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California’s population has begun growing again – ever so slightly. But will the housing supply ever catch up? The cost of housing in California increased sharply during the early part of the COVID pandemic – as it did in many places. Now, even though housing growth has been sluggish, cost has levelled off. There are probably several reasons for this, not the least of which is the rapid rise in interest rates. But there may be another factor: The supply of housing, sluggish though it may be, is growing faster than the population. In 2023, according to the Department of Finance, California’s population grew by 67,000 people – the first increase since the pandemic began and the state’s population began declining. But the amount of housing grew by double that amount – 120,000 units or so. That’s a far cry from the half-million or more that Gov. Gavin Newsom said was needed was he first ran for office in 2018, but it’s still an increase. To take a longer view, CP&DR looked at DOF’s estimates of change in population versus change in housing units since the 2020 Census – almost four years, during most of which California’s population declined. And the bottom line is that during that time, the supply of housing increased by 3% and the population declined by 1%. In 2020, there were 39,538,000 people in California and 14,392,000 housing units – in other words, one housing unit for every 2.75 Californians. Four years later, there were 39,128,000 people – a drop of 400,000, or about 1%. And there were 14,824,000 housing units – an increase of 450,000 units, or about 3%. And the ratio had changed to one housing unit for every 2.64 Californians. Between 2020 and 2024, the differential was most noticeable in California’s two huge metropolitan areas – coastal Southern California (Los Angeles/Orange/Ventura Counties) and the Bay Area. Coastal Southern California lost almost a quarter-million people – but gained 136,000 housing units. The Bay Area’s performance was proportionally almost identical – a loss of 176,000 people and a gain of 84,000 housing units. Unsurprisingly, the inland areas showed steadier population levels and higher housing growth. The Inland Empire added 0.5% to its population and 3.5% to its housing supply. (The population growth was all in Riverside County – San Bernardino County actually lost population.) The Central Valley added 0.8% in population and 3.9% in housing units while Sacramento added 0.3% in population but 3.9% in housing units – the highest total anywhere in the state. An interesting outlier was San Diego County, which showed a very minor population loss but still added 3.1% to its supply of housing units – a bigger increase than either the Bay area or the L.A. area. The increase in housing may be partly the result of the City of San Diego’s aggressive pro-housing policies, but the fact that the population held steady may account for the region’s persistently high housing prices. A longer-term perspective shows how the components of needed housing supply have changed over the past few decades. It’s an article of faith among housing advocate that California has underproduced housing since around 1990, when a big recession and the first big group of local growth control ordinances first kicked in. But the ratio of population to housing really hasn’t changed much. In 1990, California had about 29.8 million people and 11.2 million housing units – about 2.66 people per housing unit, or almost exactly the same as today. In fact, between 1990 and 2024, the state added 9.4 million people and 3.6 million housing units, or about 2.57 people per housing unit. The perceived shortage – and the increase in prices – are the result of a wide variety of factors. New houses are bigger and more expensive and new apartments are more amenity-driven and almost more expensive. Empty-nesters tend to sit on their houses these days, especially if they have low Proposition 13 taxes and low Trump-era interest rates. And household formation is different than in past generations: lower fertility rates, smaller household sizes, established empty-nesters living longer. So the bottom line is that the current housing crisis isn’t entirely the result, strictly speaking, of fewer housing units being built. It’s also the result of rapidly changing social and demographic trends bumping up against housing trends – both in new construction and the market supply of older homes – that change much more slowly. This blog came to you courtesy of California Planning & Development Report, the authoritative source for land-use planning news in California. Check out our subscription packages  here . The AICP CM credit deadline is coming up! Get AICP CM credit for Bill Fulton’s one-hour course on RHNA and the Housing Element in California,.For more, just click  here .

Proposed City in Solano County Submits Signatures for Ballot Initiative California Forever has submitted enough signatures to place an initiative on the November ballot that would permit the company to develop a city of up to 400,000 people on roughly 17,500 acres of land the company has purchased in Solano County. The project submitted upwards of 20,000 voter signatures to the Solano County Registrar of Voters, approximately 60% more than required to get it on the ballot. The project targets several thousand acres currently zoned for agriculture, proposing medium-density urban development to address high housing costs and job scarcity. Plans for the development include a mix of homes, green spaces, a downtown area and job opportunities, starting with 50,000 residents within a decade. The initiative awaits verification of signatures. A poll conducted in March found that 70% of residents said they “would vote no if the election were held today.” (See related CP&DR coverage .) Two National Monuments to Gain Significant Acreage President Biden will expand the San Gabriel Mountains National Monument and the Berryessa Snow Mountain National Monument, earning praise from Indigenous leaders, politicians and conservationists. The additions, including the 13,696-acre ridge known as Molok Luyuk, aim to bolster federal protections and enhance access to open spaces for underserved communities. Notably, the San Gabriel Mountains National Monument's expansion of over 105,000 acres on the southeast edge of the existing monument extends towards densely populated areas including Pasadena and the San Fernando Valley, addressing historical disparities in green space access. Meanwhile, the inclusion of Molok Luyuk into the Bereyessa Snow National Monument, encompassing over 300,000 hilly acres northwest of Sacramento, honors Indigenous heritage and promotes co-stewardship for biodiversity preservation. Overall, these moves align with broader conservation goals, aiming to protect 30% of lands and coastal waters by 2030, as advocated by international scientists and adopted by California. State Population Rises for First Time in Four Years California gained population for the first time since 2020, rising by 0.17% or over 67,000 people between January 1, 2023, and January 1, 2024, totaling 39,128,162 individuals. Factors contributing to this growth include a decline in deaths post-pandemic peak, eased immigration policies under President Biden and shifts in domestic migration patterns. While lost residents to other states during the pandemic, this trend reversed in 2023, resulting in a net gain of approximately 116,000 residents. The state lost 505,000 people to other states last year, down from 692,000 in 2021. Meanwhile, 414,000 people moved to California from other states, up from 337,000 in 2021. Last year, the state had a net gain of 114,000 international immigrants, close to pre-pandemic numbers. Although Los Angeles and Orange counties experienced modest growth last year, projections suggest slower, steady population growth compared to previous decades. (See related CP&DR coverage .) EV's Linked to Drop in Bay Area Carbon Emissions New research from UC Berkeley shows a steady decline in carbon dioxide emissions in the Bay Area between 2018 and 2022, attributed to the adoption of cleaner transportation options like hybrid and electric cars alongside improved fuel-efficiency standards. The lead researcher noted that while the 1.8% average annual decrease may seem modest, sustained over 20 years, it could significantly contribute to meeting the state's carbon neutrality goals by 2045. The study, published in Environmental Science and Technology, highlights transportation as the largest local source of carbon dioxide in the Bay Area, emphasizing the importance of clean transportation policies. This study is unique in its focus on the broader region and its direct linkage between electric vehicles and reduced emissions, showing a stronger correlation than previously anticipated. California Cities Rate Poorly in Access to Nature A Washington Post analysis highlights disparities in access to nature among U.S. cities, describing a shortage of green space in many California cities. Utilizing the NatureScore tool developed by NatureQuant, the analysis examines various environmental factors to assess nature access and its impact on health. In California, San Francisco receives an average NatureScore of 52.3, outperforming Los Angeles and Carson but falling short of cities like Boston and Washington, D.C. Conversely, Southern California, including Los Angeles and Carson, exhibits some of the lowest NatureScores in the country, reflecting inadequate green infrastructure. The analysis reveals a correlation between population density and NatureScore, with denser cities generally having lower scores. Additionally, socioeconomic disparities are evident, as areas with higher poverty rates and lower levels of education and diversity tend to have limited nature exposure. CP&DR Coverage: Berkeley Reverses Course on Zoning, Density The city of Berkeley has historically been a laboratory for the rest of the state and the nation. Its liberal citizenry trailblazed issues like banning indoor smoking or encouraging the legalization of marijuana, and its students have famously led political movements and made all manner of academic discoveries. In the planning world, Berkeley is also known for being the birthplace of single-family zoning, in 1916. But, over 100 years later, that type of zoning has come under attack for being exclusionary—and deeply conservative. Critics say it prevents apartments and multi-family dwellings from being built in many neighborhoods and undermines social justice. While the state of California has also adopted similar laws to increase housing construction such as SB 9 and SB 330, Berkeley's City Council may soon go even further by considering a plan to rezone the entire city. Quick Hits & Updates In the first quarter of 2024, California's construction plans for multifamily housing hit a 10-year low, driven by a 22% decline in permits compared to the previous year. This slowdown, attributed to rising interest rates and economic uncertainty, contrasts sharply with the robust construction seen in previous years, contributing to a rental market where vacancies are on the rise despite rents flattening after significant increases during the pandemic. A pro-housing group, Californians for Homeownership, is challenging the City of Orange's state-approved housing plan, claiming it fails to demonstrate how over 3,000 needed homes can be built on land with current deed restrictions. The lawsuit alleges that the city's housing element relies on non-vacant sites with restrictions preventing development, and seeks a court order for the city to revise its plan. This comes amidst a surge in "builder's remedy" applications seeking to bypass the city's zoning rules for housing developments. The Adaptation Planning Grant Program, part of the Integrated Climate Adaptation and Resiliency Program, has extended its application deadline, with Pre-Application Interest Forms now due by May 20 and the Main Application Form due by June 3. This initiative aims to support vulnerable communities in developing climate resilience through funding for climate adaptation planning efforts. Governor Newsom and Attorney General Bonta brokered an agreement with the City of Malibu to ensure compliance with the state's Housing Element Law by September, aiming to expedite the approval of a housing plan that would accommodate 79 units, 47 of which must be affordable to low- and very low-income households. State wildlife commissioners voted to list the Southern California steelhead trout as endangered, expanding protections for the fish under the state's Endangered Species Act due to declining numbers and threats like habitat loss. Despite opposition from water agencies concerned about project delays and water supply limitations, the decision aims to address environmental challenges and enhance conservation efforts. The San Diego Sports Arena (currently the Pechanga Arena), slated for demolition and redevelopment, has been designated a historic resource by the city's Historical Resources Board, recognizing its role in the Midway District's development, its association with a local sports legend, and its New Formalism architectural style. While the designation does not prevent demolition, it prompts an evaluation process to consider alternatives that could reduce impacts to the historic resource, amid plans for redevelopment in the area. The California Tahoe Conservancy, along with state agencies and preservation nonprofits, is acquiring a 31-acre site in South Lake Tahoe, including a 1970s-era Motel 6 and a vacant restaurant, for $15.4 million to protect the lake and its surrounding wetlands. The acquisition aims to restore the site to its natural conditions, including marsh and meadowlands, to enhance water quality and provide habitat for local wildlife. The University of California, Santa Barbara (UCSB), settled lawsuits with both the City of Goleta and the Santa Barbara County Board of Supervisors regarding student housing, requiring UCSB to construct an additional 3,500 student beds by 2029, adhere to the 2010 Long Range Development Plan and provide funding for community-serving projects in Isla Vista. The National Low Income Housing Coalition reveals its annual report, "The Gap: A Shortage of Affordable Homes," a shortage of 7.3 million affordable rental homes for extremely low-income families in the US, resulting in nearly three-quarters of such renters being severely cost-burdened, spending over half their income on rent. The study found there are 1,282,835 extremely low income renter households in California, the highest in the country. Developers of a proposed gondola from Union Station to Dodger Stadium face legal and political challenges as they aim to complete the project before the 2028 Olympics. Stockton's City Council approved the South Pointe Village housing project, a significant step towards downtown and waterfront redevelopment, with at least 520 housing units planned. The project aims to revitalize the area with market-rate housing and amenities, potentially catalyzing further development in the downtown core. The Pacific Fishery Management Council is considering protecting deep-sea corals in several areas off Monterey Bay, including Sur Ridge, Año Nuevo Canyon or Ascension Canyon, due to their habitat importance. These restoration efforts come after the 2016 incident where a dry dock damaged coral in Pioneer Canyon, aiming to compensate for the loss and enhance coral habitats in essential fish habitat conservation areas while minimizing impacts on fishing activities. Environmentalists and community activists have sued the Los Angeles Metropolitan Transportation Authority over the approval of an environmental review, while the Los Angeles City Council has approved a traffic study to potentially delay the project, prompting concerns about the impact on the historic Los Angeles State Historic Park and surrounding community.

Los Angeles to Ask Wealthy Residents to Donate to Affordable Housing Los Angeles Mayor Karen Bass's newest housing initiative, LA4LA, urges wealthy residents to make private donations and loans to help finance the purchase of apartments for the city's unhoused population, which exceeds 46,000 individuals. LA4LA is a partnership involving government, philanthropy and the private sector, with the goal of expanding affordable housing options in Los Angeles quickly and at scale. Bass hopes the initiative can help address homelessness challenges by simplifying funding processes, encouraging collaboration among public service organizations, and mobilizing expertise to achieve the mayor's housing objectives operating under the California Community Foundation. While some view this effort optimistically, others express skepticism about its potential impact given the immense scale of the problem. The program is modeled on a program in Atlanta that has raised over $150 million for affordable housing. State Commits Funds to Housing Enforcement, Homelessness Services The state is allocating nearly $200 million in new funds to assist in transitioning homeless individuals from encampments to housing across California. These initiatives aim to monitor the utilization of taxpayer dollars and enforce compliance with grant terms, reflecting Gov. Newsom's aim to efficient funding allocation and effective homelessness solutions. Concurrently, he introduced measures to enhance oversight of state homelessness funding to ensure accountability by local jurisdictions. These measures include expanding the Department of Housing and Community Development's Housing Enforcement Unit to encompass homelessness, proposing statutory changes to bolster the unit's capacity and monitoring the usage of state homeless funds by cities and counties to ensure compliance with grant terms. Additionally, Newsom aims to enforce existing housing laws related to combating homelessness, such as Housing First and Fair Housing Act regulations and plans to include homelessness in the Regional Housing Needs Allocation process to address the needs of homeless populations. National Monument of Over 600,000 Acres Proposed for Mojave Desert California members of Congress introduced a bill to establish Chuckwalla National Monument, covering 627,855 acres in the Mojave Desert and expanding Joshua Tree National Park by 17,915 acres. Championed by Sens. Alex Padlilla and Laphonza Butler and Rep. Raul Ruiz, The proposed monument would extend from the eastern Coachella Valley to the Colorado River and aim to protect diverse ecosystems and cultural values while accommodating renewable energy development, receiving endorsements from both conservation and energy industry groups. It also aims to protect the homelands of several Indigenous tribes. In a separate initiative, President Biden plans to expand the boundaries of San Gabriel Mountains National Monument and Berryessa Snow Mountain National Monument, enhancing conservation efforts and increasing access to nature for underserved communities. Multifamily Housing Funds Allocated to Build Over 4,000 Units The California Department of Housing and Community Development announced the second round of awards from California's Multifamily Finance Super NOFA (MFSN), aimed at expediting housing development by minimizing bureaucratic hurdles. This year's awards, totaling nearly $523.8 million, support 51 projects that will include 4,018 homes and infrastructure improvements needed to support infill development. Through the MFSN program, developers can access multiple funding programs via a single application, facilitating time and cost savings. These programs offer loans for multifamily development construction and rehabilitation, as well as infrastructure grants to support infill development. The initiative seeks to address California's housing needs across income levels, promoting efficiency and inclusivity in housing projects, with a focus on serving diverse populations and meeting various state objectives. CP&DR Coverage: Fulton on Supreme Court's Decision Striking Down Exactions With a unanimous vote, the U.S. Supreme Court has ended California's practice of allowing looser standards for exactions and impact fees when they are imposed as part of a general plan. In practical terms, the ruling in Sheetz v. El Dorado County may have the same effect as previous exactions rulings dating back to Nollan v. Coastal Commission almost 40 years ago: more sophisticated and expensive nexus studies - this time at the general plan level - to justify the imposition of fees and other exactions. now the question becomes whether the way California jurisdictions actually calculate those program-level fees is specific enough to meet the “rough proportionality” rule - and that question will be determined by California courts. Some have said this will inevitably lead to lower impact fees. Given the history of impact and mitigation in California, however, it seems more likely that it will simply lead to the use of a more sophisticated methodology in nexus studies that justify the fees. Cities and counties in California aren't likely to give up impact fee revenue that easily, writes CP&DR Publisher Bill Fulton. Quick Hits & Updates The California Fish and Game Commission has officially designated the Mojave desert tortoise as endangered, acknowledging its dwindling population and the threats it faces. Efforts to protect the species include habitat preservation and recovery measures, but challenges such as urban development, vehicle strikes, wildfires, and climate change continue to endanger its survival. The Palo Alto City Council voted to revise its housing plan for a second time, aiming to ensure minority and low-income residents have access to housing. The revisions, endorsed by the Planning and Transportation Commission, include identifying land suitable for housing development and addressing equity concerns, with a focus on affirmatively furthering fair housing. A private developer has submitted a preliminary application for a major affordable housing development in unincorporated Sonoma County, near the Charles M. Schulz-Sonoma County Airport. The proposal, invoking the builder's remedy provision, seeks to avert local zoning restriction. The proposal includes 1,400 units across 20 four-story buildings with various amenities, including a recreation space and a market building. The project, if approved, would be the largest project to invoke the builder's remedy. The owners of Television City, previously CBS Television City, are revising their plans to modernize and expand the Los Angeles studio following feedback from residents, stakeholders and city officials. The $1.25 billion project aims to create additional office and production space. Following approvals, the project's planned completion date is 2028. Animal rights activists in Sonoma County are pushing for an ordinance to end large concentrated animal farming operations (CAFOs), citing concerns about animal welfare and environmental pollution, while farm interests argue that the initiative could jeopardize family farms and the local agricultural industry. The proposed ordinance aims to phase out medium- and large-sized CAFOs, imposing restrictions on animal numbers and waste management, prompting debate over the balance between animal welfare and economic interests in the region. A new report estimates that Los Angeles County must invest billions of dollars through 2040 to protect residents from worsening climate hazards, including extreme heat, increasing rainfall, worsening wildfires, rising sea levels and climate-induced public health threats. The report identifies 14 different climate adaptation measures that would cost taxpayers at least $12.5 billion over the next 15 years, with the majority of costs incurred by local municipal governments, including stormwater drainage improvements, cool pavement investments and urban canopy expansion. Laguna Beach is forming a local housing trust fund, allocating up to $2.5 million to support efforts for affordable housing, with potential additional funding from the city's parking fund pending a state matching grant. This move aims to address the housing needs of qualifying artists, seniors and local workers while leveraging state grants for housing creation and preservation. According to a new survey from UCLA, nearly 4 in 10 renters in Los Angeles County have expressed concerns about losing their homes and facing homelessness, while a similar proportion worry about going hungry due to the high cost of food. The survey, part of the 2024 Quality of Life Index, indicates that renters in the county are experiencing significant strain from housing costs and inflation, with satisfaction levels dropping to record lows, especially regarding the cost of living and economic outlook. The Bay Area Housing Finance Authority (BAHFA) is considering a $10-20 billion housing bond for the November 2024 ballot, aiming to build over 52,000 new affordable homes near transit. Analysis by TransForm, using data from the Metropolitan Transportation Commission (MTC), suggests that this initiative could significantly reduce greenhouse gas emissions by generating more transit trips and decreasing car usage, contributing to a more sustainable and equitable future. TransForm urges BAHFA to proceed with the measure, emphasizing the potential benefits for housing, transportation and the environment in the Bay Area. Los Angeles Metro released its final environmental documents for the new Southeast Gateway Line, which will extend 19 miles from Artesia to downtown Los Angeles Union Station, serving multiple cities. The initial lower section, covering 15 miles from the Slauson A Line Station to Artesia, is estimated to cost $7.1 billion, with funding mainly from sales tax revenue, requiring additional federal funds. Despite minor changes in the final environmental documents, concerns have been raised about trade-offs affecting rail mobility versus increased costs, including adjustments to station accessibility and sound and visual shielding measures. The Town of Belvedere's second attempt at an eight-year housing plan has been rejected by the state, necessitating a third revision, as officials raise concerns about the feasibility of the proposed sites for development, particularly the utilization of accessory dwelling units, churches, a school and small parcels to meet the regional mandate. Despite expectations of rejection, city officials and consultants had hoped for progress toward compliance, but the California Department of Housing and Community Development's review letter outlined 18 compliance issues, including the city's failure to address fair-housing challenges, evaluate the previous housing element's effectiveness and create programs to encourage development. The San Jose City Council unanimously adopted a new "tenant preference" policy aimed at retaining low-income residents vulnerable to displacement, allocating 20% of affordable apartments in new city-funded properties to lower-income applicants from "high-displacement" areas and 15% within the same City Council district. Proposed in 2017 and recently passed into law in 2022, the policy addresses the urgent need to prioritize local families in the face of soaring housing costs, with Councilmembers emphasizing its significance in preserving the city's identity and culture.

by CP&DR Staff Vol. 39 No. 4 April 2024 Report

Anaheim Approves $1.9 Billion Disneyland Expansion, within Existing Footprint The Anaheim City Council unanimously approved Disneyland's dollar expansion plan, allowing the theme park to add new attractions, shops and restaurants within its current properties, with millions allocated for local projects. The council's decision came after presentations and public comments from over 200 individuals, including residents, Disney employees and union groups. Mayor Ashleigh Aitken, previously critical of such projects, expressed surprise at the benefits outlined in thousands of pages of documents, emphasizing the potential for affordable housing, park improvements and infrastructure investment. The plan, known as DisneylandForward, aims to create a more immersive experience within the current 100-acre footprint in Anaheim, with amendments to zoning rules allowing for new attractions, hotels and stores. It's expected to cost between $1.9 and $2.5 billion. Despite concerns about traffic and housing costs, supporters anticipate job creation and economic boosts, while skeptics worry about Disney's influence and impact on the city. Ten Jurisdictions Qualify for Prohousing Designation Nine cities and one county in California have earned the Prohousing Designation for their efforts in promoting housing development across all income levels, bringing the total number of designated communities to 47. These jurisdictions include Crescent City, South Lake Tahoe, Fairfield, Pinole, Richmond, Berkeley, Los Angeles County, Rancho Cucamonga, West Hollywood and Brea. This designation provides funding incentives and additional resources to expedite housing production, crucial for meeting the state's goal of constructing 2.5 million new homes by 2030. The program rewards communities that streamline processes, reduce costs and adopt growth-oriented housing policies. Designated communities gain access to grants and additional points in scoring for various state funding programs, including the Prohousing Incentive Program (PIP). The Prohousing communities, according to the HCD, demonstrate proactive measures to minimize obstacles, accelerate housing construction, increase affordable housing availability and combat homelessness. Each community's application highlights specific policies and initiatives aimed at promoting housing development, such as zoning code revisions, fee reductions, trust fund establishment and streamlined permitting processes. (See related CP&DR coverage .) State Assesses Effectiveness of Regional Housing Allocation The Department of Housing and Community Development published California's Housing Future 2040: The Next Regional Housing Needs Allocation . In this report, HCD recommends to legislators the changes to the RHNA process necessary to effectively plan for the homes that will be needed across the state by 2040. Informed by extensive stakeholder engagement, the report suggests that the RHNA process is fundamentally sound but needs to be modified to fully unlock its intended outcomes and sufficiently plan for homes now through the end of the 7th cycle in 2040. The report identifies a mix of recommendations that would require statutory changes, as well as adjustments to processes already under HCD's administrative authority, to lay the groundwork for creating future homes. SCAG Launches "Dashboard" to Visualize Sustainable Communities Investments The Southern California Association of Governments (SCAG) published its Local Investments Dashboard to display information about SCAG-funded efforts included in the Connect SoCal Regional Transportation Plan/Sustainable Communities Strategy. The Sustainable Communities Program (SCP) administered by SCAG provides technical assistance and financial resources to local agencies for land use and transportation decisions, supporting implementation of regional planning policies. Through SCP, SCAG aligns funding categories with Connect SoCal goals to promote regional planning objectives and meet local community needs, aiming to improve mobility, promote racial equity, enhance air quality and prioritize vulnerable populations while increasing competitiveness for state and federal funds. The total amount awarded currently sits at over $234 million with the largest amount allocated towards housing projects (27.2%). The second and third largest projects by type include Active Transportation at 17.4% and utilities at 15.6%. California Metros Include Extensive "Rental Deserts" Due to restrictive land use policies and opposition driven by "not in my backyard" sentiments, rental housing is scarce or nonexistent in almost one-third of neighborhoods across the United States. Research out of Harvard University's Joint Center for Housing Studies found these "rental deserts" in a number of California metropolitan areas, including Sacramento-Roseville-Folsom, San Francisco-Oakland-Berkeley and Oxnard-Thousand Oaks-Ventura with 15-30% of the share of rental deserts. Riverside-San Bernardino-Ontario had a share of 30-36%. The research also found the racial discrimination between renters and owners most divergent around the Los Angeles metropolitan area and second most divergent inland in Southern California. The research included recommended zoning reform as the first step to expand geographic options for renters. Santa Clara Short $624 Million for Infrastructure Santa Clara faces a daunting challenge with its deteriorating infrastructure, including parks and fire stations, according to reporting by the Mercury News. City Manager Jovan Grogan reveals a staggering $624 million shortfall in infrastructure funding, exemplified by the closure of the George F. Haines International Swim Center. This issue extends beyond Santa Clara, with neighboring cities like San Jose and Berkeley also struggling with significant maintenance backlogs. Proposals for funding solutions, such as bond measures and revenue from local developments, are being considered, but the problem remains complex and multifaceted. Longtime residents like Adam Thompson express frustration over city leadership's handling of finances, underscoring the need for effective solutions to address the city's infrastructure crisis. CP&DR Coverage: Bill Would Revise Builder's Remedy The housing element/builder's remedy battles continue around the state, as the Department of Housing and Community Development has revoked the housing element certification of the wealthy peninsula town of Portola Valley. HCD said Portola Valley was not making sufficient progress toward the upzoning called for in the housing element. Meanwhile, a new bill from Assemblymember Buffy Wicks would put significant guardrails on builder's remedy projects in the future, bringing more clarity to the “wild west” builder's remedy situation and linking it more closely to standards in other state laws. No one expects AB 1893, the Wicks bill, to pass as it currently standards, but it could form the basis for a reform that provides both cities and developers with changes they want. Quick Hits & Updates The Anaheim Ducks' owners are adjusting plans for the OC Vibe project, a $4-billion mixed-use complex near the Honda Center and ARTIC. Changes include swapping proposed office space for additional housing units, with infrastructure work underway and the first phase expected to open in 2026. (See related CP&DR coverage .) The City of Norwalk is advancing the Heart of Norwalk initiative to rejuvenate its historic downtown area with new zoning regulations and public space enhancements, covering approximately 615 acres. The plan includes redevelopment zones in three key areas, proposes street reconfigurations and greenway development along the Norwalk Railway Corridor and aims to increase housing capacity by rezoning commercial boulevards, potentially accommodating over 3,000 residential units and significant commercial space over a 30-year period. Belvedere's second attempt at an eight-year housing plan has been rejected by the state, necessitating a third revision, as officials raise concerns about the feasibility of the proposed sites for development, particularly the utilization of accessory dwelling units, churches, a school and small parcels to meet the regional mandate. Despite expectations of rejection, city officials and consultants had hoped for progress toward compliance, but the California Department of Housing and Community Development's review letter outlined 18 compliance issues, including the city's failure to address fair-housing challenges, evaluate the previous housing element's effectiveness and create programs to encourage development. The future of San Diego's proposed new sports arena is uncertain following a report recommending the historic designation of the current San Diego Sports Arena, which could significantly impact demolition plans. Despite suggestions that including historical elements in the new arena could mitigate concerns, the looming historical designation poses another challenge for the Midway Rising project, which aims to develop affordable housing alongside the arena, amidst existing obstacles such as rising water tables and investor changes. However, city officials clarify that the historic designation doesn't necessarily halt redevelopment but initiates a process to evaluate alternatives. The San Bernardino Development Co., comprising Renaissance Downtowns USA and ICO Real Estate Group, is suing the city for breach of contract regarding the Carousel Mall redevelopment project. The lawsuit alleges that the city terminated the agreement without warning, causing millions of dollars in damages and accuses city officials of misconduct and bad faith negotiations. Despite the legal troubles and termination, the city maintains that redevelopment of the mall remains a priority, although no formal plans for redevelopment have been announced. A statewide audit of the Local Streets and Roads Program -- initiated in 2017 and originally aimed to alleviate the degradation of streets and roads in California by allocating funding to cities and counties -- found state agencies effectively administer program processes while many cities struggle to improve road conditions despite appropriate fund usage, with the State Controller lacking adequate resources to ensure compliance with spending requirements. The Great Redwood Trail Agency recently released draft of its master plan aims to transform an old railroad line into a 300-mile hiking, biking and equestrian trail from Humboldt to Marin County. The plan includes designs for amenities along the trail, prioritizes certain sections for development, and envisions the potential economic benefits, with public comments on the draft open until June 3rd and an upcoming open house for further discussion. An environmental group filed suit against the U.S. Energy Department over its decision to award over $1 billion to keep California's last nuclear power plant, Diablo Canyon, running beyond its planned closure in 2025, citing concerns over outdated safety assessments and inadequate public disclosure. The move adds to the ongoing debate over the plant's future amid disputes about safety, costs and the necessity of nuclear energy in a transitioning energy landscape focused on renewables and climate change mitigation. Sunnyvale's 2023-31 Housing Element has been certified by the state Department of Housing and Community Development, outlining plans for accommodating nearly 12,000 new housing units and implementing various programs to address housing needs. Additionally, Sunnyvale will host an Earth Day Festival on April 20, coinciding with the grand opening of its new civic center, featuring sustainability-focused activities and information from local organizations. In a significant victory for the California Forever project in Solano County, a judge denied a motion by remaining landowners accused of conspiring to inflate property prices, citing evidence of a price-fixing conspiracy provided by messages among property owners. The "California Forever" project aims to create a new city from farmland near Fairfield, sparking debate over the role of the ultra-rich in city-building and the use of agricultural land for development. A California State Auditor audit of cannabis-permitting processes in six local jurisdictions found deficiencies in ensuring fairness, preventing conflicts of interest and following established procedures. Recommendations include implementing blind scoring, creating an appeals process, requiring impartiality statements from reviewers and improving documentation and transparency in the permitting process. The audit highlights the importance of adherence to best practices to increase public confidence and mitigate corruption risks in cannabis permitting. Permit Sonoma, the planning agency for Sonoma County, has issued a 25-page "completeness review letter" to Eldridge Renewal, the development team for the Sonoma Developmental Center campus redevelopment, seeking clarifications and additional information on various aspects of the project. The county is particularly concerned about issues such as bicycle access, sewage disposal, historic preservation and housing diversity, emphasizing the need for smaller, more affordable living spaces and better connectivity within the development. (See related CP&DR coverage .) Dreamstar Lines, a California company, has entered into an agreement with Union Pacific Railroad to negotiate terms for an overnight passenger train service between San Francisco and Los Angeles, aiming for a summer 2025 launch with deluxe amenities and competitive fares. Despite being a preliminary agreement, the MOU signifies progress toward finalizing track access and operations agreements, with plans to secure remaining funds and complete preparations for the anticipated service launch.

The city of Berkeley has historically been a laboratory for the rest of the state and the nation. Its liberal citizenry trailblazed issues like banning indoor smoking or encouraging the legalization of marijuana, and its students have famously led political movements and made all manner of academic discoveries.

HCD Estimates Around 300,000 Housing Units in Pipeline Statewide The Department of Housing and Community Developed released its annual update on the state's progress towards housing goals, highlighting each jurisdictions' applications, entitlements, building permits and completions. Currently, plans for 14,761 very low income units have been submitted, and 4,943 very low income units are complete. That number increases by income breakdown, with 197,195 above moderate income units submitted, with 79,149 above moderate income units completed. Los Angeles leads the above moderate units currently in construction, and nearly meets San Francisco's very low income unit production at 554 units. The release highlights the jurisdiction compliance with state housing element compliance, finding that 37.92% of the state is out of compliance for the current housing element cycle. Audits Reveal Inefficient Spending on Homelessness A pair of statewide audits on California's homelessness spending found a lack of transparency and accountability in spending, without clear metrics on the effectiveness of state programs, particularly for cities including San Jose and San Diego. San Diego city officials spent over $128 million on homelessness programs in a three year span from 2020 to 2023 but did not define any goals or preferred outcomes, including occupancy goals. The state's audit found that, despite allocating $24 billion over five years, the state overall struggles to outline outcomes and costs. The audit concluded Newsom's Homekey initiative's appears promising while many other programs lack sufficient data. Lawmakers call for increased transparency, but opinions differ on whether to halt spending as the homelessness crisis continues. Notorious San Francisco Project Results in Financial Hit to YIMBY Group Housing advocacy group YIMBY Action will pay $32,000 in legal costs to San Francisco following a lawsuit filed in 2022 over the city's handling of a housing project at 469 Stevenson St. The lawsuit accused officials of violating state laws by delaying the 495-unit housing proposal. The settlement also includes the group dropping its plans to appeal the suit. San Francisco's YIMBY movement, which advocates for increased housing development, has taken other cities to court over similar issues. The 469 Stevenson St. project, although eventually approved, faced significant delays and garnered national media attention. Despite criticism from some officials, YIMBY Action considers the controversy surrounding the development a victory, citing legislative changes in Sacramento as a result of the lawsuit. Report Finds Major Shortfall in Affordable Housing Funding Statewide The California Partnership's 2024 California Affordable Housing Needs Report finds that, despite doubling the production of new affordable homes in the last five years, California is only providing funding for 12% of the required amount to meet its goals. Additional key findings include the discovery that the state allocates over twice as much financial support to homeowners compared to renters, with only 23% of resources for renters being permanent, contrasting with the 98% permanence in support for homeowners and median rent has surged 37% since 2000 while median household income has only increase 7% (adjusted for inflation). Policy suggestions include prioritizing sustainable funding for affordable housing, including supporting a $10 billion bond (AB 1657) and making the Low-Income Housing Tax Credits permanent. Additionally, the study suggests integrating the Multifamily Housing Program into the baseline budget with incremental funding increases and reducing development costs through tax exemptions, state funding during construction and capping monitoring fees. California Cities Score Highly in Ranking of Transportation Sustainability StreetLight Data, Inc.'s recent ranking of transportation climate performance among major US metro areas highlights notable trends within California cities. While regions like San Jose, San Francisco and San Diego lead in factors such as vehicle miles traveled and electric vehicle penetration, they also excel in biking activity, reflecting a growing trend towards alternative modes of travel. San Jose emerges as a top performer overall despite its lower transit ranking, showcasing the significance of factors like fuel economy and EV adoption rates. Conversely, areas like Bakersfield and Sacramento face challenges, ranking lower in overall climate impact due to fewer fuel-efficient vehicles and alternative transportation options. The ranking underscores the importance of regional disparities and the need for targeted interventions to address transportation emissions within California's diverse urban landscapes. CP&DR Legal Coverage: CEQA Applies to Completed Projects; Huntington Beach Forced to Process Housing Applications A California Environmental Quality Act challenges to the expansion of a gun club on land owned by the City of Ukiah in unincorporated Mendocino County isn't moot simply because the expansion has been completed, an appellate court has ruled . The club alleged a wide range of errors on the part of both the city and the county and asserted that the project was not exempt from CEQA. However, Vichy never requested that construction of the expansion be stopped and it is now complete, which led the city and the county argued that the legal challenge was moot. The case will now return to Mendocino County Superior Court for more action. In a separate case, a Superior Court judge has ordered the City of Huntington Beach to continue processing a wide variety of housing applications and suspended the city's ability to knock down the density on projects identified in the housing element, pending resolution of a lawsuit from the state. Quick Hits & Updates The Los Gatos Town Council voted to rescind parts of the 2040 General Plan rather than putting it on the November ballot, opting to delay further discussion until the Housing Element is certified, following an appeal by the Los Gatos Community Alliance. The decision, made almost two years after the plan's approval, reflected concerns about the complexity of land use issues and the desire to wait for the Housing Element's approval before making further decisions. Santa Ana City Council unanimously passed an urgency ordinance banning short-term rentals, with supporters arguing that such rentals impact residents' quality of life and exacerbate housing shortages. Despite some dissent, the council voted to clarify the city's existing ban on short-term rentals, with many officials suggesting that regulations may be considered in the future to address concerns about residents who rely on short-term rental income. San Francisco will implement red-light right-turn bans at approximately 200 intersections in and around downtown, extending upon the successful pilot project in the Tenderloin area. The project aims to improve pedestrian safety by keeping crosswalks clear of turning vehicles, with plans to complete installation by August 2025. A new policy brief by SPUR analyzes the support the city of San Francisco should offer small businesses to help revitalize downtown, concluding the city should make the First Year Free program permanent, reduce licensing fees, improve the permitting processes and explore creative public financing strategies to fill vacant spaces. The Oakland Athletics are reportedly finalizing plans to temporarily move the team to Sacramento next season, as owner John Fisher moves forward with his plan to relocate the A's to Las Vegas. The team's Coliseum lease expires after this season, and while no lease extension was reached with Oakland and Alameda County officials, Sacramento has shown more positive feedback, potentially allowing the A's to share Sutter Health Park with the Triple-A Sacramento River Cats for three seasons. A new report from the UCLA Lewis Center for Regional Policy Studies and published by the UC Berkeley Terner Center, explores the impacts of Inclusionary Zoning on housing production and affordability, with a focus on Los Angeles' Transit Oriented Communities program. LA's TOC program was implemented beginning in 2017 with a goal of boosting housing production, including below-market rate units, near bus and train stations. A recent study led by researchers at Stanford University and the Mexico Autonomous Institute of Technology reveals a significant increase in the average distance between workers' homes and their jobs, nearly tripling from 10 miles in 2019 to 27 miles in 2023, with over 5% of workers living over 50 miles from their employers. This trend, particularly pronounced among high-income Millennial tech workers, is attributed to the rise of remote work, impacting employee demographics and commuting patterns across various industries. A new study investigates grocery store visit patterns among residents in under-resourced neighborhoods east and northeast of Downtown Los Angeles using spatially aggregated population mobility data from 2021. It found that residents made frequent visits to grocery stores, with only a small percentage of visits within their home census tracts, and that visit frequency was associated with neighborhood sociodemographics and grocery store accessibility. The research highlights the utility of mobility data in understanding grocery store use and identifies factors that may facilitate or hinder store access, emphasizing the limitations of geographically constrained metrics like food deserts. The Conrad Prebys Foundation is providing $303,000 to support San Diego's Civic Center redevelopment project, aiming to revitalize six city-owned blocks downtown. With assistance from the Downtown San Diego Partnership, the foundation has hired U3 Advisors to explore redevelopment options, focusing on creating a mixed-use hub with affordable housing units. The city of Los Angeles will make significant bus, bike and walk upgrades to Hollywood Boulevard, aiming to improve safety and attract visitors to the iconic area. The project includes improvements along two stretches of the boulevard, with LADOT focusing on protected bike lanes and BOE implementing bus lanes and pedestrian enhancements. Despite challenges like traffic congestion and homelessness, the project aims to create a more inviting and accessible environment for residents and tourists alike, with construction expected to begin later this year and completion set for the first half of 2025. The Los Gatos Town Council voted to rescind parts of the 2040 General Plan rather than putting it on the November ballot, opting to delay further discussion until the Housing Element is certified, following an appeal by the Los Gatos Community Alliance. The decision, made almost two years after the plan's approval, reflected concerns about the complexity of land use issues and the desire to wait for the Housing Element's approval before making further decisions. Santa Ana City Council unanimously passed an urgency ordinance banning short-term rentals, with supporters arguing that such rentals impact residents' quality of life and exacerbate housing shortages. Despite some dissent, the council voted to clarify the city's existing ban on short-term rentals, with many officials suggesting that regulations may be considered in the future to address concerns about residents who rely on short-term rental income. San Francisco will implement red-light right-turn bans at approximately 200 intersections in and around downtown, extending upon the successful pilot project in the Tenderloin area. The project aims to improve pedestrian safety by keeping crosswalks clear of turning vehicles, with plans to complete installation by August 2025. A new policy brief by SPUR analyzes the support the city of San Francisco should offer small businesses to help revitalize downtown, concluding the city should make the First Year Free program permanent, reduce licensing fees, improve the permitting processes and explore creative public financing strategies to fill vacant spaces. The Oakland Athletics are reportedly finalizing plans to temporarily move the team to Sacramento next season, as owner John Fisher moves forward with his plan to relocate the A's to Las Vegas. The team's Coliseum lease expires after this season, and while no lease extension was reached with Oakland and Alameda County officials, Sacramento has shown more positive feedback, potentially allowing the A's to share Sutter Health Park with the Triple-A Sacramento River Cats for three seasons. A new report from the UCLA Lewis Center for Regional Policy Studies and published by the UC Berkeley Terner Center, explores the impacts of Inclusionary Zoning on housing production and affordability, with a focus on Los Angeles' Transit Oriented Communities program. LA's TOC program was implemented beginning in 2017 with a goal of boosting housing production, including below-market rate units, near bus and train stations.

The U.S. Supreme Court has struck down California’s unique rule – embedded in the Mitigation Fee Act – that exactions and impact fees don’t have to be “roughly proportional” to the impact of the new development project under consideration if they are imposed as part of a general plan policy or other program-level effort. But now the question becomes whether the way California jurisdictions actually calculate those program-level fees is specific enough to meet the “rough proportionality” rule – and that question will be determined by California courts. Some have said this will inevitably lead to lower impact fees. Given the history of impact and mitigation in California, however, it seems more likely that it will simply lead to the use of a more sophisticated methodology in nexus studies that justify the fees. Cities and counties in California aren’t likely to give up impact fee revenue that easily. The Supreme Court ruling came in Sheetz v. El Dorado County, a case from El Dorado County where a contractor named George Sheetz sued after being required to pay $23,000 in traffic impact fees in order to get a permit to build an 1,800-square-foot manufactured home outside of Placerville. The court essentially eliminated the rule under California law that exactions must have a “reasonable relationship” to the project at hand and replaced it with the “rough proportionality” rule. Actually, the Supreme Court did away with the “reasonable relationship” rule 30 years ago in Dolan v. City of Tigard . In that case, then-Chief Justice William Rehnquist explicitly rejected the “reasonable relatlonship” rule, saying: “We think a term such as ‘rough proportionality’ best encapsulates what we hold to be the requirement of the Fifth Amendment. No precise mathematical calculation is required, but the city must make some sort of individualized determination that the required dedication is related both in nature and extent to the impact of the proposed development.” Along with the “rational nexus” rule from the 1987 case of Nollan v. California Coastal Commission – the idea that an exaction must have a “rational nexus” to the impact a development project has – Dolan led to the so-called Nollan/Dolan rule that an exaction must have both a nexus and rough proportionality in order to be constitutional. But California took a different route – not for individual projects but for impact fees and other exactions that are enacted as part of a general plan or other programmatic effort and therefore are applicable to all applicants. To this day, the Mitigation Fee Act requires a “reasonable relationship” but not “rough proportionality”. As a result, most programmatic impact fee programs don’t use an “individualized determination”. Instead, they simply calculate the overall cost of the impact created all the new development called for in the general plan and basically divide that by the amount of development. Different land uses are often assumed to have different impacts and the math is adjusted accordingly. To understand this better, let’s walk through how George Sheetz wound up paying $23,000 in traffic impact fees for an 1,800-square-foot prefab house. El Dorado County established its traffic impact fee system after adopting a general plan update in 2004. The general plan was adopted after several years of bruising battles over new development in the county and the likely impact it would have on traffic both on Highway 50, the main highway through the county, and local roads. The intent was to make sure new development paid its “fair share” of the cost of improving and expanding the road system. (It’s worth noting that most of El Dorado County is located either inside El Dorado National Forest or in the jurisdiction of the Tahoe Regional Planning Agency, so the county’s growth battles were mostly confined to unincorporated areas in exurban Sacramento areas. Sheetz’s house is in an unincorporated area eight miles east of Placerville.) Although the fee system has changed over the years – as have the rates – the fundamentals have remained the same. First the county identifies all the road and transit improvements required in the foreseeable future and allocates the costs to deficient conditions (which new development cannot legally pay for) and new development (the basis for the fees). The project list, with the new development share broken out, can be found here . It identifies some $350 million in transportation improvements, with about $70 million allocated to new development. The county also assumes that a certain amount of the new development cost will be covered by grant funding. The “new development” share of the transportation is based on an assumed level of new development, originally contained in the general plan and perodically updated. To translate that into fees for individual projects, the county engages then uses various traffic studies to identify how many vehicle trips different land uses are likely to generate. And in a series of complicated calculations that compares the fee for various land uses compared to the fee for a single-family house. This is known as an “equivalent dwelling unit,” or EDU. For example, a single-family home of less than 1,000 square feet must pay approximately 82% of the fee that a typical single-family home pays, while a commercial building must pay 155% of the single-family cost for each 1,000 square feet of space. In addition, El Dorado County creates separate fees for three different zones based on geography. (All this, along with the resulting fees, is laid out here .) But here’s the thing: The fees are not based on the specific impact of a particular project on the road system. They’re based on the assumption that all the development called for in the general plan will be built and that each development project will pay its fair share of the resulting cost based on the assumed number of vehicle trips for that land use. As the county’s most recently updated traffic impact fee study , prepared by DKS and others, explains: “EDUs … reflect the average number of ‘new trips’ generated by each land use type.” (Emphasis added.) In other words, it’s not an “individualized determination”. It’s an average. Most program-level impact fee calculations in California follow the same formula. For example, the Western Riverside Council of Government’s Transformation Uniform Mitigation Fee, or TUMF, uses an almost identical “fair share” methodology. (WRCOG’s 2017 nexus study can be found here .) So is that good enough? We don’t know yet. The U.S. Supreme Court did not decide whether the fee that George Sheetz paid El Dorado County was unconstitutionally high. All the court said was that you have to use rough proportionality as the standard instead of reasonable relationship. Now it’s up to the California courts to use the apply the rough proportionality standard to George Sheetz’s situation. It's entirely possible that El Dorado County will argue in court that the methodology the county uses – again, a rough average of the impact that a typical development project will have – constitute “rough proportionality”. And California courts may well buy the argument. But it will be tough to get around Rehnquist’s call in Dolan for an “individualized determination”. But how do you make an “individualized determination” for the impact every single development project allowed under a general plan that requires a program of transportation improvements based on lots of development projects over a long period of time? Do you have to postpone the actual impact analysis down until a project is proposed? That would seem to be the opposite of the direction that most California jurisdictions seem to want to go in, which is to resolve things at the plan level rather than the project level. And what difference would that make in determining the fees? After all, an individual traffic impact analysis will almost certainly be based on the same assumptions about the number of vehicle trips and the cost of new transportation improvements that would be used at the plan level. In all likelihood, if El Dorado County ultimately loses Sheetz back in the California courts the nexus consultants and the lawyers will come up with some way of slicing and dicing land uses and their impacts more specifically than they do now. The result will probably be more work for nexus consultants. Whether it will also result in lower impact fees remains to be seen. For more news about land use planning and housing in California, sign up for California Planning & Development Report's free newsletter here . You can also learn more about the  Sheetz case and the exactions landscape by taking Bill Fulton's one-hour course here . This course is eligible for AICP CM credit.

The housing element/builder’s remedy battles continue around the state, as the Department of Housing and Community Development has revoked the housing element certification of the wealthy peninsula town of Portola Valley. HCD said Portola Valley was not making sufficient progress toward the upzoning called for in the housing element.

State Rescinds Certification of Portola Valley's Housing Element The Town of Portola Valley, an upscale enclave on the San Francisco Peninsula, has lost its housing element certification from the state due to its failure to approve changes allowing denser housing and more multifamily development, deeming it ineligible for state grants for housing and transportation until it adopts a compliant blueprint. Under state mandate, Portola Valley must accommodate 253 units, with 152 being affordable, yet it's been slow to adjust, despite pressure from state officials. The town's reluctance to vote on denser housing raised concerns from the Department of Housing and Community Development about its commitment to housing affordability, especially as it hosts prominent tech figures and faces challenges in rezoning amidst staff turnover. The Portola Valley Town Council has pushed the vote on allowing denser housing a number of times, citing short staff and an inability to rezone at this time. (See related CP&DR coverage .) OPR Survey Details Pace of General Plan Updates The Governor's Office of Planning and Research released its 2023 Annual Planning Survey results, with 327 of 529 cities and counties in California responding, representing 68 percent of California's population and responding to questions on general plan updates to air quality and emission reduction. The average update to jurisdictions' conservation, open space and noise elements was approximately 14 years each. Their land use elements on average were last updated 11.6 years ago. The most steadily updated elements were housing at an average of 3.2 years and environmental justice every 5.3 years, although environmental justice elements became a requirement in 2018 under SB 1000. Conversely, jurisdictions reported they plan to update their conservation, open space and noise elements in 4.9, 4.8 and 3.4 years on average, respectively, and land use in the next 3.8 years. Church Claims San Diego Illegally Blocked Expansion All Peoples Church is taking legal action against the San Diego City Council's decision to reject permits for a new facility in Del Cerro, citing violations of federal protections for religious institutions. The church filed a complaint with the U.S. District Court, alleging infringements on its rights under the Religious Land Use And Institutionalized Persons Act and the First Amendment. Seeking to override the city's decision, the church is also pursuing financial damages. The dispute stems from the council's denial of permits for a 900-seat sanctuary and other facilities on a vacant 6-acre lot. Despite unanimous support from the Planning Commission, the project faced opposition from a community group and ultimately, a majority vote against it by the City Council. The complaint challenges the decision's legality and questions the motivations of Councilmember Raul Campillo, who represents Del Cerro and led the opposition against the project. Oakland Drafts Downtown Plan with Multifaceted Goals After nearly a decade of anticipation, the City of Oakland has unveiled a comprehensive plan to revitalize its downtown, aiming to boost density, vibrancy and address racial and economic disparities. Covering 1.45 square miles, the plan focuses on incentivizing private construction of housing, offices and cultural spaces over the next 20 years. It envisions new office and residential towers, revitalizing light industry and creating cultural zones to preserve Oakland's arts scene. The proposal aims to meet projected housing, cultural, employment and recreational needs while emphasizing racial and economic justice. However, questions linger about feasibility, especially amidst Oakland's budget deficit and the uncertainties brought by the pandemic. Despite adjustments, some critics argue the plan may not fully address post-pandemic realities or sufficiently tackle issues like affordable housing. (See related CP&DR coverage .) Suit Challenges Latest Ruling on Federal Clean Water Regulation A lawsuit has been filed challenging the federal government's interpretation of the U.S. Supreme Court's May 2023 ruling on waters of the United States (WOTUS), specifically targeting the "adjacent wetlands" provisions of an amended rule issued by the Environmental Protection Agency and the U.S. Army Corps of Engineers. The lawsuit, brought by the Pacific Legal Foundation on behalf of Robert White, argues that the agencies are unlawfully asserting jurisdiction over private land in disregard of the Supreme Court's decision, which set forth a narrower standard for wetlands regulation under the Clean Water Act, requiring wetlands to have a continuous surface connection to regulated navigable waters. (See related CP&DR coverage .) CP&DR Coverage: Legislature Considers New Crop of Housing Bills California's upzoning frenzy may be coming to an end . But that doesn't mean that the legislature is done promoting housing. This year's bills, though, exhibit pragmatic approaches. Rather than seek headlines (and draw ire of slow-growth advocates), this year's bills largely address nuances that, perhaps, only developers could love. At least, that's the hope of many legislators. Many planners, however, probably hope that the power goes out in Sacramento when this year's crop of land use bills are being voted on. Quick Hits & Updates The City of Los Angeles is launching an initiative to support Legacy Businesses, defined as small businesses operational for at least 20 years, by offering benefits such as technical assistance and grants of up to $20,000. The program aims to preserve the cultural and historical significance of these businesses, with applications opening in fall 2024 and technical assistance beginning in January 2025, alongside four online information sessions in March to guide interested businesses. In a significant victory for the California Forever project in Solano County, a judge denied a motion by remaining landowners accused of conspiring to inflate property prices, citing evidence of a price-fixing conspiracy provided by messages among property owners. The "California Forever" project aims to create a new city from farmland near Fairfield, sparking debate over the role of the ultra-rich in city-building and the use of agricultural land for development. San Francisco is capitalizing on declining office values by negotiating discounted leases and potential purchases of office buildings in the Mid-Market neighborhood. By securing favorable terms, including concessions on rent and tenant improvements, the city aims to consolidate its office leases, revitalize the area and accommodate the space needs of several city departments. The California Department of Housing and Community Development (HCD) is updating California's fair housing plan, including the Analysis of Impediments (AI) to fair housing choice. As part of this effort, a Community Needs Assessment survey has been launched to identify housing, community development and supportive service needs in the state. The survey will help determine resource allocations and prioritize program activities and supportive services and it will be open for responses until May 1, 2024. An independent audit revealed financial mismanagement and misuse of taxpayer funds at HomeRise, a major housing provider for San Francisco's formerly homeless population, prompting the organization's CEO to pledge resolution of the identified issues. Despite efforts to address concerns, the report underscores the need for collaboration between HomeRise and city agencies to reform financial practices. Upgrades to Bay Area wastewater treatment facilities, totaling at least $11 billion, may be necessary to comply with anticipated stricter environmental regulations, particularly aimed at reducing nitrogen levels to prevent harmful algae blooms. The costs, averaging $4,000 per household, could be borne by consumers through increases in wastewater bills, with efforts underway to secure additional funding from federal and state sources to mitigate the impact on residents. Sunnyvale's 2023-31 Housing Element has been certified by the state Department of Housing and Community Development, outlining plans for accommodating nearly 12,000 new housing units and implementing various programs to address housing needs. Additionally, Sunnyvale will host an Earth Day Festival on April 20, coinciding with the grand opening of its new civic center, featuring sustainability-focused activities and information from local organizations. Sequoia and Kings Canyon National Parks, along with other California National Parks like Joshua Tree and Mojave, rank among the most polluted in America due to ozone pollution and wildfire smoke, according to a report from the National Parks Conservation Association. Wildfires have caused extensive damage to these parks, destroying sequoia groves and threatening wildlife. Pollution from population centers, agricultural and industrial operations and transportation facilities exacerbates the poor air quality in these parks, although there have been some improvements noted since 2019 attributed to the implementation of clean air regulations. The Orange County Transportation Authority is proposing additional measures, including constructing a half-mile-long retaining wall and adding more boulders along San Clemente's coastline, to protect the train tracks from landslides and ocean waves. The plan, estimated at $200 million, aims to address immediate vulnerabilities along the coastline, although concerns have been raised about the efficacy of armoring the coastline versus utilizing sand as a buffer to protect the rail line. A new ranking from Architectural Digest highlights the emergence of upscale living in 115 U.S. cities, focusing on factors like activities, properties, dining, income, diversity and safety, with Irvine, Carlsbad and Chula Vista the top three rising luxury cities. These cities offer a blend of luxury properties, high-income households and diverse cultural amenities based on data from sources like Redfin, Yelp, the U.S. Census Bureau and the FBI's Uniform Crime Reporting Program.

AIDS Healthcare Seeks to Purchase, Operate Homeless Housing in Los Angeles The AIDS Healthcare Foundation (AHF) aims to purchase properties on Los Angeles' Skid Row, primarily old single-room occupancy hotels, owned by the financially troubled Skid Row Housing Trust, which is currently in receivership. Despite being the leading bidder with a proposed $53 million offer for the initial twelve buildings, state officials have raised objections regarding the foundation's track record as a landlord, citing issues highlighted in previous investigations. The foundation, which ventured into homeless housing management in 2017, has faced criticism for inadequate building maintenance and tenant safety issues, as detailed in investigative reports. A March 20 letter from the Department of Housing and Community Development claims AHF “would not be a suitable owner and operator considering widely known and well documented shortcomings in the Foundation's ability to provide safe and well-maintained buildings." Concerns also revolve around the foundation's ability to provide supportive services, as it does not offer such services in most of its current buildings. Despite these reservations, final decisions on the sale of the properties rest with the court overseeing the receivership. AHF has sponsored several failed ballot measures related to housing, including a statewide rent control measure and a slow-growth measure in Los Angeles. (See related CP&DR coverage .) S.F. Supervisors Overturn Mayor's Veto of Slow-Growth Ordinances San Francisco's Board of Supervisors overturned Mayor London Breed's veto of legislation imposing housing development restrictions in three historic neighborhoods, the first successful override of Breed's veto by the Board. The legislation, spearheaded by Board President Aaron Peskin, marks a point of contention in his anticipated mayoral run against Breed, highlighting their differing approaches to addressing the housing crisis. The law aims to limit the height and scale of developments in areas such as the northeast waterfront and Jackson Square, a response to proposed projects exploiting recent development rule changes. Peskin argues that the legislation ensures responsible planning and protects the historical integrity of these districts, refuting claims that it hampers housing development. However, Breed views the veto override as a setback in the city's efforts to address its housing shortage, emphasizing the need to prioritize housing initiatives. The legislation's implications on San Francisco's ability to meet its state-mandated housing goals and its impact on future housing development remain key concerns amidst escalating tensions over housing policy, expected to intensify with the upcoming mayoral race. Major Property Insurer to Cut Back on California Policies State Farm intends to terminate roughly 30,000 property insurance policies and 42,000 commercial apartment policies in California, citing the imperative for "long-term viability." This move follows the cessation of issuing new homeowners policies last year and subsequent rate hikes averaging 20% for existing clients. The non-renewals, encompassing approximately 2% of all California policies, encompass various types of property insurance, including homeowners and rental coverage. Affected customers will receive notifications starting July 3 for property insurance and August 20 for commercial apartment insurance. While State Farm refrained from announcing non-renewals in other states, the decision reflects financial hurdles attributed to inflation, exposure to catastrophes and reinsurance expenses. State Farm expressed its commitment to collaborating with California's Department of Insurance and Governor Gavin Newsom on reforms aimed at insurance regulation. The Department of Insurance voiced apprehension regarding State Farm's financial position and underscored its dedication to safeguarding consumers and ensuring oversight. Research Questions Efficacy of CalEnviroScreen New research indicates that California's environmental screening tool, CalEnviroScreen, may be flawed and subjective, potentially causing communities to miss out on billions in funding. The study, led by researchers from Stanford University, highlights concerns about the tool's reliance on a limited set of health indicators, which could bias community designations. It suggests that altering the screening model could significantly impact rankings, affecting funding distribution. CalEnviroScreen, used to identify "disadvantaged" communities eligible for funding, is under review, with recommendations from the study being considered. Proposed solutions include using multiple models and establishing external advisory committees to address concerns about equity and funding allocation. Key Light Rail Link Approved in San Jose The Santa Clara Valley Transportation Authority (VTA) board unanimously approved a $437 million construction contract for the Eastridge to BART Regional Connector project, which will extend light rail services by 2.4 miles from East San Jose to Milpitas BART Station, addressing a critical infrastructure need in the largely Latino community. The connector will like the Eastridge Transit Center with the Alum Rock Transit Center, which connects to the Milpitas BART station. Despite coming in over budget, the joint bid from MCM Construction Inc. and RailWorks Corporation was approved, with funding drawn from VTA reserves, marking a historic investment in transportation equity for East San Jose. With construction set to begin in April and completion expected by 2028, local leaders and advocates welcome the long-awaited project as a transformative opportunity for the underserved area. The connector has been discussed since the early 2000s. CP&DR Coverage: Court Permits Referendum on Livermore Development to Proceed Opponents of an affordable housing project in downtown Livermore have won the latest legal skirmish, with an appellate court ruling that the city must allow a referendum on the project to move forward. City officials had argued that their approvals of the project were quasi-judicial in nature and therefore not subject to the initiative and referendum process. But the First District Court of Appeal ruled that one aspect of the project approval was legislative and therefore the referendum must move forward. In a 31-page ruling that discussed various precedents at length, the three-judge panel concluded that while much of the development agreement might have been characterized as quasi-judicial, that portion of the agreement dealing with the park was legislative. Quick Hits & Updates The Newport Beach City Council voted to withdraw from the League of California Cities due to the organization's support for Proposition 1, which city officials fear could lead to an increase in group homes in the area. Concerns were raised about the potential impact of Prop 1 on the city's quality of life, particularly regarding the proliferation of poorly run group homes and the welfare of both residents and individuals receiving care. San Francisco's population has seen a slight increase to an estimated 808,988 residents as of July 2023, indicating a reversal of the pandemic-related exodus. Despite this growth, the city still remains below its pre-pandemic population levels, experiencing a decline of nearly 65,000 people or 7.4% compared to April 2020. UC Berkeley's Terner Center for Housing Innovation's study of housing and climate policy found that addressing climate change and housing policy necessitates a comprehensive strategy involving land use transformation, housing retrofitting and government capacity enhancement to respond to climate disasters. Recent progress in state planning reforms and significant climate legislation offers momentum toward promoting equitable and sustainable housing policies. San Francisco officials are introducing legislation to bring 1,000 new homes, public amenities and parks to Treasure Island, marking it as the single largest source of new housing in the city. This project, part of San Francisco's efforts to meet its state-mandated housing goals, is seen as crucial for the city's economic recovery and will contribute to the ongoing redevelopment of Treasure Island into a new neighborhood. (See related CP&DR coverage.) The City of Los Angeles is launching an initiative to support Legacy Businesses, defined as small businesses operational for at least 20 years, by offering benefits such as technical assistance and grants of up to $20,000. The program aims to preserve the cultural and historical significance of these businesses, with applications opening in fall 2024 and technical assistance beginning in January 2025, alongside four Zoom information sessions in March to guide interested businesses. Gov. Newsom plans to accelerate construction of a $2-billion mixed-use development project called Fourth & Central in downtown Los Angeles by expediting the judicial process for any potential litigation under state environmental laws. The project, spearheaded by Denver-based developers Continuum Partners, aims to revitalize Skid Row with 1,500 new homes, office space, retail, restaurants and a hotel, while also creating thousands of construction jobs, although concerns remain regarding potential gentrification and displacement in surrounding communities. The approval of $205 million in construction funding for the Sites Reservoir project in Colusa County, California marks a significant step toward creating the largest new reservoir in the state in the past 50 years. Planned to store water diverted from the Sacramento River, the project aims to address water storage needs for agriculture and urban areas, though it faces opposition from environmental groups concerned about its impact on ecosystems. The state is poised to certify Beverly Hills' Housing Element, marking the end of a three-year struggle to meet the state's housing demands. The latest version of the plan, aimed at creating capacity for 3,100 new housing units by 2029, has been deemed compliant by HCD. California Forever issued a statement accusing opponents of spreading misinformation about the signature gathering process for its proposed new city in Solano County. The company stated that its signature gatherers are professionals provided with a fact sheet outlining the initiative's goals and promises. Solano Together responded, labeling California Forever's promises as "empty" and emphasizing that voters will be deciding on a change to the General Plan, not the initiative's guarantees. The state has approved $5 million in grant funding to develop Community Resilience Centers across the state, aimed at addressing the impacts of climate change and providing emergency response facilities. The grants, approved by the California Strategic Growth Council, will assist 11 low-income, disadvantaged, rural, unincorporated and tribal communities in planning for the implementation of these centers, which will offer various services to communities throughout the year, focusing on energy independence, workforce development, food security, emergency response and tribal sovereignty. The Newport Beach City Council voted to withdraw from the League of California Cities due to the organization's support for Proposition 1, which city officials fear could lead to an increase in group homes in the area. Concerns were raised about the potential impact of Prop 1 on the city's quality of life, particularly regarding the proliferation of poorly run group homes and the welfare of both residents and individuals receiving care.

The CP&DR Vol. 39 No. 3 March 2024 Report