SAN FRANCISCO — California Attorney General Rob Bonta today issued the following statement in response to Governor Gavin Newsom signing into law Senate Bill (SB) 1037, which will enhance the Attorney General’s ability to seek civil penalties in court against local governments that violate state housing law. SB 1037 was authored by Senator Scott Wiener (D-San Francisco) and sponsored by Attorney General Bonta. 

“When it comes to addressing our housing crisis, there is no time to waste. Governor Newsom understands that at his core, and I’m grateful he’s signed SB 1037 into law. I also want to thank Senator Wiener for making this moment possible,” said Attorney General Rob Bonta. “With SB 1037, violating our state housing laws, and delaying or denying the homes that Californians desperately need, can lead to more serious consequences than ever before. And let me be clear: my office will not hesitate to pursue those consequences when appropriate. Critically, the additional penalties will be used to fund local affordable housing.”

“California has made great progress passing state laws that open the door to more housing. We need strong enforcement to back those laws up when cities flagrantly violate them,” said Senator Scott Wiener. “By providing the Attorney General better tools for swift accountability when cities engage in egregious violations, SB 1037 helps clear the path for California to meet its housing goals. I thank the Governor and the Attorney General for their focus on upholding our state housing laws and leading with innovative solutions to the crisis.”

SB 1037 targets local governments that refuse to adopt a compliant housing element and/or violate a law that requires a housing development application to be processed according to objective standards. Currently, when a court finds a locality in violation of state housing law, monetary penalties can only be imposed 60 days, or in some cases up to a year, after a court has ordered compliance. Effective January 1, 2025, SB 1037 will: 

• Allow the Attorney General to instead seek additional penalties that are assessed from the date that the housing law violation began.
• Subject violators to a minimum civil penalty of $10,000 per month, and not to exceed $50,000 per month, for each violation calculated from the date the violation started. Cities and counties that refuse to adopt a timely and legally compliant housing element and also ignore a court order directing them to do so for more than 120 days will be subjected to the maximum financial penalty and serious curtailment of their local land use authority. 
• Earmark the penalty money to support the development of affordable housing located in the affected jurisdiction. 

A copy of the legislation can be found here.