California claims victory – again – over Huntington Beach as appeals court rules against city’s NIMBY violations of state law

In March 2023, the state sued Huntington Beach for violating state law requiring it to update its housing plan. Last year, the trial court agreed with the state that the city had violated the law, but failed to impose a 120-day deadline for the city to update its plan, and failed to impose consequences limiting the city’s control over permitting and development until it complies with the law.  The court of appeal today rejected the city’s argument that it is exempt from these consequences, and ordered the trial court to enter a new order to hold the city accountable until it comes into compliance with the law.

“This is an important victory in our challenge to Huntington Beach’s refusal to do its fair share in addressing the statewide housing crisis,” said Gustavo Velasquez, Director of the California Department of Housing and Community Development. “Every city, including charter cities, has a legal and moral responsibility to promote housing opportunities for people at all income levels, and HCD will continue to hold Huntington Beach and other recalcitrant jurisdictions accountable.”

More housing. More accountability.

Governor Newsom championed the creation of the Housing Accountability Unit at HCD to ensure cities and counties fulfill their legal responsibilities to plan and permit their fair share of housing. Since its establishment, the Housing Accountability Unit has supported the development of 10,089 housing units, including more than 3,328 affordable units, through enforcement actions and by working with local jurisdictions to ensure compliance with housing law. In 2024, the Unit was expanded to include a focus on homelessness issues, including compliance with state laws related to homeless housing.

Today’s announcement follows the Governor’s recent announcement of the unit’s settlement with the city of Norwalk, requiring the city to overturn its illegal ban on homeless shelters. In addition to today’s announcement and work to hold local governments accountable to help their residents and improve affordability, Governor Newsom is creating a structural and foundational model that will have positive impacts for generations to come.

The Governor is streamlining and prioritizing building of new housing, funding new shelters, housing, and supports, holding local governments accountable, addressing mental health and its impact on homelessness through voter-approved Proposition 1, removing dangerous encampmens, and creating new pathways for those who need it most through updated conservatorship laws and a new CARE court system. This work is all creating positive results.
 

Reversing a decades-in-the-making crisis

Between 2014 and 2019 — before Governor Newsom took office — unsheltered homelessness in California rose by approximately 37,000 people. Since then, under this Administration, California has significantly slowed that growth, even as many other states have seen worsening trends.In 2024, while homelessness increased nationally by over 18%, California limited its overall increase to just 3% — a lower rate than in 40 other states. The state also held the growth of unsheltered homelessness to just 0.45%, compared to a national increase of nearly 7%. States like Florida, Texas, New York, and Illinois saw larger increases both in percentage and absolute numbers. California also achieved the nation’s largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness.