SACRAMENTO — California Attorney General Rob Bonta is stepping up pressure on local governments to comply with the state’s housing laws, issuing a legal bulletin this month that warns city and county officials they could face significant financial penalties if they unlawfully delay or deny new housing developments.
The move follows the implementation of Senate Bill 1037, a law Bonta co-sponsored, which took effect January 1. The law strengthens the state’s Housing Accountability Act by allowing courts to fine jurisdictions between $10,000 and $50,000 per month for each violation tied to obstructing legally compliant housing projects.
“Every community in California must do its part to address the housing crisis,” Bonta said. “We now have the tools—and the will—to enforce that mandate.”
The law’s core aim is to accelerate housing production by cracking down on local governments that use procedural barriers, drawn-out reviews, or technicalities to block new developments, particularly those that include affordable housing. Cities are also required to adopt state-approved Housing Elements—long-term planning documents that detail how they intend to meet their housing obligations.
According to the Attorney General’s office, the legal alert issued in May is intended to eliminate ambiguity and ensure that local officials understand what’s required under the law. The bulletin warns that failure to comply could result in lawsuits and mounting civil penalties.
The bulletin is part of a broader push from Bonta, who in 2021 launched the Housing Justice Team within the Department of Justice to oversee enforcement of housing mandates. The team has already taken action against cities like Huntington Beach, Elk Grove, and Coronado, which the state alleges violated housing laws through project rejections or failure to adopt valid housing plans.
In one high-profile case, Huntington Beach refused to accept or process builder applications after missing deadlines to update its housing element. The state filed a lawsuit, alleging the city’s refusal amounted to a clear violation of state housing law. That case is ongoing, but Bonta has cited it repeatedly as a warning to other jurisdictions.
The state’s housing shortage remains among its most pressing challenges. California must build 2.5 million new homes by 2030, according to state housing officials, nearly 1 million of which must be affordable to low- and moderate-income residents. Without significant production increases, experts warn that housing costs will continue to soar, homelessness will rise, and working families will be pushed further from job centers.
SB 1037 was authored by state Sen. Scott Wiener (D-San Francisco) and signed into law by Gov. Gavin Newsom in 2024. It builds on a wave of pro-housing reforms aimed at dismantling exclusionary zoning and streamlining the construction process across California.
“Housing shouldn’t be a privilege available only to the few,” Bonta said. “This law is about making sure every city does its part to ensure housing is a reality for all.”
The law marks a significant shift in how California enforces its housing goals. For decades, the state has set ambitious housing targets but had few tools to compel local compliance. SB 1037 changes that by introducing financial consequences for jurisdictions that fail to meet their obligations—a move Bonta and housing advocates say was long overdue.
With housing now a front-line political issue in many California communities, Bonta’s enforcement strategy signals that state officials are no longer willing to accept local inaction.
“We’re no longer asking nicely,” Bonta said. “We’re making it clear: the law must be followed.”
