09/10/2026
Costa Mesa’s cannabis shops have generated $8.5 million in tax revenue since sales began, and $842,000 of that is sitting in a fund originally earmarked for first-time homebuyer grants. This week, the City Council still couldn’t agree on what to do with it.
The idea, dating back to 2021’s Measure Q, was to use a slice of cannabis tax revenue to help residents with down payments or closing costs. But with Costa Mesa’s median home price now at $1.4 million, a one-time grant of $25,000-$35,000 would barely make a dent for most buyers.
Council options on the table: launch the homebuyer grant pilot anyway, shift the money into the city’s Housing Trust Fund, or redirect it to the general fund. For now, they’ve decided to do none of the above and just let the fund keep growing.
Even Mayor John Stephens, who’s leaving the council in December, admitted the program he envisioned, cutting checks to local families, isn’t going to happen before his term ends.