CP&DR News Briefs April 14, 2026:

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Uncooperative Property Owners Jeopardize Costa Mesa Housing Element

Costa Mesa has run into major setbacks in meeting the state’s housing mandate after several large property owners withdrew their sites from the city’s housing element. These withdrawals, including parcels owned by South Coast Plaza operators and a former 1,050-unit project site, resulted in the loss of about 5,863 potential housing units. The changes were largely prompted by legal uncertainty following a California court ruling that affected how “mixed-use overlay” zoning can be used to count housing capacity. (CP&DR's coverage of the overlay case can be found here.) City planners had previously relied on these overlays to show compliance with a state requirement to plan for 11,760 new housing units by 2029, even if many sites were only theoretical. However, property owners argued their land should be removed from the list, saying the new interpretation made future development uncertain. City staff say they will try to identify new sites to make up the shortfall. The City Council approved the amended housing element unanimously, even as some officials criticized state housing rules.

State Reaches Agreement with Hollister over Housing Element

The City of Hollister reached a settlement with the State of California over the city’s over two-year delay in adopting a compliant General Plan Housing Element. The city must adopt a compliant 2021–2029 Housing Element and complete required rezoning to reach full compliance by June 19. The city also agreed to establish a housing trust fund and contribute $300,000 to support housing for low-income, very low-income, and vulnerable residents. The city failed to meet state deadlines for planning how it will accommodate its required share of regional housing needs (RHNA). State officials emphasized that housing elements are essential for addressing affordability and homelessness, and that cities must actively plan for housing growth rather than delay it. (See related CP&DR coverage.)

Updated ADU Handbook Seeks to Streamline Development of Backyard Units Statewide

The Department of Housing and Community Development (HCD) released its 2026 ADU Handbook, an update to the 2025 Handbook outlining California’s ADU laws. Between 2023 and 2026, new legislation focused on removing local barriers, speeding approvals, and making rules more consistent across cities and counties. Local governments are now generally limited to using only objective, clearly measurable standards when reviewing ADU applications, reducing denials due to personal and subjective judgment. Permit agencies must act faster, including determining application completeness within 15 business days and approving or denying completed applications within 60 days in many cases. The laws also expanded what can be built by allowing ADUs in detached garages, increasing allowable heights, protecting the right to build at least an 800-square-foot ADU under certain standards, and reducing parking replacement requirements. Owner-occupancy rules were loosened, with ADUs no longer requiring owner occupancy in most cases, while JADUs have more specific occupancy rules depending on shared facilities. Fees were reduced or limited for smaller ADUs and JADUs, making them more affordable to construct.

California Hit by Decline in International Immigration

U.S. Census data shows a sharp decline in international migration, with large urban counties and the border most affected. Los Angeles experienced a loss of nearly 54,000 residents and net immigration of -67% compared to the previous year, while San Diego County lost about 5,300 people. El Centro, an area that has historically served as a gateway to California, lost more people to other countries than it gained. The U.S. population still grew by 1.8 million people last year, but low birth rates and immigration led to one of the slowest population growth rates in U.S. history. Among 75% of all U.S. counties, overall population growth including immigration, domestic migration, births and deaths either slowed or declined. (See related CP&DR coverage.)

CP&DR Coverage: SB 79 Cleanup Leads 2026 Legislative Agenda

A revision to SB 79 that could expand its reach appears to be barreling through the Legislature quickly right now. Passed last year, SB 79 requires midrise zoning around major transit stations in urban counties, though cities are allowed to move the required density around in the vicinity of the station. Beyond that, the 2026 legislative session doesn’t appear to be shaping up to be as dramatic as 2025, with one possible exception. The exception is the so-called Building an Affordable California Act, or BACA – the proposed ballot initiative put forth by the California Chamber of Commerce that would make significant changes to the California Environmental Quality Act. The Chamber will likely move forward with the initiative – unless business interests are primarily focused on using it to gain leverage for changes to CEQA during the legislative session.

Quick Hits & Updates

A former Greyhound bus station in downtown Bakersfield, long known for its neglect and criminal activity, is being redeveloped into a new upscale apartment complex called Greyhound Flats. The station, built in 1958 after major earthquakes damaged the city, became infamous over the decades for criminal incidents and was eventually demolished in 2022 after Greyhound service moved elsewhere.

San Diego Unified School District is moving forward with a plan to redevelop six district-owned properties into nearly 3,000 housing units, mainly to help teachers and staff afford living in the region. The current projection far exceeds the district’s official goal to house 10% of its workforce by 2030, which would require about 1,350 units, in case of stalling issues like those at other public developments like Seaport Village and Midway Rising.

The San Ramon City Council unanimously rejected an appeal that sought to stop the massive Orchards redevelopment project, clearing the way for Sunset Development to move forward on a 144-acre former Chevron campus at Bishop Ranch. Plans call for about 2,600 homes, 125,000 square feet of retail space, a 2.5-acre park, and a greenway connection to the Iron Horse Trail. The appeal argued that the city failed to properly follow CEQA and had not properly analyzed traffic impacts, but city leaders said proper legal procedures were followed.

YIMBY Law is appealing a Marin County Superior Court decision that upheld Sausalito’s housing element to clarify whether California cities must complete an Environmental Impact Report for Housing Elements. Sausalito adopted its Housing Element before finishing an Environmental Impact Report, which it eventually completed, but the appeal argues that court did not rule on whether such review is legally required in the first place. The group argues that inconsistent rules across cities create uncertainty, delays, and higher costs because environmental review may get pushed from the planning stage onto individual housing projects instead.

San Diego’s City Council Rules Committee voted unanimously to advance a proposed ballot measure that would tax vacant second homes. The measure would impose an $8,000 annual tax on homes left unoccupied more than 182 days a year, rising to $10,000 thereafter, with an additional surcharge of up to $5,000 for corporate-owned properties.

The U.S. General Services Administration announced the sale of the Chet Holifield Federal Building in Laguna Niguel, California to global real estate firm CBRE as part of a campaign to reduce a ‘bloated’ federal real estate portfolio. The 90-acre property is home to the 1 million square foot Mesopotamian-inspired  ‘Ziggurat’ building.

The LA Metro Board has allocated an additional $3.9 million toward study and design of San Gabriel Valley Council of Governments’ bus rapid transit, bringing the total so far to $8 million. The money funds outreach, environmental clearance processes, and finalizing designs. Eventual construction of the project is already funded by $635 million courtesy of Metro’s Measure M.

More than $100 million in state transportation grants for projects in Boyle Heights, Skid Row and Wilmington are at risk because City of Los Angeles officials say they lack sufficient staff to complete the work. The funding issues stem from last year’s $1 billion city budget shortfall, which led to departmental cuts and the elimination of vacant positions in agencies such as engineering and transportation. Planned improvements include new sidewalks, protected bike lanes and high-visibility crosswalks in some of the city’s most underserved neighborhoods.

Sacramento Republic FC and Wilton Rancheria, the federally recognized tribe that owns the team, will build a 20,000-seat stadium at the Railyards in Sacramento, expected to open in 2028. The venue will serve as a major sports and entertainment hub, hosting soccer matches, concerts, and large events. The project is part of a broader redevelopment effort aimed at transforming the Railyards area and boosting the local economy.

A new report from the Streets For All shows how LA County can leverage property value increases within two miles of stations to capture land value and fund nearly all High Speed Rail projects inside the county. The report suggests that the county could make $15-23B in net present revenue by accelerating property appreciation.