Governor Newsom reaches agreement with Artesia on violations of state housing law, city ordered to create plan for thousands of new homes

Sacramento, CA

Governor Gavin Newsom and Attorney General Rob Bonta today announced that Artesia has agreed to a settlement to resolve violations of state housing law, putting the city on an expedited timeline to submit a compliant housing element to the Department of Housing and Community Development. If approved by the court, the new plan will create 1,069 new homes, including 608 that will be affordable for very low-, low-, and moderate-income Californians.

"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. Every jurisdiction must do their part to create more housing and make their communities more affordable," said Governor Gavin Newsom.

All cities are required to adopt a compliant housing element. The housing element is a crucial tool for building housing for moderate-, low-, and very low-income Californians.

The settlement, which was entered into after the city failed to submit a compliant housing element, 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.

"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."

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.

After repeated attempts to assist the city come into compliance, HCD's Housing Accountability Unit - launched by Governor Newsom in 2021 - issued a Notice of Violation 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.

"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."

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.

More housing. More accountability.

Governor Newsom championed the creation of the Housing Accountability Unit at HCD to ensure cities and counties fulfill their legal responsibilities to plan and permit their fair share of housing. Since its establishment, the Housing Accountability Unit has supported the development of 10,089 housing units, including more than 3,328 affordable units, through enforcement actions and by working with local jurisdictions to ensure compliance with housing law. In 2024, the Unit was expanded to include a focus on homelessness issues, including compliance with state laws related to homeless housing.

Today's announcement follows the Governor's recent announcement of the unit's settlement with the city of Norwalk, requiring the city to overturn its illegal ban on homeless shelters. In addition to today's announcement and work to hold local governments accountable to help their residents and improve affordability, Governor Newsom is creating a structural and foundational model that will have positive impacts for generations to come.

The Governor is streamlining and prioritizing building of new housing, funding new shelters, housing, and supports, holdinglocal governments accountable, addressing mental health and its impact on homelessness through voter-approved Proposition 1, and creating new pathways for those who need it most through updated conservatorship laws and a new CARE court system. This work is all creating positive results. The Governor also recently announced a new statewide task force to help address encampments on state right of ways in the state's ten largest cities, bringing together this comprehensive framework to get people into housing and off the streets.

Together with local partners, the Task Force will focus on encampment operations throughout the state within the next 30 days. The task force will work in a unified way across state government to clear highly visible and unsafe encampments on state property while expanding access to housing, shelter, mental health, and substance use services. Locations identified include areas with large encampments and high-priority encampments on state rights-of-way in California's ten most populous cities: Los Angeles, San Francisco, Oakland, San Diego, Sacramento, San Jose, Long Beach, Anaheim, Bakersfield, and Fresno.

Reversing a decades-in-the-making crisis

Between 2014 and 2019 - before Governor Newsom took office - unsheltered homelessness in California rose by approximately 37,000 people. Since then, under this Administration, California has significantly slowed that growth, even as many other states have seen worsening trends.

In 2024, while homelessness increased nationally by over 18%, California limited its overall increase to just 3% - a lower rate than in 40 other states. The state also held the growth of unsheltered homelessness to just 0.45%, compared to a national increase of nearly 7%. States like Florida, Texas, New York, and Illinois saw larger increases both in percentage and absolute numbers. California also achieved the nation's largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness.