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Surf City takes first step toward ending state’s affordable housing lawsuit

Huntington Beach leaders are reversing course after becoming the first California city sued for failing to adopt a state-approved residential plan.

The state took Huntington Beach to court on Jan. 25, 2019, over its housing plan, saying the city is shirking its legal obligations to provide affordable housing (File photo by Michael Goulding, The Orange County Register/SCNG).
The state took Huntington Beach to court on Jan. 25, 2019, over its housing plan, saying the city is shirking its legal obligations to provide affordable housing (File photo by Michael Goulding, The Orange County Register/SCNG).
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Huntington Beach city leaders took their first step Tuesday, Jan. 14, to get their housing plan re-certified by the state, a move that’s expected to end the state’s lawsuit accusing the city of failing to adequately plan for affordable housing.

The planning commission voted 6-1 to amend the city’s housing plan and zoning to allow the construction of 502 affordable housing units on or near Beach Boulevard, more than enough to meet state requirements that cities plan and zone for housing at all income levels.

If the city council adopts the amendment at an upcoming meeting in February, a state official said in a Jan. 10 letter, the city no longer would be in violation of the state’s housing law. That could end the test case launched in January 2019 by Gov. Gavin Newsom.

But the lawsuit isn’t the city’s main reason for its actions, city leaders said.

Surf City decided to act after learning it needed a state-approved housing plan to qualify for a $481,000 state grant to build a homeless shelter, officials said.

“It has nothing to do with settling the lawsuit,” City Attorney Michael Gates said in a phone interview. But, he added, “if HCD certifies the city’s housing element, then it’s my position the lawsuit becomes moot.”

Gates warned, however, it’s up to the state Attorney General’s Office to dismiss the lawsuit once the housing plan gets re-certified.

At issue was the city’s 2015 decision to limit apartment construction, curbing development of new affordable housing. The action, occurring after a citizen revolt over apartment construction in the city’s northeast sector, resulted in a housing plan that was short 413 affordable housing units of state-mandated goals.

The state housing department de-certified Huntington Beach’s housing plan, and a nonprofit housing advocacy group sued the city. The housing advocate’s lawsuit went to the state Supreme Court. The city ultimately prevailed, however, arguing that as a charter city, Huntington Beach has greater autonomy over zoning and isn’t subject to all the state’s zoning codes.

Then Gov. Newsom weighed in.

Under a half-century-old law, cities and counties are required to plan and zone for housing at all income levels. The law was largely ignored until the Legislature enacted AB 72 in 2017, giving the attorney general the right to sue cities that fail to adopt state-approved housing plans. Last January, Newsom made Huntington Beach a test case for that new law, threatening to file additional lawsuits against 47 other cities and counties without state-certified housing plans.

Huntington Beach’s proposed housing plan amendment would provide “by right” approval of high-density housing projects on six parcels totaling 9 acres if 20% of their units are reserved for low-income residents. That means the projects could go forward without planning commission or city council review and without public hearings.

The amendment “meets the statutory requirements” for getting the city’s housing plan in compliance with state laws, a Jan. 10 letter from the state housing department said.

Some planning commissioners agreed Tuesday night that it’s time for the city to back down from its 4 1/2-year fight over affordable housing.

“This could be an important step toward settling the governor’s lawsuit,” Planning Commissioner John Scandura said of the housing plan amendment. “It’s just not in the best interests of the city to be litigating due to the costs and other kinds of things.”

Six speakers addressed the planning commission Tuesday, all of them homeless services representatives who supported the amendment. One speaker noted that non-compliance cost the city almost a million dollars in homeless grants over the past two years.

“You ought to follow the law,” one of the speakers, former Huntington Beach Mayor Ralph Bauer, told the planning commission.

Some planning commissions also worried continued non-compliance could result in fines and cost the city losing its ability to issue future building permits.

Commissioner Pat Garcia cast the lone dissenting vote, saying after the meeting he objected to reduced parking requirements. But he also complained the state’s campaign to build 1.8 million to 3.5 million new homes by 2025 is robbing cities of local control over zoning issues.

“If the state’s running everything, what do they need the City Council for? What do they need any of us for?” Garcia said. “It’s a paradigm shift. They’re now electing local officials in Sacramento.”

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