Surf City residents could be on the hook for millions in fines if their city loses a lawsuit against the state fighting mandated housing development, but the exact amount remains a mystery.
Huntington Beach has been one of the leaders in a growing fight against Gov. Gavin Newsom’s administration and its expansion of state housing laws that require cities to zone for thousands of new units every year.
While other cities in Orange County and across the state have decried the housing mandates as an unconstitutional burden that forces cities to throw out their zoning laws, Surf City is the only one taking the issue into the courtroom, participating in multiple lawsuits with the state.
[Read: California Sues Huntington Beach for Failing to Adopt a Housing Plan]
But that battle has had some setbacks recently, with a federal judge throwing out the city’s lawsuit against the state, claiming the city failed to prove that they had the right to sue the state government over the issue.
[Read: Federal Judge Tosses Surf City Lawsuit Against CA Housing Mandate]
Despite loudly warning Surf City it’s violating state housing laws and threatening fines, state officials from the Housing and Community Development department didn’t respond to questions on just how much the city council’s fight could cost local taxpayers.
But a presentation by Huntington Beach city staff last March suggests it could be in the millions.
For every month the city’s plan is out of compliance, a court can charge them at least $100,000 according to that report, which notes that if the fines aren’t paid that can increase to $600,000 per month.
“The longer we’re noncompliant, the increase in that fee,” said then-Community Development Director Ursula Luna-Reynosa at the council’s Mar. 21 meeting. “We are currently out of compliance and HCD has started that enforcement process.”
After a year of being out of compliance, that means the city could end up on the hook for anywhere from $1.2 million to $7.2 million.
So far, the city hasn’t had to face any penalties because the state can’t levy any fines until their legal cases with the city are either settled or a judge makes a ruling.
The potential fines come as city leaders are struggling to balance their budget, which city council members cut $7 million out of this last year in an effort to rebalance their spending.
[Read: Surf City Hangs Onto Libraries After Public Outcry, Cuts $7 Million Elsewhere]
The court could also take away the city’s power to issue permits, and could put the city in a court receivership that lets someone else make decisions on what housing plans can or can’t be approved.
“I understand the importance and the desire of the city wanting to have control over our land use,” Reynosa said at that meeting. “But having a certified housing element and challenging the state on housing laws is not mutually exclusive.”