Voters in Eureka will decide whether to overturn a housing development plan approved by California regulators in 2020, potentially defying Sacramento's directives.

City planners in the Humboldt County town have spent years preparing for the construction of nearly 1,000 new housing units by the end of the decade, a target set by California’s Housing and Community Development Department. A major component of this plan involves converting twelve public parking lots into affordable housing projects.

This proposal has sparked a local political controversy over the loss of parking and the future of Eureka. As a result, a November ballot measure could impose costly new parking requirements on these lot-to-home conversions and redirect development to a disused middle school on the outskirts of town.

While the specifics of Eureka’s parking lot debate are unique, the broader issue is familiar. In recent years, state lawmakers have enacted numerous laws compelling local officials to approve more housing, regardless of their preferences. Regulators and the state Department of Justice have become increasingly stringent, as evidenced by lawsuits and legal settlements in cities like Huntington Beach, La Cañada Flintridge, Fullerton, and Coronado.

What sets Eureka apart is that it’s not local leaders challenging state regulations but potentially the voters themselves. If the measure passes, it could place the city in a complex legal situation. As state housing deadlines loom, other California cities might face similar challenges.

Over the past decade, a significant shift has occurred: opponents of development ballot measures are no longer just contending with local officials but also with state authorities. Gov. Gavin Newsom and Attorney General Rob Bonta have demonstrated a readiness to penalize cities that fail to comply with state housing laws. In February, Bonta’s office filed a brief with the Humboldt County Superior Court to support Eureka’s housing plan against a lawsuit from proponents of the local ballot measure. “The City is actively fulfilling state policies to facilitate much-needed housing development in precisely the areas those policies encourage to reduce environmental harm and improve livability for all Californians,” the brief stated.

With the backing of California’s top law enforcement officials, opponents of the Eureka measure now have potent threats to present to undecided voters, including state litigation, funding cuts, and the “builder’s remedy,” a law that permits developers to bypass local zoning restrictions in cities with non-compliant housing plans.

This year, the Housing and Community Development Department has already decertified housing plans in two San Francisco Bay Area cities: Portola Valley and Saint Helena.