-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 MPQWobMFkrjY4NuL/ynYxFdbLswrA/u44zOB/tbCtM+UT94AUt1Vp6ZSs0iDDvP4
 gxdPjC46hsp0WXUSfvfd4A==

<SEC-DOCUMENT>0001179110-09-000577.txt : 20090106
<SEC-HEADER>0001179110-09-000577.hdr.sgml : 20090106
<ACCEPTANCE-DATETIME>20090106154301
ACCESSION NUMBER:		0001179110-09-000577
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090102
FILED AS OF DATE:		20090106
DATE AS OF CHANGE:		20090106

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Murray Marti P
		CENTRAL INDEX KEY:			0001405838

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17189
		FILM NUMBER:		09509911

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		212-582-5505

	MAIL ADDRESS:	
		STREET 1:		680 FIFTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALIFORNIA COASTAL COMMUNITIES INC
		CENTRAL INDEX KEY:			0000840216
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATIVE BUILDERS [1531]
		IRS NUMBER:				020426634
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		6 EXECUTIVE CIRCLE
		STREET 2:		SUITE 250
		CITY:			IRVIN
		STATE:			CA
		ZIP:			92614
		BUSINESS PHONE:		9492507700

	MAIL ADDRESS:	
		STREET 1:		6 EXECUTIVE CIRCLE
		STREET 2:		SUITE 250
		CITY:			IRVIN
		STATE:			CA
		ZIP:			92614

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KOLL REAL ESTATE GROUP INC
		DATE OF NAME CHANGE:	19931006

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BOLSA CHICA CO/
		DATE OF NAME CHANGE:	19921229

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HENLEY PROPERTIES INC
		DATE OF NAME CHANGE:	19920727
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2009-01-02</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000840216</issuerCik>
        <issuerName>CALIFORNIA COASTAL COMMUNITIES INC</issuerName>
        <issuerTradingSymbol>CALC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001405838</rptOwnerCik>
            <rptOwnerName>Murray Marti P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>340 MADISON AVENUE, 18TH FLOOR</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10017</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock - $.05 par value</value>
            </securityTitle>
            <transactionDate>
                <value>2009-01-02</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>35714</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.56</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>455430</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F3"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">These are restricted shares that were issued under the Director Fee Program of the Amended and Restated 1993 Stock Option/Stock Issuance Plan at the election of Ms. Murray. The shares vest in 25% increments at the end of each quarter during 2009. Upon vesting, Ms. Murray intends to transfer these shares to certain investment advisory clients of Babson Capital Management LLC, (&quot;BCM&quot;) a registered investment adviser, for no consideration. The Reporting Person disclaims beneficial ownership of the 35,714 shares except to the extent of her pecuniary interest therein.</footnote>
        <footnote id="F2">Includes 39,229 restricted shares issued to Ms. Murray under the Director Fee Program and 416,201 shares held by Babson Capital Management LLC, (&quot;BCM&quot;) a registered investment adviser. Ms. Murray has sole voting and dispositive power with respect to, and therefore may be deemed to beneficially own, the 455,430 shares of common stock held by the investment advisory clients of BCM. The Reporting Person disclaims beneficial ownership of the 455,430 shares except to the extent of her pecuniary interest therein.</footnote>
        <footnote id="F3">Includes 39,229 restricted shares issued to Ms. Murray under the Director Fee Program and 416,201 shares held by Babson Capital Management LLC, (&quot;BCM&quot;) a registered investment adviser. Ms. Murray has sole voting and dispositive power with respect to, and therefore may be deemed to beneficially own, the 455,430 shares of common stock held by the investment advisory clients of BCM. Upon vesting, Ms. Murray intends to transfer the restricted shares to certain investment advisory clients of BCM for no consideration. The Reporting Person disclaims beneficial ownership of the 455,430 shares except to the extent of her pecuniary interest therein.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Marti Murray</signatureName>
        <signatureDate>2009-01-06</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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