SB9 in Huntington Beach

Huntington Beach receives a grade of D, reflecting a city that has effectively blocked SB9 development despite state law. For investors, this means the local regulatory environment is hostile to SB9 projects. No applications or approvals have occurred, signaling significant barriers to pursuing SB9 opportunities in this market.

Huntington Beach enacted a major enforcement action banning SB9 applications starting in 2023. The ordinance prohibited the filing and processing of SB9 projects outright. This is not a standard SB9 ordinance with typical setbacks, parking, or design standards. Instead, it was a direct ban on SB9 applications, effectively nullifying the state law’s intent within the city limits.

From 2022 through 2025, Huntington Beach did not process a single SB9 application or approval. In 2023, the city formally banned SB9 applications. This ban led to zero activity in the program. The state’s Housing and Community Development Department (HCD) sued Huntington Beach in 2023 for violating SB9 requirements by refusing to accept or process applications. In December 2025, the city lost the lawsuit. The Supreme Court declined to hear the city’s appeal in February 2026, leaving the lower court ruling in place. As a result, Huntington Beach is now legally required to process SB9 applications, but no approvals or applications were recorded during the 2022-2025 period. Huntington Beach is not a charter city, so no charter city litigation or related court rulings affected SB9 implementation.

HCD took enforcement action against Huntington Beach in 2023 by suing the city for banning SB9 applications. The lawsuit concluded with a court ruling against Huntington Beach in December 2025. The city’s appeal was refused by the California Supreme Court in February 2026. The enforcement action is resolved with a clear mandate that Huntington Beach must now comply with SB9 and process applications. Prior to this, the city’s ban prevented any SB9 activity.

Investors should avoid Huntington Beach for SB9 projects at least until the city begins processing applications and approvals after the court ruling. The city’s prior ban and zero activity demonstrate a hostile regulatory environment that suppressed SB9 development for several years. While the recent court decision forces compliance, there is no evidence yet of any SB9 approvals or applications. Investors should wait and see how the city implements SB9 moving forward before committing capital. The current grade D and flat trajectory indicate Huntington Beach is not a viable SB9 market at this time. For the grading methodology, see the SB9 City Guide post.