URGENT UPDATE: Nearly three years past the state-imposed deadline, San Mateo County and three Bay Area cities—Half Moon Bay, Belvedere, and Clayton—remain without state-approved housing plans. This delay exposes them to significant fines, potential loss of grant funding, and the controversial “builder’s remedy” that could undermine local land use control.
The original deadline for these plans was January 31, 2023. As California mandates local governments to submit housing elements every eight years, these documents are crucial roadmaps for how cities plan to permit homes across various affordability levels. The state has ramped up homebuilding targets—now set at 441,000 new homes for the Bay Area by 2031, a drastic increase from 187,990 in the previous cycle.
Despite the looming threat of penalties, many officials appear unconcerned. “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. Critics argue that these municipalities are not prioritizing compliance.
Local officials, however, defend their efforts. “There hasn’t been any foot-dragging happening in the city of Half Moon Bay,” stated Leslie Lacko, the community development director. Half Moon Bay is preparing to submit its fifth draft of the housing plan, aiming for state approval this month.
According to reports, the state has only pursued severe penalties against a handful of cities, primarily in Southern California. For example, in 2023, Huntington Beach faced a lawsuit for defying housing element regulations, risking substantial monthly fines.
Bay Area communities lagging in their submissions are vulnerable to the builder’s remedy, a provision that allows developers to bypass local zoning laws to expedite housing projects. Since the implementation of this provision, at least 98 builder’s remedy proposals have emerged in the region, totaling more than 13,000 housing units. While there has been significant public outcry about these developments, it’s unclear how many projects have actually broken ground.
In Belvedere, one developer leveraged the threat of a large builder’s remedy proposal to secure approval for a 40-unit duplex project. However, the city has still not finalized its housing element. A recent letter from regulators urged the city to complete necessary rezoning processes, emphasizing potential fines for noncompliance.
San Mateo County also received a similar warning in September. Officials indicated they are working diligently to finish their rezoning processes by mid-next year, attributing delays to the complexities of new housing laws. They have yet to receive any builder’s remedy applications.
In Half Moon Bay, city officials stated that their slow progress is to ensure compliance with regulations from the state’s Coastal Commission, which is tasked with protecting coastal habitats. Critics argue these regulations have hindered housing development.
Officials from Clayton, a small suburb near Concord, did not respond to inquiries regarding their delayed housing plan approval.
As this situation unfolds, the stakes are high for these municipalities. The urgency for compliance is clear, as failure to act may result in lost local control and significant financial penalties. Residents and advocates alike are watching closely as the clock ticks down on these critical housing plans.
