California is seeking to impose significant new penalties on Huntington Beach, alleging the city has failed to fully comply with state housing laws despite its adoption of a new housing element earlier this year. State officials filed a request on September 8, asserting that Huntington Beach has not met the conditions required to avoid penalties related to its ongoing housing dispute with Sacramento.
This action follows a previous order in which Orange County Superior Court Judge Katherine Bacal mandated that the city pay $10,000 per month in penalties, beginning January 1, 2025, accumulating to $170,000. The fines were temporarily suspended while the California Department of Housing and Community Development (HCD) reviewed the city's revised housing plan, which was adopted in June. This plan aimed to facilitate the creation of over 13,000 new housing units by the end of the decade.
However, the state contends that Huntington Beach has not made substantial progress. In an August 18 letter, cited in the state's latest court filing, HCD stated that the city had not finalized the necessary zoning changes to bring its housing element into compliance. California argues that without these enforceable zoning revisions, the newly adopted housing plan is merely a non-binding commitment.
The state is now requesting the court to reinstate a monthly penalty of $50,000, the amount previously stipulated by Judge Bacal should the city miss its May 28 deadline. These funds would be directed to a state housing trust dedicated to affordable housing and homeownership initiatives.
The core of the conflict lies in California's housing-element law, which mandates that cities plan for their allocated share of projected housing needs. While the law does not compel cities to build the housing themselves, it requires them to enact zoning ordinances and other regulations that enable private developers to construct the necessary number of homes.
Huntington Beach has contested this mandate through legal channels for years. In 2023, Attorney General Rob Bonta sued the city after it failed to adopt a compliant housing plan. City officials argued that Huntington Beach, as a charter city, possessed greater autonomy from state housing mandates, but this argument was rejected in both state court and on appeal.
An earlier court order in May had already imposed $160,000 in penalties, along with the $50,000 monthly fines starting in June until the violation was rectified, according to the California Attorney General’s Office. The state has intensified its enforcement efforts against other California municipalities as part of a broader initiative to ensure compliance with housing-element requirements.
Huntington Beach has until October 14 to implement the required zoning changes. The next hearing concerning the proposed penalties is scheduled for October 2.