A resident group, the Newport Beach Stewardship Assn. (NBSA), has initiated legal action against the City of Newport Beach, asserting the city's housing plan unlawfully utilizes overlay zoning that permits, but does not mandate, residential development. The Orange County Superior Court, with Judge Melissa McCormick presiding, is scheduled to hear the case for the first time on Thursday.
The NBSA's May lawsuit contends that Newport Beach must conform to a precedent set a year ago when an appellate court invalidated Redondo Beach’s housing plan. That ruling specifically targeted the use of housing overlays where the underlying zoning permitted non-residential development. In January, the California Supreme Court declined to review Redondo Beach’s appeal, solidifying the appellate decision.
Walter Stahr, a City Council candidate who supports the NBSA’s suit, stated that the Redondo Beach case signifies a need for all California cities to re-evaluate their housing plans. The NBSA filed its lawsuit a month after claiming Newport Beach city officials denied its formal request in April to follow the appellate court's ruling, which disallowed such housing overlays for meeting state-required Regional Housing Needs Assessment (RHNA) obligations.
Newport Beach defends its housing plan, highlighting that it was “reviewed and certified” by the California Department of Housing and Community Development (HCD) over three years prior to the appellate court’s decision. Georgia Rios, a city spokesperson, emphasized that the city developed its Housing Element through an extensive public engagement process and in consultation with HCD, which determined the plan complied with California housing law. Rios also asserted that Newport Beach’s planning process differed materially from Redondo Beach’s and that applying the ruling to an already certified housing plan would create considerable uncertainty for cities that acted in good faith.
However, Stahr maintains that the situations of Newport Beach and Redondo Beach are not different. He noted that the Redondo Beach case invalidated an HCD-approved housing element, suggesting that Newport Beach’s prior approval is not a safeguard against challenges, whether from HCD or private plaintiffs. Stahr argued that the city avoided making difficult rezoning decisions, using overlays as a means to postpone the issue.
Newport Beach's current housing plan is designed to accommodate up to 8,174 new units, exceeding its RHNA cycle requirement for nearly half that number. The city’s strategy for meeting these planning objectives relied on overlays situated near John Wayne Airport and Fashion Island. Stahr pointed to a proposed townhome project, seeking approval for 30 three-story units adjacent to the Environmental Nature Center, as an example of what he considers unsound housing policies tied to the legal dispute.
The NBSA cites neighboring Costa Mesa as an example of a city that, despite also relying on overlays, is proactively amending its housing plan following the appellate court ruling. The NBSA's complaint alleges that Newport Beach, unlike Costa Mesa, continues to advance projects dependent on what it calls unlawful zoning overlays.
This is not the first legal encounter between NBSA and the city before Judge McCormick. Last year, McCormick ruled against the NBSA when it argued Newport Beach disregarded the city’s “Greenlight Initiative” by approving its housing plan in 2024 without a public vote. McCormick upheld the legality of the city’s housing plan in that instance, a decision the NBSA is currently appealing. The current lawsuit also argues that if the city maintains no local vote was required, it is still employing the same zoning overlays deemed unlawful in Redondo Beach. The suit requests that McCormick halt construction on all affected projects unless they are amended to comply with the law.
Newport Beach voters will also have the opportunity to weigh in on the city’s housing plan next month through Measure H. If approved, this measure would amend the housing plan to permit 2,900 units while incorporating projects already in the development pipeline to fulfill the cycle’s threshold. The NBSA is part of a coalition that facilitated Measure H’s qualification for the ballot.
