CP&DR News Briefs February 24, 2026: State Planning Survey; San Jose Housing Incentives; Fire Response Investigation; and More

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.

State Planning Survey Finds Local Departments Clamoring for State Assistance The Governor's Office of Land Use and Climate Innovation (LCI) released its 2025 Annual Planning Survey Report. Many jurisdictions reported needing increased funding, staff capacity, and technical support in order to keep up with changing legislative requirements without relying on consultant support. Eighty-three percent of jurisdictions requested increased technical support, illuminating a need for the state to provide adequate templates and grant assistance in the form of the forthcoming General Plan Guidelines and an interactive website. Most jurisdictions report they have the capacity to conduct Tribal consultation and generally do not require extensive technical assistance from the state to meet statutory requirements. However, a majority rely primarily on the minimum engagement required under SB 18 and CEQA, rather than pursuing deeper, relationship-based consultation aligned with the “early, often, and meaningful” principles promoted by LCI and the California Natural Resources Agency.

San Jose Reduces Taxes, Inclusionary Requirements for Developers

The San Jose City Council adopted three incentive policies designed to boost local housing construction. Two of the measures expand incentive programs that reduce construction taxes and ease affordable housing requirements, while the third and most controversial updates the city’s inclusionary housing policy, which determines how many affordable homes a developer must provide in a given project. Under the previous rules, developers typically had to set aside 15% of units for renters earning 50–100% of area median income or 10% for renters at 30%. The update provides a new option wherein the developer agrees to instead set aside 7% of units for households earning 50% of area median income. The median income for a family of four in Santa Clara County is $195,000.

Fire Response in Altadena Prompts Civil Rights Investigation

Attorney General Rob Bonta's office has launched a civil rights investigation into the state’s handling of the 2025 Eaton Fire, particularly to determine whether race, age or disability played a role in the emergency response. Reporting showed that west Altadena, a historically black neighborhood, did not receive an emergency evacuation notice until at least nine hours after the fires were ignited. Eighteen of the 19 people who died in the fires lived on the west side, and across Altadena, nearly half of all black households were destroyed. L.A. County Fire Department officials say previous reviews found no evidence of “discriminatory or structural bias”, and will fully cooperate in the investigation. (See related CP&DR coverage.)

Report Details Effect of Local Impact Fees on Affordable Housing Production

The Terner Center for Housing Innovation at UC Berkeley examined data from 691 new affordable housing projects funded by the Low-Income Housing Tax Credit (LIHTC) program in California from 2020–2023 to assess the effect of local impact fees on development costs. Almost all of these projects were charged impact fees, which on average added nearly $20,000 per housing unit to development costs, though approximately 13,660 affordable housing units on 134 projects saw figures closer to $30,000. While fees typically accounted for less than 5% of total development expenses, affordable developments paid an average of approximately $300 million in fees each year. The analysis suggests that waiving, reducing, or deferring these fees could meaningfully improve project feasibility and reduce the need for public funds.

CP&DR Coverage: Newport Beach Housing Initiative Qualifies For Ballot

Long a bastion of slow-growth sentiment, the City of Newport Beach is facing a rarified form of NIMBYishm, fitting for the famously upscale Orange County city: A ballot measure to reduce the number of allowed units in the housing element from 9,000 to 2,900, which will appear on the November 2026 ballot. If the measure passes, Newport Beach will join the ranks of cities that have tempted fate by deliberately adopting a noncompliant housing element or undermining a certified housing element. Its capacity of 2,900 homes is just enough to accommodate the city’s allocation of 2,160 below-market-rate homes, and not much more. The city’s total RHNA allocation is 4,845. Critics say that the measure is designed to reduce competition for units that developer Ken Picerne’s company is developing near John Wayne Airport. The measure is also supported by former Mayor Marshall “Duffy” Duffield, Newport Beach Stewardship Association, and Still Protecting Our Newport (STOP).

Quick Hits & Updates

San Diego city officials have halted a controversial 23-story project by Vela in Pacific Beach, claiming multiple code violations and lack of necessary information on the project proposal. One major issue in the proposal for the “Turquoise Tower” includes the developer’s tactic of counting certain units as hotel rooms, which would have allowed the project to exceed the normal allowed building height for residential. (See related CP&DR coverage.)

San Jose has been ranked the least affordable city for new homebuyers globally, a new study by financial services company Remitly found. The study surveyed over 150 cities worldwide by comparing average local incomes with standard mortgage criteria. After San Jose, the next most expensive cities in order were Los Angeles, Long Beach, San Diego, and Vancouver, BC.

A study found that the Los Angeles “Mansion Tax”, Measure ULA, caused a drop in property tax revenue as a result of fewer transactions offers at least two-thirds of the revenue the transfer tax brings in. Because assessments typically rise much more slowly than market prices between sales, fewer transactions mean slower growth in property tax revenue. The net loss appears even bigger for high-value homes and commercial properties. (See related CP&DR coverage.)

The long-closed Westminster Mall in Orange County, once the county’s second-most popular shopping center, is set to be demolished by the end of the first quarter as mixed-use redevelopment plans move forward. Shopoff Realty Investments has acquired most of the 100-acre property, including former Sears and Macy’s lots, and plans to build a mixed-use project called Bolsa Pacific. The 83.8-acre proposal includes 2,250 housing units, a 120-room hotel, at least 220,000 square feet of retail, 15 acres of open space, a food hall and a neighborhood park.

San Diego City Council adopted a community plan update for the Clairemont neighborhood, adding capacity for 14,000 new homes close to trolley stations and allowing mixed-use developments in Clairemont Town Square and Clairemont Community Core. The plan is meant to encourage walkable communities, and includes recreational areas such as parks and other joint-use areas.

The state certified San Benito County’s 6th Cycle Housing Element after more than six months of review, confirming it meets state housing law requirements and helping the county stay compliant. Certification unlocks access to roughly $11.5 million in state grants for infrastructure projects like road repairs and creek cleanup, and prevents enforcement of the state’s “builder’s remedy” that could override local zoning. The certified plan identifies how the county can accommodate its Regional Housing Needs Allocation of 754 new homes by 2031, though it does not itself authorize construction. (See related CP&DR coverage.)

The Davis City Council voted unanimously to advance the Village Farms housing development proposal to a June 2026 citywide ballot, allowing voters to decide whether the project can proceed under California’s Measure J/R/D land-use rules. The project would create one of the largest residential developments in Davis’s history, including up to about 1,800 homes.

The Santa Barbara City Council approved a temporary citywide rent freeze for most rental units for the rest of 2026, making it currently the only city in California moving ahead with such a policy. The measure, aimed at preventing landlords from raising base rents while the city develops a permanent rent stabilization ordinance, will remain in effect until a final plan is adopted on December 31, 2026.

A recent UCLA study analyzed challenges facing evacuees of the 2025 Eaton Fire, one of the major fires that devastated Los Angeles last year. The study found that three-quarters of households did not have an evacuation plan before the fire. Most evacuees initially stayed with friends or family, and although many (61%) had not yet returned home at the time of survey, the majority (77%) planned to rebuild or return.

YIMBY Law is threatening to sue the City of Menlo Park after they said that the proposed redevelopment at the former Sunset Magazine property is not eligible for state exemptions. The city has claimed that the development does not meet housing requirements that would make the project eligible for exemption, but the law firm says that these issues were raised too far along in the permitting process, violating the Permit Streamlining Act.