Time to Pay the Piper: Attorney General Bonta and Governor Newsom Secure Financial Penalties Against Huntington Beach in Housing Lawsuit

State court orders Huntington Beach to pay civil penalties of at least $160,000, escalating to $50,000 per month starting this June 

OAKLAND — California Attorney General Rob Bonta and Governor Gavin Newsom today issued the following statements after the San Diego Superior Court imposed civil penalties on the City of Huntington Beach in the amount of $160,000, followed by $50,000 per month beginning June 2026, until the City cures its violation of California’s Housing Element law. Under the Housing Element Law, every city and county in California must periodically update its housing plan to meet its Regional Housing Needs Allocation (RHNA) or share of the regional and statewide housing needs. Today’s penalties stem from a 2023 lawsuit filed by the State against Huntington Beach.  

“Huntington Beach has obstinately and illegally refused to do its part to address our state’s housing crisis, and today, it’s paying for it," said Attorney General Rob Bonta. "This civil penalty is a costly lesson for Huntington Beach that drives home the truth we've known all along: No city is above the law. Huntington Beach must stop wasting public funds and avoiding its responsibilities to the public. We expect Huntington Beach to heed the court order and finally step up to serve its residents. At the California Department of Justice, we will continue to do our part to uphold the law and fight for affordable housing for all Californians.”

“Huntington Beach officials are failing their community by wasting time and vast sums of taxpayer dollars to defend clearly unlawful NIMBY policies and fight against affordability,” said Governor Gavin Newsom. "Citizens in this community should be appalled by their city leaders’ actions here which will cost them hundreds of thousands of dollars in penalties, with more growing each month. No more excuses — every city must follow state law and do its part to build more housing.”

On March 9, 2023, Attorney General Bonta, Governor Newsom, and California Department of Housing and Community Development (HCD) Director Gustavo Velasquez filed a lawsuit in state court against Huntington Beach for failing to timely adopt a compliant housing element. On December 19, 2025, the State secured a decision from the San Diego Superior Court requiring the City of Huntington Beach to, among other things, adopt a housing element within 120 days and restricting the City’s land use authority, effective immediately, until that requirement is satisfied.

Now, with Huntington Beach more than 4.5 years behind schedule, the Court has ordered the city to pay $10,000 per month for each month since January 2025, totaling $160,000. Penalties will then increase to $50,000 a month beginning in June 2026, until the city cures its violations of state housing law. These penalties are consistent with Senate Bill (SB) 1037 (Weiner, 2024) which was sponsored by Attorney General Bonta and enhanced the Attorney General’s ability to seek civil penalties in court against local governments that violate state housing law.

In response to the State’s lawsuit, the City of Huntington Beach filed a federal lawsuit challenging the constitutionality of certain California housing laws. The City’s lawsuit was dismissed by the U.S. District Court for the Central District of California, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit unanimously affirmed the district court’s dismissal, and the U.S. Court of Appeals for the Ninth Circuit then denied the City’s petition for rehearing en banc. The City asked the U.S. Supreme Court to review the aforementioned rulings, and that request was also denied.