A state appellate court has denied HomeFed's appeal over Fanita Ranch, keeping the 3,008-home proposal in northern Santee on hold after years of litigation and public debate.

Times of San Diego reported that the court found Santee and the developer moved the project forward despite conflicts with state planning and zoning law. The project has been one of the city's most closely watched growth fights because of its size, its location on roughly 2,500 acres in northern Santee and the long-running dispute over how much development the city's General Plan allows.

The underlying fight dates back to the city's 2020 approval of the project and Measure N, the voter-approved rule requiring voter approval for developments that increase what is allowed by the General Plan. Opponents later sued, and a state court in 2024 ordered the city to rescind permits and stop the project.

According to Times of San Diego, the city did not appeal that ruling, but HomeFed did. The appellate court rejected the appeal on the state planning and zoning issues while finding no Elections Code violation.

For Santee residents, the practical effect is that Fanita Ranch remains stalled unless the developer asks the California Supreme Court to review the case. The ruling also keeps the broader local conversation about housing growth, wildfire risk, open space and voter control of major development decisions squarely alive.