REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Jennifer Villasenor
Subject:
title
Adopt Resolution No. 2026-25 to Approve General Plan Amendment No. 21-003 (2021-2029 Housing Element Update)
body
Statement of Issue:
Transmitted for City Council consideration is General Plan Amendment (GPA) No. 21-003, which updates the Housing Element of the General Plan for the 2021-2029 planning period (6th cycle). The proposed 6th cycle Housing Element Update substantially complies with state housing element law.
Financial Impact:
The City has recently been ordered by the Court to pay $10,000/month in penalties retroactive to January 1, 2025, totaling $170,000 through the end of May 2026. The City presently faces additional penalties of $50,000/month until a substantially compliant Housing Element is approved by the City Council. The California Attorney General is actively seeking an additional amount of up to $100,000/month in penalties in court proceedings that could occur in August 2026. The penalties are being sought against the City until a substantially compliant housing element is approved by the Council.
Recommended Action:
recommendation
A) Find that the California Environmental Quality Act (CEQA) requirement for GPA No. 21-003 is satisfied based on court orders in the People of California ex rel. Rob Bonta v. City of Huntington Beach, San Diego Superior Court Case No. 30-2023-01312235-CU-WM-CJC that include, as provided by Government Code section 65759, that CEQA does not apply to the City’s actions that are necessary to comply with the orders of the court.
B) Approve General Plan Amendment No. 21-003 (Housing Element Update) and adopt City Council Resolution No. 2026-25, “A Resolution of the City Council of the City of Huntington Beach approving General Plan Amendment No. 21-003 (2021-2029 Housing Element Update).” (Attachment No. 1)
end
Alternative Action(s):
The City Council may make following alternative motion:
Continue General Plan Amendment No. 21-003 and direct staff accordingly.
Analysis:
The Housing Element is a citywide plan for housing, including the provision of affordable housing, in the City of Huntington Beach. It is one of the State mandated elements of the General Plan and is on an eight-year update cycle. Pursuant to California Government Code Section 65588, the Housing Element must be updated for the 6th Cycle planning period.
Public Participation
State Housing Element law requires that a local government make a diligent effort to engage with all economic segments of the community in the preparation of the Housing Element. The Housing Element Update kicked off in the Spring of 2021 with a series of public workshops and meetings. The City’s Housing Element team conducted extensive public outreach regarding the Housing Element update. Outreach was held in various formats, including multiple virtual public meetings and workshops, small group meetings with local stakeholders, a Spanish Language outreach event, and an online survey. In addition to the public participation events, the City held one joint Study Session of the Planning Commission and City Council (March 1, 2021), three Planning Commission Study Sessions (September 13, 2022, September 27, 2022, and October 11, 2022), two Planning Commission public hearings on the Housing Element (October 11, 2022 and November 16, 2022), and two City Council Study Sessions (November 1, 2022 and January 17, 2023). The City also maintained a dedicated webpage as a hub for all items related to the Housing Element Update and provided information regarding the RHNA process. The initial Draft Housing Element was published on the website and included a 60-day public review and comment period. In compliance with AB 215, each subsequent Draft Housing Element was published on the City’s website for seven calendar days and email notifications were sent to interested parties. The most recent revisions to the draft Housing Element Update were posted to the City’s website (with corresponding email notifications to interested parties on May 14th and May 21st, 2026. Comments received on the most recent revisions are provided in Attachment No. 3.
Draft Housing Element
The purpose of the Housing Element is to establish a comprehensive housing strategy for all economic segments of the City. State Housing Element Law (Article 10.6 of Chapter 3 of the Government Code) describes the required content of housing elements. The proposed draft Housing Element Update includes all the requirements of state housing element law and consists of the following sections described below. The goals, policies, objectives, programs and analysis provided in the combined sections and appendices of the draft Housing Element Update substantially comply with state housing element law.
Section 1 of the Housing Element Update provides an overview of the Housing Element and introduces key housing issues in the City of Huntington Beach.
Section 2 discusses characteristics of the City’s population and housing stock as a means of better understanding the nature and extent of unmet housing needs. This section discusses the major components of housing needs in Huntington Beach, including population, household, economic and housing stock characteristics. Each of these components is presented in a regional context, and, where relevant, in the context of other nearby jurisdictions. This assessment serves as the basis for identifying the appropriate goals, policies, and programs for the City to implement during the 2021-2029 Housing Element cycle.
Section 3 of the Housing Element Update identifies constraints to providing housing and an assessment of fair housing in the City. Housing constraints consist of both governmental constraints and nongovernmental constraints. Governmental constraints include requirements such as development standards, land use controls, and permitting processes. Nongovernmental or market constraints describe other factors such as land costs, construction costs, and availability of finances. Further, AB 686 (2019) established new requirements for all California jurisdictions to ensure that local laws, programs, and activities affirmatively further fair housing. All Housing Elements due on or after January 1, 2021 must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Further Fair Housing Final Rule of July 16, 2015.
Section 4 sets forth a Housing Plan for the 2021-2029 planning period. The Housing Plan describes the specific goals, policies, and programs to assist City decision makers in achieving the long-term housing objectives set forth in the Housing Element. The goals, policies, and programs are aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents across all income categories. Each program in the Housing Element is required to have a timing and monitoring component. In some cases, a quantified objective is established. The City is required to report on the progress of the Housing Element programs annually and submit the report to HCD.
Appendix A provides an evaluation of the program accomplishments from the prior (5th cycle) planning period (2013-2021).
Appendix B discusses housing opportunities within the City of Huntington Beach to accommodate the City’s Regional Housing Needs Allocation (RHNA) at all income levels. This section includes an analysis of available sites for housing, including factors such as realistic capacity, potential for redevelopment, access to essential resources, proximity to transit or access to highway and road connectivity, and overall future residential opportunity.
Appendix C provides a summary of community engagement regarding the Housing Element update. This includes a prior joint study session with the Planning Commission and City Council, three virtual community meetings, a Spanish language outreach event, online community survey, the Housing Element update website, and meetings with stakeholder groups such as school districts and housing developers.
Appendix D is an economic memo commissioned by the City to satisfy HCD requirements regarding the feasibility of redevelopment on non-vacant sites identified in Appendix B.
Regional Housing Needs Assessment (RHNA)
State Housing Element Law requires that each city and county develop local housing programs to meet its share of existing and future housing needs for all income groups, as determined by the jurisdiction’s Council of Governments. In the southern California region, the agency responsible for assigning the regional housing needs to each jurisdiction is the Southern California Association of Governments (SCAG). Each SCAG jurisdiction’s RHNA is determined based on projected need (household growth, future vacancy need, and housing replacement need), existing need (transit and job accessibility), and a social equity adjustment including additional adjustments for areas that are designated as high resource. SCAG has determined that Huntington Beach has a RHNA of 13,368 units for the 2021-2029 planning period, which is the sixth housing element cycle. The table below provides a breakdown of the RHNA allocation by various household income categories.
TABLE 1: City of Huntington Beach RHNA Allocation
|
Income Level |
Percent of AMI* (Area Median Income) |
Number of Units |
Percentage of Units |
|
Very Low (includes Extremely Low) |
0-50% |
3,661 |
27% |
|
Low |
51-80% |
2,184 |
16% |
|
Moderate |
81-120% |
2,308 |
17% |
|
Above Moderate |
>120% |
5,215 |
39% |
|
Total |
|
13,368 |
100% |
|
*2025 Orange County AMI = $136,600 |
State law requires local governments to demonstrate through zoning that the RHNA can be accommodated for every income level. RHNA is not a construction mandate. The proposed Housing Element demonstrates the City is able to accommodate the full RHNA requirement with a substantial buffer.
Accommodating the RHNA
1. After accounting for units constructed since the beginning of the planning period, middle income housing conversion units able to be counted toward the RHNA, and units within pending projects, the City proposes to accommodate the RHNA through the following strategies:
2. Accessory dwelling units
3. Hotel/motel conversions
4. Establishment of a new affordable housing focus area zoning district to be applied to sites identified in Appendix B of the draft Housing Element.
Table 2 reflects the total RHNA capacity identified in the Housing Element sites inventory, which identifies sufficient capacity to accommodate the RHNA throughout the planning period, including buffer sites that can be rezoned with the Affordable Housing Focus Area in the event of a No Net Loss situation.
|
Table 2: Summary of Available Sites |
|
|
Very Low Income |
Low Income |
Moderate Income |
Above Moderate Income |
|
RHNA (2021-2029) |
3,661 |
2,184 |
2,308 |
5,215 |
|
Permits issued (through 12-31-25) |
361 |
253 |
383 |
619 |
|
Middle income housing conversion |
|
245 |
225 |
|
|
Pending projects (Table B-3) |
39 |
289 |
106 |
1,816 |
|
Remaining Unmet RHNA |
3,261 |
1,397 |
1,594 |
2,780 |
|
Plan to Accommodate Remaining RHNA |
|
ADU Construction (2026 - 2028) |
94 |
52 |
4 |
|
Capacity on Hotel and Motel Conversions |
288 |
0 |
0 |
|
Available/Rezoning Sites Capacity (Table B-14) |
5,115 |
2,679 |
8,980 |
|
Total |
|
|
5,497 |
2,731 |
8,984 |
Housing Plan (Programs)
The Housing Element update includes programs to address the City’s housing goals, including the provision of affordable housing. Section 4: Housing Plan describes the specific goals, policies, and programs to assist City decision makers in achieving the housing objectives set forth in the Housing Element. The Housing Element goals, polices, and programs are aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents across all income categories. Several programs were carried over from the 5th Cycle Housing Element because they are still applicable and relevant for the 2021-2029 planning period. Some 5th Cycle programs were updated or expanded to reflect the housing needs for the 6th Cycle. Many of these programs focus on preserving the quality of existing neighborhoods and improving the quality of lower resource areas. Some of the actions also involve applying for funding to implement neighborhood improvements. Many of the programs in the Housing Element are collaborative with other agencies. New goals, policies, and programs for the 6th Cycle address homelessness and improving quality of life and place making within low-resource areas. In total, the Housing Element identifies 39 programs to support the nine goals. The City is required to report on the progress of the Housing Element programs as part of the required Housing Element Annual Progress Report, which is required to be submitted to HCD by April 1 of each year during the planning period.
Housing Element Goals
As a component of the General Plan, the Housing Element must be internally consistent with the other General Plan Elements. This section first identifies the proposed goals of the updated Housing Element and then reviews other components of the General Plan for consistency. There are nine overall goals identified in the Housing Element Update.
1. Maintain and enhance the quality and affordability of existing housing;
2. Provide adequate sites to accommodate projected housing unit needs at all income levels identified by the RHNA;
3. Provide for safe and decent housing for all economic segments of the community;
4. Reduce governmental constraints to housing production, with an emphasis on improving processes for developments that provide on-site affordable units;
5. Promote equal housing opportunities for all residents, including the City’s special needs populations; 6. Promote a healthy and sustainable City through support of housing at all income levels that minimizes reliance on natural resources and automobile use;
7. Maximize solutions for those experiencing or at risk of homelessness;
8. Improve quality of life and promote place making; and
9. Affirmatively further fair housing.
The proposed goals of the updated Housing Element and the associated program implementation actions to accommodate the RHNA are consistent with the existing goals, objectives and policies of the City’s General Plan.
A. Land Use Element
Policy LU-1B: Ensure new development supports the protection and maintenance of environmental and open spaces resources.
The Housing Element incorporates a green building and sustainability program to enhance resource efficiency and sustainability. The program promotes energy conservation and design in new and existing development. The program would provide outreach and education to developers, architects and residents on the CALGREEN code and ways to incorporate sustainability in project design and in existing structures.
Policy LU-1C: Support infill development, consolidation of parcels, and adaptive reuse of existing buildings.
The Housing Element contains policies and programs that support development of housing on non-vacant underutilized infill sites. Programs to accommodate the RHNA provide for multi-family residential uses on non-residentially zoned infill and encourage consolidation of parcels for the development of housing, including affordable housing.
Policy LU-2D: Maintain and protect residential neighborhoods by avoiding encroachment of incompatible land uses.
Goal LU-4: A range of housing types is available to meet the diverse economic, physical, and social needs of future and existing residents, while neighborhood character and residences are well maintained and protected.
Policy LU-4A: Encourage a mix of residential types to accommodate people with diverse housing needs.
The focus of the nine goals of the Housing Element, in addition to the policies and programs proposed to achieve these goals, is to provide housing for all economic segments of the community. Several policies and programs provide for equal housing opportunity and social support services for special needs groups as well as healthy and sustainable housing and neighborhoods throughout the City. Programs to improve neighborhoods in low resources areas, facilitate solutions to address homelessness, and preserve mobile home parks as a form of affordable housing are contained in the Housing Element. The RHNA is accommodated through programs that would allow multi-family residential uses with a minimum of 20 percent of the units affordable to lower income households. The Affordable Housing Focus Area zoning areas are primarily located along or have access to arterial streets and avoid encroachment of incompatible uses within existing established residential neighborhoods. Furthermore, the Housing Element includes an analysis of governmental constraints and proposes programs to remove constraints to the provision of a diverse range of housing units such as housing for disabled persons.
Policy LU-4C: Encourage and provide incentives for residential property owners to maintain their homes and buildings.
The Housing Element proposes several programs for the preservation of existing housing including: financial assistance for single-family home and multi-family rental repairs; multi-family acquisition and rehabilitation projects; neighborhood preservation and code enforcement efforts; and preservation of assisted rental housing.
Policy LU-4B: Improve options for people to live near work and public transit.
Policy LU-4E: Encourage housing options located in proximity to employment to reduce vehicle miles traveled.
Goal LU-14C: Improve the availability of affordable housing and accessible transportation options for service workers.
Appendix B: Adequate Sites demonstrates that many of the identified sites are located near SCAG-designated high-quality transit. Additionally, public transit stops are available along the Gothard Ave. corridor and Goldenwest St. and Garfield Ave. area. Providing housing units in these well-connected areas of the City will enable residents to utilize existing public transit and reduce vehicle miles traveled. The Housing Element contains a variety of policies and programs to facilitate affordable housing through production of new units and preservation of existing affordable housing to support workers employed in the City’s service industry.
HCD Review
The California Department of Housing and Community Development (HCD) is tasked with reviewing and certifying Housing Elements pursuant to State Housing Element law. The City submitted the first draft Housing Element to HCD in December 2021. HCD then had 60 days to review the draft Housing Element and provide comments regarding the City’s compliance with State Housing Element law. Five iterations of the draft Housing Element were submitted to HCD for review. The version of the draft Housing Element submitted by the City to HCD on August 1, 2022 was determined to comply with Housing Element law as detailed in a letter from HCD on September 30, 2022.
Upon receiving a “substantial compliance” letter from HCD in September 2022, the Planning Commission directed some minor adjustments to the sites as well as an analysis of AB 2339, which became effective in January 2023, was added and forwarded the revisions to HCD for informal review. At the time (March 2023) HCD indicated that the City’s draft Housing Element with the revisions was still in substantial compliance with Housing Element law. However, the City was not able to certify the CEQA document (Subsequent Environmental Impact Report) associated with the Housing Element Update and as a result, no action was taken on the Housing Element Update and the State of California sued the City. Thereafter, the California Attorney General sued the City in 2023 for not adopting the Housing Element Update. (People of California ex rel. Rob Bonta v. City of Huntington Beach, San Diego Superior Court Case No. 30-2023-01312235-CU-WM-CJC).
After several years of litigation since 2023 (including litigation before the California Court of Appeal), the Superior Court issued an order on December 19, 2025 that the City adopt, as part of the City’s general plan, a sixth cycle housing element revision that substantially complies with state housing element laws. Additional details concerning the litigation proceedings and steps taken by the City in light of the litigation proceedings are included in the recitals of the resolution that was prepared for this agenda item.
The City submitted the March 2023 Housing Element Update, which had previously been found to be in substantial compliance with Housing Element law, to HCD pursuant to the Court’s December 19, 2025 order. HCD staff provided a comment letter to the City on March 6, 2026 (Attachment No. 2) requesting updates, clarifications and additional analysis to the draft Housing Element. Of note, HCD requested the City to update its adequate sites program to address recently decided appellate cases (discussed below) which invalidated HCD’s interpretation of Housing Element law and consequently the rezoning strategy for accommodating RHNA mandates for many cities.
The draft Housing Element Update including revisions posted on May 14 and May 21, 2026, address each of the comments raised by HCD in their March 6, 2026, letter. A summary of the comments and City revisions is provided below.
Inventory of Sites - HCD requested updates to the inventory of sites including status of pipeline projects, site availability for development within the planning period, and suitability of nonvacant sites. The City’s pipeline projects list (Table B-3) was updated and reflects the current status of pending projects. Additionally, a review of the sites identified to accommodate the RHNA (Table B-14) was conducted. As a result, one site (Site #5) was added back into the sites inventory due to property owner interest and four sites (#4, #317, #318, #319) were removed from the sites inventory. These sites were removed because of the new RHNA rezoning approach as described under the Adequate Site Program comments below. Site #4 would not have availability during the planning period and Sites #317-319 (Goldenwest College) cannot be rezoned because housing was envisioned to be an additional use to the existing college campus rather than replace the existing use, which is the case for all other sites. As a result, the City would not be able to rezone the site for future housing while simultaneously maintaining the current zoning for a college campus. The revised capacity of the sites with the insertion and deletions is reflected in Table B-2 of the Housing Element Update.
The suitability of nonvacant sites analysis in the draft Housing Element Update remains accurate based on substantial evidence. Development trends in the City remain consistent throughout the 2010s and 2020s. Market interest in residential development also remains strong and interest in redevelopment has increased as non-vacant sites are the primarily available land assets. Since the last draft update to the Housing Element was prepared in 2023, the City continues to receive applications for rental and ownership housing developments on a mix of both vacant and non-vacant sites that share characteristics with projects identified in the City’s past performance analysis throughout Appendix B: Adequate Sites. This is reflected in the updated version of Table B-3: Summary of Pipeline Projects. Analysis is provided here to demonstrate the continued interest in the City’s residential development market and that projects proposed since the draft 2023 Housing Element update was prepared are substantially similar in scope to the City’s past performance in residential development.
A proposed residential development on an approximately 89-acre vacant site at 20101 Goldenwest Street shares characteristics with projects listed in Table B-8: Past Performance with Residential Development on 10+ acre sites, including being located within the Coastal Zone. A proposed residential development at 208-218 3rd Street is comprised of several small parcels ranging in size from 0.06 acres to 0.13 acres, which shares multiple characteristics with past projects listed in Table B-6: Past Performance with Lot Consolidation and Table B-7: Analysis of Candidate Housing Sites Under 0.5 Acres. The 208-218 3rd Street project and the residential project proposed at 410 Main Street are both currently developed with on-site uses and will be redeveloped with residential uses similar to projects identified in Table B-5: Example Development of Non-Vacant Sites for Residential Uses. Market demand for the existing on-site uses is marginal while market demand for a variety of residential development types is very strong.
All projects listed in Table B-3 include shared characteristics with the projects identified in Appendix B as part of the City’s past performance in residential development, including but not limited to non-vacant sites, vehicular access to several improved streets, access to utilities, large parcels over 10 acres, small parcels requiring lot consolidation, and construction of on-site affordable housing. Past development trends and the City’s performance in conversion of non-vacant sites to residential development adequately support the conclusion that the non-vacant parcels identified in the sites inventory will be successfully developed with residential development, including deed-restricted affordable units.
Emergency Shelters/AB 2339 - HCD requested the City address (AB 2339), which added provisions related to emergency shelters and clarify emergency shelters are permitted without discretionary action in a zone that allows residential. Although the City had previously addressed AB 2339 and HCD determined via its informal review in March 2023 that the City is in compliance with the statutory requirements, additional text was added to provide context and clarification surrounding the requirements of AB 2339. The updates further clarify existing actions the City has taken to allow emergency shelters to accommodate the City’s need such as the nondiscretionary process that was utilized to approve the Navigation Center and the HB Oasis transitional housing project (before it was converted to permanent supportive housing) both in zoning areas that allow residential uses.
Additional information also includes the 2026 Orange County Point in Time count of 143 unsheltered persons in the City. This is a 24% decrease in unsheltered persons since 2022 and highlights the success of the City’s system of care and continued prioritization of its homeless assistance programs. The Navigation Center opened during the COVID-19 pandemic and operated at a reduced capacity until December 6, 2022. From then on, the Navigation center began to permit client enrollment at its full capacity of 174 beds. In 2023, the daily average occupancy was 162 people. In 2024, the daily occupancy average was 158 people and the total bed count was reduced from 174 to 164 in July 2025 to better align capacity with demand. This adjustment supported the City’s ability to effectively and responsibly manage expenses while continuing to support the unsheltered population with quality services. The Navigation Center provides a capacity of 164 beds that accommodates the City’s emergency shelter need for 143 unsheltered persons.
Adequate Sites Program - HCD requested that the City revise its rezoning strategy based on two appellate decisions Martinez v. City of Clovis and New Commune DTLA LLC v. City of Redondo Beach. Essentially, these decisions taken together require establishment of a minimum density on rezoned sites and held that residential overlay zones cannot satisfy mandatory minimum density and residential use requirements when the underlying zoning allows for 100 percent nonresidential development on sites rezoned to accommodate the lower income RHNA shortfall. Since the City’s draft Housing Element Update relied on Overlay zones to accommodate the lower income RHNA, a new rezoning strategy is necessary. Therefore, the City revised Programs 2A and 2B to establish an Affordable Housing Focus Area (AHFA). The AHFA would be a new zoning district established on sites identified in the City’s sites inventory (Table B-14) where the base zoning district is not residential. A separate AHFA would be established for the Beach and Edinger Corridors Specific Plan where the current zoning allows residential uses. The AHFA would provide existing non-residential property owners the ability to entitle and develop housing on their parcels at a minimum density of 20 dwelling units per acre. The AHFA will allow development of exclusively residential projects and require that residential uses occupy at least 50% of the total floor area of a mixed-use project in compliance with Government Code Section 65583.2(h)(2).
Measure U - HCD requested a constraints analysis of Measure U and corresponding program actions to mitigate or remove any identified constraints. A complete analysis of Measure U (City Charter Section 807) is provided in the Housing Element Update.
Housing Programs - HCD requested status and/or implementation timeline updates to the following programs: Program 1D (Preservation of Assisted Rental Housing), Program 2A (Adequate Sites), Program 2B (Establish Affordable Housing Overlay Zone), Program 2D (Actively Promote, Encourage, and Facilitate the Development of Accessory Dwelling Units), Program 2E (ADU Monitoring Program), Program 2I (Golden West College), Program 3B (Affordable Housing Development Assistance), Program 3C (Residential Development on City Owned Property), Program 4A (Actively Promote the City’s Development Assistance Team), Program 4B (Actively Promote the Electronic Permitting Process (Online Permit Center)), Program 7G (Proactively Seek Funding for Hotel/Motel Conversions to Transitional and Supportive Housing), and Program 8C (Childcare Facilities), Program 4D (Small Lot Ordinance Amendment), Program 4E (Zoning Code Maintenance), Program 5B (Low Barrier Navigation Center Program), and Program 5C (Farmworker Housing Program). All of these programs have been updated accordingly.
Program 5D (Group Homes) is substantially compliant with Housing Element law and was considered as such by HCD in their September 2022 substantial compliance finding letter. The program language and actions were approved by HCD at that time and no changes to Housing Element law pertaining to group homes have occurred that would warrant additional programmatic action. In published court orders and decisions in The Ohio House, LLC V. City of Costa Mesa, et al, No. 22-56181 (9th Cir. 2025) and The Ohio House, LLC V. City of Costa Mesa, et al, No. 22-56181 (9th Cir. 2024) the court decided in favor of the City of Costa Mesa and upheld the majority of its Group Homes ordinance while rejecting claims that Costa Mesa’s group home regulations discriminated against persons with disabilities. The City’s Group Homes ordinance was modeled after the Costa Mesa ordinance and therefore is in compliance with the latest court decisions and further actions beyond the existing Program 5D language are not necessary. Research indicates that since the Costa Mesa appellate decision was published in April 2025, HCD has sent Technical Assistance letters stating that the Ninth Circuit did not address the analysis of state law in HCD’S Group Home Technical Assistance Memo nor state laws such as ALU law, AFFH law, and Housing Element law while making its ruling and that HCD intends to continue enforcing their interpretation of state laws on these matters regardless of the Ninth Circuit decision (HCD San Jose Technical Assistance Letter September 26, 2025).
Affirmatively Furthering Fair Housing - HCD specifically requested updates to Program 8A (Implement Funded Projects that Improve Quality of Life, Placemaking, and Access to Opportunity in Low Resource Areas), Program 8B (Proactively Seek all Funding Sources to Improve Quality of Life, Placemaking, and Access to Opportunity in Low Resource Areas), and programs under Goal 9 (Affirmatively Furthering Fair Housing). Each of the listed programs includes an update and new status if applicable. In addition, HCD’s comment requested the City consider additional multifamily housing opportunities in higher resource census tracts. The sites inventory (Table B-14) in Appendix B identifies that a majority of the City’s available sites are within higher resource areas.
Public Participation - HCD’s letter stated that the City is required to post revisions to the draft Housing Element on the City’s website and provided notice to interested parties. This comment has been addressed (refer to Public Participation section above).
In summary, the City has made revisions to address all comments in HCD’s March 6, 2026, comment letter and the draft Housing Element Update is in substantial compliance with Housing Element law. While all of the comments in HCD’s March 6th determination letter have been adequately addressed in the draft Housing Element Update, Government Code Section 65585(f)(2) also provides that where a city council does not make the changes required by HCD when adopting a housing element, a city council “shall include in its resolution of adoption written findings that explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department”. In accordance with Government Code Section 65585(f)(2), the draft Housing Element Update incorporates changes to substantially comply with housing element law. The resolution that was prepared for this agenda item includes findings under Government Code section 65585(f)(2) based on substantial evidence.
Additionally, pursuant to Government Code Section 65585(e), if HCD’s findings are not available within the time limits set by applicable housing laws, the City Council may act without them. Further revisions to the draft Housing Element Update cannot be made in advance of the public hearing given the time constraints per the Court’s orders and given that HCD is unwilling to agree to extend the City’s compliance deadline. Any additional revisions to the City’s draft Housing Element Update require that those revisions be made available for adequate public review and comment. As described above, the process for additional revisions to the draft Housing Element Update cannot be completed under the applicable time constraints before the public hearing. The resolution that was prepared for this agenda item includes findings under Government Code Section 65585(e) for the reasons explained above.
The Court’s December 19, 2025 order provides that HCD has the opportunity to further review the City’s draft Housing Element Update if adopted by the City Council and that HCD can either approve or disapprove the revised draft Housing Element Update and HCD can request that technical changes be made to the draft Housing Element Update. The resolution that was prepared for this agenda item authorizes the City Manager (or his designee) to make any necessary technical changes to the draft Housing Element Update to address comments made by HCD during the above review process and without the approval by the Council at another public hearing being required to do so.
The Court’s December 19, 2025 order also requires that within 120 days of the City adopting a substantially compliant sixth cycle housing element under state housing laws that the City adopt all zoning code changes required for the City’s zoning ordinances to be consistent with the draft Housing Element Update. There are no changes being made to zoning as part of this agenda item. The matters related to zoning changes will be brought to the Council as a future public hearing item if the draft Housing Element Update is approved by the Council.
The resolution that was prepared for this agenda item includes language in it that the City is reserving all of its legal rights and defenses in the ongoing litigation in the above referenced case that was filed by the California Attorney General against the City in 2023. In that litigation, the City has recently been ordered by the Court to pay $10,000/month in penalties for not having approved a housing element previously starting from when a new statute was enacted that became effective on January 1, 2025. At the present time, the City faces additional penalties of $50,000/month until a substantially compliant housing element is approved by the Council. An additional amount of up to $100,000/month in penalties is being sought by the California Attorney General against the City in court proceedings that will occur in July 2026. The penalties are being sought against the City until a substantially compliant housing element is approved by the Council.
Environmental Status:
The California Environmental Quality Act (CEQA) is satisfied for this item based on court orders in the People of California ex rel. Rob Bonta v. City of Huntington Beach, San Diego Superior Court Case No. 30-2023-01312235-CU-WM-CJC that include, as provided by Government Code section 65759, that CEQA does not apply to the City’s actions that are necessary to comply with the orders of the court.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. Resolution No. 2026-25, “A Resolution of the City Council of the City of Huntington Beach approving General Plan Amendment No. 21-003 (2021-2029 Housing Element Update).”
2. HCD Comment Letter - March 6, 2026
3. Public Comments Received