Huntington Beach Loses to State in Federal Court: What It Means for LB

How much power do California cities have to choose in terms of the development of their housing and commercial zones? A federal appellate court decision says that state law will determine what happens when it comes to affordable housing.

On Oct. 30, the federal 9th Circuit Court of Appeals released its decision that cities will have to comply with the State of California’s affordable housing mandate. That means the city of Huntington Beach’s suit filed in March 2023 is dismissed and that La Habra Heights has to comply with its agreement to establish a housing development compliant with state law.

The State of California and the City of Huntington Beach had sued each other in March 2023 over the legal issues, with the state claiming Huntington Beach was violating state housing laws. The city immediately sued the state in federal court claiming the state’s requirement to build more residential units was unconstitutional.

The city had argued that as a charter municipality it has greater authority than a general law municipality to act outside of legal boundaries set by state lawmakers.

The City of Long Beach will be carefully watching what happens here. While plans to build more affordable housing in the city are in the works, Long Beach also has an ambitious strategic plan for development projects and wants to exercise its authority to govern what gets built – and how exactly that will happen.

Long Beach and Huntington Beach in recent years had been in agreement on bringing Amazon’s headquarters to a shared joint venture space in Huntington Beach that would have been operated by the two cities, but another city won that bid.

Huntington Beach and its residents and business owners have been known for seeking a moderate growth plan. While the area around the Huntington Beach Pier has been built up and hosts a series of surfing events, locals have expected the city to keep residential and commercial developments at a more moderate pace and structure – such as not allowing buildings with more than two or three floors in certain parts of the city.

That has started to change in recent years as Huntington Beach has become a popular city for people seeking jobs and housing there. Some of the approved projects will allow for more floors to be built. That will include the approved Delaware Housing Project, which is under construction. The new 346-unit, five-story residential apartment community is anticipated on an approximately 4-acre vacant site located south of Main Street, between Delaware Street and Florida Street, according to the City of Huntington Beach.

Newsom Says HB Is NIMBY-Focused

In a statement issued by California Gov. Gavin Newsom’s office after the federal appellate court ruling, Newsom criticized Huntington Beach for being too ‘not-in-my-backyard’ (NIMBY) focused.

“Today, yet another court has slapped down Huntington Beach’s cynical attempt to prevent the state from enforcing our housing laws. Huntington Beach officials’ continued efforts to advance plainly unlawful NIMBY policies are failing their own citizens – by wasting time and taxpayer dollars that could be used to create much-needed housing. No more excuses – every city must follow state law and do its part to build more housing.” – Gov. Gavin Newsom

According to a City of Huntington Beach lawsuit, the state’s requirement for affordable housing would result in approximately 40,000 new high-density units in Huntington Beach over the next several years.

“Newsom is a tyrant,” Mayor Pro Tem Pat Burns said in an email to the Pasadena Independent. “With the population of Huntington Beach projected to decrease, as is California’s, and an increase in housing already projected to increase, why is more housing needed? I have never heard an explanation from Newsom or his Administration to this question. Is he trying to ruin capitalism within California?”

Huntington Beach City Attorney Michael Gates in an email told Pasadena Independent that he will seek an ‘en banc rehearing’ of the case by all the appeals court’s 29 judges, which could overturn the three-judge appeals court ruling. If that tactic doesn’t work, Gates said that the city could petition the U.S. Supreme Court to hear the case.

The U.S. Supreme Court could also choose to allow California’s state courts to make the final decision on the case, according to an attorney.

 Long Beach has been supportive of low-income housing units, and allowing homeowners to add more rental units on their property. That includes following another state program that has started up in recent years allowing accessory dwelling units (ADUs).

Some Long Beach residents and business owners are very concerned that the city may be pushing too hard for rental units to be built, causing a lot more traffic and other possibly negative effects from allowing over-development.

Jon LeSage is a resident of Long Beach and a veteran business media reporter and editor. You can reach him at jtlesage1@yahoo.com.