Housing

OAKLAND — California Attorney General Rob Bonta today issued the following statement in response to the decision by the U.S. District Court for the Central District of California to dismiss with prejudice Huntington Beach's lawsuit, which sought to exempt the city from state housing laws:
 
"We filed a motion to dismiss Huntington Beach's federal lawsuit because we believed it was meritless. We are pleased that the court agreed," said Attorney General Bonta. "With this behind us, we look forward to prosecuting our state case against Huntington Beach. Everyone must do their part to address California's housing crisis."
 
A copy of the court's decision can be found here.

OAKLAND – California Attorney General Rob Bonta today, on the two-year anniversary of the Housing Justice Team within the California Department of Justice, highlighted the critical work done to fight for equitable, affordable housing:

“Two years ago today, I launched the Housing Justice Team to advance housing access, affordability, and equity in California. Since then, our talented attorneys have delivered real results,” said Attorney General Bonta. “From protecting renters from unlawful evictions to ensuring that local governments allow for the building of their fair share of housing, I am immensely proud of what the Housing Justice Team has accomplished already. Tackling California’s housing crisis remains a top priority — and with the work of the past two years, we are just getting started.” 

Formerly called the Housing Strike Force, the Housing Justice Team draws on the expertise of attorneys from the California Department of Justice’s Land Use and Conservation Section; Consumer Protection Section; Civil Rights Enforcement Section; and the Environment Section’s Bureau of Environmental Justice. Among the Housing Justice Team’s accomplishments are the following:

• Securing a settlement with the City of Coronado that will allow for the development of 912 housing units.
• Securing a settlement with the City of San Bernardino that will allow for the development of 8,123 housing units.
• Securing a settlement against Green Valley Corporation, a San Jose-based housing developer and property manager also known as Swenson Builders, to resolve allegations that the company violated the California Tenant Protection Act by issuing unlawful rent increases to nearly 20 of its employee tenants and serving unlawful eviction notices to six of those employee tenants.
• Securing a $3.5 million settlement against Wedgewood, a Los Angeles county-based real estate investment company, resolving allegations that Wedgewood unlawfully evicted tenants from properties purchased at foreclosure sales.
• Filing a lawsuit against the City of Elk Grove over its failure to approve a housing proposal that would create 66 apartments for lower-income households at risk of homelessness.
• Filing a lawsuit against the City of Huntington Beach over its failure to adopt a compliant housing element. The housing element is a crucial tool for building housing for moderate-, low-, and very low-income Californians.
• Successfully defending state laws, like the Regional Housing Needs Allocation (RHNA), from local governments challenging their obligation to plan and zone for more housing.
• Sponsoring and supporting housing bills, such as Assembly Bill 1485, which was signed into law by Governor Gavin Newsom and will permit the Attorney General to automatically intervene without court permission in lawsuits brought by third parties for alleged violations of state housing laws.
• Reminding local governments of the strict requirements for “urgency zoning ordinances,” and discouraging the abuse of such ordinances to limit or circumvent state housing laws.
• Issuing letters to all housing authorities in the state, reminding them that tenants who receive Section 8 Housing Choice Vouchers are protected under California’s Tenant Protection Act.
• Issuing legal guidance about steps law enforcement officers should take to prevent and respond to unlawful lockouts and self-help evictions.
• Reminding California’s tenants of their rights and protections under state law, including limits on rent increases.
• Announcing statewide guidance to address Crime-Free Housing policies that disproportionally discriminate against people of color, survivors of domestic violence, people with disabilities, and justice-involved individuals.

For more information about the Housing Justice Team and its work, as well as resources for homeowners and tenants, visit www.oag.ca.gov/housing. The Housing Justice Team reminds Californians that they can send complaints or tips related to housing to housing@doj.ca.gov. Tenants who need legal help can find legal aid resources in their area at www.LawHelpCA.org.

Coronado to update housing plan by April 2024 for development of 912 additional housing units  

SACRAMENTO — California Attorney General Rob Bonta, California Governor Gavin Newsom, California Department of Housing and Community Development (HCD) Director Gustavo Velasquez and the City of Coronado today announced an agreement enabling the city to reach compliance with the state’s Housing Element Law. The city will adopt a plan by April 16, 2024 to allow for the development of 912 housing units, with dedicated technical support from the state. The agreement, which is in the form of a stipulated judgment, is related to California’s sixth “housing element update cycle” for the 2021-2029 time period. 

Under the state’s Housing Element Law, every city and county in California must periodically update its housing plan to meet its Regional Housing Needs Allocation (RHNA), or share of the regional and statewide housing needs. Located in San Diego County, Coronado was required to update its housing plan by April 15, 2021 to accommodate its 912-unit RHNA target. The city submitted a Housing Element Update in 2021, but was not found to substantially comply. After receiving a notice of violation from the state, the city and state conferred in good faith to chart a course for the city to attain compliance. 

“The Los Angeles Times said that Coronado ‘might be California’s biggest violator of affordable housing law.’ Today’s settlement puts an end to that distinction,” said Attorney General Rob Bonta. "The City of Coronado has wisely chosen to collaborate with us and confront its housing challenges head on. There's no question that this moment is long overdue — I want to thank the current Coronado City Council for finally doing the right thing. The housing crisis we are facing in California is enormous, and the only way we can tackle it is if every local government follows the law and builds its fair share of housing. Today should serve as a valuable lesson to counties and cities across the state: No matter your situation, state leaders are willing and able to help you deliver housing for all of your residents. If we could get it done in Coronado, an island city where a military base and a port sits on more than half of it, we can get it done elsewhere, too."  

“Every single city and county in the state will be held accountable for building their fair share of housing,” said Governor Gavin Newsom. “The state is doing more than ever to streamline construction, and we will continue working with communities to build more housing, faster in order to support Californians.” 

“All California communities must take seriously their responsibility to facilitate housing development at all income levels through the housing element process, and HCD is here to help. But when local jurisdictions miss their housing element deadlines, HCD must enforce the law and hold them accountable,” said HCD Director Gustavo Velasquez. “We are glad to see the City of Coronado commit to bringing their housing element into compliance with Housing Element Law. HCD will continue to work with the City, and monitor them, to ensure compliance and hold them to the commitments they have made in this settlement.” 

"This agreement provides the City of Coronado the certainty and State support necessary to attain a compliant Housing Element," said Coronado Mayor Richard Bailey.  "Grappling with a RHNA allocation that is much greater than in prior cycles, the combined creativity of the City and State was brought to bear for this workable solution. With a shared goal of developing a meaningful and achievable plan to reach compliance, we’ve found resolution to a years-long challenge."

Among other things, a compliant housing element must include an assessment of housing needs, an inventory of resources and constraints relevant to meeting those needs, and a program to implement the policies, goals, and objectives of the housing element. Once the housing element is adopted, it is implemented through zoning ordinances and other actions that put its objectives into effect and facilitate the construction of new homes for Californians at all income levels. 

The housing element is a crucial tool for building housing for moderate-, low-, and very low-income Californians and redressing historical redlining and disinvestment. State income limits for what constitutes moderate-, low-, and very low-income Californians vary by county and can be found here. In San Diego County, the median income for a one-person household is $81,750. A one-person household that earns less than $77,200 is defined as low-income, and a one-person household that earns less than $48,250 is defined as very-low income. 

Under the settlement:

• Coronado will adopt a compliant housing element by no later than April 16, 2024. The housing element process is typically lengthy — for example, local governments must meet certain public participation requirements and HCD must review every local government’s housing element to determine whether it complies with state law and provides written findings back to each local government — but Coronado has agreed to an expedited timeline and ensuring the public’s participation.
• Coronado must modify its zoning code and local coastal plan by May 7, 2024 in order to meet the housing targets set forth in its compliant housing element.
• HCD agrees that the 374 planned housing units on the Naval Amphibious Base Coronado can be credited towards Coronado’s RHNA, based on the Navy’s current plans. The 374 units will meet both the Health and Safety Code section 17958.1 definition of an “efficiency unit” and census definition of “separate living quarters.” 
• Coronado agrees to comply with the Affirmatively Furthering Fair Housing statute (AFFH). AFFH requires local governments to take meaningful actions that overcome patterns of segregation and foster inclusive communities, free from barriers that restrict access to opportunity based on protected characteristics. 
• HCD will assist Coronado in using best efforts to ensure that the city’s local coastal plan amendments regarding its updated housing element will be certified expeditiously by the California Coastal Commission.
• Coronado acknowledges that, until the time it adopts a substantially compliant housing element, it will not deny housing projects on the basis of zoning or general plan inconsistencies.
• If Coronado fails to abide by the settlement and does not cure its default, it may lose its authority to approve or deny certain types of development, or be ordered to take specific actions that maximize its ability to fulfill its RHNA obligations, with an emphasis on facilitating homes for households earning below the area median income. Additionally, monetary penalties will be imposed if Coronado remains noncompliant 12 months after the effective date of the stipulated judgment.

A copy of the petition and signed judgment can be found here and here, respectively.

City of San Bernardino to Update Housing Plan to Allow 8,123 Additional Housing Units by 2029 

SACRAMENTO — California Attorney General Rob Bonta, California Governor Gavin Newsom, California Business, Consumer Services and Housing Agency (BCSH) Secretary Lourdes Castro Ramírez, and California Department of Housing and Community Development (HCD) Director Gustavo Velasquez today announced a settlement with the City of San Bernardino for violating the state’s Housing Element Law. The settlement, which is in the form of a proposed stipulated judgment and must be approved by the court, is the state's first related to California’s sixth “housing-element update cycle” for the 2021-2029 time period. 

Under the state’s Housing Element Law, every city and county in California is required to periodically update its housing plan to meet its share of the regional and statewide housing needs. The City of San Bernardino failed to adopt a compliant housing plan for the 2021-2029 time period by the October 15, 2021 statutory deadline. HCD provided direct guidance and reminders to the city — ensuring its leaders were fully apprised of their legal requirements to submit a housing element for HCD’s review. As a result of this settlement, the City of San Bernardino will now adopt a compliant housing element no later than February 7, 2024 and take other related actions. Today’s settlement also resolves separate but related claims filed by individual residents represented by the Public Interest Law Project (PILP) and Inland Counties Legal Services (ICLS).

“Our state’s Housing Element Law is in place to ensure that all cities build their fair share of housing. No city is spared from that legal obligation. It is not a choice. It is the law,” said Attorney General Rob Bonta. “I applaud the City of San Bernardino’s city council, and its planning and legal team, for recognizing that public resources should be directed at collaborating, rather than further litigating, our way out of California’s housing crisis. State leaders are united and committed to ensuring that every city provides more affordable housing options.”

“Cities that fail to follow the law and plan for their fair share of housing will be held accountable – the status quo will not be tolerated," said Governor Gavin Newsom. "The state is providing incentives, resources and when necessary, taking legal action to ensure that communities do their part to meet the housing needs of Californians.”

“Many essential workers — retail clerks, hospitality, workers, teachers, firefighters, and social service providers — are having a hard time renting homes in the communities where they work,” said BCSH Secretary Lourdes Castro Ramírez. “The lack of housing exacerbates residential segregation and impacts economic well-being. This is why it’s absolutely important that local jurisdictions including San Bernardino plan for and build more housing. The Governor has made it clear that failing to do so violates state law and prevents communities from thriving.”

“Our message is clear — every city and county will be held accountable to state housing laws,” said HCD Director Gustavo Velasquez. “The state is making financial resources, technical assistance, and state-owned land available to help cities and counties meet current and future housing needs. We will continue to work in partnership with the City of San Bernardino to ensure they meet all the terms agreed to in this settlement because ultimately we want to spend time building homes — not in court.”

“This settlement agreement is a major victory for the residents of San Bernardino. San Bernardino has been in desperate need of new affordable housing for many years," said ICLS attorney Anthony Kim. "Housing Element law is designed to make building affordable housing more attractive to both City planners and housing developers alike. Submitting a Housing Element that complies with California law puts San Bernardino on track to be a more attractive place to live for all residents of California.”

State law requires local governments to include housing elements in their general plans, which serve as a local government’s “blueprint” for how the city and/or county will grow and develop. A housing element must include, among other things, an assessment of housing needs, an inventory of resources and constraints relevant to meeting those needs, and a program to implement the policies, goals, and objectives of the housing element. Once the housing element is adopted, it is implemented through zoning ordinances and other actions that put its objectives into effect. The housing element is a crucial tool for building housing for moderate-, low-, and very low-income Californians and redressing historical redlining and disinvestment. 

After failing to adopt a housing element on time, HCD contacted and met with the City of San Bernardino on several occasions. Ultimately, due to the lack of compliance, HCD referred the matter to the California Attorney General’s Office for enforcement.

Under the settlement, the City of San Bernardino will:

• Adopt a compliant housing element by no later than February 7, 2024. The housing element process is typically lengthy — for example, local governments must meet certain public participation requirements and HCD must review every local government’s housing element to determine whether it complies with state law and provides written findings back to each local government — but the City of San Bernardino has agreed to an expedited timeline without muting the public’s participation.
• Modernize its zoning code by April 17, 2024 in order to meet the housing targets set forth in its compliant housing element.
• Amend its emergency shelter ordinance to conform with state law. State law requires local governments to streamline the permitting process for the construction of new homeless shelters.
• Amend its local density bonus ordinance to conform with state law. State law requires local governments to permit increased density for housing projects that contain affordable dwelling units.
• Be subject to escalating penalties for failure to comply with the terms of the settlement, including limitations on its ability to approve zoning changes and variances, and eventually its ability to permit any development, except for residential projects containing affordable housing. 

A copy of the petition and proposed judgment, which details the settlement terms and remains subject to court approval, can be found here and here.