If approved, Measure H would replace the city’s state-approved housing plan with a new plan that substantially decreases the number of homes that could be built.

What’s at stake

Measure H would require the city to zone for much less new housing, about 65% less, than the amount carved out in the city’s current state-approved housing plan. And it would allow exclusively moderate- and low-income housing, with no allowance for additional market-rate housing until the affordable housing is built.

The ballot measure is the latest move in a years-long battle over where and how much housing should be developed in Newport Beach. If it passes, critics say the city would likely find itself on a legal collision course with Sacramento that could take years and countless tax dollars to unravel.

Official title on the ballot: Measure H — City of Newport Beach General Plan Amendment

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Understanding Measure H

State law requires all cities in California to accommodate a certain number of homes for people of different income levels, especially low- to extremely low-income. Cities don’t actually have to build those homes; they just have to make sure their planning and zoning laws allow them to be built.

The number allocated to each city is determined at the regional level every eight years. Through that process, Newport Beach had to plan for 4,845 new residential units by October 2024. It was a major increase from the previous eight-year cycle, when the state only required Newport Beach to plan for five new homes citywide.

The city met its latest planning requirement after the City Council voted to adopt a new housing plan in 2024 that allows for 8,174 units, significantly more than the state requires. The city said the extra units provide a buffer, allowing developers to build market-rate units to subsidize affordable units. But proponents of Measure H have seized on the substantial number to promote their alternative housing plan.

The City Council also determined that it could legally bypass a local law known as the Greenlight Initiative, which requires voter approval to implement major zoning changes.

That prompted lawsuits by two local groups, the Newport Beach Stewardship Association and Still Protecting Our Newport. Their appeal is pending.

That’s when the groups turned to a new tactic — putting their own housing plan before the city’s voters.

Hence, Measure H.

What people who support it say 

Supporters say Measure H will allow the city to meet state housing mandates because it accounts for higher-income housing that was already in the pipeline, while permitting much less development and, therefore, less traffic and noise, and fewer large buildings, than the City Council-approved plan. They also say voters should get to weigh in on such major changes to the city as its housing development plan.

Notable supporters: Former Mayor Marshall “Duffy” Duffield, Newport Beach Stewardship Association, Still Protecting Our Newport

What people who oppose it say

Opponents, including city leaders, say Measure H will concentrate lower-income housing in certain areas rather than support mixed-income developments in those same areas. They also note that most developers won’t build affordable units without the ability to offset the cost by including higher-priced, market-rate units in the same project, especially in high-cost areas like Newport Beach. And, scrapping the city’s state-approved housing plan would open the city to lawsuits, fines and penalties similar to those faced by neighboring Huntington Beach.

Opponents, including the Orange County Republican Party, note that Measure H was financed by a single local developer who stands to gain a competitive advantage if the measure passes.

Notable opponents: Former Mayor and OC Republican Party Chair Will O’Neill, City Councilmembers Noah Blom, Sara Weber and Michelle Barto. 

Potential financial impact

There is no official financial analysis for Measure H. Opponents say reneging on the state-approved housing plan could open the city to lawsuits and penalties similar to those faced earlier this year by neighboring Huntington Beach.

Follow the money

From January to mid-October, local real estate developer Ken Picerne and his Picerne Group had donated $1 million to the "Yes on Measure H" campaign, according to campaign filings.

Also, as of mid-October, the Orange County Republican Party had spent $29,385 opposing Measure H.

Further reading

• The city attorney’s official impartial analysis of Measure H
• Arguments and rebuttals for and against Measure H
• City of Newport Beach Housing Element Implementation FAQ
• Newport Beach state-certified Housing Element
• OC Register editorial: Newport Beach takes its own wrong path on housing
• Voice of OC: Who’s spending on Newport Beach’s Elections?