Bay Area Cities Face Fines as Housing Plans Remain Unapproved

UPDATE: Nearly three years past the state deadline, San Mateo County and three Bay Area cities—Half Moon Bay, Belvedere, and Clayton—still lack state-approved housing plans. This delay exposes them to significant penalties, including fines and loss of vital grant funding, as California enforces stricter housing mandates.

Authorities confirm that these jurisdictions failed to submit their plans, which were due on January 31, 2023. California mandates local governments to develop detailed housing elements every eight years, outlining how they will meet targets for new home construction. State officials recently increased the Bay Area’s homebuilding target to a staggering 441,000 new homes between 2023 and 2031, up from just 187,990 in the previous cycle.

Despite the looming threat of fines, housing advocates express frustration, noting a troubling lack of urgency among these municipalities. “They’re mostly small and wealthy jurisdictions that probably feel they don’t have any obligation,” said Matt Regan, a housing policy expert with the Bay Area Council.

Local officials, however, dispute this claim. “There hasn’t been any foot-dragging happening in the city of Half Moon Bay,” stated Leslie Lacko, community development director. Earlier this month, Half Moon Bay adopted a fifth draft of its housing plan and aims for state submission this month.

The state has begun to impose penalties primarily on Southern California cities, like Huntington Beach, which faced a lawsuit for noncompliance. As of now, it remains unclear whether the state will pursue penalties against the Bay Area cities. However, the builder’s remedy provision allows developers to bypass local zoning laws, pushing through large projects when municipalities fail to meet housing requirements. Since last year, at least 98 builder’s remedy proposals have been submitted across the region, representing over 13,000 housing units.

In Belvedere, a developer leveraged the builder’s remedy threat to gain approval for a smaller project, illustrating the pressure these cities face. Nevertheless, Belvedere has yet to complete its housing element. In September, regulators urged the city to finalize its rezoning process, warning of possible fines and ineligibility for state grants.

On the Peninsula, San Mateo County officials reported working diligently to navigate recent housing laws and aim to complete their rezoning by mid-next year. They have not received any builder’s remedy applications.

In Half Moon Bay, officials attribute delays to compliance with regulations from the state’s Coastal Commission, emphasizing the need to protect coastal habitats. Yet, critics argue that these regulations significantly hinder housing development.

The situation in Clayton remains uncertain, as city officials did not respond to inquiries regarding their housing plan status.

With escalating housing costs and the urgency to meet state mandates, these delays could have lasting impacts on the region’s housing crisis. As developments unfold, the pressure mounts on these municipalities to act swiftly, or face dire consequences.

Stay tuned for updates as this situation develops.