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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 . Orange County Streetcar Faces Grand Jury Inquiry over Cost Overruns The Orange County Grand Jury is investigating why the Santa Ana Streetcar project budget increased to over $150 million per mile, running nearly $400 million over the original budget and six years behind schedule. The grand jury noted that no recent ridership studies and unclear community demand for the 4.1-mile route. Lawsuits from both the lead contractor and affected institutions, along with construction delays and poor planning, contributed significantly to the rising costs. Local businesses, particularly in downtown Santa Ana, suffered major financial losses due to prolonged street closures, with some ultimately forced to shut down. In response, the grand jury issued recommendations for improved public engagement, wider project benefits and support funds for impacted businesses, though the streetcar is still slated to open in late 2026. Alameda County OK's Sale of A's Half of Oakland Coliseum The Alameda County Board of Supervisors unanimously approved the former Oakland Athletics' sale of their share of the Oakland Coliseum to a private development group. The deal will make the African American Sports and Entertainment Group, an investment group focused on community development in Oakland, the sole owner of the the complex. The sale is slated to close on June 30, 2026. AASEG has not released specific details of its plans for the site, but has proposed a multibillion dollar revitalization project at the site with housing, restaurants, and other entertainment ventures. City ordinances dictate that at least a quarter of any new housing developments on the site will be affordable housing, and AASEG said it would not tear down the Coliseum. City officials hailed the development plan as a historic investment, emphasizing the economic opportunities it will create for Oakland. (See related CP&DR coverage .) Statewide Planning Guidelines to be Updated, with Stakeholder Input The Governor's Office of Land Use and Climate Innovation (LCI), with support from Raimi + Associates and a team of planning consultants, has launched an 18-month effort to update California's General Plan, Specific Plan and Tribal Consultation Guidelines. These revised LCI Planning Guidelines will reflect recent legal changes and incorporate new guidance on equity, climate resilience and innovative long-range planning strategies. Broad input from planners, advocates and stakeholders is being sought through launch workshops, email updates and participation in advisory groups. This initiative presents a key opportunity for professionals to help shape planning tools that support sustainable and inclusive development across California. San Diego Takes Legal Action against La Jolla Secession The City of San Diego has filed a lawsuit seeking to prevent an effort to give La Jolla cityhood from moving forward. The suit centers on the Association for the City of La Jolla's petition, and whether it obtained signatures from the 25% of registered voters, a number required to move the effort forward. The suit alleges that the Local Agency Formation Commission acted improperly when it reversed the San Diego County registrar of voters' initial determination that the petition did not obtain enough signatures. On April 29, LAFCO issued a certificate of sufficiency to the ACLJ and the petition, prompting the city of San Diego to file a lawsuit. CP&DR Coverage: Court Rejects Use of "Upstream" Greenhouse Gas Reductions In a new battle between the Tejon Ranch Company and environmentalists, an appellate court has ruled that Los Angeles County's environmental impact report for the Centennial community in Antelope Valley was misleading because it tried to count “upstream” reductions in greenhouse gas emissions resulting from the state's cap-and-trade program. In an unpublished portion of the opinion, the appellate court also found the EIR's treatment of evacuation planning inadequate. The Center for Biological Diversity and Climate Resolve sued L.A. County over the EIR. Climate Resolve eventually settled but continued in the lawsuit as an amicus curiae. The critical issue was whether the EIR treated greenhouse gas emissions reduction correctly. the court concluded, “ here is no analysis in the EIR that supports its determination that the extensive off-site project features . . . do not represent dangerous fire hazards, would not include land uses that would, by themselves, increase the risk of fire hazards, and do not require mitigation.” Quick Hits & Updates The California Supreme Court will review whether Kern River flows will be kept in the riverbed through Bakersfield. The 5th District Court of Appeals overturned a Kern County Superior Court ruling mandating that water be kept in the river for fish, and the ruling was also "published" to be used as legal precedent. The Supreme Court granted a review of the case, but did not depublish the ruling. PG&E submitted a plan to federal regulators to tear down two dams on the Eel river as part of demolishing the aging Potter Valley Project hydroelectric system, which would make the Eel the longest free-flowing river in California. The dams' largest use in recent years have been the water they supply to cities and vineyards in Marin and Sonoma counties. Under the plan water shipments would continue at a lower volume. Conservation groups, tribes and other communities on the Eel river praised the plan as a vital opportunity for river restoration and wild salmon recovery. The City of Monterey issued an apology to Indigenous families who were displaced from the Dutra Street communal village in 1959 for the construction of a fire and police station. The city akgnowledged it's use of eminent domain to acquire land which dispersed the once vibrant-community. Tribe members and advocates hailed the apology as a step in the right direction for the city. The cost to build the Sites Reservoir in Colusa County, the state's largest new reservoir in 50 years, has jumped from $4.5 billion to as much as $6.8 billion due to inflation, supply chain issues, and tariffs. Supporters say it's a vital project to store water during wet years for use during droughts, but environmental groups argue it will harm river ecosystems and question whether wealthy water agencies will continue backing the now more expensive project. Between 2018 and 2024, neither Coronado nor Imperial Beach permitted any affordable housing, despite their largely different political and economic profiles, one wealthy and resistant, the other willing but underfunded, according to findings from Voice of San Diego. While Imperial Beach has approved some projects that could bring affordable units, none have moved forward to actual construction, highlighting a larger local struggle to meet housing demand amid high costs and limited political will in wealthy areas. Citizens' group Petaluma Historic Advocates has filed a lawsuit challenging the legality of a zoning ordinance that would allow construction of a six-story hotel in downtown Petaluma, arguing it would cause lasting harm to the city. The suit follows failed negotiations over a proposed ballot referendum and seeks a court ruling to nullify the ordinance entirely, bypassing a public vote. City officials argue that the group's referendum only affects one part of the project's rules—related to building size—not the full zoning change that allows the hotel. A coalition of environmental groups has sued the city of Santee to halt the approval of the Fanita Ranch development, which proposes to build 3,000 homes in a very high fire hazard severity zone, the highest risk designation in California. The suit alleges that the city violated state laws by not conducting adequate fire risk analysis, and by substantially increasing the number of homes planned without voter approval. Courts have previously ruled against the project, most recently in 2024. (See related CP&DR coverage .) SB 549, which included language giving a new local authority the ability to rebuild and sell lots burned in the Pacific Palisades fire back to the original homeowners at a discount, has been put on hold amidst policy hurdles to passing it before the Legislature adjourns in September. Controversy surrounding the bill was fueled by misinformation and conspiracy theories holding that the government would become a major landowner in the palisades and re-zone burnt areas for high-density housing, policies which were not a part of the bill. The newly released annual Silicon Valley Pain Index shows widening income inequality in the region, with .1% of households holding 71% of the area's wealth and the wealthiest 9 households alone accounting for 15%. The Index also highlighted the increased difficulty most residents face meeting their basic needs, particularly housing. A report from Stanford's Institute for Economic Policy Research finds that California's homelessness crisis remains one of the worst in the country, citing insufficient shelter capacity, a shortage of housing, and weak incentives for drug treatment as key drivers of the state's high rate of homelessness, particularly unsheltered homelessness. The report emphasized that data collection and transparency has not kept up with massive new government investments, and need to be overhauled to understand the effectiveness of policies and investments. The California Statewide Study of People Experiencing Homelessness (CASPEH), conducted by the UCSF Benioff Homelessness and Housing Initiative, found that the median age of someone experiencing homelessness in the state is 47, and Black, Latino and Indigenous persons are overrepresented in the statewide population of homelessness. It also found that high housing costs and low income are significant factors leading to homelessness, with many participants experiencing mental health and substance use challenges before and during their homelessness.

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 . New Housing and Homelessness Agency to Launch July 2026 Gov. Newsom announced the creation of the California Housing and Homelessness Agency, consolidating multiple existing departments into a new body. State lawmakers approved the move earlier this month, and the agency is set to be operational by July 2026. The move heeds calls from some experts and advocates to centralize the state bureaucracy to better address homelessness and housing costs. Under Newsom, California has seen unprecedented investment to fight homelessness and bring down housing costs, but so far results have been mixed. Since 2019 the state has directed $27 billion to local homelessness efforts statewide, but homelessness increased around 24% to 187,000 people during that time. A state audit found that $24 billion in homelessness funding was not properly tracked. The state missed Newsom's goal of 3.5 million new homes by 2025, and the governor set a new goal of 2.5 million by 2030. However, in 2024 the state's homeless population increased by 3% compared to the 18% average nationawide, a figure experts have attributed to California's investments. Report Shows Progress toward 30 x 30 Conservation Goals California has advanced toward its goal of conserving 30% of its land and coastal waters by 2030, with current figures at 26.1% and 21.9%, respectively, according to a recent progress report from the Natural Resources Agency. The 30x30 Initiative, established by Governor Gavin Newsom in 2020, also focuses on supporting biodiversity, increasing public access to natural spaces and addressing climate-related challenges. Recent progress includes new national monument designations and marine protections, though ongoing federal policy shifts could affect these gains. Some environmental organizations have questioned whether certain newly protected areas, such as the Chumash Heritage National Marine Sanctuary, meet the standards needed to count toward the 30% target. State officials plan to continue expanding conservation efforts through the integration of nearby private lands into public park systems and emphasize the broader environmental benefits of the initiative. Bonta Joins Protest against Repeal of Federal Fair Housing Regulations California Attorney General Rob Bonta, along with 20 other attorneys general, sent a letter to the U.S. Department of Housing and Urban Development opposing a proposed repeal of regulations requiring fair marketing of affordable housing. These “affirmative marketing” rules, established under the Fair Housing Act in the 1970s, aim to ensure that federally assisted housing is promoted to all eligible groups, especially those historically excluded. The attorneys general argue that removing these rules could lead to discriminatory practices and undermine decades of efforts to combat housing segregation. Critics of the proposed repeal also say it lacks clear legal justification and could reduce equitable access to housing opportunities for marginalized communities. Union, Residents Object to Financing District for Sacramento Railyards Unite Here Local 49 and residents of Sacramento's Railyards district allege the city is delaying the verification of protest letters that challenge a proposed special tax financing district to develop a massive mixed-use complex, including a new soccer stadium. They argue that a majority of residents have submitted valid protests, which, under a 2019 state law, could halt the city's agreement with developers for up to a year. The union is now considering legal action, claiming the delay undermines efforts to secure stronger affordable housing commitments. City officials say they are working through a legally complex and untested process to confirm residency within the newly built apartment complexes. Supporters of the financing plan argue that public infrastructure funding is necessary to move forward with development. HCD 2024 Housing Progress Report Finds Growth in Affordable Development The Department of Housing and Community Development (HCD) released its 2024 Annual Progress Report, offering a statewide look at residential permitting and development. The report found growth in affordable development, with the lower income units accounting for 22.8% of permitted units and 20.7% of completed units in 2024, up from 9% and 7% respectively in 2018. Lower income unit production rose from 17,872 in 2023 to 20,514 in 2024. Multifamily housing production remained high with 343,236 units in the housing pipeline up from the previous five-year average of 296,432, and ADU production saw a record high of 30,600 in 2024 up from 28,666 in 2023. The report also emphasized faster development timelines, with the average time from application submission to planning approval decreasing from 145 days in 2018 to 58 days in 2024. The report credited the Housing Accountability Unit for much of the acceleration. The state also saw a moderate increase in deed-restricted affordable units from 49,000 in 2023 to 51,000 in 2024, including an increase of 7,000 units from the increased Density Bonus incentives for projects with affordable housing components passed in 2021. Palisades Tahoe Agrees to Scaled-Down Village Development Alterra Mountain Company, owners of Palisades Tahoe ski resort, reached a settlement with environmental groups Keep Tahoe Blue and Sierra Watch to reduce the scale of a planned development in Olympic Valley (formerly Squaw Valley). The agreement ends a fourteen-year dispute over plans for the development, which was originally proposed in 2011 and revised in 2014. In the settlement, Alterra agreed to reduce the total number of bedrooms from 1,493 to 896, reduce commercial space from 278,000 square feet to 222,000, eliminate plans for an indoor waterpark, create a conservation easement at the base of Shirley Canyon to preserve public land access in perpetuity, and prevent additional development within the boundaries for 25 years. (See related CP&DR coverage.) CP&DR Coverage: CEQA Legislation Roundup: AB 130, AB 131, SB 79 On July 1, the provisions of AB 130 and SB 131 - the two budget trailer bills that reformed the California Environmental Quality Act to streamline housing approvals - went into effect. In an unprecedented move, Newsom had basically held the budget hostage over CEQA reform, especially on infill housing. Because the trailer bills were tagged as “urgency” bills, they took effect July 1. The bills greatly expand exemptions for infill housing and also carve out exemptions for a variety of non-residential projects. Although the bills represented something less than comprehensive CEQA reform, they were probably the most significant legislative changes to CEQA in this century. And while the infill housing got the most publicity, a wide range of other provisions are also important. Meanwhile, SB 79, which is still pending, would effectively transfer land-use authority from local governments to transit agencies for land owned by transit agencies that is located near transit stations - and permit buildings of up to 100 feet high immediately adjacent to the busy stations. It would exempt many projects on such land from the California Environmental Quality Act because many would qualify for a CEQA exemption under Wiener's SB 423, his successor bill to SB 35. The League of California Cities is fiercely opposed to the bill. But so are environmental justice Democrats and anti-regulation Republicans. Quick Hits & Updates The first round of funding from Proposition 1's Homekey+ program has awarded nearly $103 million to create 315 units of permanent supportive housing for veterans and individuals with behavioral health challenges across five California counties. The initiative, part of a broader $6.38 billion bond approved by voters, aims to address homelessness by combining affordable housing with wrap-around services, with future awards continuing on a rolling basis as the state evaluates over $1 billion in pending applications. The Santa Monica City Council voted , 6-1, to prioritize transforming the 192-acre Santa Monica Airport site into a public park focused on open space and recreational facilities after its closure in 2028. The approved plan includes ecological restoration and adaptive reuse of existing buildings in line with a 2014 voter-approved measure requiring public approval for non-park uses, while the one dissenting councilmember called for exploring a mix of uses, including housing. The Los Angeles City Council is considering a proposal that would allow homeowners to sell ADUs separately from the main home, in a move seeking to increase the housing supply as LA's average household size shrinks. 41% of new housing permits issued last year in LA were for ADUs, and since 2023 california state law has a pathway for selling ADUs, but cities must adopt the changes locally. San Francisco District 5 Supervisor Bilal Mahmood has introduced a reform measure targeting language in the city's housing code limiting the number of unrelated people allowed to live together to five. Although the rule has largely fallen into obscurity, Mahmood says it often hamstrings co-op housing as bedrooms sit empty in compliance with the law, and changing the wording could help maximize available housing. State officials issued a statement harshly criticizing the Trump administration's termination of $4 billion in grants for the state's high speed rail program, claiming the termination was politically motivated and based on inaccurate analysis. The Rail Authority pointed to 59% construction completion on the initial 119-mile central valley route as progress compliant with funding conditions. San Francisco, Downtown Los Angeles and San Jose rank among the California cities with the highest office vacancy rates and greatest potential to convert empty office buildings into housing, with San Francisco alone capable of adding over 61,000 new apartments. These cities are also seeing some of the fastest year-over-year vacancy increases, highlighting both the urgency and opportunity to repurpose underused commercial space to help ease California's housing shortage. Twenty-four city-owned buildings in San Francisco are at risk of collapse in a major earthquake, and another 26 are at risk of severe damage, according to the city's Seismic Hazard Rating. The buildings at risk include the Hall of Justice and multiple fire stations, police stations and homeless shelters. Since 1990 the city has spent $20 billion on seismic retrofits, which are not required by state law and are funded by voter-authorized bond measures. The city of Elk Grove approved the sale of 20.5 acres of land to developer CenterCal for Project Elevate, a mixed-use development that may, but is not required to, include a housing component. The sale will not formally close until CenterCal secures entitlements and building permits, and the company expects to break ground in 2028. California's First Appellate District Court of Appeal upheld a ruling against the city of Oakland in favor of a development company over plans to build a coal export terminal in West Oakland. After the ruling, Oakland Bulk and Oversized Company can keep and extend its lease to city-owned waterfront land in order to restart work on the coal terminal.

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 . Court Orders San Diego to Locate Affordable Housing More Equitably A federal judge approved a settlement requiring the City of San Diego to encourage distrubtion of future affordable housing projects more equitably, with at least 70% located in moderate- to high-resource neighborhoods instead of concentrating them in lower-income areas. The agreement comes after a six-year legal battle brought by residents of southeast San Diego who alleged the city's past policies violated fair housing laws by clustering poverty. Under the deal, the city must update community plans, annually report progress and take steps to promote integration, including financial incentives for grocery stores in underserved areas and support for first-time homebuyers. While San Diego denies any wrongdoing, officials say the settlement aligns with existing goals and helps avoid prolonged litigation. The court will retain oversight to ensure compliance with the terms. Fresno Adopts Policies in Hopes of Restoring Prohousing Status The City of Fresno is working to regain its Prohousing status, which allows access to millions in state housing grants, by passing several housing policy updates aimed at streamlining development. Recent council actions include recognizing tiny homes as primary residences, reducing mobile home park density requirements and eliminating certain parking mandates. A more controversial proposal to streamline housing approvals near transit and office zones was postponed due to opposition. A related rezoning plan in southwest Fresno was also delayed amid long-standing community resistance and criticism from a state senator. Meanwhile, the council approved funding for local community projects, including a senior center and LGBTQ-serving nonprofit. (See prior CP&DR coverage .) Final Draft of Plan Bay Area 2050+ Envisions $1.4 Trillion in Investments The Metropolitan Transportation Commission and the Association of Bay Area Governments released the Final Blueprint analysis of Plan Bay Area 2050+, roadmap for growth and investment in the Bay Area that plans for 900,000 new households and 1.3 million new jobs by 2050. The analysis precedes environmental review under CEQA, which is set to commence as early as July 17. Directing over $1.4 trillion in investments, the plan is the result of extensive public engagement over the past two years and focuses on transportation, housing, economic development, and environmental resilience. Key findings include the potential to double the share of people commuting by bike, foot, or transit through investment in transit and land use strategies to promote growth near transportation hubs. The plan proposed housing production and renter protections that could reduce percent of income spent on housing by 42% for low income families and 12% for all levels. Environmental resilience and retrofitting proposals could protect 95% of vulnerable homes from sea-level rise and reduce risk of wildfire damage by 50% according to the report. Los Angeles Allocates Funds from Controversial "Mansion Tax" The Los Angeles City Council approved a plan for spending $425 million raised from Measure ULA for homelessness and affordable housing programs. Since its approval by voters in 2022, the controversial measure, also known as the "mansion tax," has raised $702 million. The 2025 ULA spending plan is greater than all previous years combined. It allocates $100 million for homelessness prevention through at-risk tenant support and eviction defense, and $288 million for the production and preservation of affordable housing. Since its adoption the measure has received criticism from the real estate industry, and recently several reports found that by reducing property sales Measure ULA ultimately limited new development, including multifamily and affordable housing. Proponents of Measure ULA defended the tax as a valuable source of funding for affordable housing. Joe Donlin, the director of United to House LA, criticized the reports as "lies" and "hate from big money real estate". (See related CP&DR coverage .) Demise of Federal "Roadless Rule" Could Weaken Protection of 4.4 Million Acres in California The US Department of Agriculture will rescind the 2001 'Roadless Rule' protecting 58 million acres of national forestland from road construction and logging, around 30% of national forestland. USDA Secretary Brooke Rollins claimed the move overturns obstacles to management and wildfire prevention, while environmental groups blasted the decision as a liquidation of public lands that would open national forests to drilling, mining, and logging. Advocates also refuted the claim that the decision helps wildfire management and future sustainability, pointing to the effects of logging on the forest conditions that create wildfires, as well as research showing that roadbuilding and development can fragment ecosystems, increase erosion, and lead to more sediment pollution in drinking water. In California over 4.4 million acres of national forest are protected by the roadless rule, including the Angeles, Tahoe, Inyo, Shasta-Trinity and Los Padres National Forests. Nearly 500 Jurisdictions Subject to Streamlining for Affordable Housing The California Department of Housing and Community Development (HCD) updated its list of cities and counties subject to streamlined approvals under the Streamlined Ministerial Approval Process (SMAP). SMAP is a state program that fast-tracks approval for certain developments in jurisdictions that have not met housing targets. HCD also launched an online SMAP dashboard showing real-time Housing Element compliance data for jurisdictions. Jurisdictions are assigned exempt, 10%, or 50% affordability streamlining status. Localities which have a compliant Housing Element, have submitted their latest Housing Element Annual Progress Report (APR), and which have made sufficient progress on their Above Moderate Income, Lower Income, and Very Low Income Regional Housing Needs Allocations (RHNAs), are exempt from SMAP streamlining. Forty jurisdictions are exempt. Two-hundred-one jurisdictions with have streamlining for at least 50% affordability, and 298 have streamlining for at least 10% affordability. CP&DR Coverage: Fulton on Implications of Supreme Court Ruling for CEQA The U.S. Supreme Court's ruling involving the National Environmental Policy Act does not directly affect California's environmental review process. But the NEPA ruling is likely, some lawyers say, to expand the gulf between NEPA and the California Environmental Quality Act. And it is possible - though not likely. - that the case will affect CEQA reform discussions in Sacramento. The important point to note is that this separates NEPA from CEQA even more than was already the case. “Reasonably foreseeable” developments and “cumulative impact” are bedrocks of CEQA analysis. So they'll continue to be analyzed in, for example, transportation projects that involve both state and federal funds. But the anti-piecemealing argument that lies at the heart of “reasonably foreseeable” is so deeply embedded in CEQA that it's hard to see - both politically and practically - how to extract it. In the meantime, combined EIR/EIS documents for state/federal projects will continue to have to worry about what's reasonably foreseeable. Quick Hits & Updates A federal judge declined to place Los Angeles' homelessness programs under court control but found the city had failed to meet key requirements of a settlement agreement, including missing housing targets and providing unreliable data. Instead, the judge ordered the appointment of an independent monitor to oversee the city's progress, signaling serious concerns about transparency and accountability while stopping short of full receivership. Kern County supervisors are considering a proposed overhaul of the county's oil and gas zoning rules, which could streamline permits for nearly 2,700 new wells annually in unincorporated areas. The plan, reintroduced after past legal challenges, includes a new permitting system and CEQA updates, drawing both support from industry advocates citing economic need and criticism from environmental groups concerned about community health impacts. The Oceanside Planning Commission has endorsed a transformative mixed-use redevelopment of the Oceanside Transit Center, encompassing over 500 new apartments (with 15% designated as affordable), a boutique hotel, expanded retail and dining spaces and more than $100 million in transit and parking upgrades. The project, led by Toll Brothers Apartment Living under a 99‑year lease, now moves to the City Council and California Coastal Commission for final approval and has already sparked debate over proposed changes to bus circulation and pedestrian access. The Los Angeles Harbor Commission approved a 6,200-person lawn-style amphitheater as part of San Pedro's long-delayed West Harbor redevelopment, which also includes an expanded Ferris wheel and a major parking structure. This project, seen as a cultural revival for the area, is expected to take up to 16 months to build and aims to compete with Long Beach's planned 12,000-seat venue. A poll of registered California voters from the UC Irvine School of Social Ecology found that 70% think housing is a major funding priority. The poll also found that 33% of likely voters listed housing as their single biggest priority, more than double the second largest response of healthcare. The aging Benicia-Martinez Railroad Drawbridge is causing significant delays for Capitol Corridor trains due to frequent vertical lifts for maritime traffic. The bridge poses a major obstacle to the rail service's Link21 plan, which calls for faster and more frequent service between the Bay Area and Sacramento. Officials are considering two $10 billion-plus proposals to build a new, higher rail bridge. Two Los Angeles City Councilmembers introduced a motion to explore ending parking requirements for new developments citywide, aiming to reduce housing costs and boost affordability. While the policy is still in early stages, supporters say it could give renters more options and lower construction expenses, though critics worry it may worsen parking shortages in residential neighborhoods. The San Jose City Council unanimously rejected a proposed 17-story apartment and retail project in West San Jose, siding with residents who argued it was too large and not in line with the city's character. Despite support from housing advocates and offers from the developer to scale the project down, officials said the plan conflicted with the city's general goals for targeted growth and would be revisited during broader planning updates. The Irvine City Council is moving toward stricter regulations on sober living homes, including proposals for a 1,000-foot buffer between facilities and mandatory 24/7 on-site managers, following a violent incident at one such home. This local push reflects a broader trend across Orange County, where cities like Costa Mesa and Mission Viejo have enacted similar rules after legal victories affirmed their authority to regulate these group homes for safety and oversight. (See related CP&DR coverage .) Rise East, an urban revitalization plan for East Oakland, has secured $100 million in funding for the project. The community-led plan concentrates on the area home to the highest concentration of Black residents in East Oakland, and will support projects including affordable housing, youth workforce programs, cultural spaces, and revitalization of the MacArthur Blvd commercial corridor.

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 . Berkeley Finalizes Citywide Multiunit Ordinance The Berkeley City Council unanimously adopted a landmark Middle Housing ordinance ending a century-old single-family zoning policy, allowing small apartment buildings across most of the city. The policy permits up to eight units on standard lots, aiming to increase housing options for middle-income residents, young families and people of color, while excluding the fire-prone hillside areas for now. The move follows years of advocacy for more inclusive housing and is rooted in Berkeley's historical role in establishing exclusionary zoning. Supporters say the ordinance addresses racial and economic inequality, while opponents argue it lacks affordability guarantees and could lead to displacement and speculation. A follow-up report will evaluate the ordinance's equity and effectiveness after it takes effect in November. (See related CP&DR coverage .) SACOG Releases Draft Regional Plan The Draft 2025 Blueprint from Sacramento Area Council of Governments (SACOG) outlines a long-range plan to guide land use and transportation investments across the Sacramento region through 2050. It aims to reduce greenhouse gas emissions and vehicle miles traveled by promoting compact, mixed-use development and expanding options for walking, biking and transit. The plan reflects input from over 6,000 community members and offers local governments tools and data to align development with regional goals and streamline environmental review. SACOG will continue monitoring implementation through monthly updates and provide technical assistance to ensure ongoing progress. (See related CP&DR coverage .) Senate to Consider 118,000-Acre Addition to Santa Monica Mountains National Recreation Area A U.S. Senate bill introduced by Sen. Adam Schiff calls for the addition of over 118,000 acres of the Rim of the Valley corridor to the Santa Monica Mountains National Recreation Area. The corridor is a non-contiguous “green belt” surrounding the San Fernando Valley and enclosing existing parks and historic sites such as Griffith Park and Olvera Street. Such an addition to the 154,000-acre Recreation Area would bring consolidated management and federal funding and expertise to the new areas. Efforts to protect the Rim of the Valley date back to the mid-1970s. The latest bill comes as the Trump administration is proposing cutting $1.2 billion dollars in funding for the National Park Service, around 30% of its operating budget. Activists say the funding cuts would leave the Santa Monica Mountains vulnerable to cession to state control. Rep. Laura Friedman is expected to introduce a version in the House. Proposal to Sell Federal Lands Removed from Budget Bill The Senate Parlimentarian ruled out the sale of more than 3,200 square miles of public land from the GOP's spending bill after determining the proposal violated Senate rules. The plan, proposed by Utah Senator Mike Lee, would have opened millions of acres in western states to sale to states or other entities for use building housing or infrastructure. The Parlimentarian also ruled against other GOP proposals such as changes to oil and gas lease permitting on federal lands and the construction of a new mining road in Alaska. Lee said he plans on submitting a revised plan which excludes the sale of U.S. Forest Service Land and only allows the sale of Bureau of Land Management land within five miles of population centers. CP&DR Coverage: How Hollywood Contributed to, and Suffers from, L.A.'s Housing Crisis Moviemaking in Los Angeles County is flickering out, with 31% fewer filming days in 2024 compared to 2020. This year is shaping up to be worse. One of the reasons production "ran away" in the first place is that the cost of labor in Southern California is exorbitant. It's cheaper to pay gaffers in Atlanta and extras in Vancouver than to pay them for the same work in Hollywood. Ideally, Hollywood should promote exactly the type of neighborhoods that it likes to shoot. Movies and TV shows disproportionately portray busy, walkable, attractive urban neighborhoods that are easy to create on a studio lot but almost impossible with conventional zoning, financing, and infrastructure.The entertainment industry needs to understand that a cheaper city will also be a more creative city, where artists can thrive without worrying so much about eviction or starvation. A more creative city means better (and maybe more profitable) shows, movies, music, and art. Quick Hits & Updates The Office of Land Use and Climate Innovation is kicking off a comprehensive update of the state's General Plan, Specific Plan, and Tribal Consultation Guidelines (collectively known as LCI's Planning Guidelines). This update process will engage diverse partners—planners, local staff and officials, and other community members involved in planning processes—to help shape guidance and resources that support local planning efforts and foster the growth of vibrant, resilient and inclusive cities and counties across California. Planners can attend the project launch workshop virtually, July 15, at 10 a.m. For questions email: planningupdate@lci.ca.gov. A federal judge ruled that LA officials failed to follow a settlement agreement to provide more housing for homeless people. The ruling found that the city breached its settlement agreement with L.A. Alliance for Human Rights by not providing a plan for creating a promised 13,000 new shelter beds by June 2027, missing milestones for those beds, and failing to provide accurate data about homelessness. Quarterly progress hearings have been ordered for the city and L.A. alliance. The judge characterized the ruling as progress, not punishment, saying he wanted the city to succeed. Six Flags, the parent company of California's Great America in Santa Clara, announced the amusement park's likely closure after the 2027 season. The company's lease on the park's land ends in 2028 with a 5-year renewal option, and no final decision has been made. In 2022, San Francisco real estate firm Prologis bought the park's land from then-owner Cedar Fair for $310 million, with Cedar Fair agreeing to lease back the land for 6-11 years, ending park operations afterwards. Developers behind a proposed eight-story building near the Santa Barbara Mission filed a legal petition against the city, arguing that its repeated rejection of their application violates Builder's Remedy provisions. The city has deemed the application incomplete multiple times, most recently citing inconsistent floor area details, prompting the developers to seek court intervention after a similar case was previously dismissed. Solano County officials are urging Suisun City to pause annexation plans tied to the California Forever project until the county completes a multi-year General Plan update, citing concerns about scale, land use and lack of coordination. Suisun City, which has already signed a reimbursement agreement with the developer, defends its actions as transparent and collaborative, while critics warn the move could undermine regional planning and bypass voter input. (See related CP&DR coverage .) The Department of the Interior under the Trump administration is supporting a controversial plan to utilize the Mojave Desert as a source of water for parts of Arizona, as strain on the Colorado River increases. The project is led by Cadiz Inc., a Los Angeles-based water company that has faced decades of opposition over environmental concerns and regulatory hurdles in California. The current rules governing water usage from the river expire in 2026, and Arizona has already committed to cutting over a quarter of it's river water use. Taking water from the Mojave desert has faced stiff opposition in California in the past. A report identifies 49 commercial properties in downtown San Francisco suited for housing conversion, with the potential to create 4,400 new homes and $15.5 million annually in tax revenue. New proposed legislation would designate an "Downtown Revitalization District" which would financially incentivize developers converting buildings to housing. Until now, developers have been discouraged by high conversion costs, despite historic office vacancy rates. The California Attorney General's Office warned Stanislaus County that its General Plan and Housing Plan fail to meet state requirements on environmental justice, climate adaptation, and identifying disadvantaged communities, specifically under SB 1000, a 2018 law requiring local governments to identify disadvantaged communities and include environmental justice in their land use planning. The California Legislative Analyst's Office recommends closing five more state prisons due to an anticipated surplus of 15,000 prison beds by 2024-25, potentially saving the state over $1 billion annually. Despite financial incentives, Governor Gavin Newsom has not committed to these reductions, prompting calls from organizations like Californians United for a Responsible Budget to redirect funds to community-based resources and reentry programs. The U.S. Social Progress Map evaluates quality of life across U.S. cities using 50 indicators covering basic needs, wellbeing and opportunity, revealing that six of the top ten cities for social progress are in California. Leading the rankings are San Ramon (#1) and Pleasanton (#2) in the Bay Area, followed by Folsom (#5), Carlsbad (#7), Irvine (#8) and Fremont (#10). This comprehensive tool helps policymakers and communities make data-driven decisions to promote equity and wellbeing beyond traditional economic measures. San Francisco is reconsidering the implementation of congestion pricing, inspired by the success of New York's recently implemented program, which has significantly reduced traffic, commute times and increased transit use. Despite slow downtown recovery and political resistance, officials are exploring the idea, particularly as a potential solution to the city's transit funding challenges amid a projected budget deficit for BART and Muni.

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 . Feds May Sell Millions of Acres Across Western States Senate Republicans have introduced a proposal for the Forest Service and Bureau of Land Management to sell between 0.5% and 0.75% of their total 438 million acres of land. That would amount to 3.3 million acres of federal land in 11 western states, including parcels near California landmarks like Yosemite, Lake Tahoe and the Trinity Alps, and large swaths of the Sierra Nevada Mountains. The plan, part of President Trump's budget package, claims to be aimed at addressing the housing crisis by allowing construction on these lands, though specific sale locations remain unspecified. Some interpretations of the bill place the number of acres open to sale at far more -- up to 250 million acres, mostly in the West. While proponents argue the sales would generate between $5 billion and $10 billion in revenue and support economic development, critics warn the move threatens public access to outdoor spaces. Exemptions would apply to protected areas like national monuments and wilderness regions, but concerns remain about the feasibility of developing rural tracts lacking infrastructure. The proposal faces an uncertain path forward, with even some Republicans expressing reservations. Local Authority Could Aid Fire Recovery with Tax-Increment Financing An independent panel is calling on the California Legislature to create a new local authority to oversee rebuilding after the Palisades and Eaton fires. The Blue Ribbon Commission on Climate Action and Fire-Safe Recovery issued over 50 recommendations, including the creation of a Resilient Rebuilding Authority led by a board with members appointed by the governor, state lawmakers and local governments, with guidance from citizen advisory boards. The Commission recommended the proposed authority buy fire-razed lots--using increment financing, in an echo of the state's defunct redevelopment system--and coordinate development and construction at scale, with displaced residents being first in line for new homes. Commission members say this approach will prevent land from being bought up by investors and developers to be turned into more expensive homes. The commission also recommended a ballot measure for the creation of a new Los Angeles County Fire Control District, focused on wildfire management and fire risk reduction. Other recomendations include encouraging constructing all-electric homes, standardizing soil testing and cleanup, creating "buffer zones" around urban-wild boundaries, "fire-hardened" construction codes, additional water storage capacity and dousing systems, and voluntary programs shifting development to low-risk areas. Amid Controversy over Appointment Process, San Francisco Names Planning Director Mayor Daniel Lurie has name Sarah Dennis Phillips has been named San Francisco's new city planning director. Her contentious selection process culminating in three of the seven planning commission members walking out and refusing to vote on the appointment, objecting to the decision process. Mayor Lurie's office submitted Phillips, currently the executive director for the city's Office of Economic and Workforce Development, for the position less than a day before the vote. In the past, planning director appointments involved a search process of several months. The three protesting commissioners were appointed by the Board of Supervisors, while the four voting for Phillips were appointees of former Mayor London Breed. Phillips will oversee the finalizing of a rezoning allowing for 46,000 new housing units, due to be adopted by the Board of Supervisors by Jan 31, 2026. She succeeds Rich Hillis, who had held the position since 2020. Yurok Tribe Completes Acquisition of 47,000 Acres in North State The Yurok Tribe in Northern California has finalized the largest “land back” transfer in the state's history by acquiring 47,000 acres around the Blue Creek watershed, doubling their modern land holdings and restoring ancestral territory. This land, adjacent to their reservation near Klamath in Del Norte County, includes vital salmon sanctuary areas and is being managed as a community forest with sustainable logging and ecological restoration efforts. The acquisition complements recent dam removals on the Klamath River, enhancing habitat for migrating salmon and steelhead and reflects a partnership between the tribe, Western Rivers Conservancy and public and private funders. The Yurok Tribe is the largest in California, with over 5,000 enrolled members. CP&DR Coverage: Sacramento Updates The Assembly Downtown Recovery Committee has pulled together 13 already introduced bills into a downtown “package” designed to help downtowns as they recover from Covid-related declines. The “package” was announced by the committee's chair, Assemblymember Matt Haney, D-San Francisco. The bills cover a wide range of topics including streamlining Medi-Cal enrollment for the homeless, streamlining alcohol licenses and restaurant openings, and creating an option for cities and counties to permit bars to open until 4 a.m. Three of the 13 bills will be of particular interest to planners, developers, and property owners, with two of them using a tax-increment-like mechanism to help finance adaptive reuse of buildings, including conversion of office buildings to residential use. In his “May revise” budget for next year, Gov. Gavin Newsom has proposed creating the long-awaited state vehicle miles traveled mitigation program, with mitigation to be allocated on a region-by-region basis. In all likelihood, the VMT mitigation bank funds will wind up as yet another layer of financing for affordable housing, similar to funds available from the Affordable Housing and Sustainable Communities program. The complication is that, as the California State Association of Counties pointed out, “This is notable as there is no current standard for VMT assessment, reduction, or mitigation price used in the state.” Quick Hits & Updates A San Diego judge dismissed the lawsuit seeking to mandate Del Mar's approval of the 259-unit Seaside Ridge housing project, ruling that the developer must first appeal the city's denial through local channels before seeking court intervention. While the developer argues Del Mar violated state housing law by rejecting the project under the builder's remedy during a period of Housing Element noncompliance, the city maintains the application was incomplete and no final decision was made, making court action premature. (See related CP&DR coverage .) San Diego will cap the number of ADUs that can be built on a single-family lot, closing a loophole in ADU incentives that led to a handful of cases in which property owners built over a dozen on a single lot. The council also adopted new rules capping ADUs at two stories, setting a maximum size of 1,200 square feet, and allowing homes to be sold rather than only rented. Councilmembers characterized the move as a correction to a program intended to ease housing supply, but which had led to some exploitation. STV and Sonoma-Marin Area Rail Transit (SMART) have opened a new commuter rail station and 3.2-mile extension in Windsor, featuring upgraded track, bridges, crossings and a fully integrated pedestrian path. This extension marks a major milestone in SMART's effort to complete a 70-mile rail corridor from Larkspur to Cloverdale, aimed at improving regional mobility and sustainable transportation in the North Bay. (See related CP&DR coverage .) Berkeley officials approved a 28-story, 599-unit apartment tower at 1998 Shattuck Avenue, which would be the city's tallest residential building, signaling a significant shift in local housing politics. Despite growing support for high-density development and state laws encouraging it, developers say high construction costs, tariffs and financing challenges make it unlikely the tower will be built soon. Belvedere released a revised housing plan that clarifies previous proposals without altering the number or location of units, and the state has informally indicated the changes are sufficient to move the plan toward certification. Although the city remains out of compliance with state housing law and faces potential penalties, officials expect the plan to be approved contingent on final zoning changes that support at least 160 new housing units through 2031. California High-Speed Rail Authority officials are disputing findings of the Federal Railroad Administration's audit, calling the report inaccurate and misleading. The audit recommends rescinding $4 billion of federal funding for the project, originally planned as an $33B LA to San Francisco line opening in 2020. After massive delays and cost hikes, the Rail Authority is now focusing on the completion of a 172-mile central valley line, with construction fully funded for 119 miles from Shafter to Madera. The 2025 Happy City Index ranks San Diego as the 34th happiest city in the world, recognized for its efforts in sustainability, public health and livability. Other California cities appearing in the top 200 include San Jose and Los Angeles, though they rank lower due to challenges in affordability and transportation. The Justice Department's new legal opinion says President Trump can revoke or alter national monuments created by previous presidents, putting California's recently designated Chuckwalla and Sáttítla Highlands monuments at risk. This move has sparked strong opposition from conservationists and lawmakers, with potential legal battles expected over the authority to undo these protections. Los Angeles, in partnership with CityLab-UCLA, is addressing its housing affordability crisis by reimagining approximately 24,000 small, vacant residential lots scattered across the city. Through a design competition led by CityLab-UCLA, architects proposed compact, multi-unit housing prototypes that avoid traditional single-family homes in favor of space-efficient designs with outdoor areas and natural light. The city plans to pilot these models on a dozen publicly owned lots to demonstrate how such underused parcels can support affordable homeownership. The City of Sacramento has proposed charging residents $120 dollars a year for parking permits to park in front of their own homes to help cover its $44 million budget deficit. The residential permit program, affecting around 30,000 residents in various areas of the city, has been free since its creation. LA Metro will move forward on a plan for the underground construction of the proposed Southeast Gateway line between Union Station in downtown and the city of Artesia. So far the city has identified $2 billion in funding for the first section between the A line Slauson Station and Artesia, the section is projected to cost $5 billion. One proposed solution to the shortfall is an enhanced infrastructure financing district.

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 . Sacramento City Council Advances Plan to Develop Soccer Stadium at Railyards The Sacramento City Council approved key steps to advance a new, privately funded soccer stadium for Sacramento Republic FC in the downtown Railyards, a long-anticipated project expected to generate over $8 billion in one-time economic impact and thousands of jobs. The vote included a "definitive documents" resolution, indicating that the city and developers are in alignment, and the approval of the expansion of the Railyards Enhanced Infrastructure Financing District. While supporters praise the stadium as a catalyst for revitalizing the 237-acre site, with backing from Wilton Rancheria and over $217 million committed, opponents, including labor unions and housing advocates, argue the financing plan lacks transparency, prioritizes private developers and neglects affordable housing. The infrastructure plan, which leverages future property tax revenue through an Enhanced Infrastructure Financing District (EIFD), would offer $92 million in tax rebates for roads and utilities but not fund the stadium itself. Critics worry the plan is being rushed amid Sacramento's $44 million budget shortfall, though city leaders insist the stadium poses no fiscal risk and will ultimately benefit the city financially. The full Railyards development, including a 20,000-seat stadium, retail venues, housing and a major medical center, is slated for completion by 2027. (See related CP&DR coverage .) California Forever Will Fund Efforts to Explore Annexation of Properties to Suisun City The Suisun City City Council approved , on a 3-1 vote, a reimbursement agreement, which is a initial step toward annexing over 22,000 acres of California Forever-owned land, with the possibility of adding 150,000 residents by 2048. The agreement allows California Forever to fund city staff and environmental review costs without obligating Suisun to finalize annexation, though a $10 million public benefit package could follow if the project proceeds. California Forever, which failed to pass a ballot initiative last year due to environmental and fiscal concerns, has shifted strategies by offering property purchases and grants to build goodwill in financially struggling Suisun. The plan has sparked fierce debate, with supporters citing economic revitalization and opponents warning of lost open space, mistrust in the developer and lack of voter input. The Solano County Board of Supervisors asked Suisun City to pause annexation talks with California Forever while the county updates its general plan, raising concerns about transparency and potential Brown Act violations. (See related CP&DR coverage .) Kern County Grand Jury Improbably Weighs in on Bike Lanes In an unusual move, Kern County Civil Grand Jury released a report titled "The Proliferation of Bike Lanes: Whose Road is It?", in which it criticized Bakersfield's bicycle infrastructure planning. The report acknowledges benefits such as reduced injuries and emissions, but argues bike lanes are impractical due to the city's heat, air quality, and traffic. It accuses the firm Alta Planning + Design, responsible for the city's most recent bike and pedestrian plan, of being "biased towards bicycles". Critics of the report have raised concerns of the Civil Grand Jury overstepping its role, arguing the report does not fall under the Grand Jury's mandate to investigate "inefficiencies and misconduct in government", as described on Kern County's website. The Civil Grand Jury has recommended revising RFP materials to "better identify potential biases or conflicts of proposals", conduct auto and bike counts before constructing new bikeways, and develop a cost-benefit model for bike lanes (a model already exists and is in use). Studies Contemplate Increased Tsunami Danger New studies indicate that California's entire coastline is more vulnerable to tsunamis than previously thought, with the potential for widespread destruction and potentially displace or endanger over 680,000 people during daytime hours. The state faces two types of tsunami threats: distant-source events, which offer hours of warning but can still inundate major coastal cities, and near-source tsunamis, which strike within minutes, leaving little time to evacuate. In Southern California, distant tsunamis could bring waves as high as 15 feet and over $1.4 billion in damages, while local events could generate even higher surges in places like Catalina Island and Palos Verdes. The Bay Area and Central Coast are similarly exposed, with possible fatalities in the thousands and economic losses topping $10 billion combined. Northern California is the most at risk due to its proximity to the Cascadia subduction zone, where a major quake could trigger waves up to 50 feet and inflict over $1 billion in damages to Del Norte County alone. (See related CP&DR coverage .) Los Angeles Considers Major Subway Expansion LA Metro released new details for the Sepulveda Transit Corridor Project, an ambitious rail proposal to connect the San Fernando Valley and the Westside with a rail service. The project is currently in the planning phase and under environmental review alongside five alternative proposals that call for either a monorail or a heavy rail solution with above-ground, underground and combination alignments. LA Metro's established goals of the project are to improve mobility, access and equity, support community and economic development, improve sustainability, provide low-cost transportation, and enhance resiliency. The project will run between the Van Nuys Metrolink/Amtrak station and Metro E Line. The Measure M expenditure plan has identified $9.5 billion of funding. CP&DR Legal Coverage: Anti-Housing Litigants Rebuffed in Eureka; Aesthetics and CEQA Opponents of downtown affordable housing in Eureka may have lost a ballot measure last fall, but they are continuing a barrage of litigation to try to stop conversion of three downtown parking lots to housing. "Citizens for a Better Eureka" lost the latest round, however, when an appellate court ruled that the designated developer - an affordable housing affiliate of the Wiyot Tribe - is indeed a “necessary party” to a lawsuit filed by Citizens for a Better Eureka challenging the city's claim that its declaration of a downtown parking lot as surplus land qualified for a Class 12 exemption under the California Environmental Quality Act. The battle over the downtown parking lots has been going on for several years, in large part because opposition to building affordable housing on the lots has been bankrolled by “local billionaire” Ron Arkley. Reversing a lower court ruling, an appellate court has thrown out the City of Mount Shasta's mitigated negative declaration for a charter school and ordered the city to do an environmental impact report. The ruling would seem to run counter to the current trend - at least in the legislature - to minimize the use of EIRs. The main issue in the situation is aesthetics. The charter school plans to use prefabricated metal buildings, which are allowable in industrial zones in the city but not in residential zones. Quick Hits & Updates The UCLA Luskin Center for Innovation and American Forests launched a national Shade Map that identifies areas lacking shade infrastructure across over 360 U.S. cities to help governments address extreme urban heat. By showing where and when shade from trees and buildings exists, especially in cities like Austin, Detroit and Phoenix, the tool enables targeted planning to improve heat resilience and equity in vulnerable communities. The proposed Zero Emission Passenger Rail and Trail project, consisting of a 22-mile rail line between Santa Cruz and Pajaro alongside 12 miles of the Coastal Rail Trail, will cost an estimated $4.3 billion. The high cost reflects major infrastructure upgrades, including replacement of 28 bridges, new right-of-way, stations and advanced train control systems, with operational plans featuring zero-emission Stadler FLIRT trainsets running every 30 minutes. The project expects weekday ridership between 3,500 and 6,000 passengers and includes potential future connections to San Francisco and existing tourist rail operations. A new housing progress report shows Los Angeles permitted more than 17,200 housing units last year, which is only around 30% of the yearly rate needed to comply with state law requiring the city to permit more than 456,000 new homes between 2021 and 2029. The city permitted 18,618 new homes in 2023, and 23,422 in 2022. On May 7, the California Air Resources Board accepted the Southern California Association of Governments' determination that Connect SoCal 2024 Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) meets CARB's greenhouse gas emission reduction targets. CARB's acceptance ensures transportation projects in the SCAG region remain eligible for all Senate Bill 1 funding programs. The San Jose City Council voted to increase the number of new homes qualifying for a 50% tax break under the multifamily housing incentive program from 1,500 to 1,800, The Council also signed off on $4.1 million in program tax incentives for Urban Catalyst's 278-apartment development, the latest in a series of breaks for apartment projects as the city seeks to boost housing supply. The Los Gatos Town Council approved its first Builder's Remedy project, a four-story mixed-use development near the high school, amid debate over traffic, safety and design impacts. While praised for its architecture and walkability, the project sparked debate over congestion concerns, with some officials warning of adverse effects and others asserting no legal basis to block or significantly alter the plan under state housing laws. Pro-housing advocates in San Diego are pushing to eliminate the city's longstanding 5,000-square-foot minimum lot size to allow denser, more affordable housing developments like two- to three-story single-family homes on smaller lots. They argue this change would increase housing supply, lower home prices and boost property tax revenues for the city, potentially generating tens to hundreds of millions annually depending on development scale.

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 . Sramek Lays Out Expansive Vision for Manufacturing at California Forever In a post on X, Jan Sramek, founder and CEO of California Forever, revealed a new vision for the company's proposed "new city" in Solano County. As the Trump administration is calling for manufacturing to "return" to the United States, Sramek envisions a high-tech manufacturing hub similar to the special economic zone in Shenzhen, China's. Sramek offered up land already owned by California Forever for industrial activities such as shipbuilding, and he argues that the location is ideal due to its proximity to Silicon Valley. He states that existing policy momentum, including bipartisan support for re-industrialization and the 73-0 passages of a resolution in the State Assembly to support shipbuilding, means the state is already shifting towards this possibility. Sramek envisions seamless travel between headquarters and manufacturing sites using autonomous vehicles and eVTOL aircraft, and states the project is already pre-zoning and pre-clearing manufacturing space so projects can break ground in 90 days. He concluded that successful manufacturing relies on geographic clustering of suppliers and innovators, advocating for a concentrated industrial zone in California to reclaim national competitiveness. Major Infill Bill Passes in State Senate The California's Senate narrowly passed Senate Bill 79, a bill aimed at encouraging mid-rise housing development near high-frequency public transit to support both ridership and the state's housing supply. The bill, authored by Sen. Scott Wiener and supported by YIMBY groups statewide, distinguishes between transit types and allows taller buildings near heavy rail while limiting development around lower-frequency lines. In a statement, California YIMBY referred to it as "the most important housing legislation in a generation." Critics argue the bill could displace vulnerable communities and weaken local control over land use, though supporters highlight existing affordability mechanisms built into the legislation. The bill allows cities to propose alternative density plans for specific transit areas to retain some planning flexibility. It now goes to the Assembly. (See related CP&D coverage .) Revocation of Federal Funds Could Freeze High Speed Rail The Trump administration plans to revoke $4 billion in federal funding for California's high-speed rail project, jeopardizing the already-delayed and over-budget efforts. Without this funding, even the limited Central Valley segment between Merced and Bakersfield faces potentially decade-long delays due to a major funding shortfall. The Federal Railroad Administration cited missed deadlines, cost overruns and unrealistic projections in its justification, prompting criticism of the project's management. California officials remain committed to continuing construction using state funds and are likely to challenge the federal decision in court, though legal success is uncertain. The move has reignited political tensions and raises broader questions about infrastructure priorities, federal-state relations and the long-term viability of the high-speed rail vision. 2022 San Francisco Housing Law Results in Scant Development San Francisco's 2022 fourplex legislation, aimed at easing housing construction, has failed to deliver results, with only 11 applications submitted and no projects completed. YIMBY advocates had predicted its ineffectiveness, citing high construction costs, limited financing options and excessive bureaucracy as major barriers. The city's permitting process has proven especially difficult for small-scale developers without the resources of larger firms, leading to project delays and cancellations. A city-commissioned report from 2022 confirmed that most small developments under current economic conditions are financially unfeasible. While officials defend the legislation as a step forward, critics argue that without substantial reform to permitting and financial incentives, San Francisco will continue to struggle with building “missing middle” housing. CP&DR Coverage: How Lithium Extraction Could Transform the Imperial Valley Under discussion since the 2022, the Lithium Valley Specific Plan would govern 51,785 acres of northern Imperial County, along the southeastern edge of the Salton Sea and just north of the City of Calipatria. Though the plan is on the verge of adoption—with companies including Controlled Thermal Resources, Berkshire Hathaway, and EnergySource eager to break ground or expand existing operations—portions of the plan face at least one legal threat from environmental justice advocates. The plan hopes to attract industries that would process lithium and manufacturing lithium-related products onsite (much of which currently takes place overseas). It envisions 70 million to 80 million square feet of industrial and related development, including data centers for major tech firms, and up to 82,000 workers. The goal is to develop a comprehensive energy-based economy rather than an isolated extractive activity. Quick Hits & Updates The California Air Resources Board issued a pre-proposal solicitation for six research projects focused on sustainable transportation, land use, housing and building practices for fiscal year 2025-26. With an emphasis on equity and climate goals, these projects—ranging from wildfire recovery in disadvantaged communities to examining the housing impacts of zero-emission regulations—invite multidisciplinary researchers to submit pre-proposals by July 14. Researchers at Lawrence Livermore National Laboratory have developed a new method to monitor earthquakes with vastly improved precision by transforming fiber optic cables into thousands of virtual seismic sensors. Their approach, using a device called an interrogator, offers data 1,000 times more detailed than conventional methods and could significantly enhance early warning systems, uncover hidden fault lines and improve urban seismic safety across the Bay Area and beyond. The Congress for the New Urbanism included I-980 in Oakland and US 101 in San Mateo County in its biennial Freeways Without Futures report. Selected by a jury, the report identifies harmful urban freeways to draw attention to their socioeconomic and environmental effects and advocate for the replacement of these highways. The Peninsula Open Space Trust purchased nearly 2,500 acres of land south of Gilroy in Santa Clara County, representing about a third of the Sargent Ranch property, after controversy over the ownership group Sargent Ranch Partner's proposed plan to create a sand and gravel mine on the land. Strada Investment Group has proposed two high-rise residential towers totaling 1,500 units in San Francisco's South of Market area, marking the first major shift from office to housing under new Central SoMa rezoning rules. The project would include 150 affordable units, with the remainder market-rate, and reflects a broader move to repurpose stalled office developments for housing. UC Berkeley Team Blue won the Council of Large Public Housing Authorities' 2025 Innovation in Affordable Housing Student Design and Planning Competition. Team Blue won $15,000 and will present their design for the 2025 theme “designing for disasters” at the CLPHA Summer Meeting. Governor Newsom appointed Miranda Flores as Chief Deputy Director of Governor's Office of Land Use, Climate, and Innovation. She comes to LCI from the California Natural Resources Agency where she served as Deputy Secretary of Legislation since 2020. Prior to her appointment at CNRA, she worked at Assembly Member Bill Quirk's office. The federal government is selling the historic 1930s US Courthouse in downtown Los Angeles, hoping to reduce its real estate footprint by offloading underused properties. While the office space market Downtown is weak, some see long-term potential in developing the building. San Francisco is holding public hearings over the Prologis SF Gateway project, which if approved would be the city's largest industrial development deal in over a decade. Bayview-Hunters Point resident groups are advocating against the project, arguing that the area already suffers greatly from existing industrial polution and cannot withstand more development. A Politico and UC Berkeley poll found that 37% of California voters support more aggressive measures to address homelessness, including arresting individuals who refuse shelter. Another 24% of voters somewhat support them, 38% oppose, highlighting a divide between public opinion and state leadership on handling the crisis. San Francisco's Upper Great Highway, now known as Sunset Dunes, has been permanently closed to vehicles, transforming it into a 2-mile coastal park. Despite Proposition K passing with 54% voter approval, the decision remains contentious, with significant opposition from west-side residents who rely on the highway for commuting. In response, Supervisor Connie Chan is considering a ballot measure to reopen the highway to cars on weekdays while keeping weekend closures for recreation. The Tijuana River, heavily polluted by raw sewage and industrial waste from Mexico, has been ranked as the second most endangered river in the U.S. due to its severe environmental and public health impact. Environmental groups are urging the U.S. government to provide more funding for wastewater treatment infrastructure and for both the U.S. and Mexico to collaborate on fixing pollution issues on both sides of the border.

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 to Support Newport Beach in Lawsuit to Limit Housing The Orange County Superior Court has granted the Newsom administration and California Attorney General Bonta permission to file amicus briefs supporting the City of Newport Beach in a lawsuit over the city's new housing plan. Last August, the nonprofit Still Protecting Our Newport filed a lawsuit against the city over the city council's decision to approve steps needed for the implementation of the housing element without voter approval. SPON's lawsuit argues that the approval of changes without a ballot initiative violates section 423 of the city charter, which requires voters to approve any decisions that would significantly increase development in Newport Beach, unless precluded by state law. The current element calls for the creation of 8,174 housing units, compliant with the state mandate for 4,845 new residential units through 2029. In the past, Newport Beach, and many other coastal cities, has been at odds with the state over the alleged burden of its RHNA numbers. Supreme Court Ruling Could Limit Federal Environmental Review On an 8-0 decision, the Supreme Court ruled to limit the power of the National Environmental Protection Act, claiming that it stifles projects developed by or in partnership with the federal government, particularly infrastructure projects. The ruling claims that NEPA has resulted in fewer, and most costly, developments than originally intended by the 1970 law. “A 1970 legislative acorn has grown over the years into a judicial oak that has hindered infrastructure development under the guise of just a little more process. A course correction of sorts is appropriate,” said Justice Brett M. Kavanaugh, speaking for the court, as reported in the Los Angeles Times. Like the California Environmental Quality Act, NEPA (which was inspired in part by a 1969 California oil spill) requires environmental review of certain projects and can be the basis for lawsuits by opponents of projects. California projects that could be hastened by the ruling include High Speed Rail and the Delta Conveyance Project. The case, TK, concerned a proposed rail spur in Utah. Despite the unanimous decision, the court's three liberal justices did not sign on to the ruling, indicating that they agreed with the narrow focus on the Utah project but do not believe the ruling should set precedent for other NEPA-related projects. (See related CP&DR commentary .) Oceanside Joins Movement to Push Back against Warehouses The Oceanside City Council voted 3-2 to overturn the Planning Commission's approval of the Eddie Jones warehouse project. The 32-acre industrial site was previously home to a Deutsch Company electronics plant from 1966 to 2022, when it was demolished. Opponents of the project cited concerns over noise and air pollution, increased truck traffic, and the overall size of the development, which would be three times bigger than the Deutsch Company plant and sit 800 feet from the nearest houses. Proponents of the project argued that the increases in noise and pollution would be minimal, and the project would create 510 permanent jobs across different income and skill levels, in line with the city's economic goals. (See related CP&DR coverage .) Federal Reserve Study Suggests Looser Regulations Will Not Ease Housing Prices A new study from researchers at the University of California and the Federal Reserve Bank of San Francisco questions the widely accepted idea that easing housing regulations will significantly lower home prices. By comparing housing growth and prices from 1980 to 2020 across various U.S. metro areas, the paper found that easier-to-build cities did not necessarily add more housing, even when demand increased. This challenges the argument that deregulation is the key to solving high housing costs, particularly in expensive regions like the Bay Area. Critics argue the paper's methods are flawed, especially its reliance on total income as a measure of housing demand, which may not capture potential residents. While the study has sparked debate, experts caution against drawing conclusions from one paper and emphasize the need for broader, long-term research. (See related CP&DR coverage .) San Francisco Explores "Family Zoning" San Francisco's new Family Zoning Plan proposes large changes to the city's zoning codes to help meet the state-mandated housing goal of 82,000 homes by 2031. The plan would allow denser multifamily housing in more neighborhoods, particularly in the northernmost and western parts of the city, and promote development along transit corridors and commercial streets. The plan introduces new zoning categories, loosens density restrictions and aims to ensure equitable housing access while maintaining protections for small businesses and renters. The city plans to finalize the proposal through legislation and invites the public to provide input through hearings and events. CP&DR Legal Coverage: Dodger Stadium Gondola Strikes Out in Court In an unpublished ruling, an appellate court has found fault with the environmental impact report for the proposed aerial gondola from Los Angeles Union Station to Dodger Stadium and has ordered LA Metro to redo the EIR. The court found that LA Metro had not sufficiently analyzed noise impacts during the construction period and had failed to adequately consult with the Santa Monica Mountains National Recreation Area, which has jurisdiction over the natural resources in several parks that would be affected by the gondola. But the 119-page ruling was not all bad news for LA Metro, however. The court ruled that a land use inconsistency with the Los Angeles State Historic Park near Chinatown was easily resolved with an amendment to the park's general plan. The court also said Metro had properly analyzed alternatives, including increased bus service from Union Station to the stadium. Quick Hits & Updates Via a recent vote, the Encinitas City Council is supporting a proposed state constitutional amendment that would return housing authority to local governments, aiming to rally other like-minded cities to join their effort. This local pushback highlights a growing movement among some municipalities to oppose pro-housing state laws, even amid lawsuits and rising homelessness in places like Encinitas. The Department of Housing and Community Development revoked Fresno's Prohousing Designation, citing multiple housing policies the city has not passed since the fall 2024 deadline. The Prohousing Designation gives cities and counties the ability to apply for millions of dollars in state housing subsidies and is given to cities and counties the state believes are doing a good job of addressing local housing needs. It is the first such revocation since the program began in 2021. (See related CP&DR coverage .) Developer Paul Petrovich, who previously secured a $26 million settlement from Sacramento, is threatening legal action again after the city denied his request to build 61 single-family homes on land partially zoned for multi-family housing in Crocker Village. City officials and advocates argued the proposal conflicted with policies promoting diverse, transit-accessible housing, while Petrovich and some residents claimed the decision undermines community planning and violates state housing law. (See related CP&DR coverage .) San Francisco officials are advancing a long-stalled plan to redevelop the historic but blighted Alexandria Theater into a new eight-story residential building with 75 homes, while preserving key architectural features. The proposal, backed by Supervisor Connie Chan, includes a three-year deadline for construction to begin and mandates that at least 12% of the units be affordable housing. A Santa Barbara County judge has ordered Sable Offshore Corp. to pause all coastal construction and repairs tied to its offshore oil operations until the company secures proper permits from the California Coastal Commission. This comes after Sable resumed oil production near Refugio State Beach, sparking backlash from environmentalists and regulators. New data from the Bay Area Council business association's Return to Office survey shows more Bay Area workers are returning to the office but most are choosing cars over transit for their commute. While rush hour freeway congestion has returned to pre-pandemic levels, BART is serving 170,000 trips each weekday, down from 400,000 pre-pandemic. Experts posit that the increasing prevalence of hybrid work schedules and flexible hours post-pandemic is changing how commuters use transit. The Lompoc City Council adopted an ordinance to decrease development impact fees for new residential projects from $40,000 to $3,100 per unit to encourage construction of new housing. The move comes as Lompoc attempts to increase its housing supply and attract new development, and Council members stressed the necessity of increasing the housing supply to meet the needs of working families. A report out of UC Berkeley's Terner Center finds that California's affordable housing development process is hindered by the complex "stacking" of multiple funding sources, which increases costs and delays construction. The report recommends consolidating housing planning functions and standardizing applications to improve efficiency, a proposal that aligns with Governor Newsom's plan to streamline housing efforts. Gov. Newsom is pushing for a trailer bill to expedite the Delta Conveyance Project, a $20 billion water rerouting plan, by shortening judicial reviews and eliminating construction deadlines. The project, which has faced opposition from environmental and delta lawmakers, aims to address California's future water supply challenges, but critics argue it is costly and ineffective, while water agencies supporting the project see it as crucial for securing future water supplies. Once a hub of downtown San Diego, Horton Plaza is now facing foreclosure as ambitious redevelopment plans by Stockdale Capital Partners to turn it into a "technology hub" have stall edamid rising costs and debt. The future of the site remains uncertain. (See related CP&DR coverage .)

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 . Self-Certification Movement Spreads to Los Angeles County Los Angeles County has introduced a pilot initiative allowing licensed architects and engineers to self-certify that their building plans comply with county codes, hoping to expedite the rebuilding process in unincorporated areas impacted by recent Eaton and Palisades fires. Despite self-certification, projects still require approval from other departments including Regional Planning, Public Health and Fire Departments before a building permit is issued. Licensed professionals assume full responsibility for compliance fof their plans. The county plans to conduct random audits on plans and inspections throughout construction phases to guarantee compliance. Plans can be submitted via the online portal or at designated One-Stop Permit Centers in Calabasas and Altadena. (See related CP&DR coverage .) S.F. Mayor Seeks to Reduce Commercial Vacancies San Francisco Mayor Dan Lurie introduced legislation aimed at simplifying the city's permitting system in the hopes of supporting small businesses. Under the proposed ordinances, minor upgrades including outdoor seating, signage and minor upgrades would not require permits. The legislation also seeks to broaden the types of businesses allowed in ground-floor spaces to address widespread commercial vacancies. These changes build on earlier reforms expanding service hours, removing minor approval steps and introducing centralized online resources. While the initiative has broad support, some critics voiced concern about limited community impacts and potential impact on neighborhoods facing economic pressure. Menlo Park Ballot Measure Would Quash Housing, Preserve Downtown Parking Save Downtown Menlo Park is seeking to place an initiative on an upcoming ballot requiring voter approval on any city plans to diminish downtown parking. The group, which recently filed a notice of intent with the city of Menlo Park, seeks to halt the proposed development of at least 340 housing units on Parking Plazas 1, 2, and 3 in downtown Menlo Park. Opponents of the project argue that by eliminating over 500 parking places, it would harm nearby small businesses that rely on parking access for patronage and diminish the downtown's capacity as a community center. Save Downtown Menlo Park also sued the city in April to try to stop the project. At least 10% of Menlo Park's roughly 20,000 registered voters must sign the initiative before a measure can be placed on a ballot. Multiple developers have submitted site proposals, and city officials say they will recommend next steps to the city council this month. Texas-Based Plaintiff Seeks to Undo Designation of Chuckwalla National Monument A lawsuit filed in federal court this month seeks to overturn President Biden's creation of the 624,000 acre Chuckwalla National Monument in Southern California, arguing President Biden exceeded the authority of the Antiquities Act, and that the act itself is unconstitutional. The suit, filed by the Texas Public Policy Foundation on behalf of a Michigan resident with mining claims and the BlueRibbon Coalition, claims the designation violates the act's requirement that monuments be limited to the smallest area that meets protection needs. It also claims the monument would place onerous restrictions on Plaintiff Daniel Torongo's mining claims, as well as on outdoor recreation access. Package of Bills to Revitalize Downtowns Introduced in Assembly Assemblymember Matt Haney (D-San Francisco) as Chair of the Downtown Recovery Committee, unveiled a legislative plan to help breathe life back into the state's urban cores. Joined by mayors from across the state and members of the Assembly's Downtown Recovery Committee, Haney, who recently conducted a "tour" of nine downtowns across the state, announced a package of 13 bills--five of which are sponsored by Haney--aimed at reversing high vacancy rates, supporting small businesses, tackling homelessness, and reigniting local economies. The Recovery Committees bill package includes measures to spur infill housing near jobs and transit, streamline approvals for office to housing conversions, support struggling nightlife and entertainment venues, and getting homeless people of the streets and into housing. (See related CP&DR coverage .) CP&DR Coverage: How Feds Could Undermine California Habitat Conservation Plans The Trump Administration has proposed eliminating protection of critical habitat under the Endangered Species Act, which is the foundation of the longstanding system of habitat conservation plans that California has put into place over the last 30 years. It's unclear what the actual impact on California will be given the fact that the state has its own Endangered Species Act, which is in some ways is more stringent than the federal law. But the rule does create uncertainty around the federal habitat conservation plans - as well as state natural communities conservation plans that have been created with federal cooperation - that have shaped private development for decades, especially in Riverside, Orange, and San Diego Counties. In many cases, these conservation plans are now embedded in local general plans as well. The new rule is also aimed partly at federal land, such as land owned by the Bureau of Land Management and the National Forest Service, in order to open up that land for logging, oil drilling, and possibly development of Trump's proposed "freedom towns." Quick Hits & Updates A new report finds that 49 downtown San Francisco properties are prime candidates for conversion into housing, potentially creating up to 4,400 new units under a proposed special financing district. The city hopes to incentivize these projects with long-term developer reimbursements and waiving affordable housing mandates for early projects. A recent survey found rents are rising in most SoCal cities, with only six out of 32 cities surveyed—Temecula, Murrieta, West Covina, Long Beach, Escondido and Santa Clarita—seeing year-over-year declines in April. This time last year, 44% of SoCal areas experienced rent decreases, indicating landlords have regained some pricing power amid increased demand due to unaffordable homeownership and housing losses related to recent wildfires. Former Palm Springs Mayor Steve Pougnet has pled guilty to multiple bribery and corruption charges, admitting he accepted payments in exchange for supporting certain real-estate projects. The payments were alleged to take place between 2012 and 2014 and include up to $375,000 in bribes paid to Pougnet by two developers. California Attorney General Rob Bonta has filed two lawsuits against the Trump administration over a policy that threatens to withhold billions of dollars in transportation and homeland security grants unless states comply with federal immigration enforcement. Bonta argues that this policy unlawfully attempts to coerce states into using their resources for immigration enforcement, as these funds are unrelated to immigration matters and are crucial for public safety and infrastructure. In a leaked email to a donor, the chair of the San Francisco Parks Alliance admitted that the nonprofit misused at least $3.8 million in restricted funds. As the organization collapsed financially, funds designated for specific projects were used to cover operating expenses. Viewed as a critical partner for a wide variety of projects from new parks to habitat restoration, the Alliance now faces calls for a criminal investigation, as well as the possibility of shutting down. According to a report released by Streets for All, proposed state bill SB 79 could generate up to $1 billion annually in property tax revenue for Los Angeles, roughly equivalent to the city's 2025 budget shortfall. A modest growth scenario would generate $200M, more than enough to cover the estimated savings of laying off 1,600 city employees. SB 79 would set minimum zoning densities within a 1/2-mile radius of high quality transit stops, and gives transit agencies more flexibility in developing land they own. The Irvine Company has proposed redeveloping the Oak Creek Golf Course into a 3,100-home village, known as the Irvine Spectrum District Village, situated between Jeffrey Road and Sand Canyon Avenue in Irvine. The plan includes 1,500 single-family homes, 1,600 apartment units, a new school, parks and trail connections, aiming to address the city's housing needs while maintaining proximity to jobs and amenities. Marin County is experiencing a significant outflow of low-income residents due to high housing costs, with data showing the county has the largest rate of negative net migration for low-income households in the Bay Area. This trend is contributing to population losses, school enrollment declines and increasing difficulty for workers to live in the area where they work, further exacerbated by the county's historical resistance to new housing development and policies like rent control. According to the state of the Region 2025 Economic and Election Report, Riverside-San Bernardino-Ontario counties are expected to experience modest economic growth in 2025, driven primarily by the logistics sector and housing demand. While new regulatory changes and uncertainties around tariffs and federal policies could create challenges, lower interest rates will support the housing and construction industries. Despite limited growth in healthcare and education due to state budget constraints, the region is poised to see positive impacts from housing market activity and property tax revenue.

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 . May Budget Revise: Housing Bills; Coastal Commission Reform; VMT-Oriented Financing In conjunction with his May Budget Revise, Gov. Newsom announced support for a several policies to promote housing development. The Governor is proposing to incorporate two major housing bills into the budget: Senate Bill 607 (Wiener)and Assembly Bill 609 (Wicks), both of which speed CEQA review for infill projects, or exempt them entirely The governor also proposes aligning Coastal Commission permitting timelines to those that apply to other agencies, so that communities in the Coastal Zone are not left behind when it comes to urgently needed housing.The May Revise introduces a financing strategy for developers that links vehicle miles traveled reductions with infill and transit-oriented housing production, further aligning the state's climate goals with housing needs. The May Revision proposes an extension of the Cap-and-Trade program and renaming it the Cap-and-Invest program; it will enable a stable and predictable price on carbon pollution to drive investments in carbon reduction and clean technologies. Extension of this program will result in a continuation of the California Climate Credit, resulting in approximately $60 billion available for utility bill credits, with at least $1 billion annually should be provided for High-Speed Rail. San Diego to Reimagine Civic Center, Including Workforce Housing San Diego's Civic Center will be transformed under a new redevelopment proposal, including plans for affordable housing specifically intended to support teachers, artists, students and working professionals. Led by a coalition of civic, educational and business organizations, the plan reimagines six blocks of city-owned land as mixed-use for culture, education, housing and public life. The vision includes a new 3-acre civic plaza for events, a modern arts and education complex and improved amenities in the hopes of revitalizing downtown San Diego. Over 20 groups contributed to the proposal. Although timelines and costs are still being finalized, early site activation is expected by late 2025, with phased development and a dedicated oversight body in development. Caltrans Complicates Efforts to Build Housing in Woodside The town of Woodside, once criticized for using mountain lions as a reason to avoid building housing, is now battling in favor of an affordable development on a 22-acre state-owned site near Highway 280. The development faces resistance from Caltrans due to the presence of rare and endangered wildflowers. The proposed housing project, hoping to address a state mandate requiring 328 new units, is seen by town leaders as a key opportunity to support local workers who are currently priced out of living in the community. Caltrans has cited the site's ecological sensitivity—including the presence of protected plants—as a reason to delay or potentially block development. Despite initial cooperation, the agency has slowed the process with environmental reviews and concerns about asbestos, leaving town leaders frustrated by what they see as bureaucratic contradictions in California's housing efforts. With few other viable locations, officials argue the housing crisis should outweigh preservation concerns in this particular case. Court Affirms' Cities' Responsibility for Street Safety The California Supreme Court ruled that cities cannot use third-party waivers to avoid responsibility for unsafe street conditions, siding with Oakland cyclist Ty Whitehead, who suffered severe injuries after hitting a pothole. Whitehead had signed a waiver with the AIDS Lifecycle event organizers, but the court determined that the waiver did not extend to the City of Oakland, which was not a party to the agreement. This decision overturned a lower court ruling that had sided with the city and sparked support from several bicycle advocacy groups. While the Supreme Court sent the case back for further proceedings, it clarified that cities still owe a duty of care to maintain safe roadways. In response to the case, Oakland made temporary repairs to Skyline Boulevard, though more lasting improvements may be delayed due to budget constraints. CP&DR Coverage: Trump Could Undermine State Climate Regulations President Donald Trump recently issued an executive order clearly targeting California's climate laws. The result could be that the Administration will go after a wide variety of laws and policies that drive general plans in California. These include e state's policies to limit vehicle miles traveled in laws such as SB 375 and SB 743 as well as the environmental justice requirements contained in SB 1000. The executive order would appear even to give the Administration leeway to target local climate action plans. The executive order specifically called out California's cap-and-trade program, which funds the Affordable Housing and Sustainable Communities funding that affordable housing developers have come to rely on throughout the state. If successful, Trump's attack on California's climate laws could dismantle the entire policy scaffolding of the last 20 years. Quick Hits & Updates Attorney General Rob Bonta's office has warned Stanislaus County that its General Plan and draft Housing Element fail to meet state requirements for environmental justice, climate adaptation and identifying disadvantaged communities. The county has acknowledged the concerns and says it is working on updates, but the state warns that continued delays risk noncompliance with state housing laws. The San Diego City Council has authorized legal action against the San Diego County Local Agency Formation Commission (LAFCO) over its handling of signature verification in a petition to have La Jolla secede from San Diego. Mayor Todd Gloria criticized LAFCO's decision to overturn the county registrar's ruling of insufficient signatures, calling it a threat to public trust and transparency in the process. A voter initiative proposed by The Howard Jarvis Taxpayers Association would tighten tax restrictions on local governments, reaffirming and expanding Proposition 13's protections. If approved, the legislation would target transfer taxes like Measure ULA and close the loophole that allowed the taxes to pass with a simple majority under local voter initiatives. A federal judge has temporarily blocked the Trump administration from enforcing new restrictions on federal housing grants that would ban funding for programs supporting gender identity, abortion access, or undocumented immigrants. The decision follows a lawsuit by San Francisco and other jurisdictions, which argue the conditions are unconstitutional and unrelated to the purpose of the Continuum of Care program. The California Coastal Commission approved Pacifica's use of seawalls and revetments in two areas for up to 20 years as a temporary measure against sea level rise, prompting criticism from both environmental advocates and property-rights supporters. The decision, intended as a compromise, allows time for the city to develop long-term climate adaptation strategies while balancing beach preservation, public access and private property concerns. San Francisco Planning Director Rich Hillis will step down after more than five years in the role, citing the city's solid footing on major projects like rezoning and permitting reforms. Hillis worked for the city for 25 years. The $538.5 million tunnel project connecting Rancho Cucamonga's Metrolink Station to Ontario International Airport advanced after the San Bernardino County Transportation Authority approved its environmental report. The 4.2-mile underground shuttle system will feature three stations and aims to reduce traffic congestion with fuel-free shuttles. The Sacramento Local Agency Formation Commission approved the next steps for a project to develop 472.4 acres of agricultural land into a mixed-use area with warehouses, hotels, restaurants and other businesses. While some residents, including former Mayor Heather Fargo, opposed the project due to concerns about its proximity to schools, environmental impacts and traffic, supporters argued that it would boost job opportunities and strengthen the region's economy. California Attorney General Rob Bonta, alongside 17 other attorneys general, has opposed a new HUD interim rule that weakens requirements for grantees to demonstrate efforts to reduce housing segregation and promote integration. The coalition argues that the rule undermines the Fair Housing Act's mandate to combat discrimination and promote fair housing, potentially impacting efforts to address housing issues in California and beyond. San Francisco, along with other local governments, has filed a lawsuit against the Trump administration over new requirements for Department of Housing and Urban Development (HUD) funding, arguing the conditions could jeopardize federal homelessness grants. The coalition claims the administration lacks the authority to impose these conditions, which could put services for chronically homeless residents at risk, including more than $56 million in HUD funding for San Francisco's homelessness programs. President Trump signed an executive order establishing a "National Warrior Independence Center" at the West Los Angeles Veterans Administration campus to house up to 6,000 homeless veterans, redirecting funds from services for undocumented immigrants to support the initiative. The move comes amid ongoing legal disputes over the VA's use of the land and is seen by some veterans as a long-awaited federal commitment to expanding housing and services for those in need.

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 Population Rises, 125,000 Housing Units Added, in 2024 According to a new report from the Department of Finance, California's population increased by 108,000 people in 2024, reaching 39.5 million residents as of Jan. 1, marking the state's second consecutive year of growth since the pandemic. This 0.28% rise was influenced by factors such as a natural increase in births minus deaths and improved estimates of legal immigration, which added 277,468 more immigrants than previously calculated for 2021 -2024. Population gains were observed in 35 of California's 58 counties, particularly in the Central Valley, Inland Empire and coastal areas, while Los Angeles County led with an increase of 28,000 residents. Statewide housing grew at 0.84 percent in 2024, virtually unchanged from 0.85 in 2023. California added 125,228 housing units on net, including 26,648 accessory dwelling units, to bring total housing stock to 14,949,001 units. New construction added 118,957 housing units with 70,694 single family housing units, 53,543 multi-family housing units, and 991 mobile homes. ADUs are included in the single-family category and comprised 37.7 percent of the state's new single-family housing and 21.3 percent of total new housing. Larger densely populated urban areas built most of the multi-family housing throughout the state. Los Angeles led the state gaining 10,217 multi-family units, comprising 54.8 percent of their net housing growth, followed by San Diego (7,025 for 73.9 percent), Sacramento (1,692 for 88.6 percent), and Oakland (1,642 for 96.3 percent). California Congressmember Founds Caucus to Promote "Abundance" A new bipartisan group in Congress, led by Rep. Josh Harder (D-Calif.), is forming the "Build America Caucus" to promote housing, energy, and infrastructure development through streamlined permitting and faster, more cost-effective project delivery. Inspired by journalist Ezra Klein's “abundance movement,” the caucus views infrastructure reform as key to restoring public confidence in government performance, especially amid frustrations over delays in high-profile projects like California's high-speed rail. The group, consisting of around 30 lawmakers from across the political spectrum, aims to influence legislation, including defense and transportation bills, with practical reform proposals. While some progressives criticize the movement for overlooking deeper systemic issues, Harder emphasizes broad support and a shared urgency to improve government efficiency. “Housing is unaffordable, federally funded projects are delayed, and we're not thinking clearly about long-term solutions,” said Oregon Rep. Janelle Bynum in a statement . "We've got to cut the red tape, build smarter, and deliver real solutions for the Americans." Legislation Introduced to Block Controversial Mine near Fresno Assemblymember Joaquin Arambula introduced legislation to block a proposed Cemex blast mine near Fresno, citing both ecological concerns and the potential job losses for around 60 union workers. At a recent Fresno City Council meeting, a number of Fresno residents voiced strong opposition to the proposed mine along the San Joaquin River, citing environmental risks and the visual impact of the planned excavation site. Critics argue that CEMEX ignored more sustainable mining options, like those used by competitor Vulcan Materials, which moved operations to the Kings River area with long-term reserves. Environmental groups stress that the river has already been overexploited for a century and advocate for mining in less ecologically sensitive areas. Study: Optimal Models for Measuring VMT A study out of US Berkeley's Terner Center compares three ways to model vehicle miles travelled (VMT) as California's dual goals of reducing climate pollution and building 2.5 million new homes by 2030 rely heavily on encouraging development in “low-VMT” (vehicle miles traveled) neighborhoods, where residents typically drive less. The state's definition of these areas—used to streamline housing approvals—depends on travel modeling tools, but these tools vary significantly in their outputs. Comparing three models (LCI's Site Check, Replica and LATCH), the study finds notable differences in which neighborhoods qualify as low-VMT, which affects which areas receive development incentives. Replica, for instance, identifies more low-VMT areas in coastal cities and more overlap with high-resource neighborhoods than the State's model, potentially better aligning with both climate and equity goals. The authors recommend refining and standardizing VMT models, rethinking baselines for defining “low-VMT” and expanding eligibility criteria to encourage sustainable housing growth across more areas. CP&DR Coverage: Roundup of Recent Books on California Urbanism Some indicators of California's prosperity aren't looking so hot right now: population loss; budget deficits; corporate exoduses; political marginalization; and the departure of the A's. And yet, despite -- or perhaps because of -- these challenges, scholarship on and commentary about California urbanism is more robust than ever. CP&DR's bookshelf has overflowed lately with titles from the past two years. Collectively, they offer a compelling account of the state we're in. Scholars, journalists, and practitioners covered Los Angeles and the Bay Area; wilderness and the coast; housing policy and housing design; and the tech industry. Quick Hits & Updates Despite launching Vision Zero in 2015 with the goal of eliminating traffic deaths by 2025, traffic fatalities in Los Angeles have risen significantly due to poor implementation, lack of coordination and waning political support. A recent audit reveals that nearly half of the program's safety initiatives remain incomplete, highlighting a failure to turn policy into meaningful street-level changes and protect vulnerable road users. At a recent Ukiah City Council meeting, officials voted unanimously to proceed with a proposal to annex areas north and south of the city, despite community concerns and confusion about the process. While the annexation could bring expanded city services and tax revenue, critics argue the decision is premature and lacks sufficient public input, with formal approval not expected until late 2025 at the earliest. A new study warns that a massive earthquake along the Cascadia subduction zone — stretching from Northern California to Canada — could cause coastal land to sink by more than 6 feet within minutes, expanding flood-prone areas by 116 square miles and nearly tripling the number of people at risk. Researchers say the resulting subsidence would reshape communities and, unlike gradual sea-level rise, this danger would strike without warning, underscoring the urgent need for new planning and protections. The California Natural Resources Agency (CNRA) is now accepting proposals for the Environmental Enhancement and Mitigation (EEM) Grant Program. Project Proposals are to be submitted through the Resources Agency Project Tracking and Reporting (RAPTR) system. Applicants must register before accessing the proposal solicitation. The 2024 list of America's 11 Most Endangered Historic Places includes the Terminal Island Japanese American Tuna Street buildings in Los Angeles as the last surviving structures from a once-thriving Japanese American fishing village forcibly displaced during World War II. The buildings are under threat of demolition by the Port of Los Angeles for container storage use, and preservation advocates are pushing for their protection and reuse as cultural monuments. Environmental organizations, led by the Natural Resources Defense Council, have petitioned the Trump administration to enforce a federal rule limiting Colorado River water deliveries to only what is deemed truly necessary, with the aim of curbing wasteful agricultural practices and preserving the river's future. They argue that unchecked use—particularly for water-intensive crops like alfalfa—exacerbates the river's overuse amid worsening drought and climate pressures, and they call on the Bureau of Reclamation to act or face potential legal challenges. Two former high-level employees at the Los Angeles Homeless Services Authority (LAHSA) allege that CEO Va Lecia Adams Kellum engaged in serious misconduct, including hiring unqualified associates, tampering with public records and retaliating against staff, leading to an $800,000 settlement funded in part by taxpayers. Despite the severity of the claims, no formal investigation was conducted, and LAHSA initially withheld the whistleblower documents in apparent violation of public records laws before releasing them with redactions that legal experts argue are unlawful. California and 17 other states are suing to block a Trump administration order that halts offshore wind leasing, arguing it unlawfully threatens clean energy goals and economic development. The legal challenge comes amid early-stage plans for large-scale floating wind farms off California's coast, which face engineering hurdles, regulatory delays and local opposition but are critical to the state's carbon-free energy ambitions. A federal judge has temporarily blocked new conditions the Trump administration sought to attach to federal housing grants, which San Francisco and other cities argue are unconstitutional and politically driven. The ruling protects funding critical to homelessness prevention while a broader legal challenge proceeds, with local leaders warning the restrictions could jeopardize services for thousands. Los Angeles' Vision Zero program, launched nearly a decade ago with the goal of eliminating traffic deaths by 2025, has failed to achieve its objectives, with traffic fatalities rising instead of decreasing. An independent audit revealed that the program suffered from poor coordination, lack of accountability, insufficient political will and diminished police participation, with many key actions still incomplete, leaving the city's streets unsafe despite the policy's ambitious goals. Two federal judges have filed a lawsuit against the Los Angeles Department of Water and Power (LADWP), alleging the utility's mismanagement of water resources and power lines contributed to the destructive Pacific Palisades fire in 2025. The lawsuit claims LADWP's failure to maintain key infrastructure and its unpreparedness for the fire led to significant damages, with over 750 residents joining in similar legal actions. California households allocate on average 44% of their income to housing, making it the second-highest in the nation, just behind Hawaii at 53%, according to an analysis by Wallethub. The state faces high homeownership costs, with 46% of owners' income going toward housing and high rent costs as well, with tenants spending 42% of their income on housing expenses. The Chan Zuckerberg Initiative (CZI) has pulled back funding from several housing organizations in California, ending support for initiatives aimed at addressing the state's housing affordability crisis. This decision, attributed to a shift in focus toward biomedical research and a potential link to a broader retreat from diversity, equity and inclusion (DEI) initiatives, has left many nonprofit organizations struggling to find alternative funding sources. (See related CP&DR coverage.)