handle the higher density.

By singling out residents’ neighborhoods for more significant increases in density than in other areas, residents will suffer particularized harm not applicable to the public generally in the form of increased traffic and parking congestion, intensified storm water runoff and volume, and tree canopy diminution,” the plaintiffs claimed in their lawsuit.

Traffic studies weren’t required under the new code.

Legal Limbo: Uncertainty for Developers

The voidance of both codes has left developers, property owners, and city planners in a state of confusion. Projects approved under the new code—such as a 24-unit development in one neighborhood—now face uncertainty, as do proposals that were in the pipeline under either set of rules.

Housing advocates and local developers have expressed frustration, warning that the regulatory vacuum could delay much-needed housing projects and create a backlog of applications.

It’s a pointless lawsuit, wasting tons of taxpayer money and slowing down housing that city residents desperately need,” Charlie Armstrong, vice president of Southern Development, told C-Ville Weekly.

The city has clarified that “applications that do not involve zoning remain under active review,” while those that do are on hold pending further clarification of legal and procedural matters.

National Trend: Other Cities Face Similar Battles

Lawsuits like the one in Charlottesville aren’t anomalies. Cities and municipalities have faced lengthy legal battles brought by small groups of homeowners.

One notable case occurred in Montana, where homeowners challenged a 2023 law allowing duplexes and accessory dwelling units. They argued it violated constitutional equal protection and citizen participation rights. The state supreme court ultimately ruled against the homeowners last September.

A legal battle continues in Arlington County, VA, over the county’s 2023 ordinance that ends single-family zoning and permits missing middle housing. Homeowners sued, arguing higher density would destroy neighborhoods and overwhelm infrastructure. They initially won in circuit court, but a Virginia appeals court recently overturned the ruling on procedural grounds, sending the case back for a new trial.

What’s Next for Charlottesville?

Charlottesville’s case was set to go to trial next June. City leaders are now working on a bulletproof pathway to revive and secure the city’s new zoning code.

Regardless of what they do, homeowners may sue again, prolonging the city’s legal and regulatory uncertainty.