Posted July 2026 | By Eric Engelbert | Updated as the project moves through the approval process.
Ground Has Been Broken at the Old Fairview Site
If you have driven past 2501 Harbor Boulevard in Costa Mesa recently, you may have noticed a large crane and fresh ground disturbance along the western edge of the old Fairview Developmental Center property. Construction is underway on the Cal OES Emergency Operations Center in the southwest corner of the site, and demolition of the remaining hospital buildings is progressing on the housing portion. This is one of the largest land redevelopment projects in Orange County history, and it is now moving from planning to reality.
The Fairview Developmental Center occupied a prime piece of Costa Mesa for more than 60 years. Now, roughly 100 acres of that land is set to become a new mixed-income residential neighborhood. The Specific Plan and Environmental Impact Report are at the Planning Commission level as of July 2026, and a master developer has not yet been selected by the State. When it is complete, this project will add thousands of housing units to a city that has been under intense state pressure to produce more homes.
This blog covers the development factually: what the site is, who fought over its future, what is being planned, who will build it, what the golf course situation is, and what happens next. If you want to read more about the golf course pressure angle specifically, we have a companion piece linked at the bottom of this page. 
What Was the Fairview Developmental Center?
Fairview State Hospital opened in 1959 on 752 acres in Costa Mesa to house individuals with developmental disabilities. At its peak, it was one of the largest state-operated facilities of its kind in California. In 1979, much of the original acreage was transferred to the City of Costa Mesa as the state began shifting to community-based group homes. The campus shrank considerably, eventually settling at approximately 121 acres along Harbor Boulevard, adjacent to the Costa Mesa Municipal Golf Course.
The California Legislature approved a closure plan for Fairview in 2016. The final residents were transitioned out of the facility by October 2022. Senate Bill 188, signed by Governor Newsom in 2022, formalized the partnership between the State Department of Developmental Services, the State Department of General Services, and the City of Costa Mesa to determine what would happen to the property next. Housing was identified as the priority use under the agreement, with any housing required to include affordable units and priority for deed-restricted housing for individuals with developmental disabilities.
| Address | 2501 Harbor Blvd, Costa Mesa |
|---|---|
| Total Site | Approximately 121 acres |
| Housing Portion | Approximately 100 acres (after Cal OES allocation) |
| Cal OES Portion | 15 acres (SW corner), groundbreaking October 2025 |
| Original Opening | 1959 |
| Original Acreage | 752 acres |
| Closure Approved | 2016 (California Legislature) |
| Last Residents Out | October 2022 |
The Fight Over What the Site Would Become
Before housing became the settled direction, Costa Mesa had to push back against a competing proposal. The City of San Clemente and other advocates were pushing for the Fairview site to be converted into a large regional homeless shelter and services campus. Costa Mesa's elected officials and city staff were firmly opposed and spent significant time and effort lobbying Sacramento to keep the site designated for housing.
City Manager Lori Ann Farrell Harrison confirmed the city's active lobbying efforts. Former Mayor and then-Orange County Supervisor Katrina Foley made personal trips to Sacramento to make the case that Costa Mesa's housing needs and its state Housing Element obligations made a residential community the right use for the property. Governor Newsom ultimately sided with Costa Mesa's position and put a stop to the homeless shelter proposal.
The result is the current plan: housing as the primary use, with a mix of income levels required by state law and the State-City agreement. The City's 6th Cycle Housing Element, which Costa Mesa submitted to the state to meet its Regional Housing Needs Assessment (RHNA) obligations, lists Fairview as a key housing opportunity site and counts 2,300 units there toward the city's production targets.
The Development Plan: What Is Being Proposed
The City of Costa Mesa has been developing a Specific Plan for the Fairview site since September 2023, led by city planning staff and the consulting firm Placeworks. The plan establishes the land use rules, density limits, design standards, mobility framework, and infrastructure requirements that any future developer must follow. A Public Hearing Draft was released in July 2026, and a Planning Commission study session is scheduled for July 27, 2026. City Council adoption is targeted for late 2026.
The base plan calls for 2,300 housing units at a mix of income levels. Under California's State Density Bonus Law, however, a developer who includes a certain percentage of affordable units can request additional density beyond what the Specific Plan allows, potentially pushing the total to 3,500 units or more. This is not a hypothetical: the financial analysis for the project suggests the development does not become economically viable until roughly 3,500 units are built, because the developer receives the land for essentially no cost in exchange for absorbing all site remediation expenses.
The plan also includes up to 35,000 square feet of neighborhood-serving retail and commercial space, such as restaurants, coffee shops, fitness studios, and childcare. A senior housing tower of up to 18 stories is planned near the western edge of the site. The full buildout is expected to take 18 to 20 years.
| Base Housing Units | 2,300 (per Housing Element plan) |
|---|---|
| Potential with Density Bonus | 3,500 to 4,000+ |
| Income Mix (base plan) | 575 very low / 345 low / 690 moderate / 690 above moderate |
| Commercial Space | Up to 35,000 SF (retail, restaurants, childcare) |
| Max Building Height | Up to 18 stories (senior tower, western edge) |
| Buildout Timeline | 18 to 20 years |
| Specific Plan Adoption | Targeted late 2026 |
In addition to the primary housing, two state bills allow for specialized uses within the site. SB 82 permits up to 20 acres for mixed-income housing for people with developmental disabilities. SB 138 authorizes up to three complex needs homes for individuals with developmental disabilities, up to 15 residents total, with the state budgeting $10.5 million for their construction.
Who Will Build It? Master Developer Still to Be Selected
As of July 2026, no master developer has been selected for the Fairview housing site. The State Department of General Services is responsible for the developer selection process. Bids from interested developers were being accepted as of early 2026, and the State is expected to make a selection while the Specific Plan is still being finalized.
The structure of the deal is unusual compared to a typical land sale. The developer is expected to receive the land for effectively no money, or possibly a nominal amount such as one dollar, or through a long-term ground lease of up to 99 years. In exchange, the developer takes on full responsibility for cleaning up the site and all infrastructure costs. Because contamination on the property is concentrated primarily in the former maintenance yard and central kitchen areas, cleanup costs are a significant financial variable. The most recent detailed environmental study was never finalized, which means some uncertainty remains about the total cost of remediation.
Once the State selects a master developer, that developer will be required to build according to the Specific Plan adopted by Costa Mesa's City Council. The master developer may sell individual parcels to sub-developers over the life of the project, but all of those parcels must comply with the plan's standards. Two separate development agreements will be required: one between the State and the master developer, and one between the City and the master developer.
The Golf Course: What Has Been Decided and What Has Not
The Fairview site is largely surrounded by the Costa Mesa Municipal Golf Course. The proposed Specific Plan includes a road that would run through a portion of the golf course, approximately 4,650 linear feet in length. Depending on final routing and design, this road could affect two to six holes of the existing course. It would be required as a circulation element if the density of the project exceeds certain thresholds, which is considered likely given the financial realities of the project.
The Specific Plan states that golf course hole relocation is the responsibility of the master developer, who would be required to hire a golf course consultant to redesign the affected holes. However, the plan does not currently specify that the redesign must meet a particular quality standard or receive the City's approval before proceeding. That is an open issue that city officials and community members have raised in public meetings. The city has the right to review a development agreement, but the final terms of the State-to-developer agreement are not under the City's direct control.
The golf course road has not been formally approved or finalized. It is a requirement embedded in the draft Specific Plan that will take effect if the plan is adopted as written and if development density triggers the need for it. There is no separate vote planned on the golf course component specifically. The City Council vote on the Specific Plan itself, expected late 2026, will be the decision point for whether this road requirement becomes binding.
If you are interested in the broader context of golf courses facing pressure from housing development across Orange County, we have a separate blog that covers this topic in more depth: [link to companion golf course blog].
Money, Cleanup, and Traffic
The cost structure of this project is unlike a conventional development deal. Because the land is state-owned and being transferred for housing as a policy priority, the State is expected to hand over the property at little to no cost. The developer absorbs the site remediation bill in return. Estimates for cleanup costs are based in part on what the State paid to clean up the 15-acre Cal OES parcel in the southwest corner. The Housing Element financial analysis suggests the project only reaches financial viability for a developer at approximately 3,500 units, which indicates the cleanup costs are substantial.
Site contamination is concentrated primarily in the former maintenance yard, which the State is retaining for low-income housing construction, and the former central kitchen, which falls within the housing development area. An updated Phase II environmental report covering the full site had not been completed as of early 2026, leaving some uncertainty about final costs and whether contamination in the maintenance yard area could be migrating toward the housing parcels.
The full traffic impact study for the development will be released as part of the Environmental Impact Report, which had not yet been published as of July 2026. The EIR will go through a 45-day public review period once released. One noted gap in the current traffic analysis is that it studies only typical daily operations of the completed neighborhood, without accounting for seasonal traffic events such as the Orange County Fair, which runs on adjacent fairgrounds property each summer and has a significant impact on Harbor Boulevard and nearby streets.
What Comes Next: Approval Timeline
The Fairview project is at an active approval stage as of July 2026. The Planning Commission held a study session on July 27, 2026. A community town hall was held July 23, 2026 at the Norma Hertzog Community Center. City staff will incorporate public comments and revise the Specific Plan before presenting it to the Planning Commission for a formal hearing.
There is no public ballot referendum or initiative planned for this project. Approval will come through the standard planning process: Planning Commission recommendation, followed by City Council adoption. Once the Specific Plan and General Plan Amendment are adopted, the State moves forward with selecting the master developer and executing development agreements. Construction on the housing portion is expected to begin in phases after the Specific Plan is adopted, with full buildout projected over the next 18 to 20 years.
The Cal OES Emergency Operations Center on the 15-acre southwest parcel broke ground in October 2025 and is already under construction, separate from the housing approval process. That facility is projected to be complete within approximately two years of its October 2025 groundbreaking.
| July 23, 2026 | Community Townhall, Norma Hertzog Community Center |
|---|---|
| July 27, 2026 | Planning Commission Study Session, City Hall |
| Late 2026 (target) | City Council adoption of Specific Plan and EIR |
| TBD | State selects master developer |
| TBD | Development agreements executed (State-Developer and City-Developer) |
| TBD | Phase 1 construction begins on housing |
| 18 to 20 years | Projected full buildout of the neighborhood |
Looking for a Home in Costa Mesa?
The Fairview redevelopment will reshape one of Costa Mesa's largest undeveloped areas over the next two decades. If you are buying, selling, or investing in the Costa Mesa area, understanding what is coming to this neighborhood matters for long-term values and rental demand. We track new development projects across Orange County and can give you a current picture of what is in the pipeline.
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