Costa Mesa is among five cities the state has sued over noncompliance with California’s Housing Element Law, officials announced Thursday.
The lawsuit against Costa Mesa was filed in Orange County Superior Court after the city allegedly did not submit a compliant affordable housing plan to the California Department of Housing and Community Development, or HCD despite multiple notices and chances to rectify shortfalls, according to the state Attorney General’s Office.
Gov. Gavin Newsom said the state resorted to litigation after the jurisdictions failed to adopt compliant housing plans.
“California can’t solve the housing crisis while some cities sit on their hands and dare us to do something about it,” Newsom said in a statement. “These five jurisdictions had every chance to follow the law and plan for their fair share of housing. They chose not to, so now they’ll answer for it in court.”
Costa Mesa Mayor John Stephens said city officials are “surprised and disappointed” in the state’s “needless” legal action.
“We have been working on addressing the housing crisis for years with some notable progress,” Stephens said in a statement. “In fact, the state’s complaint admits that we are currently working with HCD toward certification of our housing element. Indeed, we are currently waiting for the state’s comments to our most recent submission. There is no reason for a lawsuit.”
The state also similarly sued Calexico, Half Moon Bay, Ridgecrest and Turlock.
“California’s housing crisis demands action, not excuses,” Attorney General Rob Bonta said in a statement. “Jurisdictions that remain out of compliance with our Housing Element Law are standing in the way of the homes Californians need. We are well past the halfway point of the current housing planning cycle, and timely compliance is not optional.”
Stephens said “Costa Mesa is fully committed to expanding housing opportunities and in fact a City Council main goal is to diversify, stabilize and increase housing to reflect community needs. In 2022, the voters narrowly approved a measure to allow the city to increase housing opportunities across its commercial and industrial corridors.”
According to the mayor, the city is advancing multiple significant housing developments, including at the state-owned Fairview Developmental Center and two state and city-funded Project Homekey sites.
“We consistently partner with local nonprofits to increase affordable housing opportunities, and we have dedicated a portion of the city’s Senior Center property for the development of 70 new affordable income senior housing units,” Stephens added. “The council adopted an affordable housing ordinance. We also opened a 100-bed shelter that provides wrap around services to lift people out of homelessness. Through our efforts, we have permanently housed 513 individuals since 2019 and reduced homelessness in Costa Mesa by two-thirds in the last two years. Most recently, in April, we completed our rezoning to meet the state’s requirement and, as noted, we are waiting for comments from HCD.
“In light of these substantial and ongoing efforts we view this action as entirely unwarranted,” Stephens said
The Housing Element Law requires cities and counties to update housing plans every eight years to show how they will provide a share of housing needs in the region and statewide.
Officials said the state is in the sixth housing element cycle, requiring planning for approximately 2.5 million more homes.
“As I’ve said many times, no local government has to solve this challenge alone, but every local government has to do its fair share,” Bonta said. “Today, we’re showing how serious we are about ensuring that every city and county in California adopts a housing element. Restoring the California dream will take an all-hands-on-deck effort.”
HCD issued notices of violation, written findings and offered meetings with local officials before referring the jurisdictions to the Attorney General’s Office for enforcement, officials said.
Over 95% of California communities are compliant with the Housing Element Law during the current sixth planning cycle.
Under Senate Bill 1037, which took effect in 2025, local governments may incur monthly civil penalties for not complying. Cities and counties without compliant housing elements may also have to face the state’s “Builder’s Remedy,” which limits their ability to deny certain housing projects that have affordably priced rental units.
According to Bonta’s office, cities and counties can resolve violations through consent decrees or stipulated judgments establishing timelines for compliance.
“The vast majority of California’s cities and counties have stepped up to achieve housing element compliance,” HCD Director Gustavo Velasquez said in a statement. “For the small number that are still falling short, the actions we are taking today should send a clear message: no community is exempt from doing its part to solve our housing crisis.”
Additional information on the state Housing Element Law is on the HCD website, hcd.ca.gov/housing-element.
