California Constructin News staff writer
A California superior court judge has ordered the city of Huntington Beach to pay escalating financial penalties for failing to comply with state housing laws, marking the latest development in an ongoing legal battle between the city and the state over affordable housing requirements.
The ruling requires Huntington Beach to pay $160,000 in penalties for violations dating back to January 2025, along with an additional $50,000 per month beginning in June until the city adopts a compliant housing plan, according to state officials.
The lawsuit, filed by the state in 2023, accused Huntington Beach of violating California law by failing to update its housing element — a state-mandated plan outlining how cities will accommodate housing for residents of all income levels.
California Governor Gavin Newsom criticized city leaders for what he described as unlawful resistance to affordable housing policies.
“Huntington Beach officials are failing their community by wasting time and vast sums of taxpayer dollars to defend clearly unlawful NIMBY policies and fight against affordability,” Newsom said in a statement. “No more excuses — every city must follow state law and do its part to build more housing.”
California Attorney General Rob Bonta said the decision reinforces that municipalities must comply with state housing mandates.
“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,” Bonta said. “No city is above the law.”
State officials said Huntington Beach missed its Oct. 15, 2021 deadline to submit a compliant housing element and is now more than four-and-a-half years behind schedule.
In May 2024, a trial court ruled the city had violated state housing law. Later that year, California enacted Senate Bill 1037, authored by state Sen. Scott Wiener, establishing mandatory penalties of at least $10,000 per month for jurisdictions that fail to adopt compliant housing elements on time. The law also increased penalties to $50,000 per month for cities that ignore court-ordered compliance deadlines.
Under the latest ruling, Huntington Beach has until May 28, 2026 to adopt a compliant housing element.
The state said enforcement efforts by the Housing Accountability Unit within the California Department of Housing and Community Development have supported the development of more than 13,000 housing units statewide, including nearly 3,800 affordable homes.
