Bay Area Cities Face Fines for Missed Housing Plans Deadline

URGENT UPDATE: Nearly three years past the state’s deadline, San Mateo County and the cities of Half Moon Bay, Belvedere, and Clayton are still without a state-approved housing plan, risking significant penalties and loss of funding. Their plans, due by January 31, 2023, now hang in the balance as local officials scramble to finalize documents that could shape the future of housing in the Bay Area.

The stakes are high. California mandates that local governments submit housing elements every eight years, outlining their strategies to permit a specific number of homes across various affordability levels. As the state faces a housing crisis, new targets have surged to a staggering 441,000 new homes required in the Bay Area from 2023 to 2031, up from just 187,990 previously. This ambitious goal comes amid rising housing costs and strict penalties for noncompliance.

Housing advocates express alarm over the lack of urgency from the few remaining municipalities yet to complete their plans. “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. “They think they can hire enough lawyers to evade the state’s requirements.”

Local officials, however, push back against these claims. “There hasn’t been any foot-dragging happening in the city of Half Moon Bay,” stated Leslie Lacko, community development director of Half Moon Bay. The city has recently adopted a fifth draft of its plan, focusing on accessory dwelling units and aims to submit it to state officials this month.

The consequences of missed deadlines are severe. Jurisdictions failing to secure state approval face the dreaded “builder’s remedy,” which allows developers to bypass local zoning laws. This provision has already led to 98 builder’s remedy proposals across the region, totaling more than 13,000 housing units. Despite the mixed reception from communities fearing overdevelopment, the builder’s remedy could reshape suburban landscapes dramatically.

In Belvedere, developers leveraged the threat of a builder’s remedy proposal to gain approval for a smaller, 40-unit duplex project. Yet, the city remains without a finalized housing element. Just last month, regulators urged Belvedere to complete a required rezoning process, warning of potential fines and ineligibility for state housing grants.

On the Peninsula, San Mateo County is also facing pressure. Officials received a letter from the accountability unit in September, urging them to expedite their rezoning process by mid-2024. Complications arising from new housing laws have contributed to the delays, but county officials affirm they are working diligently to meet the requirements.

Meanwhile, in Half Moon Bay, local leaders argue that their careful approach is essential to comply with state Coastal Commission regulations designed to protect natural habitats and public access to the shoreline. Despite these challenges, city officials maintain they have not received any builder’s remedy proposals.

The clock is ticking for these municipalities. As state officials intensify scrutiny, it remains uncertain what actions will be taken against these jurisdictions for their delays. With housing advocates and local residents watching closely, the urgency for a resolution has never been more critical.

As the situation develops, eyes are on these Bay Area cities to see if they can overcome bureaucratic hurdles and meet their obligations before it’s too late. Stay tuned for updates as this story unfolds, impacting thousands and shaping the future of housing in the region.