Huntington Beach City Council members are set to find out just how expensive their fight against new housing developments could be.

It comes after nearly three years in court, potentially resulting in hundreds of thousands of dollars in fees and the possibility of the city losing its zoning power to a court appointed receiver. 

Surf City’s legal efforts have largely focused on state housing mandates, arguing the city did not have to plan for or approve thousands of new housing units that state leaders have required for cities and counties to help combat the low housing inventory problem. 

City spokesperson Corbin Carson declined to comment on the lawsuit. 

Now, the penalty decision rests in the hands of San Diego Superior Court Judge Katherine Bacal, who released a memo last week notifying city and state leaders she’d made a decision on what penalties the city could get hit with after going over two years without a state-approved housing plan on Friday. 

“The Court lifts the stay it previously imposed and sets a hearing on petitioners’ motion for an order imposing civil penalties,” reads the order. “There will be no further briefing.” 

After publication, Bacal posted another memo stating she intends to hear from both sides on Friday before issuing a ruling. 

Bacal’s order comes after a panel of state appeals court judges overruled her last month, ordering that she impose penalties on the city for not following her ruling in May 2024 requiring them to come up with a state-approved housing plan and set a deadline for the new plan’s creation. 

[Read: Is Huntington Beach on Track to Lose Control of New Housing Developments?]

“The agent of the court may take all governmental actions necessary to bring the jurisdiction’s housing element into substantial compliance pursuant to [the Housing Element Law] in order to remedy identified deficiencies,” the judges wrote. 

To read their order, click here.

Under the state law cited by Bacal in her tentative ruling, fees stretch from “a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month,” if the city hasn’t fixed its housing plan a year after the judge’s order. 

It’s been nearly a year and five months since Bacal ordered city leaders to write a new housing plan, which has not yet been publicly shown or voted on. 

Those fees can also be “multiplied by a factor of six,” if city leaders continue to ignore the ruling, pushing the potential fees as high as $600,000 a month under state law. 

If the city refuses to pay that fine, “the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction’s failure to pay,” under state law. 

Bacal also has the power to impose more than just fees. 

Under state law, Bacal could appoint someone to manage Huntington Beach’s zoning until the city comes up with a housing plan, a route the appeals court pointed her to in their ruling. 

 “The court may ‘order remedies pursuant to Section 564 of the Code of Civil Procedure,’” the judges wrote, which is a portion of law that maps out how a receivership functions. 

It’s the first time penalties are coming the city’s way since city leaders sued the state in March of 2023. 

[Read: California’s Battle With Huntington Beach Over Housing Goals Heads To Court]

Then-City Attorney Michael Gates and the city council majority argued their status as a charter city made it so they could ignore certain parts of state law, but that argument hasn’t held up in court. 

[Read: Will Huntington Beach’s Legal Argument of Limited Independence Hold up in Court?]

Attorney General Rob Bonta has also repeatedly warned he plans to make an example out of the city for their refusal to draft a housing plan, including last month after the appeals court ruling. 

“Huntington Beach is running out of excuses,” he wrote. “The consequences for failing to plan for its fair share of housing are becoming clearer and more serious.”

Noah Biesiada is a Voice of OC reporter. Contact him at nbiesiada@voiceofoc.org.