Oceanside exempted 3,285 units from new height limits, state finds

California’s Department of Housing and Community Development determined on Oct. 15 that Oceanside is not complying with Senate Bill 79. The state agency found the city’s local ordinance misinterpreted the law on multiple points. SB 79, which took effect in July, preempts local zoning rules to allow buildings up to 95 feet tall near transit stops.

City officials passed an ordinance in June to exempt or defer upzoning near seven transit stops. Mayor Esther Sanchez said at a June 3 council meeting that failing to set these sites aside would likely lead to development attempts. She argued the city needed to act proactively to control the process. The council unanimously backed the effort.

Melinda Coy, a state housing official, stated the city failed to provide documentation for sites exempted due to poor walking path access. The law allows exemptions only where sites cannot be adequately accessed on foot. Coy also noted the city improperly excluded sites zoned for residential, mixed-use, or commercial development. The law requires these specific zones to be upzoned.

The state letter identified two additional errors in the city’s ordinance. Oceanside excluded wetlands, a category not eligible for exemption under SB 79. The city also lacked documentation regarding existing housing capacity on sites where it sought to defer new rules. Coy instructed the city to change the ordinance or reauthorize it with more detailed compliance information.

Mayor Sanchez declined to comment on the specific findings in an interview. She reiterated that SB 79 applies a broad standard without considering local community needs. Sanchez said, “I get that some representatives think cities don’t take responsibility for providing housing. But our city has and does.” The city has issued permits for 3,285 housing units since 2021. That figure represents 60% of its target of 5,443 units by 2029.

Saad Asad of California YIMBY, a pro-housing reform group, called Oceanside a more egregious example of cities trying to skirt new rules. Asad stated the law is about allowing more housing near transit and that cities should apply it fairly. He said Oceanside is creatively trying to have the law apply to them in limited ways.

Other regional conflicts are unfolding simultaneously. The San Diego Association of Governments faces a lawsuit over its draft transit map. The agency excluded Solana Beach’s train station and limited Oceanside’s downtown transit center upzoning zone to a quarter mile. Two real estate groups are suing over those decisions. State authorities are also reviewing SB 79 implementation in San Diego and Lemon Grove.

The review of Oceanside marks the latest development in a growing legal fight over housing rules. State regulators are currently examining how the city applied the law’s provisions. The city must now address the specific deficiencies cited in the Oct. 15 letter to maintain compliance with the state mandate.