Bay Area Cities Face Urgent Housing Plan Deadline, Risk Fines

UPDATE: After missing the state’s deadline of January 31, 2023, San Mateo County and the cities of Half Moon Bay, Belvedere, and Clayton now face severe repercussions for failing to finalize their housing plans. These jurisdictions risk fines, loss of grant funding, and the controversial “builder’s remedy,” potentially losing control over critical land use decisions.

California mandates local governments submit comprehensive housing plans every eight years, outlining targets for new homes across various affordability levels. The Bay Area is tasked with adding 441,000 new homes between 2023 and 2031, a significant increase from 187,990 in the previous cycle. However, many municipalities, particularly the affluent ones, are lagging behind, prompting concerns from housing advocates.

Officials claim they are diligently working to finalize complex plans, but some experts argue that smaller, wealthier jurisdictions appear indifferent to state obligations. “They probably feel they don’t have any obligation and can hire enough lawyers to evade state requirements,” stated Matt Regan, a housing policy expert with the Bay Area Council.

Earlier this month, Half Moon Bay adopted its fifth draft of a housing plan, with hopes to submit it to state officials soon. Meanwhile, Belvedere has yet to complete its housing element, with regulators urging action to avoid penalties. “We’re working as expeditiously as possible,” said a San Mateo County official, citing complications from new housing laws as a reason for the delays.

The state has implemented stricter penalties for noncompliance, including lawsuits against cities like Huntington Beach, which openly defied the housing element process. Despite such measures, only a handful of municipalities have faced serious repercussions.

As of last year, Bay Area communities received at least 98 builder’s remedy proposals, amounting to over 13,000 units, showcasing the urgency of these housing needs. Yet, it remains unclear how many of these projects have actually broken ground.

In Belvedere, a developer leveraged the potential for a large builder’s remedy proposal to push through a smaller, 40-unit duplex project, highlighting the high stakes involved. Despite the pressure, the city has yet to finalize its housing element.

The pressure is mounting as local officials face increasing scrutiny and reminders from regulators about potential fines and penalties for noncompliance. Authorities have not disclosed whether they will impose penalties on the lagging Bay Area jurisdictions, but the clock is ticking.

As communities grapple with housing shortages and rising costs, the consequences of inaction are becoming painfully clear. The need for swift, comprehensive housing solutions in the Bay Area has never been more urgent, and local governments must act before it’s too late.

Residents and housing advocates are closely monitoring this developing situation, eager for updates on how local leaders respond to these pressing challenges. The implications of delayed housing plans extend beyond local jurisdictions, affecting the broader California housing crisis. What happens next could redefine housing strategies in one of the nation’s most expensive regions.