ARTICLE
22 October 2026

Sustainable Development And Land Use Update

AM
Allen Matkins Leck Gamble Mallory & Natsis

Contributor

Allen Matkins, founded in 1977, is a California-based law firm with more than 200 attorneys in four major metropolitan areas of California: Los Angeles, Orange County, San Diego, and San Francisco. The firm's areas of focus include real estate, construction, land use, environmental and natural resources, corporate and securities, real estate and commercial finance, bankruptcy, restructurings and creditors' rights, joint ventures, and tax; labor and employment, and trials, litigation, risk management, and alternative dispute resolution in all of these areas. For more information about Allen Matkins please visit www.allenmatkins.com.
California's housing and environmental regulations face new legal challenges as state agencies clash with local governments over compliance requirements. From escalating penalties against Huntington Beach to lawsuits over transit-oriented development rules, these disputes highlight the ongoing tension between state mandates and municipal authority in shaping land use policy.
United States California Real Estate and Construction

Focus

California seeks additional fines against Huntington Beach in housing element lawsuit

The Orange County Register – September 12

Three months after Huntington Beach updated its housing element in response to mounting fines, the state is pushing for additional penalties based on regulators’ conclusion that the city’s plan is still out of compliance. In May, San Diego Superior Court Judge Katherine Bacal ordered the city to pay a late fee of $10,000 a month, from Jan. 1, 2025 until it met state requirements. While Judge Bacal paused those monthly penalties in June of this year, the state has urged the court to reinstate the monthly penalties at a higher rate of $50,000 per month going forward. The next hearing on the pending penalties is set for Oct. 2.

READ*

News

Housing groups sue SANDAG for blocking development near Oceanside, Solana Beach train stations

Times of San Diego – September 10

Housing groups are suing the San Diego Association of Governments (SANDAG) over the implementation of Senate Bill 79, a state law intended to spur homebuilding hear transit. The groups sued the City of San Diego over the same law last month. The new lawsuit centers on how SANDAG’s interpretation of the law allegedly protected the areas around train stations in Solana Beach and Oceanside from the effects of SB 79. For more information on SB 79, please see our recent alert here.

READ

EPA and Army Corps reopen WOTUS rulemaking: A potentially narrower framework, but continued uncertainty for permittees

Allen Matkins – September 14

On September 9, 2026, the U.S. Environmental Protection Agency and U.S. Army Corps of Engineers published a supplemental notice of proposed rulemaking addressing the definition of “waters of the United States” (WOTUS) under the federal Clean Water Act (CWA). The proposal presents a perennial-water alternative to the “wet season” framework the EPA and Army Corps announced in their November 2025 proposed rule, thereby further narrowing federal CWA jurisdiction. Comments are due October 9, 2026.

READ*

After rent emergency declaration, San Francisco mayor proposes reforms

Smart Cities Dive – September 11

San Francisco Mayor Daniel Lurie has introduced a package of six proposed ordinances and more than $30 million in investments to address what he called a “rent emergency” in the city. The package includes measures to prevent sudden rent spikes and evictions as well as initiatives to provide tenants with legal tools.

READ

Gilroy City Council adopts moratorium on new data centers

Gilroy Dispatch – September 15

The Gilroy City Council on September 14 unanimously approved a temporary citywide moratorium on new data center development while city officials develop new zoning, siting, development, and operational standards that are specific to such projects in the future. The interim urgency ordinance takes effect immediately and will remain in place for 45 days, according to city staff. The temporary moratorium will not affect the construction of the Camino Arroyo data center currently under construction in the city.

READ

*This article may require a subscription to read.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

[View Source]

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More