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Newsom administration sues local governments that failed to plan for new homes

California – California’s housing fight has moved from warning letters to court filings.

Five cities, Calexico, Costa Mesa, Half Moon Bay, Ridgecrest and Turlock, are now facing legal action after remaining out of compliance with state housing law for at least two and a half years, according to the Newsom administration.

Gov. Gavin Newsom said the jurisdictions were given repeated opportunities to adopt legally acceptable housing plans but failed to act.

“California can’t solve the housing crisis while some cities sit on their hands and dare us to do something about it,” Newsom said.

“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. Housing law applies statewide, and no city gets a pass.”

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The cases come as California moves deeper into its sixth housing planning cycle. More than 95% of jurisdictions have reached compliance, helped by technical assistance and enforcement from the state Department of Housing and Community Development. The five cities targeted in the latest action remain among the small group still falling behind.

Before referring the cases to Attorney General Rob Bonta, HCD issued formal violation notices, allowed each jurisdiction 30 days to respond in writing and held two rounds of meetings aimed at finding solutions.

Bonta said the state had reached the point where further delay could not be treated as optional.

“California’s housing crisis demands action, not excuses,” he said, adding that every local government must do its fair share to plan for the homes Californians need.

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State law has required cities and counties to maintain a housing element since 1969. The document, which forms part of a jurisdiction’s general plan, must explain how the community will accommodate its assigned share of housing across income levels and remove barriers that could prevent construction. HCD reviews each plan and must find it compliant.

Failure carries consequences. Jurisdictions without an approved housing element can become subject to the “Builder’s Remedy,” limiting their ability to reject qualifying low- and moderate-income developments on zoning grounds. Senate Bill 1037, signed in 2024, also allows civil penalties, with money directed toward affordable housing in the same community.

California has already reached settlements with Hollister, Artesia, La Habra Heights, Malibu, Fullerton, Coronado and San Bernardino. Huntington Beach offers a sharper warning: after years of resistance, a judge ordered the city in May 2026 to pay $160,000, with monthly fines of up to $50,000 until compliance.

The state says more lawsuits could follow against jurisdictions that receive violation notices and still refuse to act.

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