State Housing Agency Finds Oceanside Noncompliant with SB 79

California’s Department of Housing and Community Development has ruled that Oceanside is not complying with Senate Bill 79. The state agency issued a letter on Oct. 15 finding that the city’s recent ordinance fails to meet the law’s requirements.

The law, which took effect in July, preempts local zoning rules to allow buildings up to 95 feet tall near specific bus stops and train stations. It applies regardless of existing local standards. However, the statute permits cities to exempt certain sites or temporarily postpone the rules.

In June, the Oceanside City Council unanimously passed an ordinance to exempt or defer regulations for land near seven transit stops. Officials stated they were acting to protect the city from the new requirements. Mayor Esther Sanchez told the council that setting aside these sites was necessary to prevent development attempts the city could not control.

Melinda Coy, a state housing official, identified multiple errors in the city’s ordinance. She noted that Oceanside failed to provide documentation showing that exempted sites lacked adequate walking paths. The law allows for exemptions in such cases, but the city did not supply the required proof.

Coy also found that the city improperly excluded sites zoned for residential, mixed-use, or commercial development. The law mandates upzoning for these specific land uses. Additionally, the ordinance included an exemption for wetlands, a category the law does not recognize. The city also lacked documentation regarding existing housing capacity on sites where it chose to defer new rules.

The state letter requires Oceanside to either amend the ordinance or reauthorize it with detailed compliance information. Mayor Sanchez declined to comment on the specific findings in an interview. She reiterated that she believes the law applies a broad standard without sufficient regard for local community needs.

Sanchez acknowledged that some state representatives question whether cities are taking responsibility for housing. She argued that Oceanside has and does take that responsibility. City data shows the project is on track to meet state goals, with 3,285 housing units permitted since 2021. This represents 60% of the city's target of 5,443 units by 2029.

Saad Asad of California YIMBY, a pro-housing group that supported SB 79, described Oceanside as an egregious example of cities attempting to skirt the rules. He stated that the law aims to allow more housing near transit and that cities should apply it fairly using consistent standards. Asad accused Oceanside of creatively finding ways to avoid the law’s application.

Oceanside is not alone in challenging the implementation of SB 79. The San Diego Association of Governments faces a lawsuit over its draft map of subject transit stations. The agency excluded Solana Beach’s train station from the upzoning zones. It also reduced the radius for Oceanside’s downtown transit center to a quarter-mile, citing service by four train lines, instead of the standard half-mile.

Two real estate industry groups are suing SANDAG, arguing its decisions conflict with state guidance. They contend that state rules warrant a quarter-mile zone around Solana Beach and a half-mile zone around Oceanside’s transit center. In August, these groups also filed a lawsuit against the City of San Diego over its application of walking path standards. State authorities are currently reviewing the implementation of SB 79 in San Diego and Lemon Grove.