Real Estate Law
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Did they have permission from the city and the HOA for the project?
Unfortunately if it was authorized it is permitted; one could sue if they could prove that there was some type of fraud/illegal conduct, such as personal gain by a city official. But the courts have been very expansive in this area, even allowing the government to transfer land from one private party to another under the eminent demain theory. This expansion was seen in Kelo v. City of New London, a 2005 case (citation is 545 US 469) decided by the Supreme Court which held that for purposes of economic development, land can be transferred from one private owner to another due to the public policy considerations (thus "public use") which encourages community development and the resulting economic benefits. Thus it is permitted under the 5th Amendment's Takings Clause.
This is a case of big government at play.
I am sorry I could not find contrary law but I have a moral duty to provide accurate information.
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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.
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