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State Reaches Agreement with Artesia to Update Housing Element
The Attorney General's Office and the Department of Housing and Community Development reached a settlement that will bring the Los Angeles County city of Artesia into compliance with Housing Element law. In 2023, HCD found Artesia to be out of compliance with the Housing Element Law. HCD issued a letter of inquiry, inviting Artesia to explain its non-compliance in May 2023. The city responded with a proposed timeline for compliance, but then failed to meet its own deadline. HCD issued a Notice of Violation (NOV) in October 2024. The agreement, which is in the form of a proposed stipulated judgment and must be approved by the court, lays out deadlines for the city to revise the housing element. Under the settlement, Artesia will take several required actions to adopt a compliant housing element no later than January 2026. The housing element will plan for 1,069 new homes, including 608 that will be affordable for very low-, low-, and moderate-income Californians. Artesia will face civil penalties of at least $10,000 per month from January 1, 2025 to the compliance deadline of January 2026. Artesia must acknowledge that the “Builder’s Remedy”— a provision in the Housing Accountability Act that requires local permitting authorities to process certain housing project development applications, regardless of zoning or general plan consistency — is in effect until the City has an updated housing element.
Bill to Soften Los Angeles "Mansion Tax" Dies When Mayor Unexpectedly Revokes Support
Los Angeles Mayor Karen Bass worked with state lawmakers to draft a bill that would scale back Los Angeles’ “mansion tax,” arguing it discouraged housing construction, but the plan collapsed when she withdrew it hours before a key vote. The proposal, known as SB 423, would have reduced taxes on recently-built apartments, shopping centers and warehouses, while maintaining higher rates on luxury homes, with the aim of stimulating development. Supporters of Measure ULA, the voter-approved tax on property sales over $5.3 million, denounced the move as an attempt to undermine voters’ will and warned it could slash revenue for affordable housing and homelessness programs by up to 30%. Business groups and real estate advocates were split, with some calling the changes insufficient and others viewing them as a necessary correction to keep projects viable. Bass and the bill’s co-authors vowed to revise the legislation and bring it back in January, while opponents of ULA continue on with a separate statewide ballot measure that could nix the tax entirely. (See related CP&DR coverage.)
California Rep. Liccardo Co-Sponsors Federal Housing Bill
U.S. Reps. Sam Liccardo, D-Calif., and Mike Flood, R-Neb., introduced legislation aimed at making it easier for cities to use federal money to build affordable housing. The Unleashing Needed Local Options to Construct and Keep Housing (UNLOCK) Act would loosen restrictions on how municipalities spend Community Development Block Grant (CDBG) funds. Efforts stem from feedback gathered by the House Subcommittee on Housing, which sought input from local governments on ways to reduce red tape in federal housing programs. “When Mountain View shared their idea, I jumped at the chance to bring this idea to fruition in Congress,” Liccardo said — referring to the city in his district that recommended expanding CDBG flexibility. “As Mayor of San Jose, I saw firsthand how cities are forced to face the brunt of the housing crisis without the federal money to match the magnitude. Easing restrictions on municipalities’ use of CDBG funds will help us meet our communities’ growing needs faster.” Mountain View, Calif., officials said the city has five affordable housing projects in its pipeline that could benefit from the change. Flood said the measure would also help communities in his state: “This targeted legislation would give communities across the state the flexibility to use CDBG dollars to directly address housing supply needs.” The bill has backing from the U.S. Conference of Mayors, National Association of Counties, National League of Cities and other national housing organizations.
Federal Land Management Rules Could De-emphasize Conservation
The Department of the Interior may repeal a Biden-era land management rule that had elevated conservation to the same priority as development on federal lands. The 2024 rule allowed public property to be leased for ecological restoration, but critics in industry and agriculture argued it threatened energy production, grazing and recreation. Burgum and other opponents said undoing the policy would preserve access for multiple uses and safeguard local economies, while environmental groups countered that the move undermines federal law and favors extractive industries. The proposal aligns with broader Trump administration efforts to expand drilling, mining and logging across Western states. Once formally published, the rollback will undergo a 60-day public comment period, setting up a clash between conservation advocates and industry supporters over the future of public lands.
CP&DR Legal Coverage: Judge Sides with HCD in Beverly Hills Builder's Remedy Case
A Los Angeles judge has ruled that the addition of a hotel and the subtraction of some affordable housing units doesn’t cause a Beverly Hills developer’s vested rights under the builder’s remedy law to expire. Rather, he wrote, the two changes fall – just barely – within the law’s provision that a developer can change both affordable housing and square footage by 20% without surrendering the vested rights. This marks the second time in recent months that an L.A. judge has relied heavily on interpretations from the Department of Housing & Community Development on the vested rights question. Judge James Chalfant recently ruled a 90-day window to respond to incompleteness letters resets each time a new letter is received, based in part on HCD’s interpretation.
Quick Hits & Updates
San Diego’s Metropolitan Transit System voted to postpone a proposed 2026 sales tax measure until 2028, opting instead for its first fare hike since 2009 and other stopgap measures to address a projected $250 million deficit. The plan includes raising fares by up to 20%, diverting $225 million from capital funds to operations and considering service cuts and pension payment adjustments.
President Trump issued an executive order to establish a “National Center for Warrior Independence” on the West L.A. VA campus, calling for up to 6,000 housing units for homeless veterans by January 2028, but the details of the plan are being developed largely behind closed doors, with nondisclosure agreements, lack of public input and blocked access for veterans and Congress.
A Los Angeles City Council committee voted to move forward a plan that could end mandatory parking requirements for new housing, giving developers the option to build with little or no parking.
Santa Monica City Council approved a one-year pilot program letting developers meet affordable housing rules by building units off-site, rehabbing old ones or paying fees, in hopes of jump-starting stalled projects amid high costs and interest rates. Supporters say it could unlock thousands of units, but critics, including the mayor, warn it risks reinforcing segregation and weakening the city’s commitment to integrated affordable housing.
Anaheim officials are in early talks with startup Swyft Cities about a $125 million gondola system that could connect Disneyland with major destinations like the Honda Center, Angel Stadium, ARTIC and the Anaheim Convention Center. The 3.8-mile route under discussion would run along Katella Avenue with a five-minute end-to-end trip.
The Trust for Public Land’s 2025 ParkScore index ranked Irvine second place nationwide for park acreage, access, amenities, investment and equity, credited largely to its Great Park project. San Francisco also placed near the top, ranking in the top ten for its strong park access and sustained investment, and San Diego ranked 22nd.
A federal judge in San Francisco ordered the U.S. Fish and Wildlife Service to decide within nine months whether the San Francisco Estuary’s white sturgeon population should be listed as threatened under the Endangered Species Act. The agency had sought until 2029, citing staff cuts and a backlog, but the presiding judge ruled that its delays were partly self-inflicted and couldn’t override statutory deadlines.
The estimated price of a planned expansion and refresh of the LA Convention center has risen to $2.7 billion, up $483 million from six months ago, intensifying uncertainty about whether the center will be ready in time for the 2028 Olympics. The city is counting on two planned digital billboards to contribute revenue, but approval is uncertain and the city would have to come up with $111 million a year through 2058 to cover expansion costs. Most of the increase comes from the Department of Water and Power, which issued higher estimates for relocating utilities. LADWP also warned that the project would likely cause delays to the planned rail line to the San Fernando Valley and other projects as staff would have to be diverted.
A new study found San Diego has the second-oldest homeowners in the nation, with an average age of 54, just behind Los Angeles at 55. Despite the metro area’s median age of 39, high housing costs, stagnant wages, and policies like Prop. 13 have kept older homeowners in place while younger residents leave or continue renting, making nearly half of San Diego households renters.
The Sacramento Area Council of Governments announced that the region constructed 12,500 homes in 2024, the highest in a year since 2005 and surpassing current annual targets. To meet the current goals, the region will need to add 278,000 new housing units by 2050. SACOG pointed to policies such as removing parking mandates, streamlining approvals, and more flexible zoning as key to the increased construction.
