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This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Court Blocks Construction of Warehouse Facility in San Bernardino County A recent Superior Court ruling requires a developer to pause construction on a contentious warehouse project in San Bernardino County due to significant flaws in the project's environmental impact report. The county had previously approved the removal of 117 homes to create over 2 million square feet of warehouse space, but environmental groups argued this violated state regulations. Judge Donald Alvarez determined that the county's review process failed to adequately assess environmental impacts and required a thorough re-evaluation. While the developer plans to appeal parts of the ruling, community advocates view the decision as a major victory in their ongoing struggle against the rapid expansion of warehouse developments in the region. The ruling raises important questions about the county's approval processes and the balance between economic growth and community health. (See related CP&DR coverage .) San Jose Adopts Incentives to Attract Businesses to Downtown In response to declining demand for office space in its downtown, San Jose is adopting new incentives to attract tenants and stimulate economic growth. Businesses that lease or purchase at least 2,500 square feet of office space downtown will be exempt from city business tax for two years and two free parking spaces. The city estimates the program will cost it roughly $1 million per year. The city aims to create a more vibrant downtown environment by increasing foot traffic, which is essential for supporting local businesses. A vote on these proposed incentives is set for next week, with hopes that they will help revitalize the area. Details Emerge for High Desert Corridor High Speed Rail Line The High Desert Corridor Joint Powers Agency released a presentation with details of a new high-speed rail line stretching 54 miles between Palmdale and Victor Valley. The line would connect with Brightline West, now under construction, at its eastern terminus and with a yet-to-be approved segment of California High Speed Rail and existing Metrolink commuter rail at its western end. This line is currently in the environmental review phase. Estimated costs for this connector range from $5.8 billion to $6.6 billion, with direct service potentially reducing travel time to under three hours. (See related CP&DR coverage .) California Cities Dominate List of Slowest Markets for Home Sales The housing market in the U.S. has experienced a significant slowdown in 2024, with only 2.5% of homes changing hands—the lowest turnover in 30 years, according to Redfin's analysis. California metro areas are particularly affected, with seven of the nation's ten least-active cities. Los Angeles reported the lowest turnover rate, with only 15 out of every 1,000 homes sold. San Francisco, Oakland, Anaheim, San Jose, Sacramento, and San Diego all had 18 or fewer sales per 1,000. (Phoenix was the most active large city, with 38 sales per 1,000.) Factors such as stagnant wages, high construction costs and a slowdown in hiring, especially in the entertainment sector, are contributing to this decline in Los Angeles. Additionally, other California markets are struggling, with overall sales dropping significantly compared to previous years. In contrast, cities like Phoenix are seeing higher sales activity, indicating geographic disparities in the housing market. CP&DR Coverage: Warehouse Surprise; Housing Bill Bonanza Gov. Gavin Newsom signed all but one of the 40-odd planning and development bills the Legislature passed, including - at the last minute - the controversial bill regulating warehouses. Newsom signed AB 98, the warehouse bill, on September 29, just one day before the deadline. He was under tremendous pressure from business leaders, especially in the Central Valley, to veto it. Some environmental justice groups also opposed it. Altogether, Newsom signed more than 40 planning and development bills, most of which either further tightened state oversight of housing entitlements or punched more holes in the California Environmental Quality Act. Other highlights include a clarification of the Builder's Remedy, changes to Housing Elements, redefinition of "major transit stop" for TOD's, and tweaks to Density Bonus law. Quick Hits & Updates The National Oceanic and Atmospheric Administration (NOAA) has approved the Chumash Heritage National Marine Sanctuary, covering 4,543 square miles of the Pacific Ocean from Santa Barbara to San Luis Obispo County, aimed at protecting marine ecosystems and Chumash cultural sites. This sanctuary, the first nominated by a Native American tribe, will prohibit offshore oil drilling and certain seabed disturbances while allowing collaborative management with the Northern Chumash Tribal Council and other tribes. American National Property and Casualty Company plans to exit the flood insurance market in California early next year, despite a growing number of providers in the state. Currently, only about 187,000 Californians have flood insurance through the National Flood Insurance Program, highlighting a significant gap in coverage amid increasing flood risks and damages. The proposed Sites Reservoir in Colusa County has ignited controversy among local Indigenous tribes, particularly the Kletsel Dehe Wintun Nation and the Cachil Dehe Band of Wintun Indians, who emphasize the land's significance for burial sites and cultural practices. While proponents argue the reservoir will address water needs, tribal leaders express concerns about its impact on ancestral lands and the ecosystem, especially regarding the Sacramento River. The project is currently undergoing environmental reviews, with important decisions expected soon. Los Angeles City Council adopted updates to the Boyle Heights Community Plan, aiming to address housing needs and update zoning regulations around the L.A. River and Pico-Aliso neighborhoods. The plan includes incentives for mixed-income projects that require affordable housing, helping to combat gentrification, according to 14th District Councilmember Kevin de León. This update is part of a broader effort to enhance the quality of life while preserving the neighborhood's cultural identity, with projections of accommodating 38,000 new residents and creating 12,000 jobs by 2040. Los Angeles County Metro's Orange Line rapid bus line is set for a significant $668.5 million upgrade approved by LA Metro's board, which includes the construction of bus overpasses and signal priority upgrades aimed at reducing travel times. The project, scheduled to start in January and complete by 2027-2028, is viewed as a step toward a future light-rail conversion, as the upgrades include infrastructure compatible with such a transition. A Los Angeles County judge ruled that the City of Los Angeles unlawfully blocked a seven-story affordable apartment building in the San Fernando Valley, stating the city retroactively applied new regulations to deny the project. This decision could pave the way for the construction of the 360-unit development in Winnetka and challenges the city's recent restrictions on affordable housing in single-family neighborhoods, which have left numerous projects in limbo. UC San Diego has opened two of the tallest college residence halls in the U.S., Pepper Canyon West, which includes a 23-story and a 22-story tower, accommodating 1,310 upper-division transfer students. These new dorms aim to help UCSD manage a historic enrollment boom, expected to reach 50,000 students in a decade. A recent UC Berkeley Terner Center policy brief highlights public funding as a necessary tool in address the San Francisco Bay Area's affordability crisis. The research concludes the Bay Area's affordability crisis affects many households, with rising housing costs outpacing incomes, almost half of renters spending over 30 percent of their income on rent and increasing homelessness. The City of Los Angeles has agreed to pay $38.2 million to settle allegations that it failed to meet federal accessibility requirements for HUD-funded affordable housing, including not ensuring that units were accessible for people with disabilities and misrepresenting compliance in annual certifications. This settlement resolves a lawsuit filed under the False Claims Act, which accused the city of discrimination and violations of accessibility laws in its housing projects. A study by California-based researchers Anthony Orlando and Chris Redfearn highlights shifts in housing supply dynamics in Texas and California. The study found a trend towards higher-density, multifamily units and a decline in new housing at the periphery, regardless of regional differences in regulation and topography. This shift is linked to a broader issue where housing supply has failed to keep pace with growing demand, leading to significant price increases and decreased housing elasticity.

Cities and counties in California are aggressively – and sometimes in a coordinated way – adopting the “objective design standards” required by the Housing Accountability Act.

Gov. Gavin Newsom has signed all but one of the 40-odd planning and development bills the Legislature passed, including – at the last minute – the controversial bill regulating warehouses.

California Planning & Development Report CP&DR CP&DR Bay Area Considers $110 Billion Plan to Address Sea-Level Rise The Bay Area introduced its first plan to address the challenges of sea-level rise, which could lead to severe flooding and infrastructure damage. Estimated at $110 billion, the plan includes constructing seawalls, levees and marshes to protect the region's 400 miles of shoreline, which, if ignored, could result in $230 billion in damages. The Bay Conservation and Development Commission (BCDC) has released a draft Regional Shoreline Adaptation Plan to standardize responses across local governments, although some officials worry it may be too ambitious given current resources. With predictions of significant sea-level rise over the coming decades, the plan aims to unify adaptation efforts and establish regional priorities, including the management of contaminated sites. Public feedback on the draft is open until October 18, with finalization expected by the end of the year, while BCDC seeks to support localities in developing their own plans through grants. (See related CP&DR coverage .) Los Angeles Envisions "Car-Free" Olympic Games in 2028 The Los Angeles Metropolitan Transportation Authority outlined a draft public transit strategy for the upcoming 2028 Olympic Games in a recently released a presentation titled “Metro 2028 Games Mobility Concept Plan”. Key elements include a “Car-Free, Transit-First Games” approach with no parking at venues and the establishment of a “Games Route Network” featuring priority lanes, although not universally applied. The plan anticipates an 80-day operations period, with a supplemental bus system running during the Olympic and Paralympic competitions and highlights the need for extensive infrastructure like 25 park-and-ride sites and 2,700 buses supported by 6,000 drivers. Areas projected to attract the most spectators include USC, Inglewood and Carson, with peak-day ridership expected to reach 1.2 million, surpassing current weekday averages. Despite some federal funding secured, significant financial gaps remain, raising questions about Metro's capacity to effectively implement the plan and manage the anticipated challenges. (See related CP&DR coverage .) AIDS Healthcare Settles Class-Action Suit over Skid Row Properties The AIDS Healthcare Foundation (AHF) reached a settlement of $575,000 in a class-action lawsuit by current and former tenants of a Skid Row apartment building suing over unsafe living conditions. The agreement, announced before opening statements, also includes AHF refunding tenants 25% of rent since 2017, hiring elevator consultants and pest control experts and committing to general improvements. The settlement comes during AHF's campaign for Proposition 33, the latest of three statewide rent-control initiatives that it has sponsored, drawing criticism for prioritizing campaign funding over building maintenance. AHF's president stated the organization invested significant resources in improving the building in addition to stressing the need for broader affordable housing solutions. Sacramento Finalizes Effort to Undo Single-Family Zoning Culminating a high-profile effort to increase density citywide, the Sacramento City Council adopted the Missing Middle Housing Interim Ordinance, making it the first city in California to permit multi-unit housing in single-family neighborhoods. This new policy replaces density limits with maximum floor area rules, allowing buildings up to 2.5 stories based on lot size and proximity to public transit. Housing types such as four-plexes and cottage courts will be introduced, aiming to blend with existing neighborhoods while providing affordable options for middle-income families. Key features include standards for neighborhood compatibility, outdoor space and initiatives to maintain affordable housing for vulnerable residents. The ordinance will take effect on October 17, with plans to evaluate its impact before considering it for permanent adoption. (See related CP&DR coverage .) Huntington Beach Approves Large Development on Former Industrial Site in Coastal Zone Traditionally resistant to new housing, Huntington Beach City Council approved a controversial mixed-use development project including 200 homes, a 50-unit affordable housing complex, a 215 room hotel and 19,000 square feet of retail space on 29 acres that previously housed three large oil tanks. The project, in planning stages since 2016, will break ground in mid-2025 since receiving the necessary approvals from local and state agencies, including the Coastal Commission. However, some community and environmental groups oppose the project, citing concerns about flooding, proximity to a landfill and the site's location on an earthquake fault. The investment firm behind the project disputes the claims, asserting the site is properly monitored and elevation improvements will mitigate flood risks. Concurrently, Huntington Beach faces legal issues regarding state housing requirements as it continues to struggle with mandates to increase housing. (See related CP&DR coverage .) AIDS Healthcare Settles Class-Action Suit over Skid Row Properties The AIDS Healthcare Foundation (AHF) reached a settlement of $575,000 in a class-action lawsuit by current and former tenants of a Skid Row apartment building suing over unsafe living conditions. The agreement, announced before opening statements, also includes AHF refunding tenants 25% of rent since 2017, hiring elevator consultants and pest control experts and committing to general improvements. The settlement comes during AHF's campaign for Proposition 33, the latest of three statewide rent-control initiatives that it has sponsored, drawing criticism for prioritizing campaign funding over building maintenance. AHF's president stated the organization invested significant resources in improving the building in addition to stressing the need for broader affordable housing solutions. CP&DR Coverage: Elk Grove Loses Big in Housing Cases A controversial supportive housing project has been relocated out of Old Town Elk Grove - but the city will now be subject to increased scrutiny by the state Department of Housing and Community Development. That's the end result of the settlement of two lawsuits brought against Elk Grove - one by the developer and one by the state - after the city denied the project by claiming that a ground-floor retail requirement in Old Town, while an “objective standard” under SB 35, was “unwaivable” under state Density Bonus Law. On September 4, in a high-profile press conference attended by both Gov. Gavin Newsom and Attorney General Rob Bonta, the state announced its own settlement - which was clearly intended as a warning to other cities that run afoul of state housing law. Quick Hits & Updates A $1.5 billion initiative to expand the Los Vaqueros Reservoir in Contra Costa County has fallen apar t after years of planning and investment, representing a significant setback for water storage expansion in Northern California amid worsening droughts. The project faced rising costs and regulatory challenges, particularly regarding environmental protections for the endangered Delta smelt, which complicated the financial agreements among the eight partnering water agencies. A judge ruled against Silicon Valley billionaire Vinod Khosla in his yearslong legal battle over public access to Martins Beach, allowing a lawsuit from state agencies to proceed to trial. The California Coastal Commission and State Lands Commission argue that Khosla has been illegally restricting access to the beach since 2010, when he purchased the property and locked the gate. The trial is scheduled for April and could result in Khosla being required to remove no trespassing signs and the gate blocking access. This case has drawn significant attention, highlighting tensions between private property rights and public access to California's beaches. The Federal Transit Administration has awarded an $893.3 million grant to the Los Angeles County Metropolitan Transportation Authority for a new light rail line in the East San Fernando Valley, which will span 6.7 miles and include 11 stations serving communities like Van Nuys and Pacoima. Expected to open in 2031, this project aims to restore train service to the area for the first time in 70 years, with a focus on community engagement and local hiring, while promoting sustainability through a solar power system to meet maintenance facility energy needs. The Berkeley City Council approved an agreement with BART to develop hundreds of apartments, including over a third designated as affordable, at the Ashby BART station. The deal allows BART to utilize the west parking lot for construction while Berkeley will lease a smaller lot for development, although concerns were raised about the limited affordable housing and the potential displacement of Black residents in South Berkeley. The Port San Luis Harbor District is studying the potential for an offshore wind operations and maintenance port in San Luis Obispo Bay in collaboration with Clean Energy Terminals, with a feasibility study expected to take six to 18 months. While some community members support the project for its economic benefits and renewable energy goals, others express concerns about environmental impacts and disruptions to the character of Avila Beach. Long Beach has launched the "Backyard Builders Program" to encourage homeowners to build Accessory Dwelling Units (ADUs) on their properties, offering low- to zero-interest loans of up to $250,000, provided the units are rented to low-income individuals for at least five years. While this initiative aims to increase affordable housing, concerns have been raised about the potential eviction of tenants after the rental period and the need for more tenant protections, prompting advocacy groups to call for additional support for displaced renters. Edwards Air Force Base has broken ground on the Air Force's first commercial apartment complex. This initiative aims to address longstanding housing challenges for service members, particularly the difficulties of commuting from off-base residences and will be managed by the Secretary, which has experience with privatized housing on military installations. San Diego Airport's Terminal 1 project has received an additional $26.3 million federal grant, bringing the total federal funding for the nearly $4 billion redevelopment to $192.1 million. The grant will support the construction of new aprons and a taxiway, as well as noise mitigation measures, with the first phase of the new terminal set to open by late summer next year and the entire project, including 22 new gates, expected to complete by early 2028.

by CP&DR Staff on September 26, 2024

State Issues Moratorium on Property Insurance Cancellations California Insurance Commissioner Ricardo Lara has implemented a one-year moratorium on insurance cancellations and non-renewals for about 750,000 homeowners impacted by recent wildfires in Southern California. This protective measure, covering areas affected by the Airport, Bridge and Line fires, aims to provide relief to residents as they recover from the disasters. Lara's actions are supported by a law he authored in 2018, designed to safeguard policyholders in wildfire zones. Additionally, the California Department of Insurance is developing the nation's first public wildfire loss prediction model to ensure fair insurance practices, addressing concerns about the accuracy of private models. This initiative, along with ongoing reforms, seeks to enhance insurance options and support communities facing increasing climate-related risks. (See related CP&DR coverage .) San Diego County Aims for Net Zero Emissions by 2045 The San Diego County Board of Supervisors has adopted a comprehensive 2024 Climate Action Plan (CAP) aimed at achieving net-zero greenhouse gas emissions by 2045. This plan, developed through extensive community engagement, outlines 70 actionable strategies across five key sectors—energy, transportation, solid waste, water and agriculture—focused on reducing emissions while enhancing public health and quality of life. The plan's land use strategies include updating 15 community plans and reducing VMT through a variety of transportation demand management strategies. Unlike previous iterations, the CAP prioritizes equity, committing at least 20% of investments to underserved communities significantly affected by climate change. The implementation will be managed by nine county departments and is projected to cost around $650 million over five years, mainly through existing programs. Supporters see this plan as a crucial step towards environmental accountability and sustainable development, particularly in light of increasing climate-related challenges. Los Angeles Estimates Cost of Eliminating Homelessness at $20 Billion According to a draft analysis from city housing officials obtained by the Los Angeles Times, Los Angeles needs to invest more than $20 billion over the next decade to end homelessness, significantly more than current spending. That draft plan would include 36,000 permanent housing units for chronically homeless individuals and another 25,000 units for low-income families. These numbers, the report indicates, would enable the city to effectively eliminate homelessness by 2032. The city's annual operating budget is around $12 billion. Concurrently, CalMatters has filed a lawsuit against the Los Angeles Housing Services Authority (LAHSA) for denying them access to shelter incident reports, citing concerns over safety and conditions in existing facilities. The lawsuit underscores a larger issue of Los Angeles's spending — over $24 billion in recent years — often without tracing outcomes. CalMatters emphasizes improving shelter conditions is crucial for people to use services. Study: Public Comments Skew Older, Whiter at Planning Commission Meetings in S.F. A recent study from the University of North Carolina finds that public comments at San Francisco Planning Commission meetings are predominantly from older, white, politically engaged homeowners, which may influence the commission's decisions. The analysis of 42,500 comments from 1998 to 2021 indicates a significant demographic gap between commenters and the general population. Critics argue that the study's methodology, which estimates demographics from names, may not be accurate and that legal constraints and pre-existing opinions also affect commission decisions. Some officials acknowledge the demographic skew but emphasize efforts to engage a broader community for major projects. The study highlights the need for exploring alternative methods to ensure diverse and representative public input. CP&DR Coverage: CEQA and Streetscapes Streetscape plans are exempt from the California Environmental Quality Act, an appellate court has ruled. In striking down a challenge to Los Angeles's wide-ranging Westside Mobility Plan - which charges fees on new development to pay for largely non-automobile improvements - the Second District Court of Appeal ruled the Mobility Plan's streetscape component properly falls within the statutory exemption contained within CEQA Guidelines 15301 , which allows an exemption for minor repairs and operational changes to roadways. The Westside neighbors group tried to argue that the affordable housing discount would lead to additional growth that had not been dealt with in the growth-inducing impact portion of the EIR, but the appellate court didn't buy that argument, saying discounted fees wouldn't necessarily lead to additional development. Quick Hits & Updates Environmental groups, including Earthjustice and the Sierra Club, have filed a lawsuit against the Port of Stockton over its approval of a hydrogen production project using fossil methane, arguing that it will increase climate and air pollution. The lawsuit claims the port failed to conduct a thorough environmental review, highlighting the project's potential harms to health and the environment in a community already burdened by pollution and calls for a reconsideration of cleaner alternatives to hydrogen production. The U.S. Department of Housing and Urban Development (HUD) is allocating $6.5 million in Choice Neighborhoods Planning Grants, including two California recipients: Oxnard and Woodland. Each community will receive a $500,000 grant to develop a comprehensive "Transformation Plan" aimed at modernizing public housing, improving resident outcomes and revitalizing high-poverty neighborhoods, all while supporting the Biden Administration's goals of equitable economic opportunities and affordable housing access. The Department of Housing and Community Development (HCD) issued a Notice of Violation to Norwalk after the city adopted an ordinance banning new homeless shelters and supportive housing, threatening legal action if the policy isn't reversed. Governor Gavin Newsom criticized the moratorium as counterproductive and immoral, emphasizing the need for communities to provide shelter and services amid the ongoing homelessness crisis, while HCD noted that Norwalk has failed to meet its housing goals, issuing only 175 permits of the required 5,034. A study published in Science Advances shows that Californians are breathing 65% less vehicle-related pollution since 2000, reflecting the effectiveness of state emissions reduction policies. However, it highlights that disparities are increasing, with Hispanic and Black communities still facing higher exposure to harmful pollutants due to their locations near highways, emphasizing the need for targeted interventions in these areas. San Jose is abandoning a controversial plan to sell a tiny home site for a jail diversion program after significant community backlash, including thousands of petition signatures and safety concerns voiced at public meetings. City officials acknowledged the need for more transparency and will explore alternative options with Santa Clara County, as the proposal faced strong opposition from residents who felt uninformed about the county's intended use of the site. A California appeals court overturned a San Francisco ordinance that extended the eviction notice period for renters from three days to ten days, stating that local laws cannot contradict state regulations. The court's ruling reinforces the existing state timeline and emphasizes that while cities can regulate the grounds for eviction, they cannot alter the procedural timelines set by state law. The state Supreme Court upheld a lower court's decision allowing UC San Francisco to proceed with its 15-story hospital project, rejecting neighborhood groups' claims that the construction violated height and zoning restrictions. The project, which aims to address a shortage of hospital beds, is scheduled for completion in 2030 and is exempt from local regulations as a government activity. (See related CP&DR coverage .) 56 California airports will receive a total of $219.5 million in grants from the Federal Aviation Administration to enhance airport infrastructure through the Airport Improvement Program. The funding will support various upgrades, including runway reconstruction, noise mitigation and zero-emission equipment, aimed at improving safety and efficiency while reducing environmental impacts. Lendlease, the Australian developer behind the stalled Hayes Point project in San Francisco, has reached an agreement with city officials to remove the 25% on-site affordable housing requirement, allowing all 333 planned condos to be market-rate units. This change is intended to enhance the project's viability amid post-pandemic economic challenges and follows a broader city effort to adjust development regulations and fees to stimulate stalled projects. The U.S. Department of Housing and Urban Development awarded $6.5 million in Choice Neighborhoods Planning Grants to 13 communities in 11 states to develop comprehensive plans for redeveloping distressed HUD-assisted housing and improving neighborhood conditions. Each community, including the first-ever Tribal Nation recipient, will receive $500,000 to create a "Transformation Plan" aimed at modernizing housing, enhancing resident outcomes and stimulating long-term economic development. The San Bernardino County Transportation Authority's new ZEMU passenger train, North America's first self-powered zero-emission train using hybrid hydrogen and battery technology, has been recognized for its innovation and environmental benefits. The train, which is set to begin service later this year along the Arrow Corridor, received nearly $52 million in support from the California State Transportation Agency and has been praised for advancing clean transportation technology.

This article is provided to you for free by the paying subscribers to;California Planning & Development Report.;To learn how you too can subscribe to;CP&DR;and support our work, just click;here. Gov. Gavin Newsom signed 21 bills related to planning and development on Thursday ; the vast majority of them dealing with increasing housing production. About 15 planning and development bills remains on his desk and he has until the end of September to sign them. Taken together, the bills don’t include any extremely aggressive moves by the state to box in local governments. Indeed, in a few cases ; such as a new bill on the builders remedy ; the new legislation actually does the opposite and boxes in developers a bit. But some ; such as an ADU law ; are aggressive in their own way. There’s also definitely a trend toward transparency ; posting more information on the internet about fees especially. Here are the bills Newsom signed Thursday. ADUs SB 1211: Increases the number of allowable accessory dwelling units on a parcel from 2 to 8, depending on the situation. Builders Remedy AB 1893: Boxes in the builders remedy, among other things limiting the amount of additional density a developer can obtain. Previous CP&DR coverage is available here. CEQA AB 2117: Ensures that permits don’t expire when a project is subject to a CEQA challenge. SB 393: Puts the burden of proof on the plaintiff when seeking a bond from a CEQA defendant. A response to the $500,000 bond placed on the citizen group Save Downtown Livermore in litigation over Eden’s affordable housing project in Livermore. Previous CP&DR coverage of that case can be found here. AB 2199: Extends infill exemption from 2025 to 2032. Density Bonus Law AB 2694: Extends Density Bonus Law to residential care facilities for the elderly. A dense eldercare facility was recently an issue in a court case from Los Angeles (previous CP&DRcoverage here), though the DBL was not at issue in that case. Fees AB 2430: Prohibits imposition of monitoring fees to monitor affordable housing requirements if the project is 100% affordable. AB 2663: Requires cities and counties to post housing in-lieu fees on the internet and explain how they were spent. AB 937: Allows delay of impact fee payment on residential projects Housing Elements AB 1886 and AB 2023: Clarifies that a Housing Element is compliant with state law if a court says so and there’s a “rebuttal presumption” in court that a Housing Element is in or out of compliance of the Department of Housing and Community Development says so. The question of whether a local government can independently certify Housing Element compliance has been a huge legal issue, as evidenced by CP&DR’s coverage here.) AB 2667: Requires HCD to create standardized Affirmatively Furthering Fair Housing reporting, which local governments must use in Housing Elements starting with the 7th RHNA cycle. AB 3093: Adds two new categories to Housing Element income categories to account for homelessness. (Detailed CP&DR coverage of the HCD report that recommended these changes can be found here.) Other Housing AB 1413: Expands definition of “disapproval” under the Housing Accountability Act and also expands notification requirements in those situations. AB 2243: Extends AB 2011, which permits residential development in commercially zoned areas, to high-rise districts not in commercial corridors as well as near freeways and clarifies that affordability requirements apply to base units in Density Bonus Law, not bonus units. SB 450: Tightens SB 9 so that it's harder to deny lot splits, among other provisions. (For more background on how cities are ; or are not ; implementing SB 9, check out CP&DR’s previous coverage here.) SB 7: Specifies that cities and counties can’t object to Regional Housing Needs Determination. SB 312: Further clarifies CEQA streamlining for student housing contained in SB 886, which was passed after the so-called “People’s Park” decision. (For more background on the case and SB 886, see CP&DR’s previous analysis here.) AB 2488: Allows tax-increment financing for office-to-residential conversion in Downtown San Francisco. Transit-Oriented Development AB 2553: Redefines a “major transit stop” under state law as a transit stop with 20-minute headways instead of 15-minute headways. This is important because much TOD streamlining is geared toward “major transit stops” and post-COVID transit agencies have been cutting back service. AB 2712: Specifies that TOD projects with lower parking requirements in Los Angeles. must be excluded from residential permit parking.

Perhaps the most significant thing about state and local ballots in California this fall is what’s not on them.

Plan for San Francisco's Candlestick Point Megaproject Moves Forward The redevelopment plan for Candlestick Point, a 280-acre site on San Francisco's waterfront, recently received initial approval from the city's Office of Community Investment and Infrastructure (OCII). This updated plan features taller buildings, the transfer of commercial space from the adjacent Hunters Point Shipyard and a focus on creating an “innovation district” to attract tech firms. However, significant changes include extending deadlines for public financing and construction due to previous delays. Community groups have raised concerns about the affordability of the new housing, arguing that it may exclude lower-income residents displaced by the redevelopment. The proposal now moves to further reviews, including the OCII Oversight Board and the Planning Commission, with ongoing debate about its impact on local communities and affordability. Oakland Port Seeks New Proposed for A's Stadium Site at Howard Terminal With the Oakland A's having abandoned their plans for a $1 billion waterfront stadium and surrounding development at Howard Terminal, the Port of Oakland is now seeking new proposals for the site. Initially, the A's envisioned a mixed-use project featuring a 35,000-seat ballpark, residential units, commercial space and public amenities. With the team's plans to relocate to Las Vegas and the exclusive negotiating agreement with the port expiring, the port aims to explore alternative uses for the disused 50-acre property. The port is open to proposals that include maritime, industrial, commercial, recreational and water-oriented developments. This shift represents a significant opportunity for the port to drive economic growth and job creation in the region. Building Permits Fall across Southern California Southern California's homebuilding activity has slowed due to high lending rates impacting developers. In the three months ending in July, permits for new housing units dropped by 13% year-over-year but were still 7% higher than the five-year average. The decline was consistent across the region, with permits down in Los Angeles, Orange, Inland Empire and San Diego counties. Multifamily permits fell sharply as apartment builders scaled back, while single-family permits also decreased, reflecting cautious homebuilders and rate-sensitive buyers. Despite the recent slowdown, permit numbers remain above the long-term average in some areas, suggesting mixed impacts on housing availability and affordability. Goleta Housing Development Entagled in Dispute over Builder's Remedy, Measure G A Goleta property owner is suing the City of Goleta over the right to utilize California's builder's remedy to construct 56 single-family homes, including 13 affordable units, on 12 acres called the "Shelby property." The application was an updated version of a development approved in a 2011 tract map. The City of Goleta rejected Glynne Couvillion's application in 2023, leading to litigation where the judge will review issues related to the Housing Accountability Act and builder's remedy. The Shelby property, with a complex zoning history and recent changes, faces opposition from conservationists and local groups, while legal debates continue over the application of 2012's Measure G--which requires voter approval of changes to certain agricultural properties--and the project's adherence to current regulations. The outcome will impact Goleta's housing landscape, addressing the city's urgent need for affordable housing amidst ongoing planning and environmental concerns. CP&DR Coverage: Protections for Threatened Bumblebee Could Impede Development As California grapples with a deepening housing underproduction crisis, developers might be facing an unexpected challenger: Crotch's bumblebee. And it could be just the beginning of a new era of endangered species protection, as more insects become eligible for protection - and the methodology for understanding listing and protection might be very different for insects. The bumblebee (scientific name: Bombus crotchii ) has an extremely wide range within California, including the Mediterranean region, Pacific Coast, western Mojave desert, Central Valley, and foothills, and has also been observed in southwest Nevada near the California border. If the bumblebee were to be listed, it could pose significant challenges to developers all across the state. They would have to adhere to new regulations, including undergoing extensive survey processes and implementing unclear conservation practices, potentially delaying previously established timelines. Quick Hits & Updates Los Angeles' Measure ULA, a tax on high-value property sales aimed at funding housing initiatives, has generated $375 million since its implementation, falling well short of the expected $600 million to $1.1 billion annually. Despite facing legal challenges and opposition, the tax is moving forward, with plans to allocate $160 million next year for programs like social housing, eviction defense and support for low-income first-time homebuyers. (See related CP&DR coverage .) The Afterthought Mine in Shasta County has been designated a Superfund site by the EPA due to its severe pollution, with acidic drainage 1,200 times above allowable limits contaminating Little Cow Creek and its tributary, the Sacramento River. The cleanup will involve extensive study and possibly passive treatment methods, but the site will require ongoing treatment for potentially hundreds of years, with costs fronted by taxpayers. Though the Brightline West high speed rail line will run between California and Nevada, Senate Majority Leader Chuck Schumer is advocating for Siemens Mobility to manufacture its trainsets in Upstate New York's Southern Tier, which could generate hundreds of jobs. Siemens was chosen to build the American Pioneer 220 trainsets for the Brightline. Schumer highlighted the Southern Tier's strong manufacturing base and skilled workforce as key advantages. (See related CP&DR coverage .) California's homelessness crisis continues to grow , with nearly 186,000 individuals affected, though the rate of increase has slowed compared to previous years, with the largest increase statewide occurring in San Joaquin County. While some counties have reported progress through increased funding and new shelters, discrepancies in counting methods and data accuracy challenge efforts to fully understand and address the crisis. A Los Angeles County Superior Court judge has struck down a city law aimed at phasing out oil production within city limits, ruling that state jurisdiction supersedes local control over drilling operations. The law, backed by the L.A. City Council and environmental activists, sought to halt new oil and gas extraction and end existing operations within 20 years; however, the ruling may be overturned if a pending state bill allowing local governments more control over oil operations is signed by Governor Newsom. Under the Green and Resilient Retrofit Program, HUD has awarded $3.6 million in Surplus Cash Loans to Pleasant View Apartments in Fresno to support energy efficiency and climate resilience improvements. This funding is part of a larger initiative to enhance nearly 2,000 homes across the country, focusing on reducing carbon emissions and increasing sustainability in housing. Recent tests at a former rocket testing site in Canoga Park revealed high levels of toxic chemicals, including TCE and PCE, in nearby homes and businesses, prompting calls for further investigation. The report recommends additional testing at residential and commercial sites to the north and east of the former Rocketdyne location, as groundwater may be transporting the detected toxic chemicals in those directions. A University of California, Davis study found that over 50% of ride-hailing trips in California replaced more sustainable transportation options like public transit and cycling, or resulted in new vehicle miles, highlighting the environmental impact of these services. The research, conducted to inform the Clean Miles Standard, also revealed that ride-hailing disproportionately affects those without personal vehicles or from racial and ethnic minority groups and suggests improvements such as better integration with public transit and increased vehicle efficiency to enhance sustainability. A recent U.S. Geological Survey study revealed a tenfold increase in post-fire erosion in Northern California from the late 1980s to the 2010s, exacerbated by larger and more intense wildfires, which poses significant risks to water resources and ecosystems. This erosion, which is expected to worsen with climate change, threatens to reduce reservoir capacities, harm aquatic life and increase flood risks, underscoring the need for improved land and forest management practices to mitigate these effects. San Jose has become the priciest city in the U.S. for both buying and renting homes, with average home prices at around $1.5 million and median rents exceeding $3,300 monthly. Experts suggest renting may be more financially advantageous in Silicon Valley due to the high cost disparity between buying and renting. The Revitalizing Downtowns and Main Streets Act federal legislation proposes a 20% tax credit for converting underutilized commercial properties into residential units, with additional incentives for affordable housing and rural areas. The bill aims to address high office vacancy rates and the affordable housing crisis exacerbated by the Covid-19 pandemic and is supported by multiple trade groups with a companion bill in the Senate.

Federal Government Awards $900 Million to Los Angeles for Transportation Los Angeles will receive nearly $900 million in funding from the federal government to enhance its infrastructure and transportation system in preparation for the 2028 Olympic and Paralympic Games. The monies will come from a spending package signed into law by President Biden and grants secured through the U.S. Department of Transportation's New Starts and Expedited Project Delivery Pilot Programs. The bulk of this funding, approximately $709.9 million, will be allocated to LA Metro projects including the East San Fernando Valley Light Rail and the D Line subway extension. Additionally, $160 million will be used for street and transit improvements, traffic safety and better neighborhood connectivity. Key initiatives include expanding mobility hubs, improving pedestrian and bike infrastructure and supporting community planning for open spaces. This investment aims to address current infrastructure needs while ensuring long-term benefits for the city's residents and visitors. State Allocates $343 Million for Public Transit California has allocated an additional $343 million in funding to support public transit; it is the second wave of funding from the transit recovery package in the 2023-24 state budget, building on the $1.9 billion announced last month. Governor Gavin Newsom emphasized the state's dedication to improving public transportation as part of his infrastructure enhancement agenda. This new funding is part of Senate Bill 125, which allocates a total of $5.1 billion over several years to regional transportation agencies for both operational and capital improvements. Specific uses of the funds include maintaining service levels, investing in zero-emission vehicles and constructing transit hubs. The funding aims to enhance mobility, support sustainable transit systems and align with the needs of a diverse range of California communities. Research Seeks to Standardize VMT Analysis New research published in the Journal of the American Planning Association calls for the implementation of consistent methods to estimate vehicle miles traveled (VMT) for individual properties. California adopted VMT metrics for environmental analysis in 2013 via SB 743. Currently, there is no nationally standardized method, leading to significant variation in VMT estimates depending on the method used. The researchers evaluated 12 different methods for estimating site-generated VMT across eight office sites in California and Utah and found considerable discrepancies, particularly in trip generation estimates. The study suggests planning policies should mandate consistent estimation methods for comparability as well as industry-wide standards or alternative performance metrics. (See related CP&DR coverage .) Proposed Federal Program Would Support Housing, Sustainable Transportation The federal Advisory Council on Historic Preservation (ACHP) has circulated a draft Program Comment to streamline historic preservation reviews for federal investments in housing, climate-smart buildings and climate-friendly transportation. This initiative aims to accelerate the renovation and reuse of historic buildings for affordable and climate-resilient housing by simplifying review processes for interior renovations, sitework and façade projects. For climate-smart buildings, the proposal would facilitate the installation of solar panels, upgrades to energy-efficient systems and other improvements without extensive reviews. In transportation, the comment seeks to expedite pedestrian, bicycle and public transit infrastructure projects to enhance accessibility and safety. The draft comment is currently open for consultation with various stakeholders to refine its provisions before final approval. CP&DR Coverage: Santee Council Improperly Sidestepped Referendum on Fanita Ranch Environmentalists have won the latest round one of California's longest-running development battles, the attempt by HomeFed to build a 3,000-home Fanita Ranch development in an apparently high-wildfire-risk area of Santee east of San Diego. San Diego County Superior Court Judge Katherine Bacal ruled in August that the Santee City Council erred in 2022 when rescinded all of the 2020 Fanita Ranch approvals, thus allowing the council to remove the referendum from the ballot, and then approved the same project anew under an urgenc ordinance not subject to referendum. The approval took place after the city recirculated some sections of the project's environmental impact report in response to Judge Bacal's ruling in March of 2022. An appeal is expected. Quick Hits & Updates The "Downtown Sacramento Livability Strategy" by the Downtown Sacramento Partnership outlines critical needs and urgent priorities for enhancing downtown's livability, emphasizing the production of affordable housing and the creation of desirable amenities. The 40-page document serves as a strategic guide, challenging local leaders to address both housing supply and demand issues and transform downtown Sacramento into a vibrant, sustainable urban neighborhood. A study out of RAND finds mandatory Project Labor Agreements (PLA) attached to Los Angeles Proposition HHH - or publicly funded supportive housing aimed at addressing homelessness - significantly increased project costs by about 22%, more than double previous estimates and resulted in longer completion times without achieving economies of scale. This increase in costs suggests that using a PLA could reduce housing output by approximately 20%, necessitating an additional $1.2 billion to produce the same number of units. Oakland completed the sale of its 50% share of the Coliseum to Ray Bobbitt's African American Sports and Entertainment Group (AASEG) for $125 million, with plans to transform the site into a dynamic complex featuring sports venues, dining and housing. The sale is expected to provide immediate financial relief to the city and will see the Coliseum hosting the Oakland Roots SC soccer team while AASEG finalizes the purchase of the remaining ownership share from the A's. San Francisco's Bus Rapid Transit (BRT) project on Van Ness Avenue has been awarded a Silver designation by the Institute for Transportation and Development Policy, marking it as one of the top three BRT projects in the U.S. This recognition reflects significant improvements in transit speed, safety and reliability, with bus travel 36% faster, injury collisions down 54% and transit reliability up 45%. A new report by the RAND Corp. about the impact of a Project Labor Agreement (PLA) attached to Proposition HHH in Los Angeles reveals that the PLA increased total development costs by 21%, more than double previous estimates. The study also found that PLA projects took 8 months longer to complete on average compared to non-PLA projects. Allstate has received approval for the largest home insurance rate increase in California in three years, with an average hike of 34.1% for its 350,000 customers. The increase, effective at the first renewal date after November 7, ranges from decreases of 57% to increases of nearly 650%, depending on the location. This rate adjustment follows a broader trend of rising insurance costs in California, driven by increased claims and repair costs. (See related CP&DR coverage .) An independent analysis estimates that evacuations from the Lake Tahoe area could take nine to 14 hours due to road congestion and closures, significantly longer than previous estimates of under four hours. The study, conducted using artificial intelligence, highlights the urgent need for updated emergency planning and better coordination among local agencies to address the challenges of evacuation during major wildfires. The Federal Transit Administration approved environmental review documents for the first segment of the Southeast Gateway Line, making it eligible for major federal funding crucial to the $7.1 billion project. The 14.5-mile segment will begin utility work by the end of this year and, when completed, will connect 1.4 million residents from Union Station in Downtown LA to Artesia. Plans are underway to develop the former Pleasant Hills Golf Course in San Jose into a 113-acre residential community with 1,716 housing units, including both market-rate homes and affordable rentals. The project aims to meet local housing needs and features up to 50,000 square feet of retail space and a public plaza, with approvals anticipated from both county and city officials by late 2024 and 2025, respectively.

A controversial supportive housing project has been relocated out of Old Town Elk Grove – but the city will now be subject to increased scrutiny by the state Department of Housing and Community Development.

Housing issues again dominated the Legislature’s action on planning and development issues this year. About 30 bills were sent to Gov. Gavin Newsom after the end of the legislative session on August 31. Newsome has already signed two bills and has until the end of September to decide whether to sign the rest. CP&DR will update its legislative coverage once Newsom acts on all the bills, but he’s unlikely to veto many.