California City Faces Fines for Missing Housing Deadlines

By Vanguard Staff

SACRAMENTO — Governor Gavin Newsom and Attorney General Rob Bonta announced Tuesday that the City of Artesia has agreed to a settlement requiring the city to bring its housing element into compliance with state housing law, resolving a lawsuit filed earlier this month.

If approved by the Los Angeles Superior Court, the stipulated judgment will put Artesia on a binding timeline to adopt a compliant housing element and create 1,069 new homes, including 608 that will be affordable for very low-, low- and moderate-income Californians.

“Artesia has wasted time and money stalling on their obligations when they could have instead been providing necessary housing for the families in their community,” said Newsom. “Every jurisdiction must do their part to create more housing and make their communities more affordable.”

The settlement stems from years of noncompliance, the state said in their release. The Housing Element Law requires every California city and county to adopt and maintain a housing element as part of its general plan. These plans, which are updated every eight years, must identify sites for development, assess community housing needs, and ensure that zoning and programs do not block construction.

For Artesia and other Southern California jurisdictions, the deadline to adopt a legally compliant housing element for the 2021–2029 cycle was October 15, 2021.

Artesia missed that deadline, the state alleges.

According to the state’s petition, the city submitted multiple informal drafts between 2023 and 2024 that still fell short of compliance. The Department of Housing and Community Development (HCD) issued a Notice of Violation in October 2024. After that, additional meetings with city representatives showed little progress,

HCD referred the matter to the Attorney General’s office, which filed suit.

“I commend the City of Artesia for doing the right thing. Instead of continuing to kick the can down the road, the City has finally committed to do its part to plan for the region’s housing needs,” said Bonta. “Cities and counties that still have not adopted compliant housing elements should pay close attention. The deadline for compliance passed years ago, and so, this settlement includes new enforcement tools. Planning for housing is not an abstract exercise. Californians need quality homes that they can afford.”

The stipulated judgment sets out a strict timeline.

By May 13, 2025, Artesia was to publish a revised draft housing element for public review. The city was required to conduct public outreach, including “housing element office hours” both at City Hall and via Zoom, to solicit feedback.

On June 9, 2025, the City Council was to hold a public meeting to review the draft before submitting it to HCD by June 13.

HCD was obligated to provide written findings by August 1, 2025, after which city staff and state representatives were to meet to review comments. By September 22, 2025, the city must release a second revised draft for another round of public review, followed by a resubmission to HCD by October 8. The agency will return formal findings by November 21, and another meeting with city staff must be held by December 1.

The Planning Commission must hold a hearing by January 20, 2026, to consider the revised plan. No later than February 2, 2026, the City Council must adopt the sixth cycle housing element and introduce related amendments to its zoning ordinances and general plan. Those changes must be finalized by February 13. By February 18, the adopted housing element and zoning amendments must be submitted to HCD, which will have until April 6 to issue its final determination.

“This outcome further reinforces California’s housing laws that ensure every locality is doing its part to build homes and address this crisis,” said HCD Director Gustavo Velasquez. “HCD stands ready to help Artesia and all local jurisdictions comply with state housing law, and we will continue to demand accountability from jurisdictions falling short of that critical responsibility.”

The settlement also contains teeth. If Artesia misses its deadlines, the city could face fines starting at $10,000 per month, backdated to January 2025, until compliance is achieved. Additional penalties may be imposed if the city wrongfully denies or imposes unlawful conditions on qualifying housing projects. The court may also order stronger remedies, including suspension of local land-use powers, until compliance is reached.

Beyond penalties, the agreement limits the city’s ability to reject affordable housing projects. Until it adopts a compliant housing element, Artesia cannot invoke provisions of state law to block projects that include housing for very low-, low- or moderate-income households or emergency shelters. This restriction is designed to prevent cities from using procedural maneuvers to avoid new housing during periods of noncompliance.

The settlement was signed by the Attorney General’s office and HCD, along with counsel for Artesia. While the city consented to judgment, it did not admit liability for prior violations. The court will retain jurisdiction to enforce the terms, and both sides agreed to waive appeal rights.

The Artesia case is the latest in a string of enforcement actions taken by the state. In August, the administration announced a settlement with the City of Norwalk, which had enacted an unlawful ban on housing for vulnerable residents. Newsom has highlighted these cases as part of a broader strategy to hold local governments accountable for addressing the housing crisis.

Since Newsom created HCD’s Housing Accountability Unit in 2021, the state says enforcement efforts have supported the development of more than 10,000 housing units, including over 3,300 affordable homes. The unit was expanded in 2024 to include a focus on homelessness, including enforcement of state laws related to shelter and supportive housing.

The Artesia settlement comes as California continues to face pressure from rising housing costs and homelessness. Between 2014 and 2019, before Newsom took office, unsheltered homelessness in California rose by about 37,000 people. While homelessness has continued to increase nationally, the state reports it has slowed the rate of growth in California compared to other states.

Newsom has tied enforcement actions like the Artesia settlement to broader initiatives, including Proposition 1’s funding for mental health and housing programs, the creation of CARE Courts, and the launch of a statewide task force to clear encampments on state property in the state’s largest cities. He has emphasized that accountability for local governments is one piece of a structural reform effort aimed at reversing decades of underbuilding.

For Artesia, the stipulated judgment now places the city under a clear legal obligation to plan and zone for its fair share of housing. If it follows through, more than a thousand homes could be built, with a majority set aside as affordable to families across income levels. If it fails, the court has the authority to impose steep penalties and strip the city of its power to delay projects.


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