Starting next month, Huntington Beach taxpayers will lose over $1,600 a day until city leaders get a state approved housing plan in place.

The $50,000 monthly fine is slated to go into a state housing trust that could spur housing production in other cities. 

The penalty comes after San Diego Superior Court Judge Katherine Bacal found city leaders have failed to implement a housing plan after a yearslong battle with state officials over whether they need to implement one at all. 

Surf City has lost at every level of state and federal court after officials argued the municipality doesn’t have to follow state housing mandates because it’s a charter city. 

[Read: Huntington Beach Continues to Lose Lawsuits Arguing Charter City Rights]

Now, the bill has come due. 

“While the Court did not find the City’s arguments persuasive that no penalties should be imposed, the arguments do factor into determining the appropriate amount of penalties,” Bacal wrote in her minute order issued Thursday.  

City officials didn’t return calls for comment. 

Starting in June, the city will pay $50,000 per month “until the City cures the violation.”

That money’s slated to go into the state’s Building Homes and Jobs Trust Fund, where it could help other cities build housing.

“This fund was created to streamline housing production, support affordable housing, increase home ownership opportunities, and provide other income-related housing grants and programs as specified,” reads a state summary of the fund. “Majority of funds to flow to local governments.” 

She also ordered the city to pay an additional $10,000 a month late fee to cover the months of January through May of this year, for a total of $50,000. 

It’s the first time the city has faced a financial penalty for their refusal to adopt a housing plan after prosecutors from Attorney General Rob Bonta’s office repeatedly asked the court to sanction the city. 

Huntington Beach leaders have been wrapped up in lawsuits with the state since 2023, when a then-newly elected city council majority swore their top priority was to fight against any new housing coming to Huntington Beach. 

“This is one of the biggest threats facing our city,” said then-Councilman, now Mayor, Casey McKeon at the council’s Dec. 2022 meeting. “We have to fight this with every fiber of our being.” 

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

Since 2021, the city has greenlit permits for around 1,500 new units of housing according to their disclosures. 

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