This article is brought to you courtesy of the paying subscribers to California Planning & Development Report. You can subscribe to CP&DR by clicking here. You can sign up for CP&DR’s free weekly newsletter here.
Supreme Court Declines to Hear Challenge to San Diego Coastal Height Limit
San Diego’s 30-foot height limit west of I-5 will go back into effect now that the California Supreme Court has declined to take a case overturning a vote that eliminated the height limit. The height limit will block the so-called Midway Rising project on city-owned land around Pechanga Arena, but the developers plan to use the state Density Bonus Law to get around the height limit, apparently with city support. An appellate court has twice ruled that the city violated the California Environmental Quality Act, thus nullifying two different votes to lift the height limit. The appellate court had found that the city violated CEQA by placing the measure before voters without adequately informing them of the environmental impacts of taller buildings. City officials, including Mayor Todd Gloria, said the ruling will not slow efforts to redevelop the sports arena site through the Midway Rising project, which proposes thousands of housing units and a new arena.(Previous CP&DR coverage can be found here.)
Lawsuit Filed to Block 'Family Zoning' in San Francisco
As had been anticipated, members of Neighborhoods United San Francisco and Small Business Forward filed a lawsuit challenging San Francisco’s newly passed rezoning plan known as the Family Zoning Plan, which allows for taller and denser buildings in much of the city. The plaintiffs argue that the resulting plan did not go through an appropriate review process to ensure more affordable housing and less impact on the existing communities. The lawsuit also alleges that the city did not go far enough to protect small business owners and tenants that may be displaced, and alleges that the city failed to conduct a proper environmental review as required under the California Environmental Quality Act (CEQA), instead relying on a 2022 environmental impact report. California state officials required that San Francisco update their housing plan to accommodate 82,000 new housing units in the next five years under threat of withheld funds. City officials have defended the plan, saying the plan underwent thorough review and is compliant with state law. The projections for how much new housing the zoning changes will produce are mixed, with some estimates falling closer to 14,000 new units. If the plan is revealed to be non-compliant with state law, YIMBY representatives warn that builders may be able to bypass zoning law to make up for the state not meeting housing requirements.
Saratoga Attempts to Negotiate over Builder's Remedy ProjectThe Saratoga City Council approved, on a unanimous vote, a tolling agreement with City Connect to downsize a project and persuade them to withdraw their Builder’s Remedy application, which would allow the developer to bypass certain zoning restrictions as the city falls short on state-mandated housing projections. City Connect’s 2023 project proposal contained 231 units within a nearly 12 acre site, while an updated 2025 submission called for 64 units comprising six very-low income units, six moderate-income units and 26 density bonus units. By entering this agreement, Saratoga aims to avoid litigation and create a development outcome more acceptable to residents and city leaders, though details about how the project will be altered or scaled back haven’t been fully disclosed. The agreement is intended to allow time for the city and developer to work on a plan that satisfies state housing obligations without resorting to aggressive builder’s remedy provisions. Many residents who spoke at the meeting were in favor of the agreement and downscaled project, with some questioning whether this could open the door for complaints regarding other builder’s remedy proposal projects in the area.
Court Throws Out Challenge to Closure of San Francisco Great Highway
San Francisco Superior Court Judge Jeffrey Ross dismissed a lawsuit that sought to overturn Prop. K, the 2024 voter-approved ballot measure that closed the road and turned the Upper Great Highway into a park. The petitioners argued that the closure was illegal on several grounds such as the road’s “partial closure”, environmental review concerns, consistency with the city plan and particularly whether or not the project was compliant with California Environmental Quality Act (CEQA). Petitioners argued that the project did not meet the requirements for CEQA because it was not subject to environmental review. Judge Ross determined that Prop. K is not a CEQA project because it was put on the ballot by a minority of supervisors, and projects under this law must be initiated by a “public agency”. The judge also suggested that even if the measure was considered a CEQA project, the petitioners should have appealed within 180 days of it being put on the ballot. Current District 4 Supervisor Alan Wong said that if the decision holds, the only way to reopen the Great Highway to cars on weekdays would be another ballot measure. District 4 Supervisor Alan Wong announced that he would support an additional ballot measure to reopen the Upper Great Highway to cars on weekdays, putting the future of Sunset Dunes Park back in the hands of voters.
CP&DR Coverage: Chamber Initiative Would Create CEQA Shot ClocksThe California Chamber of Commerce is floating a ballot measure that would create a series of “shot clocks” for actions under the California Environmental Quality Act. Shot clocks have become increasingly common as the state has sought to accelerate housing production in recent years, but mostly those shot clocks have focused on the regular entitlement process, not CEQA. The Chamber initiative would change that in a dramatic way by creating, in essence, two different types of CEQA projects: essential projects and others. The proposed initiative, which would appear on the 2026 ballot, would not fundamentally alter how CEQA functions. Rather, it would seek to speed up CEQA actions for “essential projects” by creating strict deadlines for various actions.
Quick Hits & Updates According to recent Redfin data, investors purchased about 40% of the vacant land sold in Los Angeles County burn zones during mid-2025. For affected neighborhoods, the surge in vacant lots and investor purchases highlights ongoing struggles with recovery, insurance limitations, and the long timeline for reconstruction following the fires.
Alameda County launched a pilot program called the Scalable Housing Investment Funding Toolkit (SHIFT) aimed at lowering the cost of building affordable housing by streamlining the development process. The program uses pre-approved, generic designs and eliminates hurdles like environmental review and local planning commission approvals. SHIFT targets households earning 60–80% of area median income and aims to produce housing for about $600,000 per unit, roughly $250,000 less than the county’s average affordable housing cost.
The Santa Barbara-based Environmental Defense Center and more than half a dozen other environmental groups are suing U.S. Department of Transportation, PHMSA, and some key officials in regard to the controversial efforts to restart the Santa Barbara County oil pipeline. The pipeline ruptured in 2015, spilling 140,000 gallons of crude oil on the Gaviota Coast.
State regulators from the California Fair Political Practices Commission ruled that Santa Monica Mayor Pro Tem Jesse Zwick must recuse himself from future City Council votes related to housing production because his employment with the Housing Action Coalition creates a potential conflict of interest. The FPPC’s determination found that decisions affecting housing policy could reasonably have a financial effect on Zwick’s employer, even with safeguards in place.
A judge has temporarily halted the City of San Diego’s processing of permits for a planned 136‑unit accessory dwelling unit development in Pacific Beach, saying the city must do more to assess the potential impact on traffic and the existing neighborhood before moving forward.
The San Diego City Council fast-tracked new fire prevention rules that require all homeowners to abide by Zone Zero regulations that prohibit landscaping and other flammable items from within five feet of a home. About two-thirds of the city fall within a “high fire-hazard severity zone”, which requires compliance with Zone Zero regulations.
President Trump will seek to ban large institutional investors from buying single‑family homes in the United States, arguing the move would help make homeownership more affordable for average Americans.
California’s population growth has slowed with the state adding only about 19,200 people (0.05%) in the year ending last July, while Sacramento has seen one of the biggest jumps in the state. San Francisco’s population increased by fewer than 300 people, leaving it roughly 30,000 residents below its pre‑pandemic peak.