Coronado settles housing lawsuit, agrees to zone for additional homes.
California City Agrees to State’s Housing Recommendations After Lawsuit
After two years of resistance to a state-mandated housing plan, officials of the island city of Coronado in San Diego County recently settled a lawsuit with the state’s attorney general and its housing department and agreed to follow the state’s recommendations.
California cities are required to zone for new housing—in an effort to create more affordable housing. Cities that fail to comply can lose local control over their ability to deny housing projects that go against local zoning regulations, or face financial penalties.
“Every single city and county in the state will be held accountable for building their fair share of housing. The state is doing more than ever to streamline construction, and we will continue working with communities to build more housing, faster in order to support Californians,” said Governor Gavin Newsom in an Oct. 20 joint press release announcing the settlement with Attorney General Rob Bonta and Gustavo Velasquez, director of the state’s housing department.
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Mr. Bonta said if Coronado can do it then anyone can.
“Today should serve as a valuable lesson to counties and cities across the state: no matter your situation, state leaders are willing and able to help you deliver housing for all of your residents. If we could get it done in Coronado, an island city where a military base and a port sits on more than half of it, we can get it done elsewhere, too,” he said.
As part of the settlement, the state’s Department of Housing and Community Development (HCD), agreed to count 374 of the city’s planned homes on the island’s naval base towards their mandated goal, which is it zone for 912 units between 2021 and 2029.
“We are glad to see the City of Coronado commit to bringing their housing element into compliance with Housing Element Law. HCD will continue to work with the City, and monitor them, to ensure compliance and hold them to the commitments they have made in this settlement,” Mr. Velasquez, the department’s director, said in the same press release.
Last year, Coronado legally challenged the state’s mandate, arguing that zoning for over 900 units was unrealistic. They were joined in the legal action with the cities of Imperial Beach, Lemon Grove, and Solana Beach, who were also suing over their mandated plans, as reported by The Coronado Times, an online news outlet. Coronado lost in that case.
In an interview last year, Coronado Mayor Richard Bailey told the publication that after the state’s last mandated plan for the years 2013 to 2020 where they were told they had to zone for 50 more units, the city actually zoned for 600 and built 350 units.
“This … cycle, we are required to allow for more than 900 units. Our zoning does not allow for that many new units, so we would have to change our zoning if that … number holds,” he said.
Previously, the city—which has a population of about 20,000 according to 2022 estimates by the U.S. Census and where the current median price for a home is $3.65 million and studios rent for $4,000 a month, according to the most rent data from the California Association of Realtors and Zillow, respectively—was also denied using the planned housing on its naval base to count towards their most recent plan, but was able to get that approved in the settlement, Mr. Bailey said in the governor’s press release.
The state mandates are known as the Regional Housing Needs Assessment, or RHNA, and they come in eight-year cycles.
“Grappling with a RHNA allocation that is much greater than in prior cycles, the combined creativity of the City and State was brought to bear for this workable solution. With a shared goal of developing a meaningful and achievable plan to reach compliance, we’ve found resolution to a years-long challenge,” he said.
Under the settlement, the city—specifically its city council—must adopt a compliant housing plan by April 2024 and rezone by May, three years past the original deadline.
Under the settlement, the city also agrees to not deny housing projects that don’t comply with either the city’s general plan or its zoning regulations, until an approved housing plan is adopted.
Cities without an approved plan must allow developers, whose projects meet certain affordability requirements, to bypass local zoning regulations or city-mandated rules such as density limitations.
The settlement also rules that the city will begin to receive fines if the terms of the settlement haven’t been fulfilled within 12 months.
Huntington Beach is another coastal city to recently challenge the state over its mandated housing objectives.
It filed a lawsuit in March arguing the more than 13,000 units of housing they’re required to zone for is the largest allocation in the state and disproportionate to other jurisdictions, such as San Bernardino, which has a similar population to Huntington Beach’s 200,000 and is five square miles larger. That city, Huntington Beach’s lawsuit says, is only being asked to plan for 8,000 units.
City leaders also use Huntington Beach’s status as a charter city, which follows its own charter instead of general law, allowing more self-governing, as a reason for not following state housing laws.
California is using “unconstitutional legislative and administrative means … stripping Charter cities of their ability to make their own land use decisions,” the city posted on Facebook March 9.
The state is counter-suing the city seeking full compliance.
How many units does Coronado need to zone for between 2021 and 2029 to comply with the state’s recommendations?
L—has agreed to revise its housing element to comply with the state’s recommendations. This includes zoning for 912 units between 2021 and 2029, with 374 of these units being counted from the city’s planned homes on the naval base.
The settlement marks the end of a two-year legal battle between Coronado and the state. Coronado, along with several other cities, had challenged the state’s mandate, arguing that zoning for over 900 units was unrealistic. However, they were unsuccessful in their legal action and lost the case.
Coronado Mayor Richard Bailey explained that in the previous cycle, the city was mandated to zone for 50 more units but ended up zoning for 600 and building 350 units. This time, the city would have had to change its zoning to accommodate the required number of units. The city’s population is approximately 20,000, and the current median home price is $3.65 million with studios renting for $4,000 a month.
The state’s housing mandates, known as the Regional Housing Needs Assessment (RHNA), occur in eight-year cycles. The recent cycle has presented a greater allocation for Coronado, leading to the need for a workable solution. With the shared goal of developing a meaningful and achievable plan, the city and state have reached a resolution to this long-standing challenge.
As part of the settlement, the California Department of Housing and Community Development will monitor the city’s compliance to ensure they fulfill their commitments. The city is committed to bringing its housing element into compliance with the Housing Element Law.
Governor Gavin Newsom emphasized the state’s focus on building more housing to support Californians. He stated that every city and county in the state will be held accountable for building their fair share of housing. The state is actively working to streamline construction processes and collaborate with communities to expedite housing development.
Attorney General Rob Bonta emphasized the significance of the settlement, stating that if Coronado can achieve compliance, any county or city in the state can also accomplish it. The settlement serves as a valuable lesson for other jurisdictions, reminding them that state leaders are willing and able to help deliver housing for all residents.
Overall, the settlement between Coronado and the state demonstrates a commitment to addressing California’s housing shortage and promoting affordable housing. By following the state’s recommendations and zoning for the required units, Coronado will contribute to statewide efforts to provide adequate housing for its residents.
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