CP&DR News Briefs March 31, 2026: Housing Elements; Yucapia Warehouse Measure; L.A. Light Rail; and more

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Newsom Threatens Jurisdictions with Inadequate Housing Elements

Gov. Gavin Newsom issued final warnings to 15 California cities and counties that have failed to comply with state housing laws requiring plans for residents of all income levels. The notices, delivered through the California Department of Housing and Community Development, give these jurisdictions 30 days to respond or face possible lawsuits and referral to the state Attorney General. The noncompliant communities of Atwater, Avenal, California City, Corcoran, Escalon, Half Moon Bay, Hanford, Kings County, Lemoore, Merced County, Montclair, Oakdale, Patterson, Ridgecrest, and Turlock are more than two years behind schedule in adopting certified housing elements. While 92% of California jurisdictions have achieved compliance in the current planning cycle, these 15 remain outliers without a clear path to meeting requirements. Since 2021, the state’s Housing Accountability Unit has taken over 1,200 actions to enforce housing laws, expediting 12,486 housing units that were previously stalled in the local planning process. (See related CP&DR coverage.)

Yucaipa Does Turnaround on Warehouse Ballot Measure

Yucaipa voters will no longer decide on two proposed June ballot initiatives related to warehouse development after the City Council reversed an earlier decision. The council unanimously rescinded both a rezoning ordinance that would have allowed over 1,000 acres for warehouse use and the Freeway Corridor Specific Plan, effectively canceling the need for a public vote. City officials said that removing these measures made the planned referendums unnecessary and also avoided an estimated $200,000 cost for a special election. A community group, Yucaipa Neighbors Opposing Warehouses, had successfully gathered signatures to put the measures on the ballot, arguing the plans would harm the city’s rural character. In response to the controversy, the council now plans to involve residents more directly by hosting community meetings and forming a group to help shape future development plans. (See related CP&DR coverage.)

Nation's Would-Be Busiest Light Rail Line Wins Approval

The Los Angeles County Metropolitan Transportation Authority board unanimously approved a new route for the K Line northern extension, a major rail project connecting South Los Angeles to West Hollywood. The 9.7-mile underground light rail line would add nine stations, link to four major rail lines, and is projected to carry up to 100,000 riders daily. That ridership would make it the busiest light rail line in the country and would create important connections to two other lines, prompting supporters to refer to it as the system's "missing link." The project is estimated to cost $11–15 billion and still requires significant local funding, including roughly $2.25 billion that could be raised through mechanisms like Enhanced Infrastructure Financing Districts. Construction is not expected to begin until 2041 under current funding timelines.

Investors Increasingly Bullish on California Homes

Home-buying by investors in California surged in late 2025, especially in major metro areas where housing is already expensive. In cities like San Francisco, investor purchases rose 24% year-over-year, with similar increases in Oakland (17%) and Los Angeles, San Jose, and San Diego which all rose around 11%. Redfin analyzed county-level home sale records from January 2000 through December 2025 across 38 major metro areas, and for this report investors were defined as buyers who used a trust or limited liability company or similar entity to acquire a home. This comes on the heels of national discussions around investor homebuying, including President Donald Trump’s January request to congress to ban private equity firms from purchasing single-family homes and The Senate’s recent bill banning investors that own at least 350 homes from purchasing more.

CP&DR Coverage: Population Decline Hits All Corners of California

Lots of people are leaving California altogether for other states – upwards of 100,000 per year to Texas. Some were simply leaving expensive coastal areas for cheaper inland areas. But guess what? Even inland counties have been losing population to other states. They’re apparently making up for it with some migration from coastal areas. But they’re also relying on babies being born and – to a lesser extent than coastal areas – immigration from other countries to keep their population going up. All of this does not bode well for future California population growth. There’s long been a discussion in policy circles in Sacramento and elsewhere about how to manage a California with 50 million people. For better or worse, it doesn’t seem like that will ever be a problem.

Quick Hits & Updates

A March 2026 audit by the California State Auditor examined the Housing Choice Voucher (HCV) program in Orange, Riverside, and Sacramento counties, along with three related programs serving specific populations. The audit found that these agencies lack sufficient federal funding to meet demand, resulting in long wait times for households. Fully funding all eligible applicants would require nearly $2 billion in additional federal support annually.

Sixteen states, including California, and the District of Columbia are suing the U.S. Department of Housing and Urban Development over new guidance they say weakens enforcement of housing discrimination laws. The dispute centers on Department of Housing and Urban Development memos that limit funding for certain discrimination cases and prioritize only those with clear intentional bias. States argue the changes could undermine protections in laws that go beyond federal standards, including those covering sexual orientation, gender identity, and income sources.

A plan adopted by the City of Elk Grove and Sacramento Regional Transit may bring light rail and more bus routes to the city. The proposed hybrid plan would extend light rail and Stations are proposed to include affordable housing, retail and pedestrian infrastructure. Estimated costs are about $1.06 billion in capital expenses and $17.3 million annually to operate, with funding likely from a mix of federal, state, local, and grant sources.

Nine of the top ten cities with the lowest share of solo-living households in America were in California: Fontana, Moreno Valley, Santa Ana, Oxnard, Elk Grove, Ontario, Chula Vista, Fremont, and Santa Clarita. The percentage of one-person American households has increased to nearly 30%, but remains significantly more common in certain American cities. Recent research found that couples or roommates in the U.S. save about $10,000 per year by splitting the rent in two.

A study by the nonprofit organization San Francisco Bay Area Planning and Urban Research Association (SPUR) recommends five strategies for addressing San Jose’s high vacancy rates in residential and commercial buildings, including consistent funding, long-term community development, reimaginings for underutilized spaces, private sector involvement, and investment in cultural districts.

The San Jose Planning Commission denied an appeal against a 126-unit Willow Glen mixed-use housing project approved under Builder’s Remedy because San Jose lacked a compliant housing plan in time, allowing it to proceed despite local zoning conflicts. Over 1,800 neighbors signed a petition requesting changes to reduce the traffic and sewage impact, but commissioners said that would effectively violate state law by blocking it. The development will include 15% of the base number of units for very low-income households and another 15% to moderate-income households.

Oakland has been named a 2025 Digital Inclusion Trailblazer by the National Digital Inclusion Alliance for its efforts to bolster access to affordable high-speed internet, devices, and digital skills training. The award highlights Oakland’s coordinated approach across city departments and community partners, including publishing a Broadband Master Plan, securing major state broadband investments, and supporting initiatives like free Wi-Fi in affordable housing. Oakland joins 58 other communities nationwide.