CP&DR News Briefs: November 3, 2026: Feds vs. Coastal; S.F. Vacancy Tax; Planning Grants; and More

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Trump Administration Advances Plan to Undermine Coastal Protections

The Trump administration has issued draft findings from a federal review that would strip California of its authority to protect its coastline unless state regulators agree to more than a dozen “corrective actions.” The 92-page review, produced by NOAA’s Office for Coastal Management and obtained by the Times through a public records request, accuses California coastal authorities of “regulatory overreach” and bias against offshore drilling, oil and gas projects, and SpaceX’s launch activities. It also suspends federal funding for the state’s coastal management program until the shortfalls are addressed. The demands include that the Coastal Commission meet with SpaceX and with Sable Offshore Corp., a Texas oil company seeking to restart an offshore operation near Santa Barbara. The state must also issue a statement by January pledging not to categorically oppose initiatives tied to certain industries, such as oil and gas, or activities such as offshore drilling.

Court Strikes Down San Francisco’s Voter-Approved “Empty Homes Tax”

San Francisco’s “Empty Homes Tax” was denied by a San Francisco Superior court judge, determined to be an illegal taking of property that violates owners’ privacy rights under the California constitution. The “Empty Homes Tax” or Proposition M passed in 2022 by a 54.5% margin. The tax would have charged owners of buildings with three or more units for any dwelling left unoccupied for at least 182 days of the prior year, starting in 2025 at $2,500 to $5,000 per unit depending on size. By 2027 owners of the smallest units would be charged up to $10,000 annually, those owners of units over 2,000 square feet would be charged $20,000 per "unoccupied" unit. Unoccupied unit fees would also have applied to units occupied by family members and to units an owner was actively marketing but couldn’t rent. Supporters said the measure would push landlords to lease available units in order to address the city’s housing shortage. Opponents of the bill argued it infringed on their right to manage their own property.

SGC Solicits Proposals for Climate-Oriented Planning Grants 

The Strategic Growth Council has issued a Request for Proposals seeking a provider to deliver Implementation Technical Assistance (TA) to grantees of its Transformative Climate Communities (TCC) and Community Resilience Centers (CRC) programs. The TA program was created to assist TCC and CRC Grantee Teams in several areas, including completing funded work and meeting program requirements and strengthening grant management and project implementation skills. Providers will also be expected to tailor TA services to each team’s unique needs and context and expand grantees’ knowledge of climate resilience and sustainable community development.

Data Center Update: Restrictions in Gilroy, San Diego; Nationwide, Opposition Has Blocked $130 Billion Worth of Development

On a unanimous council vote, the City of Gilroy extended its ban until Sept. 3, 2027 after an Amazon data center was allowed to proceed without public input, and San Diego’s council voted 9-0 for an extendable  45-day moratorium with a stakeholder working group and principles such as no added costs for ratepayers and 100% renewable energy. Other San Diego County cities have gone further, including Poway which banned large AI data centers and Escondido which extended its moratorium through August 2027. San Jose is opting for uniform development standards rather than a pause, though residents say that drafts have so far fallen short. So far, most existing projects are exempt, such as Gilroy’s Amazon site and the NAVWAR site in San Diego on federal land. A recent policy report from the Lincoln Institute of Land Use Policy on data center development found that community opposition blocked or delayed 75 projects worth $130 billion nationwide in just the first quarter of 2026, arguing that data centers have yet to earn a “social license to operate”, or widespread approval by the general public, and that in order to move forward, local officials need specialized planning frameworks rather than relying on outdated land use rules. California cities are responding with moratoriums that buy time to write those rules in order to protect neighborhoods from noise, environmental impact and community interference. (See related CP&DR coverage.)

CP&DR Coverage: End of an Era in Sacramento

Tom Pace joined the City of Sacramento's Planning Division back in 1997. In the years since then, Sacramento and Pace -- who took over long-range planning in 2006 and became planning director in 2017 (after a brief stint in Stockton) and community development director in 2020 -- embraced an enthusiastically pro-housing ethos, with policies to match. Perhaps most notably, he led one of the most dramatic upzoning efforts in state history when the city effectively made development of small multifamily dwellings in all residential areas. Having retired in May (succeeded by assistant Community Development Director Matt Hertel), Pace spoke with CP&DR's Josh Stephens about his service to the state's capital city--which is, arguably, much more of a city than it was 29 years ago.

Quick Hits & Updates

Governor Newsom announced that California’s Proposition 1-backed Homekey+ program has so far awarded 2,905 permanent supportive homes since launching in 2024, including 828 for veterans. The latest round adds $115.2 million for five projects with 329 homes in Yuba City, San Francisco, Riverside County, Lompoc (Santa Barbara County), and Los Angeles County. Of the new homes, 168 will be reserved for veterans. So far, awards from Homekey+ and the earlier Homekey program have funded homes serving more than 200,000 Californians.  The Housing Development and Finance Committee (HDFC) released its second set of draft regulations, now open for public comment until November 17, 2026. During the first round of feedback, HDFC received more than 1,800 comments, and revisions addressing these have aimed to simplify programs, speed up funding, increase transparency and equity, and deliver complete capital financing stacks.

Advocates for incorporating Castro Valley (Alameda County) are pushing for a new cityhood vote, projected for March 2028, more than two decades after 72% of voters rejected incorporation in 2002. Supporters of the vote such as the Town of Castro Valley (TCV) say the difference this time is a realistic first-year budget that yields a surplus. Proponents argue that lacking city status has cost the community more than $14 million in grants that went to surrounding cities. Incorporation could also give residents, rather than the city, control over zoning, development, and the timing of infrastructure repairs. 

A Los Angeles County-commissioned study found that closing Whiteman Airport in Pacoima could cost WHO up to $3.5 billion, including $3.46 billion in redevelopment costs and $90 million for demolition and cleanup. The $2.1 million study evaluated three potential paths for the future, including maintaining the existing airport with improvements, retaining airport operations while allowing development, or closing the airport for redevelopment. 

Sonoma County is set to lift a ban on ADUs in areas with specific zoning designations to expand affordable housing opportunities while maintaining safeguards for water, wastewater, fire safety, and traffic concerns. Nearly 4,000 additional properties in unincorporated areas starting November 5 will be allowed to add granny units, in-law units and backyard cottages. The change follows state pressure to remove zoning restrictions that conflict with California housing laws.