San Diego sues ‘flipper’ for tearing down, expanding homes without permits, lawsuit says

A San Diego business owner has allegedly made a practice of buying dilapidated homes in underserved neighborhoods to renovate, expand, or demolish and rebuild, all without obtaining the required permits, inspections or historical review. At least two of these properties were sold to unsuspecting buyers, according to a lawsuit.

The San Diego City Attorney’s Office announced the lawsuit Wednesday against what it calls a “property flipper” for unfair competition and violations of city law. The suit names Zack Kyle Lawrence and his businesses — limited liability corporations known as California Dreamin’ Properties, Jumpin’ Zack Flash and Rock N Roll Life. 

The city’s lawsuit accuses Lawrence of illegal development on six properties across multiple neighborhoods throughout San Diego, including Chollas Creek, Mountain View, Stockton, Sherman Heights, Cherokee Point and City Heights. All of these neighborhoods are among the city’s “communities of concern,” which means they are considered to have “very low, low and moderate access to opportunity.”

The illegal practice began in 2020 and continued into late last year, the suit claims, with some violations ongoing. Attempts to reach Lawrence for comment were unsuccessful.

In Cherokee Point, Lawrence allegedly demolished a 100-year-old home and built a 2,200-square-foot triplex in its place. 

The house “was torn to the ground and rebuilt in four months,” a complaint filed with the city says. It was written by a neighbor who said they are a licensed contractor. “With the turnaround time for plan check, engineering and permit issuance, the owner could not possibly have moved this through Development Services.”

In Mountain View, Lawrence and his business bought a two-bed, one-bath home for $350,000. A city inspector showed up and saw the home was being completely remodeled and expanded, converting the single-family home into a duplex without the necessary permits. 

Lawrence only obtained a permit to upgrade the electrical panel and later sold that property for $870,000 without disclosing the unpermitted work, according to the lawsuit.

“San Diegans deserve safe, code compliant housing and honest dealing,” City Attorney Heather Ferbert said in a statement. “This developer chose to profit by ignoring permits, evading inspections, and disregarding neighborhood protections. Our office will hold accountable anyone who cuts corners, breaks the law, and puts families and communities at risk.”

The city’s lawsuit asks a judge to stop unlawful practices and require full compliance with state and local laws, civil penalties up to $2,500 per day per violation, and recovery of enforcement costs.

This comes at a time when San Diego, like many other communities across the state, is grappling with a housing and affordability crisis that experts say is driven largely by underproduction. San Diego is failing to keep pace with the projected housing demand. The city has permitted barely two-thirds of the homes it should have by now, based on long-term targets. And the existing rental supply is 97% full, records show, which keeps rents high.

Developers have in recent years bemoaned the time it takes to receive permits for relatively straightforward projects — delays that can cost hundreds of thousands of dollars. But Mayor Todd Gloria has taken steps to fast track projects that develop affordable housing.