"Since 1969, California has required that all local governments (cities and counties) adequately plan to meet the housing needs of everyone in the community. California’s local governments meet this requirement by adopting housing plans as part of their “general plan” (also required by the state). General plans serve as the local government’s "blueprint" for how the city and/or county will grow and develop and include eight elements: land use, transportation, conservation, noise, open space, safety, environmental justice, and housing.
California’s Housing Element Law acknowledges that, in order for the private market to adequately address the housing needs and demand of Californians, local governments must adopt plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing development. As a result, housing policy in California rests largely on the effective implementation of local general plans and, in particular, local housing elements." -- California Department of Housing and Community Development.
The "Housing for All" initiative erases required housing projections and goals from Eureka's housing element and subjects development to expensive requirements that make it unfeasable for developments to meet affordability requirements according to the average income for Humboldt County. This will put Eureka's general plan in conflict with state regulation. Noncompliance with the State Housing Element Law has several repercussions. It may result in the loss or delay of state funds that require a compliant Housing Element. Programs affected include the Permanent Local Housing Allocation (PLHA) Program, Local Housing Trust Fund Program, Infill Infrastructure Grant (IIG) Program, Caltrans Sustainable Transportation Planning Grant, Affordable Housing and Sustainable Communities (AHSC) Program, and Community Development Block Grant (CDBG) Program. The city risks losing awarded funds, including the current grant funds of $3,199,524 from CDBG and PLHA programs. Additionally, the city may face court-imposed penalties for persistent noncompliance, potentially amounting to significant sums. The financial impact extends to eligibility for future grant programs, such as the $6,250,000 additional grant amounts the city could apply for if our Housing Element was compliant. Penalties for persistent noncompliance, as per Government Code Section 65585(l)(1), may range from a minimum fine of $10,000 per month, up to $100,000 per month, with a potential sixfold multiplication if the jurisdiction remains noncompliant.
Because only another ballot initiative could amend this, Eureka could be subject to these penalties forever.