State seeks increased penalties for Huntington Beach in ongoing housing element lawsuit.

Three months after significant updates to its housing element, Huntington Beach is facing renewed scrutiny and potential penalties from state regulators. These developments come in the wake of the city’s attempts to comply with state housing mandates and address previously imposed fines for non-compliance.

In May, Orange County Superior Court Judge Katherine Bacal mandated that Huntington Beach would incur a monthly penalty of ,000 starting January 1, 2025, should the city fail to meet state housing requirements, ultimately amounting to a possible total of 0,000. In an effort to mitigate these fines, city officials approved a new housing element in June, which they projected would facilitate the construction of over 13,000 housing units by the end of the decade.

Following the city’s update to its housing plan, Judge Bacal temporarily suspended the penalties as state regulators from the California Department of Housing and Community Development conducted their review. However, she cautioned that if the state concluded that Huntington Beach had not achieved substantial compliance with the housing element requirements, the fines would be reinstated. The state emphasized the necessity for an enforceable rezoning program, arguing that without it, the housing element would merely constitute a symbolic commitment without actionable plans for development.

In its September 8 filing, the state pointed to a letter from the HDC dated August 18, which indicated that Huntington Beach had not completed the requisite zoning changes essential for compliance. The filing reiterated the importance of a judicially binding rezoning mechanism to translate the housing element into tangible projects that fulfill community needs.

The state has requested that the court reinstate a higher monthly fine of ,000, a figure that Bacal had previously indicated would apply if the city did not update its housing plan by the established May 28 deadline. These penalties are directed toward a state trust dedicated to financing affordable housing initiatives and promoting homeownership opportunities throughout California.

The housing element law, originally due from municipalities in 2021, mandates that cities develop plans to facilitate housing construction without obligating them to directly build the units. Instead, cities must establish appropriate zoning and conditions enabling developers to create projects that address state housing demands. As housing elements are evaluated in ten-year cycles, the next comprehensive review is anticipated soon.

Previously, California Attorney General Rob Bonta initiated a lawsuit against Huntington Beach in 2023 for failing to adopt an adequate housing plan. In this legal battle, city officials countered that, as a charter city, they were not bound by state housing mandates, a claim that ultimately failed in lower and federal court appeals.

Huntington Beach has until October 14 to finalize the necessary zoning adjustments following its housing plan update, and a hearing regarding the pending penalties is scheduled for October 2.