Huntington Beach is facing a financial penalty of $50,000 per month starting in June, following a court ruling that found the city failed to implement a state-approved housing plan.
This decision comes after a yearslong legal battle with state officials, during which city leaders argued that, as a charter city, they were not required to comply with state housing mandates. However, San Diego Superior Court Judge Katherine Bacal ruled against the city, stating that the penalty will continue until Huntington Beach adopts a compliant housing plan.
The fines, which amount to over $1,600 a day, will be directed into California’s Building Homes and Jobs Trust Fund. This fund is designed to support affordable housing and increase home ownership opportunities across the state. According to Voice of OC, the city will also pay an additional $10,000 monthly late fee for the period from January 2025 through May 2026, totaling $160,000.
California Attorney General Rob Bonta and Governor Gavin Newsom praised the court’s decision, emphasizing the importance of compliance with state housing laws. Bonta remarked, “Huntington Beach has obstinately and illegally refused to do its part to address our state’s housing crisis, and today, it’s paying for it.” Governor Newsom added that city residents should be appalled by the leadership’s actions, which will cost them significantly in penalties.
The city has been embroiled in lawsuits with the state since 2023, when a new city council majority prioritized resisting new housing developments. Despite issuing permits for approximately 1,500 new housing units since 2021, the city has not met the requirements to zone for at least 13,368 units by the end of the decade. The city has requested a 240-day extension to develop a compliant housing element, which will be argued in court next month.
The Orange County Register reports that Judge Bacal considered both the city’s and state’s arguments in determining the penalty amount. The state had sought the maximum penalty to incentivize compliance, while the city argued for a reduced fine and a delayed start date for penalties. The court ultimately sided with the state, emphasizing the need for Huntington Beach to adhere to housing element laws.
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