T
he City of Fullerton is facing a looming deadline to finalize its Housing Element, which could result in the loss of up to $2 million in state funds if not met. The city has repeatedly missed deadlines set by the state Department of Housing and Community Development, including an initial October 2021 deadline and a November 5 deadline to vote on a compliant plan as part of a settlement with Governor Gavin Newsom and state housing regulators.

    The settlement requires Fullerton to plan for 13,209 homes, with 40% being affordable for low-income households. Despite the risk of losing funds and the ability to regulate its own zoning, the Fullerton City Council has yet to pass a compliant plan, opting instead to rehear the issue on December 10.

    To meet the mandate, city planners have proposed a "housing incentive overlay zone" that would allow developers to build housing in industrial or commercial areas. However, council members are struggling to agree on where the new overlay should go and how many affordable units should be required. The state recommends at least 10% affordable units, but Fullerton council members want to raise this minimum to 20%, which could potentially dissuade developers from building in the city.