Council reopens housing-implementation zoning after legal-warning presentation

Grand Terrace'At the May 26 meeting the city attorney and staff urged the council to reconsider its earlier denial of implementing zoning tied to the city's housing element and to renotice the matter for public comment and final action.

City Attorney Adrian delivered a lengthy warning about legal and financial exposure if the city fails to adopt implementing zoning: potential litigation by the Attorney General on behalf of the Department of Housing and Community Development (HCD), incentives for housing organizations to sue (including fee-shifting statutes), fines ranging from $10,000'$100,000 per month that can escalate, loss of eligibility for state grants, and exposure to the builder's remedy that could allow developers to seek by-right approvals contrary to local zoning. Adrian cited multiple examples of other California cities that faced costly litigation and penalties.

Staff and the attorney recommended that, if the council wishes to revisit the matter, it should move to reconsider and renotice the item so the public can comment; the council agreed. A motion to bring the item back and renotice passed unanimously, and staff said they will renotice the item for the next meeting and provide an abbreviated staff report to ensure transparency and public opportunity for comment prior to final action.

What that means: the council did not adopt the implementing zoning at this meeting but agreed to reopen the matter with public notice. Staff and the city attorney emphasized risk-reduction: adopting implementing zoning and obtaining HCD certification would reduce the risk of litigation and fines; remaining noncompliant could subject the city to financial penalties and reduced permitting authority if a court finds the city out of compliance.

Sources: City Attorney presentation and staff recommendation, May 26, 2026.