Bay Area Cities Face Urgent Housing Plan Deadline: Fines Loom

UPDATE: Nearly three years after the state-mandated deadline, San Mateo County and the cities of Half Moon Bay, Belvedere, and Clayton still lack approved housing plans, putting them at risk of severe penalties. The deadline for these plans was January 31, 2023, and officials warn that non-compliance could lead to fines and loss of funding.

This situation has become critical as California aims to add 441,000 new homes across the Bay Area between 2023 and 2031—a significant increase from the previous target of 187,990 homes. With housing costs skyrocketing, local governments are under immense pressure to meet these ambitious goals.

The stakes are high: communities that fail to submit their housing elements risk being subjected to the “builder’s remedy,” a state law provision allowing developers to bypass local zoning regulations. As of last year, at least 98 builder’s remedy proposals have been submitted across the Bay Area, totaling over 13,000 housing units. This could drastically change the landscape of these communities.

“Municipalities like these often feel insulated from the state’s requirements,” said Matt Regan, a housing policy expert with the Bay Area Council. Advocates argue that many of these jurisdictions, particularly wealthier ones, lack the urgency to finalize their plans.

Local officials, however, have defended their efforts. “There hasn’t been any foot-dragging in Half Moon Bay,” stated Leslie Lacko, community development director. The city recently adopted a fifth draft to update its housing policies and aims to submit it to state officials this month.

In contrast, state officials have taken action against non-compliant cities, most notably suing Huntington Beach for ignoring housing element requirements, facing potential fines of hundreds of thousands of dollars. The California Housing and Community Development Department has not yet indicated whether penalties will be pursued against the Bay Area jurisdictions.

With the builder’s remedy looming, local governments are feeling the pressure. Communities like Belvedere have already seen developers leverage the threat of this provision to push through housing projects. Despite this, Belvedere has yet to complete its housing element, prompting state regulators to send an urgent letter emphasizing the need for compliance.

San Mateo County also received a similar communication in September, with officials stating they are working diligently to finalize the required rezoning processes. “We are navigating the complexities of new housing laws,” they said.

In Half Moon Bay, city officials assert that progress is essential to ensure compliance with state Coastal Commission regulations, which aim to protect coastal habitats while allowing housing development. Critics, however, argue that these regulations hinder timely housing solutions.

As these cities grapple with their obligations, the clock is ticking. The lack of approved housing plans not only jeopardizes funding but also threatens to exacerbate the ongoing housing crisis in the Bay Area. The urgency for these municipalities to act cannot be overstated, as they risk losing control over local land use decisions and facing mounting penalties.

Residents and officials alike are left watching closely. The next steps involve expedited submissions and potential state interventions, making it clear that the time for action is now.