Salinas, CA…California Attorney General Rob Bonta and the California Department of Housing and Community Development (HCD) today announced a settlement with the County of Monterey resolving the County’s failure to adopt a housing element in compliance with California’s Housing Element Law. The settlement is the latest in California’s efforts to achieve 100% statewide compliance with the law.

Under the state’s Housing Element Law, every city and county in California is required to periodically update its housing plan to meet its share of regional and statewide housing needs. California is currently in the sixth “housing element update cycle,” which requires local governments to plan for approximately 2.5 million additional homes statewide. The County of Monterey failed to adopt a compliant housing plan by their statutory deadline of December 15, 2023. HCD provided direct guidance and reminders to the county — confirming its leaders were fully aware of their legal obligations to submit a substantially compliant housing element for HCD’s review. As a result of this settlement, Monterey County has adopted a compliant housing element and completed its mandatory rezoning by the November 3, 2026 deadline, in addition to taking other related actions.

“The state’s Housing Element Law is in place to hold local governments accountable for building their fair share of housing,” said Attorney General Bonta. “Counties have the same obligation that cities do to plan for their communities’ housing needs. My office remains committed to ensuring that every jurisdiction does its part to provide Californians with more affordable and accessible housing opportunities statewide.”

“Today’s action demonstrates once again how seriously this administration takes accountability to state housing law for local governments,” said HCD Director Gustavo Velasquez. “Every city and county must create a plan to meet housing need at all income levels. I am grateful Monterey County has taken this critical step toward completing the necessary rezoning, setting aside funding for affordable housing, and committing to doing better in the next housing element cycle.”

California law requires local governments to include housing elements in their general plans, which serve as a local government’s “blueprint” for how the city and/or county will grow and develop. A housing element must include, among other things, 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 goals into effect. The housing element is a critical tool for building housing for moderate-, low-, and very low-income Californians and redressing historical redlining and disinvestment.

Upon failing to adopt a housing element on time, HCD contacted Monterey County on several occasions. In July 2026, the Attorney General’s Office filed five petitions against other jurisdictions in violation of the Housing Element Law and announced that the state intends to apply additional effort, whether that means technical assistance or enforcement, to ensure that local governments achieve total statewide compliance with the law by the end of the year. Representatives from Monterey County then quickly contacted HCD to discuss and commit to a pathway towards compliance.

Under the settlement, the County of Monterey will:

Commit to its sixth cycle housing element rezoning actions that have been approved and adopted by the County Board of Supervisors.
Agree to pay Senate Bill 1037 (Wiener, 2024) monetary penalties of $300,000 for its untimely adoption of a Sixth Cycle housing element, and deposit the monetary penalties into its local housing trust fund to be used for affordable housing projects.
Allocate adequate planning resources for developing its Seventh Cycle housing element which includes ensuring at least one County planner is dedicated to drafting and coordinating the Seventh Cycle housing element and including sufficient dedicated funding line items in the County’s budget for the two fiscal years preceding the Seventh Cycle housing element deadline.
Submit a draft Seventh Cycle housing element to HCD in advance of the statutory deadline to adopt a housing element.
Acknowledge its affirmative compliance with California’s Housing Element Law.
The state will have the authority to enforce the settlement agreement if the County breaches its terms.

On November 3, 2026, Attorney General Bonta also issued a letter to Monterey County notifying it that the County’s general plan was out of compliance with state planning laws that require local governments to address the infrastructure and service needs of disadvantaged unincorporated communities, protect the community from the risks of flood hazards and climate change, and advance equitable access to open space and environmental justice. The letter invited the County to meet with the Attorney General’s Office to discuss the County’s plan to comply with these planning requirements.

Attorney General Rob Bonta has been committed to promoting affordability by addressing California’s housing shortage and ensuring local governments meet their obligations under state housing law. In close partnership with the Newsom Administration, they have reached settlement agreements with the governments of Hollister, Artesia, La Habra Heights, Malibu, Fullerton, Coronado, San Bernardino, and now Monterey County, securing commitments from these jurisdictions to bring their housing plans into compliance.

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