Attorney General Bonta, Newsom Administration Reach Agreement with City of La Habra Heights on Compliance with State’s Housing Element Law

La Habra Heights to update housing plan by July 2025 for development of 244 additional housing units

SACRAMENTO — California Attorney General Rob Bonta, California Governor Gavin Newsom, and California Department of Housing and Community Development (HCD) Director Gustavo Velasquez today announced a settlement that will bring the City of La Habra Heights into compliance with the state’s Housing Element Law. With dedicated technical support from the state, the city will adopt a housing plan no later than July 7, 2025, to allow for the development of 244 housing units, at least 164 of which must be affordable to low- and very low-income households. The agreement, which is in the form of a proposed stipulated judgment and must be approved by the court, is related to California’s sixth “housing element update cycle” for the 2021-2029 time period.   

Under the state’s Housing Element Law, every city and county in California must periodically update its housing plan to meet its Regional Housing Needs Allocation (RHNA), or share of the regional and statewide housing needs. Located in Los Angeles County and home to a total population of 5,682 residents, La Habra Heights was required to update its housing plan by October 15, 2021, to accommodate its 172-unit RHNA target. However, because the city did not identify adequate sites for lower- and moderate-income units during the fifth cycle for the 2013-2021 time period, an additional 72 units were added for a total of 244 units. After receiving a notice of violation from HCD, the city and state conferred in good faith to chart a course for the city to attain compliance.   

“The City of La Habra Heights has done the right thing. Instead of continuing to skirt California’s housing laws, it will finally be complying with its legal obligation to plan for 244 housing units,” said Attorney General Rob Bonta. “My office will not let up: no matter the size of the city or county, we will not rest until every local government in California plans for the future and does its part to tackle our housing crisis.” 

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

"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."

Among other things, a compliant housing element must include an assessment of housing needs, an inventory of resources and constraints relevant to meeting those needs, and a program to implement the policies, goals, and objectives of the housing element. Once the housing element is adopted, it is implemented through zoning ordinances and other actions that put its objectives into effect and facilitate the construction of new homes for Californians at all income levels.  

The housing element is a crucial tool for building housing for moderate-, low-, and very low-income Californians and redressing historical redlining and disinvestment. State income limits for what constitutes moderate-, low-, and very low-income Californians vary by county and can be found here. In Los Angeles County, the median income for a one-person household is $68,750. A one-person household that earns less than $77,700 is defined as low-income, and a one-person household that earns less than $48,550 is defined as very-low income.  

Under the settlement:

• La Habra Heights will take several required actions to adopt a compliant housing element by July 7, 2025. The housing element process is typically lengthy — for example, local governments must meet certain public participation requirements, and HCD must review every local government’s housing element to determine whether it complies with state law and provides written findings back to each local government — but La Habra Heights has agreed to an expedited timeline and ensuring the public’s participation.
• La Habra Heights acknowledges that, until it has adopted a substantially compliant housing element, it may not deny certain low-, very low-, and moderate-income housing development projects based on the city’s current, outdated general plan and zoning code. This is known as the Builder's Remedy. 
• La Habra Heights could be subject to monetary penalties if it remains noncompliant 12 months after the effective date of the stipulated judgment.

A copy of the petition and proposed judgment, which details the settlement terms and remains subject to court approval, can be found here and here, respectively.