Last week, the California Supreme Court heard from both sides on whether construction on new homes in Los Osos could continue.

Tim Shea, owner of Shear Development, bought the property in 2003 and got permit approval from San Luis Obispo County.

Eight homes were going to be built in two phases; half were built immediately, with the other four to be built after the completion of the Los Osos Wastewater Project.

Jeremy Talcott, attorney for Shear Development, says Shea had approval for three of the final four homes but that’s when the California Coastal Commission appealed, claiming they are in an environmentally sensitive habitat area (ESHA).

The question being asked in court is whether the commission had the authority to overturn the permits.

"The justification that the commission put

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