The developer responsible for building housing for people experiencing homelessness for the People’s Park project in Berkeley backed out Monday, citing lengthy delays caused by the litigation swirling around the contentious project.

A nonprofit called Resources for Community Development said it would no longer be involved in the project, according to the San Francisco Chronicle.

In February, a California Court of Appeals ruled those who approved the broader student housing project near the University of California, Berkeley campus failed to adequately consider its environmental impacts. The project proponents have appealed that ruling to the California Supreme Court.

The project calls for the development of a 3.1-acre park, with the southern portion of the park dedicated to student housing and the northern portion reserved for permanent housing for unhoused people. The middle portion would be reserved for open space and a community park.

The student housing would total 330K SF and enough room for approximately 1,100 residences ranging from studios to four-bedroom apartments. It would be divided into two wings, with one building clocking in at 11 stories and the other at six stories.

The project is estimated to cost $312M.

Resources for Community Development said the court ruling in February was the direct cause of its decision to withdraw from building approximately 100 units for unhoused people.

“This creates significant delays and new challenges that negatively impact our capacity to move forward,” RCD spokeswoman Lauren Lyon said in a statement Monday.

Officials from UC Berkeley said they are committed to moving forward with the project, which they say is critical to solving issues related to student housing affordability in Berkeley, which has high rents relative to other Bay Area cities.

“The university’s commitment to donate a significant portion of the site for the construction of supportive housing is unwavering, as is our commitment to the other, essential elements of the project, including urgently needed student housing; revitalized, open green space; and a commemoration of the site’s storied past,” UC Berkeley spokesman Dan Mogulof said in a statement.

UC Berkeley provides housing to approximately 23% of its students, the lowest percentage in the state university system. The city of Berkeley also approved the project in a larger settlement between the city and the university regarding expansion plans and housing impacts.

The project delays have been held up by YIMBY advocates as an example of California’s environmental laws allowing small but committed groups the ability to hold up housing projects indefinitely.