Chris Hazeltine, City Manager
subdivision (c)(1)(A), and Government Code section 65583.2, subdivision (c) are completed.
Consequences of Noncompliance
There are various consequences that may apply if the City does not have a housing element in compliance with State Housing Element Law. First, noncompliance will result in ineligibility or delay in receiving state funds that require a compliant housing element as a prerequisite, including, but not limited to the following:
• Permanent Local Housing Allocation Program
• Local Housing Trust Fund Program
• Infill Infrastructure Grant Program
• SB 1 Caltrans Sustainable Communities Grants
• Affordable Housing and Sustainable Communities Program Second, jurisdictions that do not meet their housing element requirements may face additional financial and legal ramifications. HCD may notify the California Office of the Attorney General, which may bring suit for violations of State Housing Element Law.
Further, statute provides for court-imposed penalties for persistent noncompliance, including financial penalties. Government Code section 65585, subdivision (1)(1 ), establishes a minimum fine of $10,000 per month, up to $100,000 per month. If a jurisdiction continues to remain noncompliant, a court can multiply the penalties up to a factor of six. Other potential ramifications could include the loss of local land use authority to a court-appointed agent.
In addition to these legal remedies available in the courts, under the Housing Accountability Act (Gov. Code § 65589.5, subd. (d)), jurisdictions without a substantially compliant housing element cannot rely on inconsistency with zoning and general plan standards as a basis for denial of a housing project for very low-, low-, or moderate- income households. 1
Conclusion
As a reminder, housing elements are essential to developing a blueprint for growth and are a vital tool to address California's prolonged housing crisis. Accordingly, state law has established clear disincentives for local jurisdictions that fail to comply with State Housing Element Law. To meet the 6th cycle update requirements for a substantially compliant housing element, the City must consider HCD's written findings from previous 1 For purposes of the Housing Accountability Act, housing for very low-, low-, or moderate-income households is defined as having at least 20 percent of units set aside for low-income residents or 100 percent of units set aside for middle-income residents. (Gov. Code§ 65589.5, subd. (h)(3).)
Summary and Clarification of Requirements for Housing Element Compliance
In other words, a jurisdiction does not have the authority to determine that its adopted element is in substantial compliance but may provide reasoning why HCD should make a finding of substantial compliance.
In addition, a jurisdiction is "in compliance" as of the date of HCD's letter finding the adopted element in substantial compliance. Any other letters are not a finding of substantial compliance.
HCD recommends that a jurisdiction adopt only after receiving a letter from HCD finding the draft meets statutory requirements.
For more detailed information about this process, please visit HCD's Housing Elements webpage and Housing Elements Building Blocks.