Attorney General Bonta, Newsom Administration Reach Agreement with City of Hollister on Compliance with State’s Housing Element Law

Hollister to update housing plan by June 19, 2026 for development of 4,163 additional housing units

OAKLAND — California Attorney General Rob Bonta, California Governor Gavin Newsom, and California Department of Housing and Community Development (HCD) Director Gustavo Velasquez today announced a settlement that will bring the City of Hollister into compliance with the state’s Housing Element Law. Home to more than 45,000 people, Hollister is located in Central California's San Benito County. The agreement, which is in the form of a stipulated judgment and must be approved by the court, is related to California’s sixth “housing element update cycle” for the 2021-2029 time period and holds the City to a binding timeline for compliance, with clear legal and financial consequences for any further delays. 

Under the state’s Housing Element Law, every city and county in California must periodically update its housing plan to meet its Regional Housing Needs Allocation (RHNA), or share of the regional and statewide housing needs. Hollister submitted an initial draft housing element in March 2024, despite its statutory deadline of December 15, 2023. Over the next two years, and multiple rounds of feedback from HCD, Hollister failed to adopt a substantially compliant housing element and failed to complete necessary rezoning in accordance with the 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. This reflects a commitment to making California a more affordable place for all,” said Attorney General Rob Bonta. “When cities fail to plan for housing, they are really just planning for rising costs, longer commutes, and increased pressure on families struggling to find a place to call home. Governor Newsom, HCD Director Velasquez, and I will continue to hold local governments accountable when they do not take steps to build their fair share of housing.”

“No city is exempt from following state housing law — and Californians do not have the time to wait as cities drag their feet,” said Governor Gavin Newsom. “I am glad that Hollister has come to agreement and will begin providing their community with the housing access it needs and deserves.” 

“Planning for housing development is essential to addressing California’s ongoing crises of housing affordability and homelessness,” said HCD Director Gustavo Velasquez. “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.” 

Among other things, a compliant housing element must include 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 objectives into effect and facilitate the construction of new homes for Californians at all income levels.   

The housing element is a crucial tool for building housing for moderate-, low-, and very low-income Californians and redressing historical redlining and disinvestment. State income limits for what constitutes moderate-, low-, and very low-income Californians vary by county and can be found here. In San Benito County, the median income for a one-person household is $98,150. A one-person household that earns less than $74,900 is defined as low-income, and a one-person household that earns less than $46,800 is defined as very-low income.  

Under the settlement:

• The City will hold a Council meeting by April 20, 2026, to adopt a compliant housing element and will adopt all of its rezoning documents by May 4, 2026. The City will be in compliance with the Housing Element Law by June 19, 2026.
• The City is required to establish 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. Any funds remaining in the trust fund five years after the date of deposit must be transferred to the State Building Homes and Jobs Trust Fund.
• The City must notify HCD of any preliminary housing development application it receives for the remainder of the sixth cycle.
• The City must make factual findings, whenever it disapproves a housing development application, that the disapproval is not materially inconsistent with its obligation to affirmatively further fair housing — also for the remainder of the sixth cycle.
• The City agrees that, until the seventh cycle housing element is adopted and certified, the sixth cycle housing element controls in the event of any conflict with other elements, including those adopted later.

A copy of the petition and proposed judgment, which details the settlement terms, can be found here and here, respectively.