 Construction on University Hills has proceeded in a number of small phases, consisting of a few streets each.Beginning in 1987, University Hills residents became involved with a dispute with the Orange County tax assessor over their property taxes; the residents claimed that, since the land they lived on was owned by and part of a tax-exempt educational institution, they should only be assessed on the value of the buildings and not on the total value of the property.However, in 1992 the California Supreme Court ruled that the homes in the community did not meet the conditions of the tax exemption on land used for educational purposes.