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Lawmakers Reach Deal to Fund High Speed Rail through 2045
Governor Newsom and California lawmakers struck a deal to dedicate $1 billion annually from 2030 to 2045 for the state’s high-speed rail project, the largest guaranteed funding commitment in its history. The money is enough to finish the 171-mile Central Valley segment between Merced and Bakersfield, slated for completion in 2033, but not enough to extend the line to San Francisco or Los Angeles, and more funds will be needed to reach population centers like Gilroy and Palmdale. The commitment is tied to an extension of California’s cap-and-trade program, which generates billions annually for climate and infrastructure projects. Supporters say the investment will create jobs and reduce emissions, while critics call it wasteful spending after years of delays and ballooning costs.
15 Jurisdictions Receive Prohousing Designation
California has added 15 jurisdictions to its list of communities with the Prohousing designation. They include the cities of Adelanto, Bishop, Campbell, Chula Vista, Hayward, Indio, Lancaster, Los Altos, Santa Ana, Sunnyvale, and Woodland; the counties of Nevada, San Luis Obispo, and Tuolumne, and the town of Moraga. This status is given to local governments that adopt policies aimed at increasing housing production, such as streamlining permitting, updating zoning rules and reducing certain fees. The newly added communities are taking varied approaches, including supporting accessory dwelling units, making use of public land and adjusting regulations to encourage affordable housing. To keep the designation, jurisdictions must maintain certified housing plans, complete rezonings, comply with state housing laws and submit regular progress reports. (See related CP&DR coverage.)
Los Angeles County Light Rail Extension Pushes Toward Inland Empire; Next Phase Faces Funding Troubles
Los Angeles Metro opened its long-awaited A Line extension from Azusa to Pomona, a $1.5 billion project adding four new stations and expanding the world’s longest light rail line to 58 miles. The nine-mile addition improves access to colleges, medical centers and the Pomona Fairplex, which will host Olympic cricket matches in 2028. Construction began in 2020 and required relocating freight tracks, with Metro now overseeing operations after the Foothill Gold Line Construction Authority completed major work. While the project was originally planned to continue east to Claremont and Montclair, the San Bernardino County Transportation Authority recently withdrew $37 million in funding, halting the Montclair extension for now. Officials say the Claremont extension remains on track, but the Montclair segment and eventual hopes of reaching Ontario Airport faces major delays.
San Francisco Zoning Reform Advances, with Opposition Heating Up
The San Francisco Planning Commission approved Mayor Dan Lurie's 'family zoning' plan after a contentious ten-hour long hearing that highlighted increasing division over the plan to add 36,000 new homes to San Francisco's west side and southern neighborhoods. Opposition groups said the zoning changes would displace small businesses and tenants and lead to uncontrolled real estate speculation, while Lurie says the plan is critical to make San Fransisco affordable for families and viable for small businesses. Supervisors Myra Melgar and Chyanne Chen have both introduced legislation to protect small businesses and tenants, with Lurie supporting. The group Neighborhoods United brought opposition to the plan on the grounds it never received an Environmental Impact Report from the city. The Planning Commissioners who voted against the plan criticized a lack of funding mechanisms to ensure affordable housing can be funded sufficiently, and said mere upzoning, rather than a comprehensive urban development plan, would be insufficient to tackle the city's problems.
CP&DR Coverage: American Planning Assoc. Conference Preview
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The City of Monterey and the surrounding urban area is likely the smallest region to host the conference of the California Chapter of the American Planning Association, but it punches above its weight in terms of the complexity of urban planning challenges and issues. The region lies on the border between the Central Coast and the Bay Area, hemmed in by mountains and the Pacific Ocean. In preparation for this month’s conference, which starts September 28 at the Monterey Convention Center, CP&DR’s Josh Stephens spoke with Monterey Community Development Director Kim Cole; Marina Planning Manager Alyson Hunter; and Salinas Planning Division Manager Grant Leonard. CP&DR is a media sponsor of this year's conference.
Quick Hits & Updates
The California Supreme Court is being asked to decide who controlled $51 million in public funds used in Palm Springs’ $175 million downtown redevelopment, a key factor in whether the project must pay prevailing wages. The case has broader implications for charter cities’ authority in public-private partnerships, with municipal leaders warning the appellate court’s ruling could undermine local fiscal autonomy while state regulators argue the private developer, not the city, controlled the construction.
The Richmond City Council will weigh a sweeping plan to redevelop the 143-acre Hilltop Mall site into a mixed-use district, with new housing, retail, parks and transit links, aiming to help the city meet its housing goals. While planners and officials support the vision, residents remain split over density levels, and environmental review is expected to begin before final hearings in 2026.
According to long-range projections from the University of Illinois Chicago, Fontana and Moreno Valley in the Inland Empire are among the California suburbs expected to see major growth this century. Fontana’s population is forecast to rise by about 99,000 residents to more than 308,000 by 2100, while Moreno Valley could add over 104,000 residents, reaching more than 314,000.
Home hardening and defensible space can cut destruction rates nearly in half, dropping losses from 80% to as low as 52%, according to a UC Berkeley-led study of five major California wildfires found that. Researchers said survival depends most on spacing between homes, siding materials and building age, but stressed that community-wide adoption of mitigation strategies is key to saving lives and homes.
The Los Angeles City Council voted 11-2 to approve a $2.6 billion Convention Center expansion, despite warnings it could drain over $100 million a year from the city’s general fund and threaten basic services. Supporters, including Mayor Karen Bass, argue the project will create thousands of jobs, boost downtown’s recovery and prepare L.A. to host Olympic events in 2028, while critics warn it could worsen the city’s budget crisis and leave a gleaming facility surrounded by deepening homelessness.
A large majority of Los Angeles residents support building more affordable apartments, even in neighborhoods now zoned for single-family homes, according to a UCLA Lewis Center poll. The study suggests many Angelenos are willing to allow higher-density housing across typical single-family streets to help ease the city’s housing shortage and expand affordable options.
The Solano County Board of Supervisors voted to support state legislation that would allow California Forever to construct a shipbuilding facility in Collinsville. The legislation would override voter approval for development, and public comment before the vote was highly critical of the plans, which opposing residents said would eliminate local control over development and the environment.
Researchers at Occidental College released a report on Los Angeles's Measure ULA, the "mansion tax" passed by voters in 2022. In April 2025 the UCLA Lewis Center released a report titled Taxing Tomorrow which found that the tax was hurting the real estate market. The report found that Taxing Tomorrow came to "premature conclusions" based on "questionable methodology, limited data, and flawed analysis".
Los Angeles has launched its largest affordable housing funding round ever, offering $387 million to developers, most raised through Measure ULA’s “mansion tax” on property sales over $5 million. Unlike past funding cycles, the city will now award money based on a percentage of project costs, covering anywhere from 30% to 100%, to accelerate construction, preservation and adaptive reuse projects.
California lawmakers are considering paying Valero between $80 and $200 million to cover maintenance costs for the Benicia refinery near San Francisco. The plant is scheduled to close in April of next year, and would be the latest refinery closure in California. Over the past year Governor Newsom has encouraged California regulators to work with oil companies to prevent closures in an effort to contain fuel costs which are already the highest in the country.
The California Theatre in San Diego has been listed for sale as an immediate redevelopment opportunity. The half-acre property has fully satisfied historical requirements for redevelopment, and listing agent Jason Kimmel described the property as a key component San Diego's long-term plan for the civic center area.
