Huntington Beach to pay $50,000 monthly until housing plan is approved

A San Diego Superior Court judge ordered Huntington Beach to pay $50,000 a month starting in June until the city adopts a state-approved housing plan, delivering the first financial penalty to the Southern California city after years of defying state housing mandates.

The ruling, issued Thursday by Judge Katherine Bacal, also requires the city to immediately pay $160,000 in retroactive fees covering January through May 2026. The penalty funds will go to California's Building Homes and Jobs Trust Fund, Voice of OC reported.

The monthly fine amounts to $1,600 a day in losses to Huntington Beach taxpayers, according to Voice of OC. The penalty follows the city's defeat at every level of state and federal court after it argued, as a charter city, that it was exempt from state housing requirements.

Judge Bacal said the city's arguments did not persuade her to waive penalties altogether, though they did shape her calculation of the amount. "While the Court did not find the City's arguments persuasive that no penalties should be imposed, the arguments do factor into determining the appropriate amount of penalties," Bacal wrote in her minute order issued Thursday.

California Governor Gavin Newsom sharply criticized city officials in a statement Friday evening. "Citizens in this community should be appalled by their city leaders' actions here which will cost them hundreds of thousands of dollars in penalties. No more excuses," Newsom said.

California Attorney General Rob Bonta called the ruling a costly lesson for cities that resist state housing law. "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. No city is above the law," Bonta said.

The city council majority elected in November 2022 made defying state housing mandates a defining position. Then-Councilman Casey McKeon, now the city's mayor, set the tone at a December 2022 council meeting. "This is one of the biggest threats facing our city. We have to fight this with every fiber of our being," McKeon said. The legal battle with the state began in 2023 and this is the first time the city has faced financial consequences for its refusal to adopt a compliant housing element.

Despite the council's resistance, Huntington Beach has approved permits for approximately 1,500 new housing units since 2021, according to Voice of OC.

State officials have signaled they intend to enforce the penalties, leaving Huntington Beach facing a mounting financial burden of $50,000 each month until its housing element comes into compliance with California law.