Oakland’s plan to add over 26,000 new homes fails to meet state requirements, city at risk of penalties

Regulators have determined Oakland’s plan to add at least 26,000 new homes over the next decade isn’t up to snuff — putting the Bay Area’s third-largest city at risk of missing out on crucial funding and losing control over local rules governing development.

Under state law, cities must come up with plans — dubbed “housing elements” — explaining how they aim to approve significantly more housing for residents of all income levels between 2023 and 2031. Bay Area cities and counties were supposed to have their plans finalized by Jan. 31, but most blew the deadline.

In a Feb. 2 letter, regulators informed Oakland that its plan — which the city

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