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Los Angeles to Tighten Rent Increases for Rent-Stabilized Units
With a city council vote last week, Los Angeles will reduce its cap on annual rent increases for rent-stabilized apartments from 3-8% to 1-4%, the first change to rent stabilization in LA in 40 years. Applying to units built before 1978, the change affects nearly half of the city's residents. According to the LA housing department, over 60% of LA residents are renters. The LA times says more than half LA renters qualify as rent-burdened, meaning they spend more than 30% of their income on rent, and 1 in 10 LA residents spend more than 90% of their income on rent. Proponents of the change say it will help provide desperately needed relief to vulnerable renters and improve affordability in the city. Council members John Lee and Bob Blumenfeld, who voted against the cap change, criticized the move as discouraging development and investment and making it more difficult for landlords to maintain buildings. The pro-housing group YIMBY Action highlighted the change's potential harm to the city's housing supply by causing developers to avoid building on rent-controlled lots. Councilmember Nithya Raman, who introduced the proposal, affirmed the importance of increased housing supply as the ultimate solution to the affordability crisis, and vowed to work to ensure the rent changes do not slow new production.
Newsom Defies Tump's Reported Plans to Open California Coast to Oil Drilling
The Trump administration has proposed a plan to open six lease sales for oil drilling off the coast of California between 2027 and 2030, as part of a wider proposal to also open new oil operations in the eastern Gulf Coast and the High Arctic north of Alaska. Governor Newsom condemned the plan, saying it would "never happen", saying “as it relates to offshore oil drilling, it’s overwhelmingly opposed by members of all political parties in the state of California,” during a press conference. Experts noted that California does not have the same existing infrastructure for offshore drilling as many states on the Gulf of Mexico, and there is uncertainty if companies would be interested in new projects in California. Critics contend that the proposal is driven as much by politics as by energy policy, especially as Trump has repeatedly targeted California’s environmental agenda and received significant industry support. Although oil companies have shown some interest, analysts note that the region’s limited reserves, strict state regulations and global low oil prices make large-scale investment unlikely, and any new activity would face California’s extensive legal and political barriers to onshore infrastructure.
Malibu Declares Entire City to be in Fire Danger Zone
The Malibu City Council voted unanimously to adopt an ordinance designating the entire city as a Very High Fire Hazard Severity Zone, based on the State Fire Marshal's severity map released in March. Malibu is now one of a very small number of cities in California to be entirely designated Very High Fire Hazard. The universal designation could help the city adopt more aggressive fire regulations. The move comes amidst growing debate over "Zone Zero" regulations stemming from Governor Newsom's Executive Order N-18-25, which would require no trees within 30 feet of houses in the highest-risk areas. Critics argue these rules could be environmentally detrimental and counterproductive for safety, as the right species of trees can actually help shield homes with the right placement.
Tule Tribe to Regain Control of 17,000 Acres of Ancestral Land
California will return over 17,000 acres of land to the Tule River Indian Tribe, according to a recent announcement by the governor's office. The nonprofit Conservation Fund purchased the two cattle ranches in Tulare County, and the state helped fund and facilitate the transfer to the tribe. Situated east of Porterville and west of Giant Sequoia National Monument, the land is mostly undeveloped and adjoining to the south end of the tribe's existing 55,000 acre reservation. Governor Newsom hailed the transfer as a step towards restoring the Tule Tribe's stewardship of their ancestral lands, and acknowledged the tribe's historical mistreatment by the state. At a land return and tule elk reintroduction ceremony marking the transfer, Tribal leaders emphasized how the return will help the tribe maintain access to food and medicinal resources, preserve cultural sites, and further stewardship and wildlife reintroduction efforts. The Tule River Indian Tribe is a federally recognized tribe whose members descend from many different Yokut-speaking communities originating from all across Tulare Lake basin and the southern Sierra foothills.
Fresno Development Plan Faces Fierce Opposition
A broad coalition of Fresno community members gathered last week to demand that Mayor Jerry Dyer kill the controversial Southeast Development Area (SEDA) megaproject and start a comprehensive process to create a new general plan for the city. If Mayor Dyer refuses, the coalition said they are prepared to gather signatures for a ballot measure establishing an urban growth boundary for Fresno, which would effectively strip the mayor and city council of approval power for fringe developments and hand it directly to voters. The ultimatum comes after a city report estimated that developer fees would cover at most just 20% of the project's infrastructure expenses, leaving taxpayers responsible for a $3 billion funding gap. The coalition against the 45,000-home plan area spans across Fresno's political spectrum, and the most recent press conference included representatives from the Central Labor Council, which represents 105,000 workers, former Mayor Ashley Swearengin's DRIVE initiative of the Central Valley Community Foundation, as well as neighborhood and community groups from across the city. For the time being, Mayor Dyer has continued to push SEDA forward, and presented phase 1 to the city council last week. (See related CP&DR coverage.)
CP&DR Coverage: Lawsuit to Block La Jolla Cityhood Thrown Out
The acrimonious battle between the City of San Diego and La Jolla citizens who want a separate city continues in court – with the citizens recently winning a battle to throw out a lawsuit from the city on anti-SLAPP grounds. The city sued the San Diego Local Agency Formation Commission over the incorporation attempt, saying the LAFCO acted improperly in certifying that the incorporation proponents had gathered enough signatures to put the proposal on the ballot. In a ruling issued October 24, San Diego Superior Court Judge Judy S. Bae granted ACLJ its request for an anti-SLAPP motion. The judge in the case essentially concluded that the citizens’ attempt to move the La Jolla incorporation attempt forward constitutes free speech.
Quick Hits & Updates
National City’s council unanimously rejected a proposed biofuels rail transfer station, signaling a break from the heavy industrial uses that have long polluted the community and limited access to the bay. Leaders and residents framed the decision as the beginning of a broader push toward environmental cleanup and waterfront revitalization.
The Menlo Park City Council is commissioning a study on a ballot initiative that would require voter approval before converting downtown parking lots into affordable housing, a plan that has split residents between concerns over lost parking and the need for more housing. Supporters want a special election to decide the measure, while councilmembers emphasized the importance of meeting state housing requirements to avoid penalties or loss of funding.
The Link Union Station project, which will add run-through tracks to Los Angeles Union Station and allow direct Metrolink and Amtrak service across Southern California, has advanced with Metro’s approval of a supplemental environmental study. The updated $3 billion plan streamlines earlier designs to cut costs, including reducing the number of raised platforms, narrowing the passenger tunnel expansion and scrapping a full rail yard canopy, while facing funding gaps and possible legal challenges from the City of Vernon before construction begins in 2026.
A long-awaited 25-acre park in San Diego County's Alpine community has been delayed indefinitely after a judge ruled that San Diego County’s environmental review failed to address impacts on local wildlife, wildfire risks and traffic. Conservation groups want the court to revoke the project’s approvals, leaving residents divided between those seeking long-promised recreation space and others who say the park would harm Alpine’s character.
Santa Clara's Measure A, a tax increase proposed as a counter against Trump administration healthcare cuts, was passed by voters earlier this month. The measure will raise county sales taxes by 5/8ths of a cent, which is estimated to generate $330 million per year to offset federal funds lost by the county hospital system through cuts to Medicaid in the GOP-led Big Beautiful Bill. Critics pointed out that the money will go into the County's general fund, with no legal mechanism to ensure it is spent on hospitals. A tax increase with a specific allocation would have had to pass with a two thirds majority.
The Strategic Growth Council awarded $128 million in Sustainable Agricultural Lands Conservation (SALC) grants in Round 10 of the program for the permanent protection of 40,000 acres (62.5 square miles) of croplands and rangelands, including returning 11,000 acres to California Native American Tribes. 48 of the 52 projects funded are acquisition grants for deed restrictions preventing the conversion of agricultural land to development.
A new report on housing development in Palo Altofound that none of the multifamily development prototypes examined are economically viable in current conditions. The report attributes the lack of feasibility to rising construction costs and interest rates, some of the highest local fees in the region, and demand for higher returns from investors. The study found that removing affordable housing requirements and local fees, which help fund essential city services and affordable housing, improved feasibility substantially.
The San Luis Obispo County Board of Supervisors approved the new Regional Housing Incentive Program. The program allows developers to earn "incentive points" by adding affordable units to developments or paying in-lieu fees, which they can then spend on a variety of zoning exceptions including incentives for parking, design standards, floor space and land uses, and density. Critics on the Board said the program may not accomplish much as it only targets to raise around a third of the funding needed for the county's minimum target for affordable housing, while proponents lauded the program as a step in the right direction which would not be the last incentive for affordable housing.
