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California, Hollister reach settlement over low-income housing compliance
Updated: 4:37 PM PDT Mar 26, 2026
California Attorney General Rob Bonta, Gov. Gavin Newsom and California Department of Housing and Community Development Director Gustavo Velasquez announced a settlement with the city of Hollister aimed at bringing the city into compliance with the state’s Housing Element Law.“We appreciate that Hollister has agreed to a settlement that will bring it into compliance with our state’s Housing Element Law on an expeditious timeline,” Bonta said. “This reflects a commitment to making California a more affordable place for all.”The agreement, in the form of a stipulated judgment that must be approved by a court, addresses California’s sixth housing element update cycle, which runs from 2021 to 2029. It sets a binding timeline for compliance and outlines legal and financial consequences for further delays.In San Benito County, the median income for a one-person household is $98,150. A person earning less than $74,900 is considered low-income, while a person earning less than $46,800 is considered very low-income.Under the settlement, Hollister must:Hold a City Council meeting by April 20, 2026, to adopt a compliant housing element.Adopt all rezoning documents by May 4, 2026.Comply with state Housing Element Law by June 19, 2026.Create a housing trust fund and deposit $300,000 to support housing for extremely low-, very low- and low-income households, including migrant, emergency, supportive, single-room occupancy and transitional housing.Transfer any money remaining in the trust fund five years after the deposit to the State Building Homes and Jobs Trust Fund.Notify the Department of Housing and Community Development of any preliminary housing development application it receives for the rest of the sixth cycle.Make factual findings whenever it denies a housing development application for the rest of the sixth cycle, showing the denial does not conflict with its duty to affirmatively further fair housing.Follow its sixth-cycle housing element in the event of a conflict with other elements until the seventh-cycle housing element is adopted and certified.“No city is exempt from following state housing law — and Californians do not have the time to wait as cities drag their feet,” Newsom said. “I am glad that Hollister has come to an agreement and will begin providing their community with the housing access it needs and deserves.”Under California’s Housing Element Law, every city and county must periodically update its housing plan to meet its regional housing needs allocation, or share of regional and statewide housing needs.Hollister submitted an initial draft housing element in March 2024, after the Dec. 15, 2023, deadline.Bonta’s office said Hollister failed, over multiple rounds of feedback, to adopt a substantially compliant housing element and complete the rezoning required under state law.“Planning for housing development is essential to addressing California’s ongoing crises of housing affordability and homelessness,” Velasquez said. “Through this action, HCD is reaffirming its partnership with the City of Hollister to ensure the community is urgently planning for and meeting the housing needs of its residents.”
HOLLISTER, Calif. —
California Attorney General Rob Bonta, Gov. Gavin Newsom and California Department of Housing and Community Development Director Gustavo Velasquez announced a settlement with the city of Hollister aimed at bringing the city into compliance with the state’s Housing Element Law.
“We appreciate that Hollister has agreed to a settlement that will bring it into compliance with our state’s Housing Element Law on an expeditious timeline,” Bonta said. “This reflects a commitment to making California a more affordable place for all.”
The agreement, in the form of a stipulated judgment that must be approved by a court, addresses California’s sixth housing element update cycle, which runs from 2021 to 2029. It sets a binding timeline for compliance and outlines legal and financial consequences for further delays.
In San Benito County, the median income for a one-person household is $98,150. A person earning less than $74,900 is considered low-income, while a person earning less than $46,800 is considered very low-income.
Under the settlement, Hollister must:
Hold a City Council meeting by April 20, 2026, to adopt a compliant housing element.Adopt all rezoning documents by May 4, 2026.Comply with state Housing Element Law by June 19, 2026.Create a housing trust fund and deposit $300,000 to support housing for extremely low-, very low- and low-income households, including migrant, emergency, supportive, single-room occupancy and transitional housing.Transfer any money remaining in the trust fund five years after the deposit to the State Building Homes and Jobs Trust Fund.Notify the Department of Housing and Community Development of any preliminary housing development application it receives for the rest of the sixth cycle.Make factual findings whenever it denies a housing development application for the rest of the sixth cycle, showing the denial does not conflict with its duty to affirmatively further fair housing.Follow its sixth-cycle housing element in the event of a conflict with other elements until the seventh-cycle housing element is adopted and certified.
“No city is exempt from following state housing law — and Californians do not have the time to wait as cities drag their feet,” Newsom said. “I am glad that Hollister has come to an agreement and will begin providing their community with the housing access it needs and deserves.”
Under California’s Housing Element Law, every city and county must periodically update its housing plan to meet its regional housing needs allocation, or share of regional and statewide housing needs.
Hollister submitted an initial draft housing element in March 2024, after the Dec. 15, 2023, deadline.
Bonta’s office said Hollister failed, over multiple rounds of feedback, to adopt a substantially compliant housing element and complete the rezoning required under state law.
“Planning for housing development is essential to addressing California’s ongoing crises of housing affordability and homelessness,” Velasquez said. “Through this action, HCD is reaffirming its partnership with the City of Hollister to ensure the community is urgently planning for and meeting the housing needs of its residents.”