Governor Gavin Newsom today announced the state has entered into a stipulated judgment with the City of La Habra Heights, putting the city on an expedited timeline to submit a compliant housing element to the Department of Housing and Community Development. The new housing plan must create 244 housing units, including at least 164 that are affordable to low or very-low-income households.

"No more excuses - every community has a responsibility to create housing and to help reduce homelessness. I am pleased that La Habra has come to the table and agreed to meet their housing goals for a community that desperately needs more affordable homes," said Governor Gavin Newsom.

The City of La Habra Heights is designated as a high opportunity jurisdiction by the California Tax Credit Allocation Committee and California Department of Housing and Community Development (HCD) Opportunity Area 2024 map, indicating access to good schools, less pollution, and jobs-all factors that impact long-term success for families with children. However, the city currently has only single-family homes, with no multifamily housing and zero affordable units.

The deadline for the City of La Habra Heights to adopt a compliant housing element was October 2021.

After repeated attempts to assist the city come into compliance, HCD's Housing Accountability Unit - launched by Governor Newsom in 2021 - issued a Notice of Violation on March 19, 2024. HCD then worked with the Attorney General's Office (AGO) to reach today's agreement with La Habra Heights.

Despite the agreement, until La Habra Heights fulfills its obligations under the agreement, the city remains subject to the "Builder's Remedy" and cannot refuse to permit certain affordable housing projects. The city also remains ineligible to receive key state housing and homelessness funds.

HCD, through the AGO, has now entered into five agreements over housing element compliance. The previous four were San Bernardino, Coronado, Malibu, and Fullerton.

"This latest agreement is a key example of why it is so important that every city, big and small, is held accountable for doing its fair share to address the statewide housing need," said HCD Director Gustavo Velasquez. "When La Habra Heights adopts a compliant housing element, it will -- for the first time ever -- make land available for multifamily and affordable housing, creating a path to opportunity for more families in this high-resource community."

All state and local public agencies must take deliberate action to Affirmatively Further Fair Housing (AFFH) - combating disparities resulting from past patterns of segregation. Increasing supply of multifamily housing expands access to fair housing for lower-income and historically disadvantaged groups, in turn fostering more inclusive communities.

More housing. More accountability.

Since taking office, Governor Newsom has invested $40 billion in housing production. The state has also invested over $27 billion to help communities address homelessness.

Governor Newsom championed the creation of the Housing Accountability Unit at HCD to ensure cities and counties fulfill their legal responsibilities to plan and permit their fair share of housing. This focus on accountability has, in part, led to a 15-year high in housing starts in California. Since its establishment, the Housing Accountability Unit has supported the development of 7,513 housing units, including 2,765 affordable units, through enforcement actions and by working with local jurisdictions to ensure compliance with housing law.

Addressing the homeless crisis

Today's action also follows the Governor's recent executive order urging local governments to quickly address encampments and provide individuals experiencing homelessness with the care, compassion, and support they need. Earlier this month, the Governor announced $130.7 million in new funding for local communities to help people experiencing homelessness in dangerous encampments, paired with robust accountability measures.

California recently announced 37 new grant awards totaling more than $827 million to help more than 100 local communities and organizations create long-term solutions to address homelessness, with strong accountability and transparency measures and clear expectations to ensure that local strategies to address homelessness are measurable and effective.