Costa Mesa Approves 2,300 Housing Units Amid State Lawsuit Over Housing Element Compliance

The Costa Mesa City Council has approved a development plan for 2,300 housing units on a 110-acre state-owned site, formerly a care facility. This decision was made despite an ongoing lawsuit from the State of California, which alleges Costa Mesa failed to update its housing element by the October 2021 deadline and plan for its share of 11,760 new homes by 2029. The approved project includes 920 units designated for low- and very low-income residents, but city staff had previously indicated that 3,450 units would be necessary for financial feasibility.

Governor Gavin Newsom's administration has pursued litigation against several California cities, including Costa Mesa, for non-compliance with state housing mandates. The state's petition seeks to compel Costa Mesa to adopt a compliant housing plan within 120 days and may impose penalties. Cities that miss these deadlines also risk losing local zoning control through the builder's remedy, allowing developers to bypass local rules for qualifying affordable projects. Residents expressed mixed views on the plan, citing concerns over density and traffic, while others emphasized the need for affordable housing. This situation highlights the increasing pressure on California municipalities to meet state housing goals, potentially impacting development project viability and local regulatory environments.