State Warns Merced County, Atwater Over Housing Element Violations

Jurisdictions face potential legal action, funding cuts, and Builder's Remedy if they fail to comply with state housing laws.

Apr. 3, 2026 at 8:03pm

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A serene, nostalgic painting of an empty city planning office or housing development site, with warm sunlight streaming through the windows and deep shadows across the desks and chairs, conveying a sense of contemplation and the weight of local housing policy decisions.The state's housing element enforcement action casts a somber light on the challenges local governments face in meeting California's ambitious housing goals.Atwater Today

The California Department of Housing and Community Development (HCD) has issued formal Notices of Violation to Merced County and the City of Atwater, along with 13 other California jurisdictions, for failing to adopt substantially compliant sixth-cycle housing elements by the January 2024 deadline. The state warned that continued noncompliance could lead to legal action, funding delays, and the Builder's Remedy, which allows developers to bypass local zoning rules.

Why it matters

Housing affordability and availability are major issues across California, and the state has been pushing local governments to update their housing plans to accommodate more residential development. The violations issued to Merced County and Atwater indicate the state is willing to take enforcement action against jurisdictions that do not comply with housing element laws, which could have significant impacts on future growth and development in those areas.

The details

According to the state notices, Merced County and Atwater both failed to adopt compliant sixth-cycle housing elements by the January 2024 deadline. HCD said the jurisdictions have not shown a near-term path to compliance and could face legal action, funding delays, and the Builder's Remedy if they do not respond within 30 days and take steps to bring their housing plans into compliance.

  • Merced County and Atwater were required to adopt compliant sixth-cycle housing elements by January 31, 2024.
  • HCD issued the Notices of Violation to the jurisdictions on March 24, 2026.
  • The jurisdictions have 30 days from receipt of the notice to provide a written response before HCD may take additional enforcement action.

The players

California Department of Housing and Community Development (HCD)

The state agency responsible for overseeing local housing plans and enforcing housing element laws in California.

Merced County

A county in California's Central Valley that is out of compliance with state housing element requirements.

City of Atwater

A city in Merced County that is also out of compliance with state housing element requirements.

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What’s next

Merced County and Atwater have 30 days from receipt of the HCD notice to provide a written response before the state may take additional enforcement action, including potential referral to the California Attorney General.

The takeaway

This case highlights the state's growing pressure on local governments to update their housing plans and comply with California's housing laws. Jurisdictions that fail to act risk losing access to state funding, facing legal challenges from developers, and potentially being sued by the state Attorney General.