CP&DR News Briefs February 3, 2026: Fire Recovery; Los Angeles Transfer Tax; Glendale About-Face; and More

Glendale Reverses Course on Rejection of By-Right Project

The Glendale City Council is set to rescind its October 2025 decision to reject a large housing and mixed-use development at the former Sears site at 236 N. Central Avenue after state officials warned that the denial violated California’s Housing Accountability Act. The council originally rejected the plan on a 4–1 vote, largely because members felt the design didn’t sufficiently honor the old Sears building’s Art Deco character, despite Mayor Ara Najarian and an attorney for the developer warning that this could result in legal consequences. (See predvious CP&DR coverage here.) After the state Department of Housing and Community Development issued a notice of violation and set a January 29 deadline to reverse the decision, city staff recommended rescinding the denial and moving forward with the project. The proposed project by Trammell Crow Residential would build an eight-story, approximately 650,000-square-foot complex with 682 rental apartments, including 72 very low-income units, ground-floor commercial space, and a 930-car garage.

Trump Claims Authority to Speed Up Permitting for Fire Recovery

President Donald Trump signed an executive order aimed at speeding up rebuilding in Pacific Palisades and Eaton Canyon one year after wildfires destroyed nearly 40,000 acres and an estimated 17,000 structures. The order seeks to cut what Trump calls “bureaucratic red tape” by allowing the federal government to preempt state and local permitting processes and move approvals to the federal level. The order seeks to "preempt State or local permitting processes, and other similar pre-approval requirements, that... have unduly impeded the timely use of Federal emergency-relief funds." Trump again accused California Gov. Gavin Newsom and Los Angeles Mayor Karen Bass of catastrophic failures in wildfire preparation, response, and rebuilding, particularly criticizing forest management, water systems, and permitting delays. Newsom’s office dismissed the order as ineffective and urged Trump to release withheld federal disaster funding instead, arguing that money, not permitting, is the main barrier to rebuilding. “Mr. President, please actually help us. We are begging you,” the mayor’s office posted on social media. “Release the federal disaster aid you’re withholding that will help communities rebuild their homes, schools, parks, and infrastructure.”

Los Angeles Tables Measure to Reform Controversial ‘Mansion Tax’

The Los Angeles City Council postponed a vote on a proposed ballot measure that would have exempted newer apartment buildings from the Measure ULA real estate transfer tax, delaying any change until at least the November election. Councilmember Nithya Raman sponsored the proposal, asking her colleagues to place a measure that would exempt sellers of newer apartment buildings from paying the tax. She claimed ULA is holding back housing production and warned that lenders and investors are pulling out of Los Angeles. Labor unions and tenant advocacy groups strongly opposed the changes, arguing that ULA has generated about $1 billion to fund affordable housing and provide assistance to thousands of people at risk of homelessness. Developers argue that ULA, approved by voters in 2022, has made many housing projects financially unviable and contributed to a slowdown in apartment construction, while ULA backers say other factors such as high interest rates are the cause. The council sent Raman’s proposal to the Housing and Homelessness Committee for further review, missing the deadline for the June ballot.

CP&DR Coverage: Constitutionality of SB 9 Will Be Reconsidered 

In effect since 2022, SB 9 permits landowners to build up to four units on their single-family parcels by splitting their parcels in two and build two units on each of the resulting parcels, all by ministerial action. However, SB 9 mentioned only “affordable housing” and not “a lack of housing supply” as the justification for interfering with home rule. This was the basis of the constitutional challenge brought by several cities, led by Redondo Beach, to which Los Angeles County Superior Court Judge Curtis Kin ruled in favor of the charter cities in 2024, saying that housing affordability and housing supply are not the same thing. This year, however, the Legislature passed SB 450, which expanded the purpose of SB 9 to include housing supply as well as affordability. For this reason, Attorney General Rob Bonta’s office argued that Kin’s ruling no longer applied, and the Second District Court of Appeal, agreeing with Bonta, sent the case back to Kin for reconsideration. Another appellate ruling declaring SB 9 constitutional as it relates to general-law cities still stands.

Quick Hits & Update

A new economic report from the San Francisco city controller shows job losses picking up while the housing market becomes stronger. The report attributes job losses largely to continued tech layoffs, while office attendance and transit ridership both dropped. At the same time, rents have remained at fairly consistent levels, home prices are rising and housing permits are steadily increasing.

Mill Valley in Marin County is offering a one-time payment of up to $14,000 to property owners who sign a one-year lease with someone who works in the city. The average cost of rent in Mill Valley is around $3,500 per month while the average home price hovers around $2 million. The “Lease to Locals” program is being run by PlaceMate, based on a model the company generally uses in vacation destinations which has placed about 2,000 locals in 850 units across 15 markets.

San Jose planning administrators gave final approval to a plan to build two housing towers containing 768 residential units in the downtown area. The building would also include 10,700 square feet of ground-floor retail, 26,100 square feet of residential lobbies, and five underground levels, four of which are reserved for parking.

California has sued the Trump administration over its decision to take federal control of pipelines tied to Sable Offshore Corp.’s plan to restart offshore oil production near Santa Barbara. Attorney General Rob Bonta argues that the federal Pipeline and Hazardous Materials Safety Administration unlawfully seized oversight from the state and improperly approved Sable’s pipeline restart. State officials say the federal move contradicts prior agreements that gave California authority to review any restart and undermines environmental and public safety protections.

A previously privately owned and inaccessible stretch of Northern California coastline near Bodega Bay has opened to the public for the first time in over a century. The 547‑acre Estero Americano Coast Preserve now offers walking trails, scenic beaches, panoramic ocean views, and natural habitats for wildlife. The preserve is open daily from sunrise to sunset, and entry is free.

Vanderbilt University has acquired the California College of Arts campus in San Francisco, with plans to establish a full-time academic campus in the city beginning in the fall of 2027.

The Trump administration has filed a lawsuit against California over Senate Bill 1137, a law establishing a 3,200-foot buffer between new oil and gas wells and homes, schools, hospitals, and parks. The U.S. Department of Justice argues that the law violates federal law by restricting federally authorized oil and gas leases, while California officials say the setback protects public health and is based on scientific evidence.