Huntington Beach may incur monthly fines up to ,000 after losing a lawsuit regarding its state housing mandate.
Huntington Beach, California, is facing potential financial penalties of up to ,000 per month due to non-compliance with state housing laws. This situation arises after the city lost a protracted legal battle regarding obligations to plan for additional housing, including affordable units, within its jurisdiction.
On May 8, San Diego Superior Court Judge Katherine Bacal listened to arguments from both the state and city representatives concerning the appropriate amount and retroactive start date for these penalties. The state, represented by attorney Matthew Struhar, has argued that imposing the maximum civil penalty would serve as a necessary incentive for the city to align with the housing element law, effectively deterring future violations. Struhar emphasized that Huntington Beach’s unwillingness to adopt a housing element adversely impacts residents in Southern California, necessitating penalties that would also support the development of affordable housing projects.
The legal battle dates back to a December ruling in which Huntington Beach was mandated to draft a housing plan that accommodates the zoning for 13,368 units by the end of the decade. Although the city is not obligated to construct these homes, the requirement is to establish a zoning framework that allows for their development. Judge Bacal’s initial order, which included a compliance deadline set for May 28, imposed restrictions on the city’s permitting and rezoning powers during the interim period. Huntington Beach has since requested a 240-day extension to develop a compliant housing element.
In upcoming court hearings, the city will seek to justify its request for this extension. Huntington Beach attorney Anthony Taylor contended that penalties should start at the lower threshold of ,000 per month, with fees commencing after the new compliance deadline in June. He asserted that imposing the maximum penalty is unreasonable, noting that the city has been actively revising its housing plan and is poised to release an updated version soon.
Historically, Huntington Beach has argued against state mandates, resulting in Attorney General Rob Bonta suing the city in 2023 for its failure to formulate a compliant housing plan, initially due in October 2021. The city responded by filing a federal lawsuit against the state, claiming its charter city status exempts it from certain obligations, an argument ultimately dismissed by the courts. Concerns regarding adherence to the California Environmental Quality Act have also been raised as the city considers future housing developments.
Judge Bacal is expected to deliver a decision regarding the penalties before the next court hearing scheduled for May 15. The outcome of this legal dispute could set a significant precedent for how other California municipalities approach their housing obligations in the face of stringent state regulations.
