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.

Court Rules Do or Die for Dormant Hawthorne Mall
A judge has ordered the owners of the long-abandoned Hawthorne Plaza Mall to either redevelop or demolish the 35-acre property by August 2026, after decades of failed plans and community frustration. Once a large shopping center, the mall has sat vacant since the late 1990s, though it has occasionally served as a backdrop for major films. While developers once pitched a large-scale mixed-use project with a proposed 600 units in 2017, those plans never came to fruition, leaving residents frustrated by decades of inaction. If the current owners fail to act by the court’s deadline, officials have warned that a receiver could be appointed to seize control and determine the mall’s future. City officials say the move is critical to revitalizing downtown and addressing safety concerns.

New Housing Approved at Anemic Pace Statewide
California jurisdictions' issuance of new housing permits has fallen to one of the lowest levels in more than a decade, excluding the early pandemic slowdown. The state approved about 49,400 units in the first half of 2025, marking a modest decline from last year and well below both the recent building surge and the long-term average. Rising borrowing costs, leftover unsold units from the pandemic construction boom and broader economic uncertainty have limited builders’ willingness to start projects. Single-family homes have seen the sharpest pullback, while apartment construction has held steadier, but still fall below peak activity. The national picture shows a similar trend, but overall permitting remains stronger than California’s.

Bay Area to Face Regionwide Vote to fund BART
California lawmakers have approved SB 63, clearing the way for a 2026 ballot measure that would raise sales taxes in five Bay Area counties to stabilize struggling transit systems like BART, Muni and Caltrain. The proposal would form a new regional district under the Metropolitan Transportation Commission and could generate up to $1 billion annually for 14 years, though the tax rate would vary between counties. Supporters argue the revenue is necessary to avoid steep service cuts, while critics warn the measure could burden low-income residents and question whether agencies have done enough to control costs. To address concerns, the bill requires efficiency audits and directs agencies to explore redeveloping land around stations for housing or mixed-use projects. If approved by voters, the sales tax would take effect in 2027, pushing some Bay Area cities’ tax rates to the highest in California.

Threat of Lawsuit Scuttles Logistics Plan in San Bernardino
The board of the Inland Valley Development Agency (IVDA) voted to scrap its Inland Valley Infrastructure Corridor project--a master plan for logistics around San Bernardino Airport--to avoid a lawsuit from the People’s Collective for Environmental Justice Action. Community groups argued the plan violated California’s environmental disclosure laws and would have displaced residents while increasing polluting warehouse and industrial development. This marks the third time in recent years that residents have successfully blocked similar IVDA proposals, including the controversial Airport Gateway Specific Plan. Local advocates celebrated the cancellation as a major environmental justice win but urged the agency to engage communities more meaningfully in future planning.

Court Non-Ruling on Palm Springs Project Strengthens Prevailing Wage Law
The California Supreme Court refused to hear an appeal over wage requirements tied to a $175 million redevelopment in Palm Springs, effectively upholding a lower court decision against the project’s developer. Palm Springs Promenade LLC, backed by Grit Development, must now comply with state prevailing wage laws and may owe workers back pay for construction on the former Desert Fashion Plaza site. The company had argued that the project was exempt under the city’s charter authority, but appellate judges concluded the developer controlled how construction funds were spent. The dispute began in 2017 after a labor compliance group sought a state review, and the case drew attention from the League of California Cities, which supported the developer’s position. The ruling sets a precedent that developers in public-private projects cannot sidestep wage rules by invoking municipal exemptions when they retain primary control over construction.

CP&DR Coverage: The (Potential) SB 79 Revolution
Of all the land use and housing bills passed in California over the past decade, none has ever received as much hoopla as SB 79, the legislation that would essentially upzone all property. Mear major transit stops around the state and give transit agencies more power over zoning and developing their own property. Many years in the making, SB 79 passed the legislature on the last day of the session and is expected to be signed by Gov. Gavin Newsom. Supporters – largely from the YIMBY movement – hail the bill as the biggest step forward yet in the effort to increase housing production in California. It includes a two-tier system in which allowed housing densities depend on quality of nearby transit service.

Quick Hits & Updates

Measure ULA, Los Angeles’s real estate transfer tax, has dampened luxury property sales and slowed housing development even as it channels money into affordable housing programs, according to a report from the UCLA Lewis Center. The study also pushes back on claims of widespread job creation, concluding that the measure has so far generated only a small number of construction jobs rather than the thousands touted by supporters.

San Francisco voters recalled Supervisor Joel Engardio after he backed the conversion of the Great Highway into Sunset Dunes, a car-free coastal park that many Sunset District residents opposed despite citywide approval. While Engardio defended the project as worth the political cost, his ouster highlights broader Bay Area discontent with local leaders and divisive development decisions.

Santa Clara County’s $950 million Measure A bond has nearly run out of funds but exceeded expectations, supporting close to 6,700 affordable homes, far above its original 4,800-unit goal, while also enabling projects like Mountain View’s La Avenida Apartments for low-income and formerly homeless residents. Despite successes, rising costs and shortfalls in rapid rehousing units leave questions about future funding, with advocates calling for continued public and private investment to maintain momentum.

Santa Ana approved The Village, a redevelopment project near South Coast Plaza that will replace an underperforming retail center with nearly 1,600 homes, along with new shops, offices, bikeways and acres of public open space. The project is expected to generate about $5.5 million annually in tax revenue and create roughly 9,000 jobs, positioning the city to meet state housing goals while transforming the area into a mixed-use community hub.

Los Angeles Metro released a draft EIR for a 4.5-mile C Line extension from Redondo Beach to Torrance, adding two new stations and providing a direct 19-minute rail connection to LAX and nearby Inglewood venues like SoFi Stadium. Expected to open in 2036, the project incorporates community feedback, trench designs to reduce noise and traffic impacts and is projected to draw more than 11,500 daily riders while cutting millions of vehicle miles each year.

Kilroy Realty is moving to revive its long-delayed redevelopment of the former San Francisco Flower Market site in Central SoMa, filing new applications that present four possible versions of the project ranging from office-heavy towers to high-rise housing, mixed-use or institutional space. The redesigned proposals increase building heights and parking while dropping earlier promises of childcare and community space, reflecting the developer’s attempt to stay flexible in a shifting market where both housing and office demand remain uncertain.

San Diego Mayor Todd Gloria is proposing to dissolve the city’s four community parking districts after an internal review found contract violations, questionable reimbursements and spending on overhead instead of neighborhood improvements. If the City Council approves, the city would redirect $1.8 million in annual parking meter revenue to fix sidewalks, streetlights and other infrastructure, though district leaders argue the mayor is exaggerating problems and trying to grab funds to cover budget gaps.

Oakland-based nonprofit PSE Healthy Energy released an interactive map of methane leaks across the country from 2016 to 2025, including 32 occurring in California, all in the southern San Joaquin Valley. Associated with oil and natural gas production, almost all the methane leaks also included other dangerous chemicals such as benzene in concentrations hundreds of times higher than the state's short-term limits. The nonprofit said most people effected by leaks never know they are happening, and they hope to provide communities with a better understanding of how methane leaks affect health and air quality.

Capitola city leaders are preparing to redevelop 46 acres of empty space at Capitola Mall into up to 1,700 housing units. Capitola City Council will need to make major zoning decisions before the project can begin. Community Development Director Katie Hurley says the council will choose between updating existing objective standards, fast-tracking updates, or adopting a form-based code.

The California Department of Housing and Community Development awarded $52.6 million to two housing projects in Atascadero and Ojai, two of the areas most severely impacted by the winter storms of 2022 and 2023. These grants seek to jumpstart construction for 91 affordable rental homes, using the federally funded Distaster Revovery Housing Accelerator Program (DR-ACCEL).