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

Artesia to update housing plan by January 2026 for development of 1,069 additional housing units

OAKLAND - 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 Artesia into compliance with the state's Housing Element Law. The agreement, which is in the form of a proposed stipulated judgment and must be approved by the court, lays out deadlines for the City to revise the housing element of its general plan for the period from 2021 to 2029, holds the City accountable for its failure to do so before the statutory deadline, and clarifies the consequences of continued non-compliance with the Housing Element Law.

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. In 2023, HCD found Artesia - located in Los Angeles County and home to more than 15,000 people - to be out of compliance with the Housing Element Law. HCD issued a letter of inquiry, inviting Artesia to explain its non-compliance in May 2023. The City responded with a proposed timeline for compliance, but then failed to meet its own deadline. HCD issued a Notice of Violation (NOV) in October 2024. Today's agreement holds Artesia to a binding timeline for compliance, with clear legal and financial consequences for any further delays.

"I commend the City of Artesia for doing the right thing. Instead of continuing to kick the can down the road, the City has finally committed to do its part to plan for the region's housing needs," said Attorney General Rob Bonta. "Cities and counties that still have not adopted compliant housing elements should pay close attention. The deadline for compliance passed years ago, and so, this settlement includes new enforcement tools. Planning for housing is not an abstract exercise. Californians need quality homes that they can afford. Governor Newsom, HCD Director Velasquez, and I will continue fighting to ensure that every local government - no matter how small or big - follows state law and helps address our state's housing crisis."

"Artesia has wasted time and money stalling on their obligations when they could have instead been providing necessary housing for the families in their community," said Governor Gavin Newsom. "Every jurisdiction must do their part to create more housing and make their communities more affordable."

"This outcome further reinforces California's housing laws that ensure every locality is doing its part to build homes and address this crisis," said HCD Director Gustavo Velasquez. "HCD stands ready to help Artesia and all local jurisdictions comply with state housing law, and we will continue to demand accountability from jurisdictions falling short of that critical responsibility."

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 $74,600 A one-person household that earns less than $84,850 is defined as low-income, and a one-person household that earns less than $53,000 is defined as very-low income.

Under the settlement:

• Artesia will take several required actions to adopt a compliant housing element no later than January 2026. The housing element will plan for 1,069 new homes, including 608 that will be affordable for very low-, low-, and moderate-income Californians.
• Artesia will face civil penalties assessed at the statutory minimum of $10,000 per month from January 1, 2025 to the compliance deadline of January 2026. These penalties will be suspended but, if Artesia fails to meet any further deadlines, the penalties will immediately become due and will accrue until the City comes into compliance.
• Artesia must acknowledge that the "Builder's Remedy"- a provision in the Housing Accountability Act that requires local permitting authorities to process certain housing project development applications, regardless of zoning or general plan consistency - is in effect until the City has an updated housing element deemed to be in substantial compliance, and must process those development permit applications accordingly.
• Until the stipulated judgment is satisfied, the City will be subject to additional penalties if it wrongfully denies certain housing development projects.

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.