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.
New Housing and Homelessness Agency to Launch July 2026
Gov. Newsom announced the creation of the California Housing and Homelessness Agency, consolidating multiple existing departments into a new body. State lawmakers approved the move earlier this month, and the agency is set to be operational by July 2026. The move heeds calls from some experts and advocates to centralize the state bureaucracy to better address homelessness and housing costs. Under Newsom, California has seen unprecedented investment to fight homelessness and bring down housing costs, but so far results have been mixed. Since 2019 the state has directed $27 billion to local homelessness efforts statewide, but homelessness increased around 24% to 187,000 people during that time. A state audit found that $24 billion in homelessness funding was not properly tracked. The state missed Newsom's goal of 3.5 million new homes by 2025, and the governor set a new goal of 2.5 million by 2030. However, in 2024 the state's homeless population increased by 3% compared to the 18% average nationawide, a figure experts have attributed to California's investments.
Report Shows Progress toward 30 x 30 Conservation Goals
California has advanced toward its goal of conserving 30% of its land and coastal waters by 2030, with current figures at 26.1% and 21.9%, respectively, according to a recent progress report from the Natural Resources Agency. The 30x30 Initiative, established by Governor Gavin Newsom in 2020, also focuses on supporting biodiversity, increasing public access to natural spaces and addressing climate-related challenges. Recent progress includes new national monument designations and marine protections, though ongoing federal policy shifts could affect these gains. Some environmental organizations have questioned whether certain newly protected areas, such as the Chumash Heritage National Marine Sanctuary, meet the standards needed to count toward the 30% target. State officials plan to continue expanding conservation efforts through the integration of nearby private lands into public park systems and emphasize the broader environmental benefits of the initiative.
Bonta Joins Protest against Repeal of Federal Fair Housing Regulations
California Attorney General Rob Bonta, along with 20 other attorneys general, sent a letter to the U.S. Department of Housing and Urban Development opposing a proposed repeal of regulations requiring fair marketing of affordable housing. These “affirmative marketing” rules, established under the Fair Housing Act in the 1970s, aim to ensure that federally assisted housing is promoted to all eligible groups, especially those historically excluded. The attorneys general argue that removing these rules could lead to discriminatory practices and undermine decades of efforts to combat housing segregation. Critics of the proposed repeal also say it lacks clear legal justification and could reduce equitable access to housing opportunities for marginalized communities.
Union, Residents Object to Financing District for Sacramento Railyards
Unite Here Local 49 and residents of Sacramento’s Railyards district allege the city is delaying the verification of protest letters that challenge a proposed special tax financing district to develop a massive mixed-use complex, including a new soccer stadium. They argue that a majority of residents have submitted valid protests, which, under a 2019 state law, could halt the city’s agreement with developers for up to a year. The union is now considering legal action, claiming the delay undermines efforts to secure stronger affordable housing commitments. City officials say they are working through a legally complex and untested process to confirm residency within the newly built apartment complexes. Supporters of the financing plan argue that public infrastructure funding is necessary to move forward with development.
HCD 2024 Housing Progress Report Finds Growth in Affordable Development
The Department of Housing and Community Development (HCD) released its 2024 Annual Progress Report, offering a statewide look at residential permitting and development. The report found growth in affordable development, with the lower income units accounting for 22.8% of permitted units and 20.7% of completed units in 2024, up from 9% and 7% respectively in 2018. Lower income unit production rose from 17,872 in 2023 to 20,514 in 2024. Multifamily housing production remained high with 343,236 units in the housing pipeline up from the previous five-year average of 296,432, and ADU production saw a record high of 30,600 in 2024 up from 28,666 in 2023. The report also emphasized faster development timelines, with the average time from application submission to planning approval decreasing from 145 days in 2018 to 58 days in 2024. The report credited the Housing Accountability Unit for much of the acceleration. The state also saw a moderate increase in deed-restricted affordable units from 49,000 in 2023 to 51,000 in 2024, including an increase of 7,000 units from the increased Density Bonus incentives for projects with affordable housing components passed in 2021.
Palisades Tahoe Agrees to Scaled-Down Village Development
Alterra Mountain Company, owners of Palisades Tahoe ski resort, reached a settlement with environmental groups Keep Tahoe Blue and Sierra Watch to reduce the scale of a planned development in Olympic Valley (formerly Squaw Valley). The agreement ends a fourteen-year dispute over plans for the development, which was originally proposed in 2011 and revised in 2014. In the settlement, Alterra agreed to reduce the total number of bedrooms from 1,493 to 896, reduce commercial space from 278,000 square feet to 222,000, eliminate plans for an indoor waterpark, create a conservation easement at the base of Shirley Canyon to preserve public land access in perpetuity, and prevent additional development within the boundaries for 25 years. (See related CP&DR coverage.)
CP&DR Coverage: CEQA Legislation Roundup: AB 130, AB 131, SB 79
On July 1, the provisions of AB 130 and SB 131 – the two budget trailer bills that reformed the California Environmental Quality Act to streamline housing approvals – went into effect. In an unprecedented move, Newsom had basically held the budget hostage over CEQA reform, especially on infill housing. Because the trailer bills were tagged as “urgency” bills, they took effect July 1. The bills greatly expand exemptions for infill housing and also carve out exemptions for a variety of non-residential projects. Although the bills represented something less than comprehensive CEQA reform, they were probably the most significant legislative changes to CEQA in this century. And while the infill housing got the most publicity, a wide range of other provisions are also important. Meanwhile, SB 79, which is still pending, would effectively transfer land-use authority from local governments to transit agencies for land owned by transit agencies that is located near transit stations – and permit buildings of up to 100 feet high immediately adjacent to the busy stations. It would exempt many projects on such land from the California Environmental Quality Act because many would qualify for a CEQA exemption under Wiener’s SB 423, his successor bill to SB 35. The League of California Cities is fiercely opposed to the bill. But so are environmental justice Democrats and anti-regulation Republicans.
Quick Hits & Updates
The first round of funding from Proposition 1’s Homekey+ program has awarded nearly $103 million to create 315 units of permanent supportive housing for veterans and individuals with behavioral health challenges across five California counties. The initiative, part of a broader $6.38 billion bond approved by voters, aims to address homelessness by combining affordable housing with wrap-around services, with future awards continuing on a rolling basis as the state evaluates over $1 billion in pending applications.
The Santa Monica City Council voted, 6-1, to prioritize transforming the 192-acre Santa Monica Airport site into a public park focused on open space and recreational facilities after its closure in 2028. The approved plan includes ecological restoration and adaptive reuse of existing buildings in line with a 2014 voter-approved measure requiring public approval for non-park uses, while the one dissenting councilmember called for exploring a mix of uses, including housing.
The Los Angeles City Council is considering a proposal that would allow homeowners to sell ADUs separately from the main home, in a move seeking to increase the housing supply as LA's average household size shrinks. 41% of new housing permits issued last year in LA were for ADUs, and since 2023 california state law has a pathway for selling ADUs, but cities must adopt the changes locally.
San Francisco District 5 Supervisor Bilal Mahmood has introduced a reform measure targeting language in the city's housing code limiting the number of unrelated people allowed to live together to five. Although the rule has largely fallen into obscurity, Mahmood says it often hamstrings co-op housing as bedrooms sit empty in compliance with the law, and changing the wording could help maximize available housing.
State officials issued a statement harshly criticizing the Trump administration's termination of $4 billion in grants for the state's high speed rail program, claiming the termination was politically motivated and based on inaccurate analysis. The Rail Authority pointed to 59% construction completion on the initial 119-mile central valley route as progress compliant with funding conditions.
San Francisco, Downtown Los Angeles and San Jose rank among the California cities with the highest office vacancy rates and greatest potential to convert empty office buildings into housing, with San Francisco alone capable of adding over 61,000 new apartments. These cities are also seeing some of the fastest year-over-year vacancy increases, highlighting both the urgency and opportunity to repurpose underused commercial space to help ease California’s housing shortage.
Twenty-four city-owned buildings in San Francisco are at risk of collapse in a major earthquake, and another 26 are at risk of severe damage, according to the city's Seismic Hazard Rating. The buildings at risk include the Hall of Justice and multiple fire stations, police stations and homeless shelters. Since 1990 the city has spent $20 billion on seismic retrofits, which are not required by state law and are funded by voter-authorized bond measures.
The city of Elk Grove approved the sale of 20.5 acres of land to developer CenterCal for Project Elevate, a mixed-use development that may, but is not required to, include a housing component. The sale will not formally close until CenterCal secures entitlements and building permits, and the company expects to break ground in 2028.
California's First Appellate District Court of Appeal upheld a ruling against the city of Oakland in favor of a development company over plans to build a coal export terminal in West Oakland. After the ruling, Oakland Bulk and Oversized Company can keep and extend its lease to city-owned waterfront land in order to restart work on the coal terminal.
