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Concord Approves Latest Attempt to Redevelop Naval Weapons Station City officials in Concord have tentatively approved a billion-dollar plan for the redevelopment of the former Concord Naval Weapons Station, aiming to transform the 2,300-acre site into a mixed-use, transit-oriented community over the next 40 years. Brookfield Properties' proposal includes 6 million square feet of commercial space, 880 acres of greenspace and more than 12,200 homes, with 25% designated as affordable housing. The project, expected to cost approximately $6 billion, marks a pivotal moment after previous attempts by other developers faced setbacks due to labor disputes and disagreements over the past decade. With the recent approval of a non-binding term sheet, Brookfield now has up to 48 months to negotiate a property transfer agreement with the U.S. Navy and finalize plans for the project's environmental impact, legal clearances and permits before construction can commence. Despite challenges ahead, the community's support and comprehensive planning efforts signal an optimism for the project's success. (See related CP&DR coverage .) University to Lease Major San Francisco Redevelopment Continuing a trend in which educational institutions are moving into underutilized urban properties, UC San Francisco is in advanced negotiations to become the main tenant in the redevelopment of San Francisco's Potrero Power Station, aiming to establish a clinic, precision cancer center and health tech incubator on a 50,000-square-foot parcel within the project. The mixed-use expansion onto 21 acres of former industrial land includes plans for 2,600 housing units, 1.6 million square feet of commercial space and a 250-room hotel. If approved, UCSF's involvement could mirror its role in Mission Bay, with aims to kickstart a vibrant neighborhood and fostering innovation in healthcare and research. Local officials and community groups currently view the project positively as a strategic opportunity for growth and development. (See related CP&DR coverage .) State Loses Ground on Greenhouse Gas Goals A new analysis reveals that California must significantly accelerate its efforts to combat climate change to meet its emissions reduction targets according to this year's edition of the Green Innovation Index, released by nonprofit Next10. Despite previous progress, emissions rebounded by 3.4% in 2021, setting the state further behind its mandated goal of emitting 40% less by 2030 than in 1990. Meeting this goal requires annual cuts of 4.4%, a pace the state has only achieved during recessions. Key challenges include reducing emissions from electricity generation, transportation and cement production, with the latter accounting for 2% of the state's emissions. While California has made strides in some areas, urgent action is needed to achieve ambitious climate targets and avoid falling short. Costs of State High Speed Rail Continue to Mount California's high-speed rail project, despite recent progress and excitement over its renderings, faces significant financial challenges as described by the High Speed Rail Authority in a recent hearing in Sacramento. With a $7 billion shortfall for the initial Merced to Bakersfield segment and an estimated $100 billion needed for the complete San Francisco to Los Angeles route, state leaders must soon decide whether to commit to the entire project or abandon it. The latest cost projections were shared during legislative hearings, with plans to begin electrified high-speed rail service in the Central Valley between 2030 and 2033. While efforts are underway to secure federal funding and complete environmental studies, uncertainties remain about the project's future funding and completion. Additionally, the project has faced rising costs, delays and litigation, prompting calls for stable and adequate funding to ensure its success. CP&DR Coverage: Local Ballot Measure Roundup March 4 local ballots included only a handful of local ballot measures, but a few of them were big. Voters in the City of Los Angeles approved a sweeping measure to make the city's streets safer and to facilitate active transportation through pedestian upgrades and a host of other improvements. In San Francisco, voters predictably approved a bond measure to finance affordable housing. Less predictably, they gave businesses relief through the curtailment of transfer taxes on commercial properties; the measure is designed to help the city's beleaguered downtown. A contentious slow-growth measure in Santa Cruz failed by a wide margin, and 91% of residents of the future City of Mountain House voted for incorporation. Quick Hits & Updates The Sacramento City Council finalized its general plan update, aimed at building housing near transit, reducing car dependency, and slashing carbon emissions to combat climate change. The plan includes restrictions on new gas stations and drive-thrus, an end to parking mandates for new developments and incentives for electric-powered construction. UC Berkeley's Terner Center for Housing Innovation is launching a new focus area to address the intersection of climate change and housing policy, aiming to provide evidence-based research to navigate the complexities of aligning housing and climate policies while advancing equity and affordability goals. The Fifth Appellate District court ruled that Kern County's local ordinance for fast-tracking oil and gas projects violates California environmental law for the second time. The ruling prohibits the county from issuing permits for such projects due to deficiencies in the environmental review process, a victory applauded by farming companies and community organizations concerned about the potential impact on farmland and residents' health. The Supreme Court of California is set to hear oral arguments April 3 in a case crucial to UC Berkeley's student housing project at People's Park. The lawsuit filed by Make UC a Good Neighbor argues that the university failed to consider alternative sites for the project and raises concerns about potential noise impacts on the Southside neighborhood. SPUR has compiled a comprehensive database of local land use ballot measures in California that affect housing production. These measures, enacted since the 1970s, range from urban growth boundaries to open space preservation ordinances. While many aim to curb urban sprawl and protect open space, they may inadvertently limit housing supply if not accompanied by incentives for infill development in urban areas. Additionally, measures such as zoning restrictions and voter approval requirements within city boundaries can hinder infill housing production, potentially worsening housing affordability and exacerbating racial segregation over time. The Superior Court has ruled in favor of moving forward with California's Bay-Delta Plan, despite opposition from water agencies and other groups. The plan aims to protect the state's major rivers and creeks by setting limits on water withdrawals by cities and farms, with the goal of addressing the decline of the Sacramento-San Joaquin River Delta and supporting wildlife habitats. Although the decision is expected to be appealed, the court's ruling validates the State Water Resources Control Board's authority to implement measures to safeguard fish and wildlife while balancing economic interests. The Chula Vista City Council unanimously rejected the option to implement Senate Bill 10, citing concerns over potential impacts on community character, local control, parking challenges and school overcrowding. Despite initial interest in exploring SB 10's benefits, the council opted not to pursue it, emphasizing the need for public discussion and a citizenry vote for significant development decisions. (See related CP&DR coverage .) Homeowners in Santa Cruz County are embroiled in a dispute with the county and the Coastal Commission over public access to a coastal walkway, which the homeowners have fenced off but authorities argue should remain open. The conflict, fueled by concerns over property rights and accessibility to the coast, has led to legal battles and tensions between residents and advocates for public access, highlighting broader debates over coastal access in California. A recent analysis by The Pew Charitable Trusts demonstrates a strong connection between rent prices and homelessness in American cities. The research compared homelessness and rent data from 2017 and 2022, showing that areas experiencing sharp increases in homelessness also saw faster-than-average rent growth, while areas with declining homelessness had slower rent growth.

The Biden Administration has proposed $20 billion in federal grant funds to state and local governments to expand housing supply focusing on such efforts as:

California Forever Releases Renderings, Master Plan Map The California Forever project in Solano County released aerial views and renderings of the proposed New Urbanist-influenced city, showcasing tens of thousands of homes, open spaces and renewable energy sources. Renderings reveal medium-density, mixed-use neighborhoods; the map depicts a community including mixed-use districts, districts for "making and manufacturing" and "industry and technology," and a buffer zone between the development and Travis Air Force Base, to the west. The project, aimed at transforming farmland into affordable, walkable neighborhoods, faces opposition from environmental groups and locals concerned about traffic and housing on agricultural land. Initial plans call for a community of about 50,000 residents, with long-term build-out at 400,000. The renderings and map cite neither an architecture firm nor a planning firm. California Forever seeks to gather 13,000 signatures for a ballot initiative to amend zoning codes, enabling the project to move forward. If successful, the initiative could bring 15,000 new jobs and $500 million for community benefits. Recent " guarantees " issued by the company include commitments to smart growth and promises to invest $400 million into affordable housing countywide and $500 million into economic revitalization of downtowns in the county's existing towns. (See related CP&DR coverage .) State Program Seeks to Mitigate Damage Done by Urban Highways California is launching a pilot program called Reconnecting Communities: Highways to Boulevards to mend historical divisions caused by highways in underserved areas. Governor Gavin Newsom announced the initiative, aimed at reconnecting neighborhoods in Arcata, South San Francisco and southeast San Diego/National City, emphasizing equity and community-driven solutions. The program, part of the Climate Action Plan for Transportation Infrastructure, aims to convert highways into vibrant public spaces and multimodal corridors, with Caltrans assisting communities in developing and implementing their vision. The Reconnecting Arcata Project aims to address transportation challenges caused by state highways through community-driven planning, with a proposed transit center and active transportation enhancements. The Reconnecting Southeastern San Diego and National City Project aims to improve transportation options in historically divided communities, partnering with local organizations to fulfill community objectives. The Connect4SSF Project in South San Francisco aims to improve connections between neighborhoods by addressing infrastructure barriers and enhancing access along priority corridors. California Receives $235 Million in Federal Funding for Equitable Transportation Projects The U.S. Department of Transportation's Reconnecting Communities and Neighborhoods (RCN) Grant Program allocated $3.3 billion across 132 communities to support transportation projects enhancing access to essential services, promoting equitable development, removing or mitigating barriers caused by transportation infrastructure and prioritizing disadvantaged communities, totaling in approximately $235.4 million across 17 projects in California. The three largest projects in California include, in order of cost, "Removing Barriers and Creating Legacy - A multimodal Approach for Los Angeles County" ($139 million), "The East Bay Greenway Multimodal Project: Lake Merritt to Bayfair" with the Alameda County Transportation Commission ($30 million), and "SACOG Green Means Go: Green Zone Access and Equity Regional Planning Project" with the Sacramento Area Council of Governments ($22 million). "Removing Barriers and Creating Legacy" project by the Los Angeles County Metropolitan Transportation Authority aims to reconnect communities and improve mobility ahead of the 2028 Los Angeles Olympic and Paralympic Games. Major Disneyland Expansion Clears Hurdle Disneyland's ambitious theme park expansion plan, known as DisneylandForward , has cleared a significant hurdle with approval from the Anaheim Planning Commission. The project, valued at over $1.9 billion, aims to revitalize the Anaheim resort over the next decade with new attractions, shops and dining options. Despite concerns raised by some residents about traffic, noise and Disney's treatment of its workers, the project received praise from city officials and Disney representatives for its potential economic benefits. However, critics have questioned the adequacy of Disney's contributions to affordable housing compared to projects elsewhere, urging the company to do more for the local community. The proposal now awaits final approval from the City Council, with the potential to reshape Anaheim's landscape and economy in the coming years. CP&DR Legal Coverage: Clovis Housing Settlement; Coastal Commission Ruling on Central Coast Almost a year after losing an important appellate court ruling in a housing element lawsuit, the City of Clovis has agreed to a wide-ranging settlement agreement that includes rezoning to accommodate 1,300 affordable units and a host of other efforts to promote affordable housing. The agreement ends several years of litigation between Clovis and Central California Legal Services over the city's housing element and in particular the “Regional Housing Needs” zoning overlay district that allowed but did not require affordable housing. It's the second settlement agreement in recent weeks dealing with a housing element dispute. Recently the City of Davis settled a builder's remedy lawsuit, agreeing to move a mixed-income project forward with the voter approval typically required in the city. A San Luis Obispo County can't go forward with the second phase of a seven-lot subdivision - even though the first phase is already built. In an unpublished ruling, the Second District Court of Appeal has agreed with the California Coastal Commission that the three lots are located in a “sensitive coastal resource area” and do not have access to water and wastewater, even though they have the same water meters, sewer mains, and sewer laterals as the four lots included in the first phase of the project. San Luis Obispo County approved the project but the Coastal Commission overturned the county after bringing it up on appeal to itself. Quick Hits & Updates The UCLA Luskin School of Public Affairs will launch a new Master of Real Estate Development (MRED) program in fall 2025, aiming to train a diverse generation of professionals to address urban challenges like affordable housing and sustainability. The curriculum plans to integrate expertise from UCLA's Urban Planning, Anderson School of Management and Law, with a focus on urban governance, equity and sustainability. The Planning Commission unanimously approved Beverly Hills' Housing Element, aiming to address state-mandated housing unit goals by 2029, with the plan advancing to the City Council for adoption. Key revisions include adding city-owned sites for low-income housing, facilitating Accessory Dwelling Units and reducing barriers to construct new housing, reflecting a collaborative effort with state authorities to ensure compliance and address housing challenges. The City of Napa received certification of its Housing Element by the Department of Housing and Community Development, marking a pivotal step in addressing the community's housing needs. This milestone underscores the city's proactive approach to housing planning, ensuring alignment with the 2040 General Plan and emphasizing strategies to encourage diverse housing, protect existing units, identify suitable sites and remove obstacles to development while fostering transparency and community engagement. The San Jose BART extension project is facing a cost increase of $600 million, bringing the total estimated cost to $12.75 billion, with a delay pushing the completion date to May 2037. The Federal Transit Administration attributes the increase to rising labor and material costs, as well as a shortage of contractors. Despite efforts to control costs, concerns persist, with some critics calling for a reassessment of the project's scope and expenses. A federal judge in Los Angeles is seeking an independent audit of homelessness programs, including Mayor Karen Bass' Inside Safe initiative, amid concerns over the allocation of public funds and program effectiveness. The judge's request follows allegations by the L.A. Alliance for Human Rights of the city's failure to meet terms of a settlement agreement regarding homeless shelter beds and encampment clearances, with potential monetary sanctions of $6.4 million pending and plans for an audit led by the city controller underway. The first round of funding through the Extreme Heat and Community Resilience Program is available! Part of the Integrated Climate Adaptation & Resiliency Program, the Extreme Heat and Community Resilience Program will fund planning and implementation projects that build resilience to extreme heat. Program staff and technical assistance providers are hosting a series of Application Workshops throughout the application period to help applicants navigate the Final Guidelines. On the Extreme Heat and Resilience Grant webpage , navigate to the “timeline” portion of the program webpage to register for a workshop. The Los Angeles City Council approved a five-year, $10 million contract with Bike DBA Tranzito to design and operate Integrated Mobility Hubs, offering transportation options like bike- and car-sharing services in downtown Los Angeles, Hollywood and Long Beach. The hubs, funded partly by $3.5 million for capital costs and $6.7 million for operational costs, will provide first/last-mile connections with 13 locations near Metro rail stations, with additional Satellite Hubs and bike-share kiosks planned, catering to various user groups with varying pricing fees. Accessory dwelling units (ADUs) have seen a surge in production, with the number permitted annually in the Los Angeles metro area increasing from around 2,000 in 2017 to over 13,000 in 2022, offering potential relief for the housing shortage, but ensuring affordability for low-income tenants remains a challenge. A new policy brief from SPUR studies San Jose's urban village plan, which aims to create livable, affordable neighborhoods near transit, aligning with the concept of "15-minute neighborhoods" where essential services are within walking or biking distance. The brief found that, despite its potential, many urban villages have not been approved, with most residential development occurring outside of these planned areas. SPUR suggests implementing six strategies to leverage the 15-minute framework for creating more inclusive and connected communities, following extensive consultations and research. A proposal to build a new landfill and recycling center in East Otay Mesa in San Diego County, previously approved by voters in 2010, is now being contested by environmentalists, elected officials and community leaders who argue that it's unnecessary due to projections indicating existing landfills will last through 2053. Los Angeles Metro's Link Union Station overhaul is undergoing modifications, reducing the number of new platforms and tracks due to budget constraints. The number of new platforms with access to run-through tracks--rather than those that dead-end at the station--will decrease from seven to four. The initial construction phase will focus on modifying Platform 3, with ongoing utility relocations and expectations for environmental clearances in fall 2024. The Bay Area's Regional Network Management Council revealed design prototypes for standardized transit signs, aiming to enhance connectivity and customer focus across the region's transportation network. Featuring a three-color palette and simplified icons, the signage aims to establish a common identity for all Bay Area transit services and improve accessibility through a new mobile-friendly website. California's Extreme Heat and Community Resilience Program received $20 million in funding and aims to enhance community safety from the escalating impacts of extreme heat through both planning efforts and implementation projects.

Fresno County General Plan Update Could Exacerbate Sprawl Fresno County supervisors adopted a contentious update to the general plan, paving the way for significant development along the Kings and San Joaquin Rivers, despite concerns about worsening air quality, agricultural loss and exceeding carbon emissions targets. Critics, including the City of Fresno and the local Sierra Club, argue that the plan could worsen air quality, accelerate farmland loss and potentially exceed the county's state-mandated climate emissions budget by 300%. The project includes a large industrial park, suburban expansion northeast of Fresno and a 7,000-acre residential development along the Kings River. The decision, described as one of the county's most important in the 21st century, signals a shift in priorities towards revenue-generating projects, drawing criticism from environmental advocates and highlighting the tension between development goals and community needs. New Online Tool Illustrates Mobility Disparities Statewide Caltrans introduced its Transportation Equity Index (EQI) tool to address disparities in mobility across California. Developed with three key data indicators focusing on household income, traffic exposure and access to destinations, the EQI aims to identify communities most negatively affected by issues like traffic, crashes and air pollution. It assists in prioritizing projects and policy decisions aligned with state environmental and equity goals, aiming to improve access and quality of life for all Californians. Caltrans intends to integrate equity considerations into project planning, development and design phases, with the tool's first application enhancing the analytical capabilities of the Caltrans System Investment Strategy (CSIS). Additional applications of the EQI are anticipated to follow, marking a significant step in ensuring equitable transportation outcomes across the state. High Seed Rail Authority Releases Station Renderings The California High-Speed Rail Authority released renderings of the proposed high-speed rail stations in the Central Valley, revealing their large scale, featuring wide platforms, concourses and spacious outdoor areas. The stations --in Merced, Fresno, Bakersfield and outside of Hanford--will be characterized by large, perforated metal canopies shielding passengers from the region's intense heat. All of the stations will feature large parking lots, indicating many riders will have to drive to the stations. Riders will board the trains from elevated platforms with limited access to ticketed passengers, while amenities such as parking lots and airport-like seating will cater to Central Valley commuters. Construction of these stations is slated to commence in 2027, with passenger service expected to begin between 2030 and 2033. Clovis Settles Suit over Housing Policies The City of Clovis and housing advocate Desiree Martinez reached a settlement in the Desiree Martinez v. City of Clovis lawsuit, marking the end of years of litigation over the city's land use and planning policies. The lawsuit, filed in 2019, alleged that Clovis was not complying with California's Housing Element Law, hindering affordable housing development. Key points of the settlement include the establishment of a Local Housing Trust Fund, rezoning for multifamily dwelling units and the requirement for up to 10% of units in new housing developments to be affordable for low-income families. The agreement, facilitated by Central California Legal Services, the Public Interest Law Project and the Law Office of Patience Milrod, aims to create over 3,000 additional affordable housing opportunities in Clovis. CP&DR Coverage: Los Angeles Safe-Streets Ballot Measure Draws Fire Between 2013 and 2022, Los Angeles County averaged around 54,000 fatal or injury crashes annually (the vast majority being injury-only crashes). One city in Los Angeles County is attempting to do something about car accidents and, especially, the hazards they pose for pedestrians. On March 5, voters in the City of Los Angeles will consider Measure HLA, an initiative that would force the city to implement its Mobility Plan 2035, which was adopted in 2015. Backers of Measure HLA say that the city has implemented as little as 5% of the plan. Meanwhile, some 300 deaths take place annually on the city's streets. That's why it's odd that the major opponent was none other than the Los Angeles firefighters union. But, it's more than odd. It's a major impediment to good urbanism. Quick Hits & Updates A new report "Foot Traffic Ahead 2023" by Smart Growth America and Places Platform ranks the top 35 metro areas in the U.S. by their walkable urbanism, highlighting the demand for such real estate surpassing supply. San Francisco and Los Angeles ranked 6th and 8th, respectively; on the other end of the spectrum, Sacramento ranked 24th and San Diego 28th. The developer behind the proposed redevelopment of the former California Pacific Medical Center campus addressed concerns of Presidio Heights residents regarding planned changes to a housing project in San Francisco, emphasizing that the project won't exceed current height limits. The proposed redevelopment includes additional senior living units and a modified residential component, aiming to provide much-needed housing while adhering to community feedback. An Orange County judge ruled that Anaheim violated housing laws by denying a permit for Grandma's House of Hope to open transitional housing for women in the Anaheim Colony Historic District. Governor Gavin Newsom hailed the ruling as a victory for addressing homelessness, while the city argued that it needed to balance neighborhood integrity with housing needs and is reviewing the ruling. A property owner in Del Mar is suing the city over the Seaside Ridge for repeatedly denying the project application, citing the builder's remedy provision of the Housing Accountability Act. The lawsuit claims the city's refusal to move forward obstructs affordable housing construction and violates state law, despite Del Mar's recent agreement with the Fairgrounds for affordable housing negotiations. Developer Seaside Ridge argues the project's necessity to meet housing mandates, contrasting its readiness with the delayed fairgrounds units, potentially extending beyond the mandated closure date. The 40 Acre Conservation League, California's first Black-led land conservancy, has acquired 650 acres of Sierra Nevada land in the Emigrant Gap area of Placer County. Supported by a $3 million grant from the Wildlife Conservation Board and Sierra Nevada Conservancy, the league aims to conserve over 25,000 acres of land by 2030, signaling its commitment to environmental stewardship and community empowerment. UC Berkeley spent approximately $7.8 million to secure and wall off People's Park to prepare for the construction of a new housing complex. The cost includes expenses for police presence, construction and relocating homeless individuals to a hotel. Activists criticized the university's spending, while officials defended the operation as necessary for safety and construction readiness. According to an analysis of the National Association of Home Builders' tally of housing permits, California experienced a slight dip in new housing permits in 2023, with builders filing 111,221 permits, marking a 6% decrease from 2022, though still outperforming the national average. Single-family permits totaled 57,959, down 8%, while multifamily permits reached 53,262, down 3%. Southern California metro areas saw a combined 6% increase in permits, while northern metros experienced a 10% decline. The federal government is allocating over $1 billion for cleanup projects at more than 100 Superfund sites across the country, via the Bipartisan Infrastructure Law. At the Sulphur Bank Mercury Mine Superfund site in Lake County, funds will be used to manage mining waste, safeguard residential areas and create a safe environment for the limited recreational activities of Elem Indian Colony residents, including hunting, fishing, foraging and transit to nearby lands. Former Anaheim mayor Harry Sidhu's plea agreement revealed unethical conduct during stadium deal negotiations, but a court cleared the city of violating open government laws, largely upholding compliance with the Brown Act despite criticism of transparency. The appellate court's ruling acknowledged the need for public comment via telephone during the pandemic while affirming the city's overall adherence to the Brown Act.

All this litigation and pressure from the state and advocacy groups on the question of housing production is leading to something . The question is whether it will lead to more housing.

Revised Vallco Mall Redevelopment Wills Approval in Cupertino The City of Cupertino approved a revised plan for a long-awaited mixed use development called The Rise, set to replace the former Vallco Shopping Mall. The project was one of the first SB 35 controversies in the state. (See prior CP&DR coverage .) The project, which has been in the words for at least six years and heavily litigated, will feature housing, commercial spaces and offices, with a focus on increasing residential units while reducing overall building square footage and height. The revised project will include 2,669 residential units, up from 2,402, and about two-thirds as much retail and entertainment space. Sand Hill Properties, the real estate firm behind The Rise, cites market forces as driving the need for flexibility and creativity in the project's design. Despite challenges in securing construction financing due to high interest rates and inflation, the project moves forward with approval from the city, aiming to blend urban and natural environments while meeting Cupertino's housing needs. The approved plan would fulfill more than half of Cupertino's housing obligations for the next planning cycle. Port of San Diego Adopts Master Plan, 11 Years in the Making The Port of San Diego certified the final environmental impact report for its master plan update , designating specific areas of San Diego Bay and the waterfront for various uses including maritime, recreational, and commercial activities. The Port Master Plan Update, governing the 30-mile waterfront of San Diego Bay -- encompassing 2,400 acres of land and 3,500 acres of water -- reflects extensive community engagement over 11 years, aiming to fulfill promises made to voters since the port's establishment in 1962 by enhancing public access, preserving natural resources and balancing development needs while providing economic opportunities. The plan calls for extensive upgrades to open spaces, including pedestrian access and parks. It also includes over 3,000 new hotel rooms. The update represents the first comprehensive revision since the plan's approval in 1981. With unanimous approval from the Board of Port Commissioners, the plan now awaits certification from the California Coastal Commission, expected by late 2024. HCD Solicits Comments for Draft Surplus Land Act Guidelines The Housing and Community Development department released draft Updated Surplus Land Act Guidelines for public comment until March 25, 2024, inviting specific feedback on proposed changes and their rationale, particularly regarding surplus land identification, notification procedures and disposal terms. These guidelines aim to address legislative changes and identified areas requiring updates or clarity since the initial adoption in April 2021, emphasizing the need for additional clarity and changes in light of evolving laws and challenges. HCD is facilitating public engagement through a webinar on March 6, 2024, to discuss the draft guidelines and receive input from stakeholders. The Surplus Land Act connects developers interested in building affordable homes with surplus local public land, requiring local agencies to notify relevant entities and HCD before disposing of surplus property, with all inquiries and documentation submitted through the Surplus Land Portal. California Lawmakers Introduce Federal Housing Bill California Congressmembers Rep. Ted Lieu and Senator Alex Padilla introduced the Housing for All Act, a bipartisan legislative package aimed at addressing homelessness and affordable housing issues. The legislation hopes to provide federal funding for both existing and innovative housing solutions. The bill would invest in already-established programs while supporting locally developed initiatives to combat homelessness. Key components include investments in affordable housing programs, homelessness prevention and support for vulnerable populations. The proposed legislation has garnered support from various stakeholders, recognizing the urgent need to address the housing crisis nationwide. Commercial Property Owners Consider Adaptive Reuse The Winter 2024 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey indicates a potential rise in adaptive reuse of office buildings, with 21% of property owners planning redevelopment for multifamily, industrial and retail purposes over the next three years. The office sector recovery is expected to extend until the end of 2026, with decreased new development and complex leasing processes observed. Retail market optimism is growing, with 80% of respondents expecting demand to outpace supply, while the industrial sector anticipates continued strong leasing activity but foresees supply eventually exceeding demand. Multifamily development faces macroeconomic pressures, particularly in Northern California, with 68% of respondents reporting no plans for new development due to high interest rates and construction costs. (See related CP&DR coverage .) CP&DR Legal Coverage: Berkeley Loses CEQA Case in Court; Davis Settles Builder's Remedy Case The City of Berkeley has already gotten hammered in court over denying an affordable housing project that would be built on a parking lot over the remnants of a Native American shellmound. But now Berkeley's going to have to pay as well. Invoking a previously little-used clause in the Housing Accountability Act, Alameda County Superior Court Judge Frank Roesch has fined the City of Berkeley $2.6 million - in addition to ordering the city to pay attorneys' fees of $1.4 million. The money will be deposited into an affordable housing fund. The notoriously slow-growth City of Davis has reached a legal settlement over the controversial Palomino Place project, agreeing to process the project as a builder's remedy project instead of taking it to a vote, which would be required under the city's Measure J voter requirement. The Palomino Place proposal originally consisted of 165 housing units on property currently designated by the general plan for agricultural use. The settlement agreement would not quite treat the project as a purely builder's remedy application. Rather, according to the settlement agreement, the developer will increase its commitment for affordable housing to 25% of the project (45 units), while the city promises to process the project quickly, produce an environmental impact report, and act on the project by the end of 2024. Quick Hits & Updates $10.3 million has been given to the Land Conservancy of San Luis Obispo County to purchase a conservation easement for Camatta Ranch, protecting a wildlife corridor for threatened and endangered species on California's Central Coast. This acquisition adds to the protected lands, covering 27,512 acres and safeguarding native habitat for numerous animal and plant species, contributing to the state's goal of conserving 30% of its land and coastal waters by 2030. HUD has awarded nearly $4 million to support research aimed at accelerating innovative housing practices. Two California universities received the second- and third-largest grants, respectively. The University of California, Los Angeles, received $458,340 to analyze the effects of ADU legalization on rents, prices, and land values in California. The University of California, Irvine, will research the impact of state-level reforms on ADU development, particularly in relation to fair housing initiatives, with a $343,244 grant. Development company Eldridge Renewal has submitted a formal application for the redevelopment of the Sonoma Developmental Center campus, proposing a mix of housing, retail, office space, green spaces and a hotel. The developer and the county are in disagreement over the interpretation of housing regulations, with Permit Sonoma -- the county's planning agency -- advocating for more affordable units and expressing concerns about fire risk and the layout of the development. Of the 930 units the developer intends to build, the developer contends that 124 must be deed-restricted units while the county is insisting on 232.(See related CP&DR coverage .) Yreka adopted an updated general plan aimed at guiding the city's development over the next 20 years, incorporating input from over 450 residents gathered through public engagement events. The plan emphasizes fostering business growth, expanding housing options, improving healthcare access, promoting community gardens and addressing concerns such as housing affordability and healthcare availability. After five years of effort to bring high-speed transit to San Diego's international airport, a final route and mode of travel won't be selected for at least three more years, frustrating local leaders who worry about funding opportunities expiring. Despite SANDAG staff's insistence that the new timeline doesn't represent a delay but rather a different approach, board members expressed dissatisfaction, emphasizing the need to expedite the process to provide efficient transit options to the airport. The Nevada County Board of Supervisors unanimously rejected a gold mining proposal in Grass Valley, emphasizing the community's desire for environmental protection. Rise Gold's application to reopen the Idaho Maryland Mine, inactive since the 1950s, faced significant local opposition due to concerns over environmental impact and groundwater contamination. Rise Gold has threatened legal action against the county, claiming a constitutional violation and seeking compensation for the estimated $400 million in gold that it claims could be extracted. A $7.2 million "catchment wall" will be constructed in northern San Clemente to address a landslide area and restore passenger train service through to San Diego, funded by the California Transportation Commission. The wall, similar to one built previously near Casa Romantica, aims to prevent hillside slippage, with discussions ongoing about the damaged Mariposa pedestrian bridge as a result of the landslide. California voters approved the No Place Like Home ballot measure in 2018, aiming to address the state's homelessness crisis by funding permanent supportive housing. However, more than five years later, only a fraction of the promised housing units have been completed , highlighting challenges like NIMBYism, funding complexities and legal obstacles, according to an analysis by the San Francisco Chronicle. The Concord City Council approved rent control in a 4-1 vote, with a proposed citywide vote due to concerns about including single-family homes, although this motion could not proceed. The ordinance expands the Rent Registry and implements a Rent Stabilization Program for multi-family rental complexes built before Feb. 1, 1995, aiming to address tenant rights and landlord concerns in the community. The California State University Board of Trustees approved a master plan for the Sacramento State Placer Center, a satellite campus set to accommodate 12,000 students in Placer County's Placer One development. Collaborative efforts with partners like Sierra College aim to facilitate dual enrollment programs, while discussions for a potential Forensic Sciences Laboratory highlight ongoing collaboration for educational expansion. A study from UCLA's Lewis Center for Regional Policy Studies examined the relationship between housing affordability and commute distance in Los Angeles-Orange MSA and the Riverside-San Bernardino MSA, concluding the importance of protecting and increasing the supply of affordable housing in job-rich neighborhoods located in more expensive, urban and coastal cities (Los Angeles-Orange MSA).

CP&DR Vol. 39 No. 2 February 2024 Report

U.S. Supreme Court Declines to Hear California Rent Control Case The United States Supreme Court rejected a significant property-rights challenge to rent control laws in New York City and California, which permit tenants to remain in below-market-cost apartments for extended periods. New York landlords sued, arguing that rent regulation and long-term occupancy violated the Constitution's prohibition on taking private property for public use. While Justice Clarence Thomas issued a partial dissent, the majority found insufficient evidence that landlords were unable to evict tenants for specific reasons. The ruling's impact could have directly affected around 1 million apartments in New York City and potentially influenced California. Despite recent interest from the court's conservative majority in bolstering property rights, rent control has been upheld as property regulation rather than governmental seizure. Challenges to property rights, including developer fees, have emerged in California, reflecting broader debates over governmental takings and private property rights. Tribes, Farmers Reach Agreement on Use of Klamath River Water The Interior Department, tribal nations, and farming groups have reached an agreement regarding the governance of the Klamath River, flowing through California and Oregon, seeking harmony between irrigation needs and environmental revival. Signed by the Klamath Water Users Association and tribal representatives like the Klamath, Yurok and Karuk Tribes, the deal emphasizes enhancing ecosystems and ensuring water dependability for agriculture. Historically, conflicts over water distribution between farmers and tribes have intensified during droughts, with tribes advocating for salmon preservation. The pact includes a $72 million infusion, drawn from the bipartisan infrastructure law, for upgrading agricultural infrastructure and ecological initiatives in the Klamath River Basin. Notably, the agreement fosters cooperation among stakeholders who have grappled with communication barriers in the past, aiming for comprehensive ecological renewal and improved water supply management. State Considers Cessation of Fracking Statewide The California Conservation Department has proposed halting the issuance of permits for well stimulation treatments, commonly known as fracking, across the state. The department's Geologic Energy Management Division aims to safeguard life, property, public health, safety and environmental quality by prohibiting new permits for fracking. Most fracking activities occur in Kern County's oil fields in the Central Valley, where over 2,200 permits have been granted, contributing to about 12% of oil and 17% of natural gas extraction in the state. Fracking involves injecting liquids into bedrock at high pressures to access natural gas and petroleum, emitting pollutants and posing risks of oil spills and harm to marine life. Concerns over fracking's impacts on mental well-being and its contribution to climate change have intensified public dissatisfaction, prompting the proposed regulation. The public and oil industry can provide written feedback on the proposal, with a public hearing scheduled for March 26, reflecting Californians' long-standing desire to move away from fracking toward a safer, sustainable future. Package of Housing Bills Introduced in State Senate State Senator Nancy Skinner introduced her 2024 Housing Package aimed at addressing California's housing crisis through legislation promoting more housing creation, reduced costs and expanded homeownership. The package includes SB 1211, facilitating the construction of accessory dwelling units (ADUs) in multifamily housing properties, SB 1210, which caps utility hook-up fees on new housing units and SB 1212, prohibiting corporate entities from purchasing single-family homes. SB 1211 aims to boost the ADU market by allowing more detached ADUs on multifamily properties, while SB 1210 seeks to lower housing costs by capping utility hook-up fees and allowing payment over a 10-year period. SB 1212 aims to increase homeownership opportunities by preventing large investors from buying single-family homes. CP&DR Legal Coverage: Private Regulation of Short-Term Rentals; CEQA Exemptions In an unpublished ruling, the Fourth District Court of Appeal upheld a preliminary injunction against the Arrowhead Lake Association's new rules preventing short-term renters - and homeowners who are not members of the association - from accessing the privately owned Lake Arrowhead beach. The case still must be tried on the merits, but the appellate court said the homeowners challenging the new rules are likely to win - and, in the process, the justices shot down comparisons between the Lake Arrowhead Association and formal local government bodies - at least as far as the definition of a short-term rental is concerned. It's not unusual for neighboring residents who dislike a project to use the California Environmental Quality Act process as a way to try to stop the problem no matter what is environmental impact. And it's not unusual for elected officials to give angry neighbors what they want, again by using CEQA. It is a bit unusual for an appellate court to call everybody out, however. And in a ruling that could have widespread consequences for tiering of environmental impact reports, that's just what the Fourth District Court of Appeal has done in a case involving a proposed recycling plant in San Diego County. The opinion is important because it allows a exemption to tier off of a programmatic environmental impact report. Quick Hits & Updates The Los Angeles Metro Board of Directors certified the environmental impact report for the Los Angeles Aerial Rapid Transit Project, connecting Dodger Stadium to downtown LA via a gondola system. Despite opposition from residents and concerns over transparency and costs, the project moves forward pending consideration by other agencies before construction approval. A Kern County Superior Court judge upheld a preliminary injunction requiring Bakersfield to maintain water flow in the Kern River to protect fish habitats, ruling against the city's attempts to dismiss claims related to public trust and fish and game code violations. While the judge sided with environmental groups on some claims, such as the classification of Bakersfield's diversion structures as dams, he rejected others, including allegations of public nuisance and failure to fulfill trustee duties, prompting potential amendments to the lawsuit. A company pursuing a large-scale sand and gravel mine near Santa Clarita is suing the State Water Board over a permit needed to use the Santa Clara River for its plan to mine 56 million tons of aggregate, delaying discussions on potential concerns regarding the operation's proximity to the river. The lawsuit alleges discrepancies in the board's decision-making process, while opponents raise concerns about increased traffic, air quality degradation and water usage associated with the proposed mining operation. City Administrative Officer Matt Szabo estimates that Measure HLA, a proposal to make pedestrian and active transportation improvements in Los Angeles, would cost the city at least $3.1 billion over the next decade. Proponents of HLA criticized Szabo's analysis, calling it a "last-minute electioneering ploy," while supporters voiced frustration with the city's handling of traffic safety concerns. (See related CP&DR commentary .) The City of Berkeley has been fined $4 million for mishandling a developer's application to build housing units on the old Spenger's parking lot, with $2.6 million going towards violating the Housing Accountability Act and $1.4 million reimbursing the developer for attorney's fees. The legal battle, spanning six years, involves conflicts over historic preservation, housing affordability, and environmental concerns, highlighting the complexity of development projects in the area. The fine will go into the city's affordable housing trust fund. The California Conservation Department has proposed a regulation to halt the issuance of permits for well stimulation treatments, commonly known as fracking, across the state. The department cited concerns about air and water pollution, oil spills and the use of toxic substances in fracking fluids -- as well as increasing public concern -- as reasons for phasing out permits. A recent poll in San Francisco reveals that over half of voters are concerned about crime, drugs and homelessness, with nearly three-quarters feeling the city is heading in the wrong direction, which could impact Mayor London Breed's reelection prospects. Despite a 7% decrease in reported crimes last year, 69% of respondents believe crime has worsened. Voters support financial incentives to revitalize downtown, with 84% backing incentives for small businesses and 81% for large businesses, along with 71% supporting tax incentives for businesses moving into vacant spaces. The Oakland Ballers minor league baseball team have chosen Raimondi Park as their home field for the Spring 2024 season, with plans to host 48 home games starting in June. They aim to revitalize the park, investing $1.6 million in upgrades to create a premier venue for professional and youth baseball and softball, supported by descendants of baseball legends associated with the park. The Office of Attorney General Rob Bonta is supporting the City of Eureka in its legal battle against the Citizens for a Better Eureka's attempts to block affordable housing developments downtown, arguing that the city complied with environmental regulations and housing policies. This move comes as Citizens for a Better Eureka files motions seeking preliminary injunctions to halt planned affordable housing and transportation projects, citing violations of the California Environmental Quality Act. A new Zoning Reform Tracker from the Othering & Belonging Institute of UC Berkeley documents zoning reform efforts across the country, hoping to follow and log any potential anti-density zoning ordinances promoting race and class-based discrimination in housing. The Zoning Reform Tracker focuses primarily on municipal zoning reform efforts, encompassing both a database and interactive webmap.

State Updates Complete Streets Guidelines, Requiring Consideration of Active Mobility Caltrans released its long-awaited guidelines for the design of complete streets last month; they are effective immediately. "Design Information Bulletin #94 - Complete Streets: Contextual Design Guidelines" offers specific standards and best practices" to support the design of comfortable and convenient streetscapes by utilizing space-efficient forms of mobility such as people walking, biking, rolling, or accessing transit." The guidelines state that agencies must account for road users who are not in cars when designing and upgrading streets, acknowledging "the needs of pedestrians and bicyclists should be given special consideration, as their forward movement is physically taxing and opportunities for rest and shelter are of special importance." The guidelines address many of the state's diverse contexts, from urban cores to rural areas. The guidelines are explained an illustrated in a " storymap " published by Caltrans. Court Cites Anaheim for Denial of Transitional Housing Project An Orange County court ruled in favor of the California Department of Housing and Community Development (HCD), determining that the City of Anaheim violated state housing laws by denying a permit for transitional housing for homeless women with mental health disabilities. The dispute arose when Grandma's House of Hope, an established nonprofit, sought to open a facility in the Anaheim Colony Historic District, but faced opposition from neighbors and a denial of a conditional use permit by the City Council. Governor Gavin Newsom hailed the ruling as a victory against discriminatory housing policies, emphasizing the importance of transitional homes in addressing homelessness. The court's decision highlighted violations of several housing laws by Anaheim and nullified the city's illegal permitting rules, with further proceedings to determine potential remedies. While the city expressed concerns about neighborhood integrity, the ruling underscored the imperative to uphold fair housing practices and provide housing for all community needs. Major Lithium Project Breaks Ground at Salton Sea The recent groundbreaking for the Hell's Kitchen 1 plant marks the beginning of the $1.85 billion project in the Salton Sea area, blending lithium extraction with geothermal power. Despite potential legal challenges, developer Controlled Thermal Resources plans up to seven plants atop a vast lithium brine reserve. The project promises to produce renewable energy and 25,000 metric tons of lithium hydroxide annually, enough for 415,000 electric vehicle batteries. Despite enthusiasm from dignitaries and officials, including White House energy advisor John Podesta, concerns persist over environmental impact and tribal consultation. The project's economic potential, including job creation and revenue generation, is touted, but legal hurdles loom as community groups challenge environmental reviews and compliance with zoning laws. A nonprofit group called Comite Civico del Valle is suing, claiming that the facility's permits were issued without proper consideration for the health effects on local residents and that it will overuse water from the nearby Colorado river. State Certifies Brisbane Housing Element over Housing Advocates' Objections The Department of Housing and Community Development delivered a rare piece of good news to the city of Brisbane regarding its housing element laws. Despite complaints from pro-housing groups about delays in the redevelopment of the Baylands, HCD ruled in favor of the city. Although Brisbane missed a deadline related to publishing an environmental study, HCD determined that there is still time to complete the necessary approvals by January 2026. This decision comes amidst a significant number of cities and counties in California being out of compliance with housing element laws, leading to concerns about affordable housing availability. Despite these concerns, Brisbane officials remain committed to moving the Baylands project forward, which represents a substantial portion of the city's housing obligations. (See related CP&DR coverage.) YIMBY Law Sues Los Angeles for Denial of 100% Affordable Housing Project YIMBY Law filed a second lawsuit against the city of Los Angeles for unlawfully delaying a 100% affordable housing project consisting of 190 homes on Wilbur Ave in Reseda, a single-family-only neighborhood. This legal action follows a similar lawsuit in January 2024 concerning a project on Winnetka Ave. The projects were originally eligible for streamlined approval under Mayor Karen Bass's Executive Directive 1 (ED1) but faced delays due to a revision exempting single-family-only neighborhoods, enacted after the project submissions. According to the lawsuit, and despite advocacy efforts and community support, the planning commission and city council unlawfully stalled these affordable housing projects. YIMBY Law stressed their aims to ensure the approval and streamlining of these projects and others under the original form of ED1. CP&DR Coverage: Cities Anticipate Impacts of Brightline High Speed Rail Last month, Brightline West , a privately developed high-speed rail line connecting Rancho Cucamonga with Las Vegas, received $2.5 billion in private activity bonds from the U.S. Department of Transportation, bringing the $12-billion project one step closer to groundbreaking. All told, the project has received nearly $9 billion in federal loans and grants. Regardless of whether the train arrives, the city believes that this sort of development is appropriate for Rancho Cucamonga no matter what. The city is required to zone for 10,525 additional units according to its 6 th Cycle Regional Housing Needs Allocation. Burris said that it makes sense to concentrate development in a few key areas so that it does not encroach on the city's vast swaths of single-family neighborhoods. Quick Hits & Updates Sonoma County is backing a proposal for a Center for Climate Action as part of the redevelopment plan for the historic Sonoma Developmental Center property, aiming to create a collaborative space to address climate crisis challenges. Funded by a $250,000 grant from the California Coastal Conservancy, the initiative aims to attract stakeholders and private enterprise to tackle climate issues, amidst negotiations for redevelopment of the site, which could include housing units. (See related CP&DR coverage.) Three California Assembly members have proposed a $1 billion bond act to support the expansion of ports to accommodate the development of massive wind farms off the state's coast. The proposed bond, aimed at enhancing port capacity for assembling, constructing and transporting wind turbines, is considered critical for offshore wind projects, aligning with California's goal to transition to 100% clean energy and the projection of offshore wind farms supplying 25 gigawatts of electricity by 2045. After two previous rejections, the city of Davis received approval for its Housing Element from the California Department of Housing and Community Development. The approved plan includes various initiatives such as promoting affordable housing, streamlining development processes and preserving affordable housing. While the approval is a significant step, the city acknowledges challenges ahead, especially regarding meeting future housing requirements without sufficient infill sites. Oakland-based developer oWow filed an application to modify previously approved plans for the redevelopment of 960 Howard St. in San Francisco's Central SoMa neighborhood per a recently enacted provision in state Density Bonus Law. Originally greenlit as a three-story office building with a 9-story residential addition, the project now seeks to add 16 stories, for a total of 274 rental units, including 42 designated as affordable housing. According to a new study by SPUR, California's housing crisis is exacerbated by a decentralized governance system, with multiple agencies and regional processes leading to misalignment and complexity. SPUR's report advocates for state-level reform and offers 11 recommendations to streamline governance and address the housing shortage effectively. San Francisco supervisors rejected a challenge to the redevelopment of a former medical library in Pacific Heights, paving the way for the project to proceed without an environmental review. The proposal aims to preserve the building's facade and add two towers for housing, a decision that could have implications for future housing construction in the city. According to a newly published study from the University of Illinois Chicago, 15,000 U.S. cities will experience significant depopulation by 2100. The study anticipates the southern coast of California will lose population while the northern coast gains a larger population. This trend necessitates a shift in urban planning away from growth-focused strategies, states the study's senior author. The latest National Seismic Hazard Model predicts that nearly three-quarters of U.S. states, including California, face the risk of damaging earthquakes in the next century. Southern Alaska, California and Hawaii have over a 95 percent chance of experiencing damaging earthquakes, while even parts of the Mississippi Valley have up to a 90 percent chance. The Conservation Fund closed a $16 million deal to purchase Richmond Ranch, a 3,654-acre property near San Jose, from Z&L Properties, with plans to convert it into a nature preserve with hiking trails, safeguarding critical habitat for Tule elk and other wildlife and serving as a vital link in the Bay Area Ridge Trail. The property's acquisition by conservationists marks a significant win after Z&L's earlier purchase disappointed South Bay conservationists, with the ranch expected to be jointly managed by the Santa Clara County Parks Department and the Santa Clara Valley Habitat Agency. The Biden administration is allocating $426 million for a project to build a marine terminal in Humboldt County, facilitating the construction and deployment of hundreds of massive turbines for an offshore wind farm 20 miles off the state's coast. This initiative marks a significant step forward in California's efforts to establish offshore wind farms, with plans to generate thousands of jobs and contribute to the state's goal of achieving 100% clean electricity by 2045. The Inland Empire, consisting of Riverside and San Bernardino counties, emerged as California's top job creator over the past four years, adding 128,400 jobs since 2019, primarily fueled by the logistics industry's growth driven by the push for online shopping. This growth accounted for 20% of the state's new jobs while comprising only 9% of the total employment in California, with other regions like Los Angeles, San Diego and Sacramento also experiencing significant job increases.

State Awards Seven Prohousing Designations Seven California jurisdictions -- the cities of Eureka, Healdsburg, Mountain View, Petaluma, San Luis Obispo and Santa Monica as well as Tulare County -- have been designated as Prohousing by the Department of Housing & Community Development for their efforts in promoting housing development across all income levels. With the Statewide Housing Plan highlighting the need for 2.5 million new homes by 2030, this designation recognizes communities going above and beyond state housing laws to expedite housing production. These Prohousing communities will receive funding incentives and additional resources to bolster their innovative housing efforts. These jurisdictions indicated a commitment to state housing goals by streamlining processes, reducing fees and incentivizing affordable housing projects. (See related CP&DR coverage .) Related Cos. Downsizes Major Santa Clara Development The first phrase of the Related Santa Clara project, once envisioned as a sprawling mixed-use development of four million square feet, is undergoing significant downsizing. Developer Related Cos. now envisions roughly 1.6 million square feet of office space with light industrial and advanced manufacturing buildings. Originally slated for 4 million square feet of offices, the shift aims to better align with current market demands, reflecting broader trends in commercial real estate. The development is unlikely to generate the "neighborhood" feel originally envisioned. City officials raised concerns about potential impacts on the city's long-term vision for an entertainment district, given the area's access to public transit. The development includes plans for extensive housing, with several hundred residential units already under construction and slated for completion by 2025. At full build-out, the project could total over 9 million square feet, including significant amounts of residential space. (See related CP&DR coverage .) Assembly Committee to Focus on Plight of Downtowns San Francisco Assemblymember Matt Haney is convening a special committee of lawmakers to address the struggles facing California's downtown areas, acknowledging the criticism they've received from both within and outside the state. The committee aims to craft laws and strategies to revitalize urban cores that have suffered from issues like homelessness, vacant storefronts and remote work trends exacerbated by the pandemic. The committee will study tax credits to encourage workers to return to office, streamlined permitting for adaptive reuse of offices, promoting nightlife and entertainment zones and events, moving universities into downtown areas and aiding small businesses. While cities like San Francisco and Los Angeles often bear the brunt of negative publicity, Haney emphasizes that many cities across California face similar issues. The committee's membership reflects geographic diversity and includes Assemblymembers from various regions, indicating a broad approach to addressing urban revitalization statewide. (See related CP&DR coverage .) Merced Annexes 650 Acres for Mixed-Use Community adjacent to UC Merced The Merced City Council unanimously approved the annexation of the Virginia Smith Trust land, a 650-acre parcel south of UC Merced, marking a significant step in connecting the university to the city. The land is slated for development into thousands of homes, apartments, retail spaces, parks and transportation routes, aligning with efforts to connect UC Merced to the city limits. Revenue generated from the project will fund scholarships for local Merced County students, fulfilling the wishes of the late Virginia Smith, who established the trust in 1971. The project aims to support higher education and benefit the community by expanding scholarship opportunities. Following the city council's decision, the annexation process will proceed through additional approvals, including consideration by the Local Agency Formation Commission of Merced County, with the goal of completing the project no later than June 2024. (See related CP&DR coverage .) Report: State Must Preserve Existing Affordable Housing In a report released by California Housing Partnership on affordable homes at risk, the organization found the state's housing crisis will get worse if there are no actions taken to protect subsidized affordable housing that already exists. Many homes are at risk of market rate conversion, and 4,789 affordable homes may no longer be deemed affordable by 2024. Another 31,309 affordable homes may no longer be deemed affordable in the next ten years. These homes face expiring regulatory restrictions on government-assisted multifamily developers or property owner decisions to opt out, sell or allow properties to convert to market rate. Sixty-five percent of the 22,078 affordable homes lost between 1997 and 2022 were owned by for-profit entities. The report proposed a three-tiered solution and action plan for state leaders, including the enforcement of the State Preservation Notice Law, an expansion of funding for affordable housing entities to purchase at-risk homes and incentive for homeowners to sell to those entities. The counties with the largest number of at risk homes are Los Angeles with 10,286 at-risk homes, followed by Orange and San Diego. CP&DR Coverage: Courts Rule against Environmental Groups In two appellate cases filed recently - one published and one unpublished - environmentalists and neighborhood activists came out on the short end of the stick. The results highlighted in sharp relief something that is often evident in the course of time: Environmentalists and neighborhood activists may often sue and even reach the appellate courts, but once they get there they usually lose. The more important of the two cases is Planning & Conservation League v. Department of Water Resources - a case about water rights, not land use, but one that touched on important issues under the California Environmental Quality Act, including the project's baseline, illegal segmentation, and cumulative impact. The case attracted virtually all the important water and environmental lawyers in the state - but the state prevailed over the environmentalists on all counts. The unpublished case nvolved a single-family home built in an affluent hillside part of Los Angeles's Westside, which required the removal of three city-protected trees and six stumps that the neighbors perceived as valuable. Quick Hits & Updates A coalition called Solano Together launched with a gathering of over 200 people at the Nelson Center in Suisun City, to oppose Flannery Associates' California Forever sprawl development proposal. Speakers emphasized the importance of preserving open spaces and agricultural lands, expressing concerns about the impact on existing cities and farmers. (See related CP&DR coverage .) San Diego officials introduced updates to the Historic Preservation Program through the Preservation and Progress Initiative, aiming to streamline new home construction while preserving historic sites. The initiative encourages adaptive reuse of buildings and proposes a shift from reactive to proactive preservation strategies, with plans for public engagement and policy updates in the coming months. The North County Transit District (NCTD) and San Diego Association of Governments (SANDAG) secured a $53.9 million grant from the U.S. Department of Transportation to replace the aging San Dieguito River Railway Bridge in Del Mar, addressing the region's concerns about geologic instability and rail infrastructure resilience. This project, part of Phase II of the San Dieguito Bridge Replacement, Double Track and Special Events Platform Project, aims to enhance rail service, increase capacity and improve operational reliability along the Los Angeles-San Diego-San Luis Obispo (LOSSAN) corridor, with additional funding sought from state and federal sources to fully support the endeavor. The Inglewood Transit Connector Project, a $2 billion endeavor aimed at linking the Metro K Line to Inglewood and major venues like SoFi Stadium, Kia Forum and the forthcoming Intuit Dome, has encountered significant delays, pushing its anticipated completion from the original target of the 2028 Summer Olympics to at least 2030. This setback means it will miss key events such as the 2026 FIFA World Cup, the 2026 NBA All-Star Game and Super Bowl LXI in 2027. The federal government recently committed over $1 billion to the project. The Federal Transit Administration's Capital Investment Grant program will cover half of the project's cost, with the city securing an additional $873 million from various sources. The California Department of Housing and Community Development is updating California's fair housing plan, including the Analysis of Impediments (AI) to fair housing choice. As part of this process, HCD is conducting a Community Needs Assessment survey to identify housing, community development, and supportive service needs in the state. The survey will inform resource allocations and program activities, and it will be open until April 1. UC Davis released its California General Plan Database Mapping Tool , using linguistic analysis to study statewide local housing plans, detailing the plans by most recently updated and the population of those areas. The database is designed as a public use tool to search by keyword specifically for plans regarding environmental justice. Results of the search will create maps and tables to sort through the many uses of a word throughout the state. The database has been updated with plans up through last year, with new added housing plans to come. Metro, Measure Up! and the Regional Integration of Intelligent Transportation Systems collected transportation data obtained from smartphones to better understand transportation trends and patterns in Los Angeles County between 2017 and 2019-2020. The data is open to the public to inform policy and research. San Francisco has requested a temporary freeze on an ongoing lawsuit that restricts the city from clearing homeless encampments until the U.S. Supreme Court decides a related case from Grants Pass, Oregon, which challenges city codes criminalizing sleeping or sitting in public places as "cruel and unusual punishment." The lawsuit against San Francisco alleges violations of state and federal laws, city policies and the rights of homeless individuals by clearing encampments without providing adequate shelter and unlawfully seizing their belongings. Research suggests that, of assessed office buildings, approximately 25% could potentially be converted into residential spaces, offering a cost-effective solution for building owners facing vacancies and declining cash flows. With U.S. office vacancies at a 30-year high, adaptive reuse projects are gaining momentum, supported by government initiatives like the recent $350 million pledge from the White House. Factors such as building form and location are key in determining a building's suitability for conversion, with successful projects already underway in cities including Calgary, Philadelphia, Toronto and Baton Rouge. Home values in San Francisco saw a significant decline in 2023, dropping by 5.6%, marking the largest decrease among California's largest cities and continuing a trend of tumbling values. Despite this, San Francisco remained among the cities with the highest home values in the country, with the third-highest typical value in December 2023. Visalia's Minor League Baseball team, the Rawhide, faces potential relocation as Major League Baseball mandates upgrades to Valley Strong Ballpark. The city, having filed a lawsuit against the team, must decide whether to upgrade the stadium or risk losing the Rawhide. Eric Shaw, the director of San Francisco Mayor London Breed's Office of Housing and Community Development, is stepping down from his role. Shaw's successor will face challenges in advancing affordable housing development amid a slowdown in market-rate projects and high costs in San Francisco. The developer remaking Horton Plaza mall in San Diego, has unveiled plans for two residential skyscrapers on the site. The developer is expected to break ground on a 40-story tower with 518 apartments in Q2 2025, with completion in late 2027. A second 40-story tower with 332 apartments is also planned, but its timing will depend on market dynamics. (See related CP&DR coverage .)

When Orange County went through its first wave of suburban growth in the 1950s, developers reveled in endless agricultural land to accommodate all its new houses, shopping centers, offices, and parking lots. Seventy years later that land, like many other areas of coastal California, is built out. Orange County’s cities have to increase density and rely on infill development for new growth. Its two largest cities – Anaheim and Santa Ana – are leading the way with two projects suggesting that a region associated with auto-centric sprawl is headed towards denser, walkable mixed-use development. The upcoming infill projects involve reclaiming areas with large parking lots and using that land for denser projects, typically including multi-story structures. A prime example of this is under development in Anaheim, in an area notable for its ocean of parking lots. Attempts to redevelop land immediately surrounding Angel Stadium, home of the Los Angeles Angels baseball team, fell flat in May 2022, when a scandal related to the city’s sale of the stadium to the Angels was uncovered. The sale was canceled, and former Anaheim Mayor Harry Sidhu resigned and pled guilty to fraud.

In a tentative but complicated ruling, a Los Angeles judge has ruled that Redondo Beach effectively denied a controversial beachfront project by not accepting a builder’s remedy application – but said the Coastal Act overrides the builder’s remedy because of the property is not designated for by the city’s Coastal Commission-approved zoning ordinance.