Court orders Huntington Beach to comply with state affordable housing requirements

A California court of appeal has ruled that Huntington Beach must comply with state housing law and update its housing plan within 120 days. The decision also restricts the city’s control over permitting and development until it meets these requirements.

Governor Gavin Newsom and Attorney General Rob Bonta announced the ruling, emphasizing the importance of local compliance with state efforts to address housing shortages. “Huntington Beach officials have wasted vast sums of taxpayer dollars to defend clearly unlawful NIMBY policies. They are failing their own citizens — by wasting time and money that could be used to create much-needed housing. No more excuses — every city must follow state law and do its part to build more housing,” said Governor Newsom.

Attorney General Bonta noted the length of time Huntington Beach has been out of compliance: “The deadline for Huntington Beach to submit a compliant housing element was October 15, 2021, nearly four years ago. At a time when California is experiencing a housing crisis of epic proportions, the City’s continued reluctance to follow the law is inexcusable, and we have been in court seeking accountability. Today’s win is an important development. Huntington Beach is running out of excuses, and the consequences for failing to plan for its fair share of housing are becoming clearer and more serious. The City has already lost its federal lawsuit challenging the constitutionality of certain California housing laws, and now it has lost its claim that it is exempt from California’s housing laws.”

The legal dispute began in March 2023 when the state sued Huntington Beach for not updating its required housing plan. A trial court previously found that the city had violated state law but did not set a deadline or impose limits on permitting authority. The appeals court rejected Huntington Beach's argument that it should be exempt from such consequences.

Gustavo Velasquez, Director of the California Department of Housing and Community Development (HCD), commented on the broader significance: “This is an important victory in our challenge to Huntington Beach’s refusal to do its fair share in addressing the statewide housing crisis. Every city, including charter cities, has a legal and moral responsibility to promote housing opportunities for people at all income levels, and HCD will continue to hold Huntington Beach and other recalcitrant jurisdictions accountable.”

California created a Housing Accountability Unit within HCD to ensure local governments meet their obligations under state law regarding new home construction. Since then, this unit has supported thousands of new units across income levels through enforcement actions with local governments (https://www.hcd.ca.gov/policy-research/housing-accountability-unit). In 2024, responsibilities expanded further into homelessness policy compliance.

Governor Newsom recently highlighted a settlement with Norwalk requiring reversal of an illegal ban on homeless shelters as part of ongoing efforts holding cities accountable (https://www.gov.ca.gov/2024/08/20/governor-newsom-announces-settlement-with-city-of-norwalk-to-overturn-illegal-ban-on-homeless-shelters/). Broader initiatives include streamlining building processes for new homes, funding shelters and support services, mental health reforms via Proposition 1 (https://www.sos.ca.gov/elections/ballot-measures/proposition-1-march-5-2024), encampment removals, updated conservatorship laws, and implementation of CARE courts.

Between 2014–2019—before Newsom took office—unsheltered homelessness increased significantly in California; since then growth rates have slowed compared with national trends (https://www.huduser.gov/portal/sites/default/files/pdf/2024-AHAR-Part-1.pdf). In 2024 alone while U.S. homelessness rose by over 18%, California saw only a 3% increase overall—lower than most states—and limited unsheltered growth even further.