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.
May Budget Revise: Housing Bills; Coastal Commission Reform; VMT-Oriented Financing
In conjunction with his May Budget Revise, Gov. Newsom announced support for a several policies to promote housing development. The Governor is proposing to incorporate two major housing bills into the budget: Senate Bill 607 (Wiener)and Assembly Bill 609 (Wicks), both of which speed CEQA review for infill projects, or exempt them entirely The governor also proposes aligning Coastal Commission permitting timelines to those that apply to other agencies, so that communities in the Coastal Zone are not left behind when it comes to urgently needed housing.The May Revise introduces a financing strategy for developers that links vehicle miles traveled reductions with infill and transit-oriented housing production, further aligning the state’s climate goals with housing needs. The May Revision proposes an extension of the Cap-and-Trade program and renaming it the Cap-and-Invest program; it will enable a stable and predictable price on carbon pollution to drive investments in carbon reduction and clean technologies. Extension of this program will result in a continuation of the California Climate Credit, resulting in approximately $60 billion available for utility bill credits, with at least $1 billion annually should be provided for High-Speed Rail.
San Diego to Reimagine Civic Center, Including Workforce Housing
San Diego’s Civic Center will be transformed under a new redevelopment proposal, including plans for affordable housing specifically intended to support teachers, artists, students and working professionals. Led by a coalition of civic, educational and business organizations, the plan reimagines six blocks of city-owned land as mixed-use for culture, education, housing and public life. The vision includes a new 3-acre civic plaza for events, a modern arts and education complex and improved amenities in the hopes of revitalizing downtown San Diego. Over 20 groups contributed to the proposal. Although timelines and costs are still being finalized, early site activation is expected by late 2025, with phased development and a dedicated oversight body in development.
Caltrans Complicates Efforts to Build Housing in Woodside
The town of Woodside, once criticized for using mountain lions as a reason to avoid building housing, is now battling in favor of an affordable development on a 22-acre state-owned site near Highway 280. The development faces resistance from Caltrans due to the presence of rare and endangered wildflowers. The proposed housing project, hoping to address a state mandate requiring 328 new units, is seen by town leaders as a key opportunity to support local workers who are currently priced out of living in the community. Caltrans has cited the site’s ecological sensitivity—including the presence of protected plants—as a reason to delay or potentially block development. Despite initial cooperation, the agency has slowed the process with environmental reviews and concerns about asbestos, leaving town leaders frustrated by what they see as bureaucratic contradictions in California’s housing efforts. With few other viable locations, officials argue the housing crisis should outweigh preservation concerns in this particular case.
Court Affirms' Cities' Responsibility for Street Safety
The California Supreme Court ruled that cities cannot use third-party waivers to avoid responsibility for unsafe street conditions, siding with Oakland cyclist Ty Whitehead, who suffered severe injuries after hitting a pothole. Whitehead had signed a waiver with the AIDS Lifecycle event organizers, but the court determined that the waiver did not extend to the City of Oakland, which was not a party to the agreement. This decision overturned a lower court ruling that had sided with the city and sparked support from several bicycle advocacy groups. While the Supreme Court sent the case back for further proceedings, it clarified that cities still owe a duty of care to maintain safe roadways. In response to the case, Oakland made temporary repairs to Skyline Boulevard, though more lasting improvements may be delayed due to budget constraints.
CP&DR Coverage: Trump Could Undermine State Climate Regulations
President Donald Trump recently issued an executive order clearly targeting California’s climate laws. The result could be that the Administration will go after a wide variety of laws and policies that drive general plans in California. These include e state’s policies to limit vehicle miles traveled in laws such as SB 375 and SB 743 as well as the environmental justice requirements contained in SB 1000. The executive order would appear even to give the Administration leeway to target local climate action plans. The executive order specifically called out California’s cap-and-trade program, which funds the Affordable Housing and Sustainable Communities funding that affordable housing developers have come to rely on throughout the state. If successful, Trump’s attack on California’s climate laws could dismantle the entire policy scaffolding of the last 20 years.
Quick Hits & Updates
Attorney General Rob Bonta’s office has warned Stanislaus County that its General Plan and draft Housing Element fail to meet state requirements for environmental justice, climate adaptation and identifying disadvantaged communities. The county has acknowledged the concerns and says it is working on updates, but the state warns that continued delays risk noncompliance with state housing laws.
The San Diego City Council has authorized legal action against the San Diego County Local Agency Formation Commission (LAFCO) over its handling of signature verification in a petition to have La Jolla secede from San Diego. Mayor Todd Gloria criticized LAFCO's decision to overturn the county registrar's ruling of insufficient signatures, calling it a threat to public trust and transparency in the process.
A voter initiative proposed by The Howard Jarvis Taxpayers Association would tighten tax restrictions on local governments, reaffirming and expanding Proposition 13’s protections. If approved, the legislation would target transfer taxes like Measure ULA and close the loophole that allowed the taxes to pass with a simple majority under local voter initiatives.
A federal judge has temporarily blocked the Trump administration from enforcing new restrictions on federal housing grants that would ban funding for programs supporting gender identity, abortion access, or undocumented immigrants. The decision follows a lawsuit by San Francisco and other jurisdictions, which argue the conditions are unconstitutional and unrelated to the purpose of the Continuum of Care program.
The California Coastal Commission approved Pacifica’s use of seawalls and revetments in two areas for up to 20 years as a temporary measure against sea level rise, prompting criticism from both environmental advocates and property-rights supporters. The decision, intended as a compromise, allows time for the city to develop long-term climate adaptation strategies while balancing beach preservation, public access and private property concerns.
San Francisco Planning Director Rich Hillis will step down after more than five years in the role, citing the city's solid footing on major projects like rezoning and permitting reforms. Hillis worked for the city for 25 years.
The $538.5 million tunnel project connecting Rancho Cucamonga’s Metrolink Station to Ontario International Airport advanced after the San Bernardino County Transportation Authority approved its environmental report. The 4.2-mile underground shuttle system will feature three stations and aims to reduce traffic congestion with fuel-free shuttles.
The Sacramento Local Agency Formation Commission approved the next steps for a project to develop 472.4 acres of agricultural land into a mixed-use area with warehouses, hotels, restaurants and other businesses. While some residents, including former Mayor Heather Fargo, opposed the project due to concerns about its proximity to schools, environmental impacts and traffic, supporters argued that it would boost job opportunities and strengthen the region's economy.
California Attorney General Rob Bonta, alongside 17 other attorneys general, has opposed a new HUD interim rule that weakens requirements for grantees to demonstrate efforts to reduce housing segregation and promote integration. The coalition argues that the rule undermines the Fair Housing Act’s mandate to combat discrimination and promote fair housing, potentially impacting efforts to address housing issues in California and beyond.
San Francisco, along with other local governments, has filed a lawsuit against the Trump administration over new requirements for Department of Housing and Urban Development (HUD) funding, arguing the conditions could jeopardize federal homelessness grants. The coalition claims the administration lacks the authority to impose these conditions, which could put services for chronically homeless residents at risk, including more than $56 million in HUD funding for San Francisco’s homelessness programs.
President Trump signed an executive order establishing a "National Warrior Independence Center" at the West Los Angeles Veterans Administration campus to house up to 6,000 homeless veterans, redirecting funds from services for undocumented immigrants to support the initiative. The move comes amid ongoing legal disputes over the VA’s use of the land and is seen by some veterans as a long-awaited federal commitment to expanding housing and services for those in need.
