In a significant escalation of California’s ongoing housing crisis, Costa Mesa has become the latest city in Orange County to face legal action from state officials. Attorney General Rob Bonta filed a lawsuit against the city, alleging that local officials have failed to adopt a compliant housing plan as required by state law.
The housing plan is a crucial component of state housing mandates, designed to address the Golden State’s severe housing shortage. These mandates require all cities in California to zone for a specific number of housing units to alleviate the crisis.
State Officials Accuse Costa Mesa of Delaying Progress
In the lawsuit filed on Thursday, state officials assert that Costa Mesa has missed the October 15, 2026 deadline to adopt a compliant Sixth Cycle housing element. The filing, signed by Bonta, states that the city has not fulfilled its duty and has not completed all required rezoning actions. Additionally, the Housing and Community Development (HCD) department has not found the city’s housing element in substantial compliance with the Housing Element Law.
Bonta’s news release accused cities like Costa Mesa of obstructing progress in addressing the housing crisis. “Jurisdictions that remain out of compliance with our Housing Element Law are standing in the way of the homes californians need,” Bonta stated. “We are well past the halfway point of the current housing planning cycle, and timely compliance is not optional.”
Costa Mesa’s Response and Ongoing Efforts
Costa Mesa Mayor John Stephens disputed the necessity of the lawsuit, asserting that the city has been actively working on addressing the housing crisis. In a Thursday evening statement, Stephens noted that the state’s complaint acknowledges the city’s ongoing efforts with HCD toward certification of its housing element. He emphasized that the city is currently awaiting the state’s comments on its most recent submission.
Stephens also highlighted Costa Mesa’s collaboration with state officials under Project Homekey a Gavin Newsom initiative launched during the pandemic to convert rundown motels into housing for homeless people throughout the state. The city has been involved in converting properties to provide affordable housing solutions.
Challenges in Creating the Housing Plan
Councilman Manuel Chavez discussed the obstacles the city council faced while creating the new housing plan. One significant challenge was repealing a slow growth ordinance, known as Measure Y passed in 2016. This measure required zoning decisions to go to a citywide vote, hindering the city’s ability to make timely adjustments.
From 2026 to 2026, city council members spent considerable time crafting a local affordable housing mandate, known as an inclusionary housing law. This law calls for a certain percentage of new housing developments to be reserved for low-income residents. Chavez acknowledged that these efforts may have diverted focus from the housing element but emphasized their importance in addressing the city’s housing needs.
The Broader Context of Housing Lawsuits in California
Costa Mesa is one of five cities sued by Bonta on Thursday, joining Calexico, Half Moon Bay, Ridgecrest, and Turlock. Bonta criticized all five cities for failing to meet their obligations under the state’s housing laws. “As I’ve said many times, no local government has to solve this challenge alone, but every local government has to do its fair share,” Bonta stated.
Gov. Gavin Newsom took an aggressive stance with the five cities being sued, stating, “California can’t solve the housing crisis while some cities sit on their hands and dare us to do something about it.” Newsom emphasized that housing law applies statewide, and no city gets a pass.
The most high-profile housing lawsuit in Orange County involves Huntington Beach, where city and state officials sued each other over the housing mandates. Huntington Beach ultimately lost in every court, including the Supreme Court denying to hear the case. The city now faces a $50,000 monthly fine for not having a state-approved housing plan, with penalties potentially multiplying into nearly $1 million a month.
As Costa Mesa navigates this legal challenge, the city’s next scheduled public meeting is set for 6 p.m. on Tuesday, September 2, 2026. The outcome of this lawsuit will have significant implications for the city’s housing policies and its role in addressing California’s housing crisis.