City Council

9E. RESPONSE TO THE 2025-2026 ORANGE COUNTY GRAND JURY REPORT DATED MAY 27, 2026, ENTITLED, “CALIFORNIA HOUSING MANDATES, THE UNINTENDED RESHAPING OF ORANGE COUNTY NEIGHBORHOODS” On May 27, 2026, the Orange County Grand Jury released a report entitled “California Housing Mandates, The Unintended Reshaping of Orange County Neighborhoods” (Attachment A). This report examines how California's Housing Mandates operate in practice within Orange County, evaluating both their intended objectives and their unintended consequences for cities, neighborhoods, and local governance. It assesses the feasibility, effectiveness, and equity of current state housing policies, identifies areas where state requirements intersect with local capacity, infrastructure, funding, and community needs, and analyzes how recent legislative changes have affected the balance between state authority and local decision-making. The report also proposes a strategic framework for strengthening Orange County's influence within the Southern California Association of Governments (SCAG) through a more effective role for the Orange County Council of Governments (OCCOG) as the region enters the next housing planning cycle. California Penal Code Sections 933 and 933.05 require any public agency that the Grand Jury reviews respond to the findings and recommendations of the Grand Jury Report. The City’s proposed response letter responds to each of the applicable findings and recommendations (Attachment B). RECOMMENDED ACTION: 1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5)(Organizational or administrative activities or governments that will not result in direct or indirect physical changes in the environment); and 2. Authorize the Mayor to sign the response letter to the Orange County Grand Jury related to the findings and recommendations contained in the May 27, 2026, report entitled “California Housing Mandates, The Unintended Reshaping of Orange County Neighborhoods”.