Search Results

San Francisco Misses Housing Goal, Triggers SB 423 Streamlining The Department of Housing and Community Development has determined that the City and County of San Francisco missed its housing permitting goals in 2023 and will be subject to state-imposed streamlining. The city permitted only 3,039 units in 2023; its targets fro the current eight-year RHNA cycle is over 82,000. The determination makes San Francisco subject to Senate Bill 423, the 2023 extension of SB 35. The law requires most projects to be approved within six months without the need for Planning Commission review or appeals to the Board of Supervisors. Although it excludes large or non-compliant developments, SB 423 marks a shift towards faster, less contentious housing construction in San Francisco. Currently, projects take an average of 26 months to be approved. Beverly Hills Rejects Builder's Remedy Project, Draws Lawsuit A developer's bid to circumvent Beverly Hills' zoning laws and erect a 165-unit, 19-story apartment building faced a significant setback when the City Council decisively turned down the project. The council's unanimous decision dismissed developer Leo Pustilnikov's appeal challenging a prior ruling that deemed his plans for 125-129 South Linden Drive incomplete. This ruling seems to flouts the builder's remedy rule, &which provides streamlined approvals to build larger projects that exceed local zoning regulations. Pustilnokv has invoked the builder's rememdy in several proposals in Los Angeles-area cities. Californians for Homeownership, a group sponsored by the California Association of Realtors, has filed suit on behalf of Pustilnikov. The group recently prevailed in a different lawsuit challenging the city's housing element. (See related CP&DR coverage, and a copy of the complaint .) Robotic Air Taxis to Debut in Bay Area Air taxi companies Archer Aviation and Joby Aviation have received FAA certification to operate commuter and on-demand drone flights, aiming to launch commercial services by 2025. Archer plans to collaborate with Kilroy Realty to build a “vertiport” in South San Francisco, featuring a water hub powered by renewable energy. The company initially seeks to connect five locations across the San Francisco Bay Area: South San Francisco, Napa, San Jose, Oakland, and Livermore. Both Joby Aviation and Archer Aviation have received their Part 135 from the FAA, a certification that will enable them to offer air rides directly to passengers. Both services are expected to be available via Uber-style ride-hailing apps. Court Tosses Out Moreno Valley General Plan Update Moreno Valley has revoked approvals for developments tied to its 2021 General Plan, called "MoVal 2040," and its environmental impact report following a legal challenge by the Sierra Club, which criticized the plan's environmental study as flawed and warned of excessive air pollution in residential neighborhoods. A Riverside Superior Court judge ruled in favor of the Sierra Club, ordering the city to rectify deficiencies in its environmental review process. This decision led the Moreno Valley City Council to unanimously repeal project approvals associated with the General Plan update, acknowledging the need for transparency and proper assessment of environmental impacts. The city now faces the task of reevaluating projects under older guidelines while considering a revised General Plan compliant with state environmental laws. Report Excoriates San Francisco for Mismanagement of Capital Projects A new report by the San Francisco Civil Grand Jury found that San Francisco Public Works's capital projects, valued at over $18.9 billion, are plagued by cost overruns, delays and deficiencies. The Grand Jury found several instances where projects did not follow original development plans leading to extra costs, unsafe design, and unusable infrastructure. For example, the fire department's new fireboat station went over budget by $13 million, doesn't address rising sea levels, consistently experiences equipment failure, and can't legally house fire trucks. Public Works responded to the report stating that they have a legacy of award-winning facilities, but they will review the grand jury's recommendation in an effort to improve their department and projects. CP&DR Coverage: Builder's Remedy Bill Advances, with Changes The builder's remedy reform bill is moving forward in the Legislature - though the YIMBY movement is divided over the bill and significant amendments have been made in the Senate that would decrease allowable densities and affordability requirements. AB 1893, carried by Assemblymember Buffy Wicks, sailed through the Assembly. But at a Senate Housing Committee hearing on June 18, the bill ran into opposition from YIMBY Law and several amendments were made. The bill will now go to the Senate Local Government Committee. &There are two major changes: 1) &Currently, the builder's remedy is allowed for projects that dedicate & either & 20% of the units for low-income housing & or 100% for moderate-income housing; the original Wicks bill cut the 20% to 10%; the Senate version increases the 10% up to 13%; 2) A change in the permitted density; the original Wicks bill called for limiting density to double what's required to achieve housing element goals or triple what the local density calls for; the new bill limits the number to 50% of what's required for housing element goals. Meanwhile, at least one city - West Hollywood - is seeking legislation that would exempt it from the builder's remedy. Quick Hits & Updates Six conservation groups have petitioned the California Fish and Game Commission to classify five western burrowing owl populations as threatened or endangered under state law, potentially impacting development in various California regions. The Commission has extended the California Department of Fish and Wildlife's evaluation period to July 16, 2024, with a decision expected at its August 2024 meeting. A lawsuit filed by Save The American River Association Inc. challenges the approval process for four high-rise apartment towers along Sacramento's American River. The lawsuit alleges that the city and LPA Design Studios did not comply with California Environmental Quality Act requirements when approving the project. The proposed development aims to build 826 market-rate apartment units and was expedited due to its proximity to light rail stops, which exempted it from certain environmental reviews. The lawsuit seeks to invalidate the city's approval and halt construction until further environmental studies are conducted. Mountain House, California's newest city in San Joaquin County was officially incorporated on July 1 with nearly 30,000 residents, marking the county's eighth city and the state's 483rd. The Huntington Beach City Council voted to place a city charter amendment on the November 5 general election ballot, requiring voter approval for City-initiated general plan amendments or zoning changes that are deemed to have significant and unavoidable negative environmental impacts. The proposal reflects ongoing tensions between the council majority and the State of California regarding housing mandates, particularly the Regional Housing Developments Assessment, which could potentially require zoning for thousands of new residences in Huntington Beach. The Santa Ana City Council has implemented a moratorium on new, expanded or relocated industrial activities in areas surrounding the Logan, Lacy and Downtown neighborhoods. This decision, part of an environmental justice initiative under the city's new General Plan, aims to address historical disparities in environmental burdens faced by these predominantly Latino and historically disadvantaged neighborhoods. A grand jury report criticizes San Luis Obispo County's plan to reduce homelessness by 50%, citing obstacles like NIMBYism, organizational challenges, zoning laws, and funding gaps. The report highlights that only 130 of the 300 beds planned for the first three years are in progress, recommending the county to improve staff succession planning, and implement a public awareness campaign on homelessness issues. California Attorney General Rob Bonta filed an appeal to reverse a Los Angeles County Superior Court judgment preventing the enforcement of Senate Bill 9 (SB 9) against five charter cities, arguing it violates their state constitutional authority. SB 9 mandates a streamlined approval process for homeowners to build duplexes or subdivide lots zoned for single-family homes. The University of California turned down an invitation by San Francisco's Mayor London Breed to open a campus in the city's downtown, citing budget issues. Mayor Breed hopes to keep pursuing the opportunity to open a satellite campus for an HBCU in the area. Rhode Island-based Gilbane Development will continue with its plans to build an 18-story apartment building atop the former California Theater in Berkeley, while persevering its facade and marquee thanks to the city's Landmarks Preservation Commission. The project proposal, which was exempt from CEQA, will host a live performance space twice the size of the original 11,000-square-food cinema and will have 211 residential units, comprising studios, two-bedroom, and four-bedroom apartments, with eleven units designated for very-low-income residents. According to an analysis of first-quarter economic measurements by Attom, California is home to six of the ten counties across the U.S. with the highest risk of home-price declines due to affordability issues, high rates of underwater mortgages, foreclosures, and unemployment. Most of California's high-risk counties are less-populated regions to the north such as San Joaquin (1), Merced (2), and Madera (4). On the other hand, some of the state's largest housing markets, like Santa Clara (363) and San Diego (267), show lower risk despite higher home prices.

At a time when many retailers are cutting back – or going out of business entirely -- Costco has the opposite problem. I've been to Costcos on weekend afternoons when they were so busy, you'd think they were giving away their inventories. Even getting a frozen yoghurt took 15 minutes. Costco membership inspires feeling of pride on par with sports teams. That translated into $176 billion in revenue last year in the United States. So it's no wonder that Costco wants to build more stores, which already number over 800 nationwide (compare that with over 4,100 Walmarts). The trouble is, fervor alone cannot shoehorn a warehouse of 150,000 square feet into urban Los Angeles. Even where there's space, the zoning is often unkind. That's why Costco is getting into the urban infill housing business. Everything about housing development is antithetical to Costco's business model. Costco is in the business of building the same big-box store – with the same gigantic parking lot – pretty much anywhere. Urban infill housing is costly, complicated, and customized. But some people will do anything for an entitlement. That’s why Costco’s proposal to develop a roughly 800-unit apartment complex in South Los Angeles is a Trojan Horse that will also not-so-secretly facilitate the development of the chain's 17th Los Angeles County store. It will be built on the site of a shuttered medical center a few miles west of the USC campus, near a stop on L.A. Metro's Expo Line. Rather than wade through the tedious, costly, and uncertain process that would it need to gain approval for a traditional standalone store, Costco and its development partner Thrive Living taking advantage of AB 2011, which exempts multifamily housing projects on commercially zoned property from CEQA review, plus density bonuses provided by Los Angeles’s Transit Oriented Communities program (TOC). Home sweet Costco. The density bonuses, which require 184 of the residential units to be affordable, raise the allowable number of units on the site from 593 to 918. It’s an elegant alignment of interests for both parties: Thrive gets a deep-pocketed partner with whom to build housing, and Costco gets to open its doors, stock its shelves, and begin generating revenue without suffering through environmental review and inevitable lawsuits. That’s no small matter when the average Costco store takes in $252 million per year. (The project was proposed over a year ago, and underwent site plan review in February, but recently gained attention thanks to an X/Twitter post by L.A.-area housing advocate Joe Cohen.) Even if it loses money on the housing (which isn't likely, especially if it's paying for the land anyway), Costco will surely make up for it in the pallets of protein powder and cases of canola oil that it's going to sell. The poison pill in AB 2011, which has rendered the law nearly useless, is that it requires developers to pay construction workers “prevailing wage” for onsite labor -- which generally equates with high-cost unionized workers. But Costco and Thrive have a solution for that: modular construction. By using mass-produced elements, Costco will minimize the use of on-site labor. It's savvy move for a company that knows how to buy in bulk. The end result may be the type of mixed-use development that, while achingly pragmatic, would give even the most sanguine New Urbanist a heart attack. From the renderings, it will not be a human-scale, finely detailed series of storefronts and front doors. It will, rather, be an enormous box hemmed in by slightly smaller boxes (Cohen likened the design to that of a prison – apparently coining the term “Costco Prison” – but he walked back that assessment in the face of a Tweetstorm of flack). And, in a rarity for Costco, much of the parking will be underground. In fact, parking is where this project gets really interesting. Based on TOC guidelines, the project is required to provide at least 1,141 parking spaces, for residential and commercial combined. But, based on AB 2097 – which prevents the city from imposing any parking requirement within a half-mile of a transit stop – that requirement drops to exactly zero . In fact, the developers are choosing to provide 1,515 spaces. This seemingly sensible investment contradicts the worst fears of pro-parking folks: zero parking minimums does not necessarily mean zero parking. Developers may be frugal, but they’re not insane. (Ponder, for a moment, what zero parking would look like at a Costco.) Frankensteinian as its form may be, it’ll be an apt representation of the regulatory tangle that, for better or worse, provided the necessary lightning bolt. Housing advocates probably won't worry about the aesthetics anyway. Eight hundred units is a lot, even in Los Angeles. And it will include 184 units of sorely needed affordable housing. Even so, it'll be a stark contrast to its neighbor, which happens to be Village Green, an Ebenezer Howard-style development from the 1940s that's on the National Historic Register. With laws, trees, and graciously spaced-out apartment blocks, Village Green represents high-density, affordable housing of a vastly different era. The Village Green trend didn't last. But, it's likely that the Costco Living trend is just starting. Big boxes aren't just stores. They are, by definition, real estate plays. Between the demand for housing, the urbanist antipathy for wasted space, new state laws friendly to mixed-use and adaptive reuse, and other local regulations akin to Los Angeles’s TOC (e.g. the Bay Area’s own TOC program), more such developments seem inevitable -- it would be financially irresponsible of the Costcos, Targets, and Walmarts of the world not to pursue them. The South L.A. Costco is just the prototype. On the one hand, I’m sure few urban planners want big box stores to dominate American retail even more thoroughly than they already have. On the other hand, it's possible that we've already lost the war against big boxes. And, their incursion into urban areas is only going to accelerate; greenfield sites on the urban fringe are simply too far from population centers to be feasible. If we can get some housing as part of the peace treaty, so much the better. Now, it's true that residents of those 800 apartments -- some of which will be small studios and one-bedrooms -- probably aren't Costco's target customers. Then again, once they try the frozen yogurt, they might be hooked. Resources Los Angeles Dept. of City Planning CUP Site Plan Review, February 2, 2024 (PDF download) Rendering by AO Architects.  This article is brought to you free of charge by paying subscribers to California Planning & Development Report . You can subscribe here .

California Fares Well in New Federal PRO Housing Grant Program The Department of Housing and Urban Development awarded $85 million in grants for the Pathways to Removing Obstacles to Housing (PRO Housing) program. California jurisdictions received a total of $15 million and four of the 20 grants awarded nationwide. This initiative aims to eliminate barriers to affordable housing production and preservation by supporting efforts to revise local housing plans, streamline permitting processes and develop new affordable housing units. One of the four awards HUD granted $3.4 million to the City of Anaheim to enhance housing supply and reduce costs. With over 48% of households in Anaheim burdened by housing costs, HUD identified extensive measures by the city, including updating planning and policy frameworks, offering incentives to developers and leveraging city-owned sites for housing purposes. HUD granted another $6.7 million to the County of Los Angeles to enhance housing supply and affordability. The PRO Housing funding will support initiatives aimed at removing barriers to affordable housing production and preservation. The county plans to improve utility infrastructure, establish Transit Oriented Districts and coordinate regional land use strategies to advance housing goals across its unincorporated areas. HUD has also awarded $5 million to the Metropolitan Transportation Commission (MTC) in the Bay Area to enhance housing supply and affordability. With a projected need for 1.4 million new homes in the region, the MTC plans to use the PRO Housing funding to support transit-oriented development, promote mixed-income housing and bolster the capabilities of local developers and builders. Huntington Beach May Vote to Flout State Housing Law The Huntington Beach City Council is considering a fall ballot measure declaring that housing is a municipal concern, not a state concern, and prohibiting the City Council from adopting a housing element if an environmental impact report shows a negative impact on the environment. The city has been extremely resistant to state oversight on housing issues, fighting with the state in both state and federal court. In this case the city appears to be leaning into the recent ruling by a Los Angeles judge that SB 9 does not apply to charter cities. The Huntington Beach agenda item can be found here ; a good story in LAist can be found here . Entire S.F.-L.A. Segment of High Speed Rail Receives Environmental Clearance California's high-speed rail project received environmental clearance for its Los Angeles to San Francisco route thanks to the High-Speed Rail Authority board's certification of the final environmental impact report of the Palmdale-to-Burbank segment. The 38-mile stretch, estimated to cost nearly $29 billion adjusted for inflation, will connect the Antelope Valley to the San Fernando Valley with a 17-minute trip from Palmdale to Hollywood Burbank Airport, utilizing four underground tunnels spanning 12 to 13 miles. Despite concerns over seismic risks, engineers assert the tunnels are designed to safely withstand earthquakes up to magnitude 7.3. Construction is already underway in the Central Valley, with plans for future extensions to San Diego and Sacramento pending further funding and approvals. Supreme Court Rules for Restrictions on Homeless Encampments In a 6-3 decision, the United States Supreme Court ruled in Grants Pass v. Johnson that cities in California and the Western United States can enforce laws restricting homeless encampments on sidewalks and public property. The ruling supersedes previous rulings from the 9th Circuit, particularly Martin v. Boise (2018). That ruling had essentially prevented cities from displacing or arresting homeless people simply for camping in public space so long as alternative shelter is not available. The new ruling holds that an ordinance in Grants Pass, Ore., making it illegal for homeless people to camp on city property is not unconstitutional. The decision is seen as a significant win for city officials seeking greater authority over public spaces and a setback for homeless rights advocates who argued such laws unfairly target individuals without adequate shelter. San Diego Group Lashes Out at Coastal Commission A report by Circulate San Diego criticizes the Coastal Commission for impeding affordable housing and climate-friendly transportation projects in coastal areas. The report argues the commission's actions exacerbate housing shortages, inflate prices and hinder efforts to reduce greenhouse gas emissions through longer commutes. An assembly member supports these findings and advocates legislative changes to increase the commission's alignment with environmental and accessibility goals. In response, the Coastal Commission disputes the report, emphasizing its commitment to equity and affordable housing despite challenges in approving coastal development projects. CP&DR Coverage: Huge Redevelopment in Redondo Beach Wins a Round in Court Developer Leo Pustilnikov has won another battle in his long-running effort to redevelop the AES power plant in Redondo Beach and apparently will be able to move forward with a lawsuit claiming that the city has taken his property by not letting him develop it. In an unpublished ruling, an appellate court rejected the city’s claim that the lawsuit was a so-called SLAPP suit – a lawsuit intended to chill public discussion and public participation. The court found that Pustilnikov’s basic argument is not about anything that the mayor or other Redondo Beach officials have said, but rather about the city’s unwillingness to rezone the property for residential use. The ruling on the anti-SLAPP motion doesn’t mean that Pustilnikov’s inverse condemnation claim is valid. That legal battle is still pending. But by eliminating the Anti-SLAPP motion, the appellate court is essentially allowing that allegation to move forward in court. Quick Hits & Updates Menlo Park's planning department has deemed a builder’s remedy application for the Willow Park project at 80 Willow Road incomplete due to missing required elements. The proposed development includes three towers with over 350,000 square feet of office space, nearly 40,000 square feet of retail space, a school, hotel and 665 housing units, including 133 affordable units. Despite the ruling, developer N17 plans to resubmit the application to address city requirements, with further review pending once the application is deemed complete. California YIMBY, a prominent housing advocacy group, announced its support for the East Solano Plan (California Forever) despite some reservations, highlighting its potential to rectify past development errors and provide housing for up to 400,000 Californians. The endorsement underscores the project’s promise in setting a sustainable growth model and emphasizes the importance of community guarantees and benefits for Solano County residents, though not all YIMBY voices align with this stance. (See related CP&DR coverage.) Solano County Supervisors unanimously voted to request an economic impact report on the East Solano Plan at a special meeting, which will be drafted within 30 days. This report will inform their decision on whether to accept the plan outright, place it on the November ballot, or proceed with negotiations for a development agreement, addressing concerns and public input on the potential impacts of the project. The Coastal Commission granted Newport Beach an extension to review proposed amendments to local coastal development standards for 166 properties between 24th and 48th streets. Originally due for decision in July, the extension allows more time for the Commission to evaluate updates to off-street parking requirements for commercial use and modifications to flood hazard area standards mandated by FEMA, which include raising structures and accommodating outdoor spaces within setback regulations. Environmental groups are appealing a recent court decision denying their lawsuit against the Sites Reservoir project in California, which aims to build the state's largest reservoir in 50 years. The project, endorsed by Governor Newsom and backed by various water agencies, faces opposition over concerns about its potential impact on endangered species and water diversion from the Sacramento River. Despite legal challenges, project planners remain optimistic, targeting a groundbreaking in 2026 and completion by 2032, pending final approvals from the State Water Resources Control Board. Following over five years of disputes and numerous delays, the Los Angeles Central Area Planning Commission denied an appeal from Skyline condominium homeowners opposing the construction of a 27-story, 236-apartment residential tower at 949 S. Hope Street in Downtown Los Angeles. Despite an agreement reached between Brookfield and some homeowners, not all have consented, leaving the timeline for the project's development uncertain amid ongoing neighborhood property transactions. The City of San Mateo has approved streamlined development policies under its new housing element, eliminating third-party design reviews for certain large projects that meet objective design standards and simplifying notification requirements, aiming to meet its Regional Housing Needs Allocation of 7,000 units by 2031, with 40% designated for low-income households. Fremont has been recognized as the best place in the U.S. to raise a family in a recent analysis by Wallethub, highlighted for its top-performing schools, safety, affluent community and large green spaces. Despite these accolades, the city scored lower in "Family Fun" due to industrial areas affecting walkability, while San Jose ranked seventh overall and San Francisco 12th, each facing distinct challenges such as affordability and family dynamics amidst their strengths in education and socio-economic factors. San Francisco's moribund Financial District could be updated into a nightlife district, pending approval of plans to create California’s first "entertainment zone" on Front Street and a an arts-inspired redesign of three blocks of Powell Street. Spearheaded by Mayor London Breed, the entertainment zone initiative aims to revitalize the area with outdoor alcohol consumption, live music and enhanced streetscape designs, part of a broader effort to attract more visitors and office workers back to downtown amid economic recovery efforts. (See related CP&DR coverage .) Legislative reforms in California have increased the construction of accessory dwelling units, with one in five new homes built in 2023 being an ADU, totaling 22,802 new units. However, a study reveals that illegal ADUs may outnumber legal ones by more than three to one in cities like San Jose, disproportionately affecting low-income and minority communities due to high permitting costs and bureaucratic barriers.

In overturning the so-called Chevron doctrine – the federal courts’ longstanding deference to administrative agencies – the U.S. Supreme Court has called into question how expansive the Environmental Protection Agency’s efforts to stem climate change and restrain sprawl can be.

The Legislature and Gov. Gavin Newsom have punched another hole in the California Environmental Quality Act – this time in order to move along construction of a new annex to the State Capitol in Sacramento. It’s the latest example of the state’s growing “Swiss cheese” approach to CEQA, coming on the heels of a similar solution to the People’s Park court case last year. There’s no way to comprehensively reform CEQA. But when a CEQA stall comes along that bothers the legislators, they simply pass a law providing a one-off end run around the law. Meanwhile, other projects languish. Admittedly, the CEQA holdup in the Capitol annex case was pretty extreme. Two different citizens groups – one known as Save The Capitol! And the other know, confusingly enough, as Save The Capitol, Save The Trees – filed lawsuits challenging the Department of General Service’s plans to tear down and replace the existing Capitol Annex. These lawsuits have led, so far, to two appellate court rulings that have held up the project. The first one, in late 2022, was one of the most in-the-weeds CEQA rulings in recent memory. In that case, the Third District Court of Appeal in Sacramento struck down EIR certification because DGS had made revisions to the project after the last version of the EIR had been circulated. But the court went much farther. The 63-page ruling, written by Acting Presiding Justice Harry Hull, contained a very detailed analysis of the project’s design, potential impacts, and potential alternatives – down to the point of specifically describing a visual depiction that the state should have included in the EIR and an alternative that the state should have considered but did not. It would appear as though Justice Hull gave the EIR close scrutiny in part because it involved the State Capitol building, which he called “a treasured historical resource.” ( CP&DR ’s previous coverage of that court ruling can be found here .) So DGS went back to the drawing board, downsizing a proposed parking garage and ditching a proposed visitor center among other things. But the “Save” organizations persisted and in May won a second appellate court ruling. This time, the same appellate panel – but without Hull – ruled that DGS incorrectly re-certified the EIR but should have vetted the recertified EIR with the trial judge. That was enough for the Legislature, given that a billion-dollar project of great importance to the legislators was being held up. A month after the most recent court ruling, Sen. John Laird and Assemblymember Blanca Pacheco wrote a letter to the Joint Budget Committee calling for a CEQA exemption. According to the Los Angeles Times , Laird and Pacheco estimated the cost of delay at $5 million a month and said: “We have worked to meet the significant concerns about the project, and this now becomes the best option to protect California taxpayers.” Laird, a Santa Cruz Democrat and former California Natural Resources Secretary, is considered one of the Legislature’s leading environmentalists. Within a week, SB 174 – a budget trailer bill – had been amended exempt the Capitol annex project from CEQA, passed both houses of the Legislature, and signed by Gov. Gavin Newsom. The optics, obviously, weren’t great. The Legislature, which won’t reform CEQA even though the process is time-consuming and expensive, exempted its own office building from CEQA because the process is time-consuming and expensive. But it’s pretty much the same thing the Legislature did last year in the People’s Park case. After lengthy legal delays, the First District Court of Appeal ruled that excessive noise from student residents could be considered a significant environmental impact, thus triggering expansive environmental analysis and possible requirements for mitigation. Incensed, the Legislature quickly passed a bill – which Gov. Newsom quickly signed – saying that noise created by humans in residences is not a significant environmental impact. “People are not pollution,” Newsom memorably said . (Recently the California Supreme Court pretty much killed the court case based on the new legislation. CP&DR ’s coverage of that ruling can be found here .) So that’s the Swiss Cheese angle to CEQA. The Legislature gets worked up over something and passes a one-off bill streamlining or eliminating CEQA review for the one narrow thing they’re worked up over. Meanwhile, other holes have been punched in CEQA as well. The same week that that California Supreme Court ruled in the People’s Park case, Newsom crowed about getting an expedited (and favorable) CEQA court ruling for the Sites Reservoir project in Colusa County because he had declared it as a priority infrastructure project under state law, requiring court rulings within nine months.“California needs more water storage, and we have no time to waste,” Newsom said . So the state can’t afford $5 million a month on the Capitol annex building in order to wait out CEQA. People aren’t pollution, even if they are noisy UC Berkeley students. And California has no time to waste in building more water storage. Meanwhile, if the state wanted to build an office building across the street from the Capitol, it would still be subject to CEQA. If UC Berkeley proposes building a lab building that would result in a lot of student noise, some appellate court could still conclude that that’s a significant impact. And if the state pursues a reservoir that’s not designated as a priority infrastructure project, it could get bogged down in court over CEQA issues for years. Is the Legislature’s patience wearing thing with CEQA generally – such that comprehensive reform is possible in the foreseeable future? Or will the Legislature continue be subject to occasional fits that lead to punching more one-off holes in the law? If it’s more Swiss cheese, there’s likely to be more complaints from those who aren’t having holes punched for them. In the end, you just have to wonder how long this can go on.

by CP&DR Staff Vol. 39 No. 6 June, 24 2024 Report

Budget Restores REAP 2.0 Funding The budget deal agreed upon by Gov. Gavin Newsom and Legislative leaders restored virtually all funding for the second round of the Regional Early Action Planning grants (REAP 2.0) -- but the funds must be obligated by September. Meanwhile, affordable housing got whacked by over $1 billion. Newsom had proposed that $300 million of the grants -- designed to encourage more planning and construction of driving-efficient developments -- be withheld because of the budget deficit. But almost all of it was restored. The vast majority of the $500 million in funds will go to the state's Metropolitan Planning Organizations, while $30 million will be reserved for competitive grants. A summary of the budget deal can be found & here . (Previous CP&DR coverage of the REAP 2.0 budget can be found here. ) Seaside Faces Lawsuits over General Plan & The Center for Biological Diversity and LandWatch Monterey County filed a lawsuit against Seaside, alleging that the city's approved general plan update lacks sufficient consideration of environmental impacts, violating CEQA. The plan includes development on sensitive wildlife habitat at the former Fort Ord military base, potentially impacting endangered species like the California tiger salamander and California red-legged frog. Despite objections and evidence suggesting alternatives, the city proceeded with the plan, failing to adequately assess greenhouse gas emissions and environmental consequences associated with the proposed development through 2040. The lawsuit also alleges the city did not adequately analyze the greenhouse gas emissions associated with this development or study any alternatives as mandated by state law. Report Quantifies Burden of Impact Fees Statewide A new report by the California YIMBY Education Fund and UCLA Luskin School of Public Affairs illustrates the wide variety in housing impact fees across California. The report, titled The Impact of Fees: Rethinking Local Revenues for More Multifamily Housing, reveals that the average impact fees for both multifamily and single-family houses, $21,703 and $37,471, respectively, are triple those nationwide. It is not uncommon for total development fees - including impact fees, services fees, in-lieu fees, and others - to reach $150,000 per unit. Some of the stiffest fees are in Bay Area cities: Livermore, Fremont, and Palo Alto. The report contends that fees on new homes are designed to pay for infrastructure that is used by all residents; said Nolan Gray, research director for California YIMBY, “it's essentially a form of wealth transfer from new residents of multi-family housing, who tend to be lower-income, to existing residents of single-family homes - who tend to be wealthier.” To reverse the trend and instead incentivize multifamily housing developments, the report presents a variety of recommendations including transparent fee calculations, capping fees per square foot, and alternative revenue sources like bonds. Supreme Court Kicks Tax Measure off November Ballot The California Supreme Court has blocked a ballot measure that aimed to require voter approval for tax increases, ruling it would constitute a revision of the state constitution rather than an amendment. The measure, called the Taxpayer Protection and Government Accountability Act and supported by over 1 million petition signers, would have required voter approval for all legislative tax increases, and it would have raised the threshold for approval of local tax increases from a simple majority to two-thirds. The court's decision was unanimous; the decision read, in part, that the measure “would substantially alter our basic plan of government” by limiting governments' taxation powers. The measure also sought to increase voting thresholds for local tax hikes and retroactively reverse tax increases since January 2022. Democratic leaders, including Governor Gavin Newsom, opposed the measure, arguing it would undermine government operations and progressive policies. Business groups supporting the measure criticized the court's decision as partisan, claiming it denies voters a voice in fiscal policy. Had it passed, the measure would have applied retroactively and nullified , among other local measure, Los Angeles's controversial Measure ULA, which imposes a surtax on real estate transactions of $5 million and above (see related CP&DR coverage). Racetrack Closure Presents Redevelopment Opportunities in East Bay Golden Gate Fields, a historic horse racing venue in Albany and Berkeley, is closing permanently, prompting local officials to consider its future use. Mayor Jesse Arreguin of Berkeley views this as a significant opportunity to reimagine the property, which spans 140 acres across both cities. The current plan dates back to 1986 and includes outdated uses like a composting facility, deemed unsuitable for such prime real estate today. Proposals for redevelopment include options like housing, commercial spaces and even a hospital, with both cities collaborating on a joint plan. However, challenges such as rezoning, regulatory approvals and ownership present significant hurdles to these ambitious redevelopment plans. (See related CP&DR coverage .) Federal Government Seeks to Restore Wetlands Nationwide In the continuing evolution of the Clean Water Act, and the related Waters of the United States ruling, the Biden administration set a goal to protect and restore 8 million acres of wetlands over the next six years to counter development pressures and recent regulatory setbacks. This initiative, called America the Beautiful Freshwater Challenge, aims to reverse the loss of wetlands, crucial for filtering pollutants and preventing floods, especially after the recent Sackett v. EPA & S Supreme Court ruling weakened federal protections. Alongside wetlands, the administration plans to reconnect and safeguard 100,000 miles of rivers and streams nationwide by 2030, removing barriers like dams and stabilizing eroded banks. Several states, tribes, cities, NGOs and private companies have pledged to participate in the America the Beautiful Freshwater Challenge, committing to work towards freshwater restoration targets. CP&DR Legal Coverage: Berkeley People's Park Case The California Supreme Court has reminded everybody that the California Environmental Quality Act is just a law - one that can be changed by the legislature at any time. On Thursday, June 6, the court finally ruled in the long-awaited “People's Park” case - the one where an appellate court ruled last year that noisy students can be a “significant impact” under CEQA, possibly triggering the need for an environmental impact report and mitigation. But the Supreme Court went the other way, overturning the lower court decision and clearing the way for construction of student residences in People's Park. The final ruling, which was very different in tone, backed off of the displacement/homeless issue but concluded that noise from student parties in Berkeley is a significant environmental impact that UC must analyze in its environmental impact report. Quick Hits & Updates Air taxi company Archer Aviation & unveiled plans for a network of flying taxis in the Bay Area. Their goals include hubs in South Bay, East Bay, Wine Country, and the Peninsula, aiming for 10-to-20-minute flights. Partnering with Kilroy Realty Corporation, Archer will use Oyster Point in South San Francisco as a central hub and is exploring a "sea portal" for water-based operations with electric VTOL aircraft and ferries. The annexation of a contentious 606-acre property near Pittsburg into city limits was & approved by Contra Costa LAFCO, making way for developer Discovery Builders to build 1,500 new homes around the Los Medanos Ridgeline. The project faced much opposition from environmental groups like Save Mount Diablo, which advocated for more adequate green buffers and environmental review processes. Five years after California's official apology to its Native American peoples for the state's historical wrongdoings, Governor Newsom has & initiated the return of 2,800 acres of ancestral lands to the Shasta Indian Nation in Siskiyou County, marking the largest land return in the state's history. A measure titled the Affordable Housing, Homelessness Solutions and Prevention Now has qualified for the November ballot in Los Angeles County. It seeks to replace the current Measure H sales tax with a permanent half-cent tax to enhance funding for homeless services and affordable housing, emphasizing prevention and accountability measures, despite concerns about its timeline and permanence from critics like the Los Angeles County Business Federation. Residents in Riverside are & opposing a proposed warehouse development near March Air Reserve Base, concerned about potential impacts like truck traffic and soil contamination from past military activities. Despite developer assurances of thorough testing and plans for mixed-use including a community park, the project has been indefinitely postponed by the March Joint Powers Authority following public outcry at a recent meeting. State Sen. Dave Cortese withdrew his bill, SB 915, seeking to allow cities to regulate autonomous vehicles, citing concerns over amendments that diluted its provisions for local control. The Autonomous Vehicle Industry Association, representing companies like Waymo and Cruise, opposed the bill, arguing it would hinder safety and accessibility advancements for Californians. (See related CP&DR coverage .) The U.S. Environmental Protection Agency has & allocated $3 million in federal grants to five Southern California communities to rehabilitate polluted brownfield sites for safe development. Projects include assessing and cleaning up contaminated areas in Orange County, particularly focusing on culturally diverse neighborhoods with shortages of affordable housing and healthcare, aiming to transform idle land into thriving community assets while addressing pollution concerns. Fashion Valley in San Diego will undergo a transformation as JCPenney is converted into 850 luxury residences, marking the first residential development within the mall. The project aims to integrate high-end housing with luxury boutiques, promising upscale amenities and finishes, but questions remain about affordability and potential traffic impacts. Researchers at the Urban Institute created a “conversion disposition index” to identify cities most ripe for office-to-residential adaptive reuse. The index compares levels of office-space distress with housing demand. Ranked among 75 markets, San Mateo County (1), San Francisco (5), Oakland (8), and Los Angeles (11) all have great potential for office-to-housing conversions, according to the report. The Santa Clara County Board of Supervisors have authorized the use of pre-approved plans for building accessory dwelling units in unincorporated areas, offering residents either a 800-square-foot or 1200-square-foot option. This initiative aims to expedite and alleviate housing shortages across the region while increasing property tax revenue to reduce a large budget deficit. The Concord City Council rejected a developer's proposal to build 183 mostly affordable apartments in the downtown area by using up to $90 million in state financing. They cited concerns over concentrating low-income housing in one area, but state housing regulators criticized the decision with claims that the city might be violating fair housing laws and ignoring the city's obligations to approve affordable housing. A proposed Planned Parenthood clinic and new zoning laws are at odds in the Inland Empire where Fontana's city council recently adopted an urgency ordinance banning “service based, non-entertainment uses” in the area where the clinic was due to open. According to the city council members, this was done in an effort to establish a downtown commercial entertainment district composed only of businesses that would help the area thrive.

State Promotes Regulations to Compel Insurers to Cover High-Fire Areas The Department of Insurance has drafted regulations that would allow insurance companies to use predictive catastrophe models if, and only if, they increase writing of policies in wildfire distressed areas. The regulations, which would amend Prop. 103, are intended to stem the exodus of insurance companies from the state and, in particular, provide coverage in areas that face high fire danger. ZIP codes designated as high or very high fire-risk and those with substantial reliance on the FAIR Plan, would be subject to coverage mandates. Insurance companies using catastrophe models, which, critics say, have dissuaded them from covering high-fire areas, will be required to insure those areas at rates proportional to their coverage statewide. To complement the regulations, the Department released a statewide map that it developed showing areas where wildfire risk and FAIR Plan policies are concentrated. With this map, insurance companies will have direct knowledge of where they need to write more policies in the state in order to utilize catastrophe modeling in their rates that are subject to Department approval. San Benito County to Consider Anti-Growth Measure A ballot measure in San Benito County that aims to restrict new development on farming and ranching land unless approved by voters, driven by concerns over increased traffic and urban sprawl from Silicon Valley residents seeking cheaper housing has qualified for the November county ballot. Estimates are that the citizen group promoting the measure submitted over 2,800 valid signatures; nearly 1,000 more than were needed. The measure, tentatively titled Empower Voters to Make Land Use Decisions, reflects tensions between preserving rural landscapes and accommodating growth, as seen in debates over impacts on schools, infrastructure and local quality of life. Supporters argue for safeguarding the county's rural character and controlling development impacts, while opponents, including agricultural and business interests, warn of economic constraints and property rights issues. The Board of Supervisors now can choose to adopt the measure as an ordinance or allow the vote to move forward. This year's measure is a successor to 2022's Measure Q, which failed. Previous slow-growth measures in the county have succeeded. Huge Swath of Eastern Mojave Desert Designated for Conservation The federal government has designated a 3.5-million-acre region in the Mojave Desert as a "sentinel landscape," aimed at safeguarding wildlife like the Mojave desert tortoise. The initiative, led by federal agencies, promotes sustainable land-use practices near military installations. While the designation doesn't alter land ownership or management, it prioritizes funding for conservation efforts, including desert tortoise protection and habitat rehabilitation. Collaborative efforts involving federal agencies, NGOs and private partners aim to address various threats to desert wildlife, such as habitat fragmentation and climate change. Demand for Rental Housing in Fresno, Inland Empire among Most Intense Nationwide Forbes Advisor's analysis of rental markets in the 75 most populous metro areas found Fresno ranks 9th among the top 10 most competitive rental markets, characterized by low vacancy rates, high rental prices and significant decreases in vacancy rates from 2022 to 2023. Per every 100,000 households, there are 256.6 rentals available in Fresno while the prospective renter population is 35.6%. Of the cities studied, the Riverside-San Bernardino-Ontario metropolitan area ranks 15 on the list of most competitive rental markets, followed by the Sacramento-Roseville-Arden-Arcade metro area at 19th, San Francisco-Oakland-Hayward at 20th, San Jose-Sunnyvale-Santa Clara at 22nd and Los Angeles-Long Beach-Anaheim at 24th. The study indicates that renters in California, particularly in cities like Fresno, face tough competition and limited options in their search for affordable housing. CP&DR Coverage: Los Angeles Slow-Growth Group Goes 0-2 in Court Fix The City, a limited-growth group active in Los Angeles, has lost an attempt to retroactively challenge the city's Transit Oriented Communities guidelines. However, an appellate court did say in an unpublished ruling that Los Angeles must re-do its seismic analysis on a proposed apartment building in West Los Angeles. In ruling for the city, the appellate court quoted the California Supreme Court ruling in Travis v. County of Santa Cruz & (2004) 33 Cal.4th 757, a case in which a property owner similarly challenged a county ordinance at the time it was applied to his property, not at the time the ordinance was adopted. &Had the case been published, it would have set a precedent that extended & Travis &to third parties such as Fix The City. However, the appellate court chose not to publish the case. Fix The City & lost a second appellate court case against the City of Los Angeles because of filing a lawsuit at the wrong time. The ruling would seem to put an end to Fix The City's challenge to the city's Expo Line Plan. And in an unpublished portion of the case, the Second District Court of Appeal in Los Angeles ruled that L.A.'s general plan encourages the construction of adequate infrastructure prior to the approval of new development but does not mandate it. Quick Hits & Updates The East Solano Plan, also known as California Forever, cleared a significant hurdle as Solano County certified their petition for a November vote. Backers submitted well more than the 14,369 signatures needed. (See related CP&DR coverage .) Google is exploring an affordable housing project at the former Orchard Supply Hardware site as part of its Downtown West development in San Jose, which aims to reshape a significant portion of downtown near the Diridon train station. Despite reassessing timelines earlier in 2023, Google remains committed to the ambitious mixed-use neighborhood, which includes offices, housing, shops and cultural amenities. (See related CP&DR coverage .) The proposed amendment ACA-16, known as the green amendment, aimed to establish environmental rights including clean air and water in California's constitution but has been delayed for at least a year due to insufficient legislative support. Assemblymember Isaac G. Bryan postponed the measure to refine its language and garner broader backing, aiming now for a potential 2026 enactment, citing the need for more comprehensive and inspired wording to ensure its passage. According to an analysis by RentCafe, adaptive reuse projects are gaining momentum across California, reflecting national trends, with 14,000 commercial properties converted to residence spaces this past year. Nationwide, 31% of those projects retrofitted office buildings into apartments, followed by hotel-to-residential at 21%, healthcare-to-residential at 17%, and retail-to-residential conversions at 11%. Los Angeles is set to become a national leader in converting commercial buildings to residential space due to an expanded adaptive reuse ordinance. Among 20 cities ranked for future conversions, Los Angeles ranks first, with over 5,800 units in the pipeline, with 1,700 converted from offices. & A study of accessory dwelling units in San Jose found that there are approximately three to four informal units for every formal unit across the area, of which 78.2% were unpermitted ADUs from 2016-2020. Further, the study's results show higher concentration of informal ADUs in neighborhoods with lower property values, higher density, greater overcrowding, and a lower proportion of White households, suggesting that socioeconomic and regulatory factors determine their development and frequency. & The Santa Clara County Board of Supervisors have authorized the use of pre-approved plans for building accessory dwelling units in unincorporated areas, offering residents either a 800-square-foot or 1200-square-foot option. This initiative aims to expedite and alleviate housing shortages across the region while increasing property tax revenue to reduce a large budget deficit. & A state audit of the Santa Clara Valley Transportation Authority (VTA) emphasizes the county's need to improve its planning and oversight of capital projects in regards to transit systems and infrastructure through better communication about cost changes, hiring practices, and fiscal practices. & The suburban city of San Dimas, in eastern Los Angeles County, adopted a new Downtown Specific Plan around its forthcoming stop on the A Line light rail line. The plan calls forsix districts with diverse development goals and standards, aiming to accommodate mixed-use spaces, historic preservation, and up to 3,687 new homes over a 20-year period. The California High-Speed Rail Authority published the final environmental review for a critical 38-mile leg from Palmdale to Burbank. The board is expected to decide in late June on whether to approve the document, considering various route options and community concerns. The preferred route includes underground tunnels to minimize impacts on communities and environmental resources. If approved, this section would feature some of the longest train tunnels in the Western Hemisphere. Housing construction in the Bay Area declined in 2023 due to increased costs, with permits dropping by 10% to 16,535. San Jose and San Francisco led in new housing permits, while smaller cities lagged behind their housing goals. The region is behind in achieving its housing goals, with only 5% of needed permits issued. Alameda County led in home construction, mostly targeting above-moderate income households. The slowdown in construction is primarily driven by a decrease in multifamily construction, while building low-income housing in the Bay Area costs an average of $817,000 per unit. California's Fifth Climate Change Assessment team is pleased to announce the second round of tribal grant funding through the California Energy Commission's Tribal Research Grant Program . Funding through the Tribal Research Grant Program is available to support projects focused on climate research, Indigenous Knowledges, and similar projects California tribes prioritize. Applications are due July 31. State auditors will investigate California's process for reviewing and approving cities' housing plans, focusing on housing elements submitted every six years, amid growing contention, especially in the Bay Area where a third of cities and counties are still non-compliant with state law. The audit aims to ensure consistent and clear standards, particularly as cities face stricter consequences for non-compliance, such as fines and loss of state funding, while the Department of Housing and Community Development welcomes the review to highlight its efforts to strengthen housing planning since 2017. San Diego's Development Services Department approved a fee increase aimed at generating an additional $15.6 million annually, prompting concerns from developers and the business community about increased housing costs amid the affordability crisis, while the city council emphasizes the need for fees to reflect the full cost of services provided, especially as recent innovations and increased workload have necessitated more workers and resources within the department. The Los Angeles Metro board approved the alignment for the extension of the C Line light rail through the South Bay despite resident opposition, advancing the project for further environmental analysis. The extension proposal, running along a BNSF freight corridor, aims to connect Redondo Beach and Lawndale to the transit network, sparking emotionally charged debates over the project's route and impacts on communities.

Court Rules Sites Reservoir Does Not Violate CEQA The Sites Reservoir project, the state's largest water storage venture in nearly five decades, overcame environmental challenges in court, with the Yolo County Superior Court ruling favor of the project. Environmental groups said the project violates the California Environmental Quality Act by failing to protect threatened species. The ruling was hastened by the 2023 streamlining law SB 149, which requires courts to rule on certain CEQA challenges within 270 days of filing. Gov. Newsom praised the ruling, emphasizing the urgency for increased water storage amid climate uncertainties. The $4.5 billion project will inundate 22 square miles of ranch lands and open space in Glenn and Colusa counties to store up to 1.5 million acre-feet of water diverted from the Sacramento River, albeit facing criticism over potential habitat threats. Plaintiff groups can appeal within five days, after which the project is expected to advance through acquiring permits and anticipates construction to commence by late 2026. Group Pushes for La Jolla to Secede from San Diego A group called the Association for the City of La Jolla has launched a campaign to sever the upscale enclave of La Jolla, encompassing about 13 square miles, from the City of San Diego. Succession would require approval first from a majority of voters in La Jolla and then from a majority of voters across the entire city of San Diego as well as LAFCO. The Association for the City of La Jolla is working to obtain 25% of registered La Jolla voters' signatures--about 6,000--over the next six months to qualify for the ballot in La Jolla. The association is also funding a financial feasibility report on behalf of LAFCO. This is the latest in a string of attempts to enable La Jolla to secede since the 1940s. UC Berkeley to Raze People's Park A ruling by the California Supreme Court will allow UC Berkeley to proceed with its plan to build high-rise student housing on the People's Park site, overturning an appellate court ruling and dismissing opponents' lawsuit. UC Berkeley officials welcomed the decision, emphasizing the urgent need for housing while preserving 60% of the site as open park space. Despite dismay from park supporters, the ruling marks a potential final chapter in the decades-long saga of the park's contested history and its recent decline into disrepair. The decision reflects a shift in Berkeley's stance towards housing construction amid a severe housing crisis, supported by a recent law facilitating university housing projects. Despite the decision, opposition remains strong, with activists vowing to continue their fight to preserve People's Park. (See related CP&DR coverage .) Report Blasts Fresno Area for Promoting Sprawl since 1970 A report from the Urban Institute delves into the historical and present housing development trends in Fresno and the broader Central San Joaquin Valley. The region's urbanized land has expanded by 226 percent since 1970 whereas its population has grown only 153 percent, pointing to an overall reduction in density. The region's sprawling development has led to the displacement of agricultural land, environmental degradation and challenges in providing public transportation. Less than 30 percent of the region's development has been infill. The rest has been greenfield development on the urban fringes, often displacing agricultural land. The report notes that, had Fresno promoted infill development in line with that of many other western counties from 1990 to 2019, it could have accommodated all of its growth in infill areas. The authors conclude that this approach would have reduced the ecological impacts, greenhouse gas emissions, and racial segregation of the status quo. Legislative Update: Legislature Pulls Bills to Fund Transportation, Reduce Barries to Affordable Housing Lawmakers withdrew a measure from the November ballot aimed at repealing Article 34, a 75-year-old provision requiring local voter approval for public housing projects, citing a crowded ballot and unfavorable conditions for success. Despite longstanding criticism of Article 34's hindrance to low-income housing construction, challenges persist, prompting strategic withdrawal with plans for future advocacy. Bay Area lawmakers decided to postpone placing a tax measure for funding BART and other transit agencies on the 2026 ballot, aiming to reintroduce similar legislation in 2025 after addressing concerns and differences. Despite facing significant obstacles, the legislation aimed to raise up to $1.5 billion annually for transit operations, but ran into opposition from some transit agencies and politicians due to its consolidation study requirement and potential impact on local sales taxes. Bay Area Sens. Senators Scott Wiener and Aisha Wahab, in consultation with bill sponsor Metropolitan Transportation Commission, withdrew SB 1031, "Connect Bay Area", aimed to authorize a regional transportation funding measure. The decision to pause the bill until 2025 was influenced by opposition from various quarters, including concerns from Santa Clara County officials regarding funding allocations and interference with existing sales taxes. Despite this setback, advocates emphasize the importance of a well-funded and integrated transit system for the Bay Area's future. CP&DR Coverage: "California Forever" Makes Pitch to Voters In November, if election patterns hold steady, around 250,000 voters in Solano County will decide whether to welcome as many as 400,000 new neighbors. &The vote would mark a preliminary step in the development of the project, which was being promoted by corporate parent Flannery Associates and known as “California Forever,” but was recently rebranded the “East Solano Plan.” The developers submitted over 20,000 signatures in late April, which the county is now verifying; 13,000 valid signatures are needed for it to qualify for the November ballot. The county's strict Orderly Growth Ordinance is designed to preserve open space and direct growth to the county's half-dozen existing small cities. Overriding the ordinance to rezoning the 17,500 acres of land that the company wants to develop from agricultural to mid-density urban requires either assent of the county's Board of Supervisors or a popular vote. Flannery Associates has chosen the latter route. It is a major gamble, given the fact that - according to & CP&DR 's long history of ballot measure & coverage - developer-initiated ballot measures designed to end-run elected officials rarely succeed. Quick Hits & Updates SpaceX & aims to boost rocket launches from Vandenberg Space Force Base in Santa Barbara County to 90 annually by 2026, prompting environmental concerns and regulatory discussions. The U.S. Space Force supports the increased launches for military purposes, while the California Coastal Commission debates permit regulations and national security implications amidst SpaceX's absence from meetings. San Diego City Council adopted a significant increase in developer fees for the Development Services Department, aiming to boost annual revenue by $15.6 million to cover additional city workers and new technology. While the council argues that the fee hikes are necessary to cover the costs of recent innovations and improved services, the business community raises concerns about increased housing costs during an affordability crisis and questions the validity of the consultant's analysis, which relied on limited data due to the pandemic. Opponents of the Dana Reserve housing development in Nipomo have filed a lawsuit against the San Luis Obispo County and the developer citing violations of the California Environmental Quality Act. The lawsuit alleges that the project's environmental impact report lacks sufficient analysis of water supply, wildfire safety, emergency evacuations, financial burdens on the Homeowners Association and alternative project plans, potentially further delaying the already contentious project. A renewable energy company plans to clear thousands of protected Joshua trees near Boron for a solar project to power 180,000 homes, sparking backlash from residents concerned about construction dust and habitat destruction. Despite opposition, the Kern County Board of Supervisors approved the project, highlighting the tensions between clean energy expansion and environmental conservation in California's rural communities. The San Diego Planning Commission approved aggressive growth blueprints for Hillcrest and University City, aiming to double their populations within 30 years, despite opposition from residents concerned about issues like parks, gentrification and congestion. The proposals now move to the City Council's housing committee and then to the full council for final approval in July. The plans include adding housing units, increasing job opportunities and making significant street changes, but critics worry about insufficient park space, infrastructure and the potential displacement of affordable housing and local businesses. The California Department of Housing and Community Development & announced the allocation of federal funds to create 1,284 new affordable rental homes for extremely low-income Californians across 18 projects in the state. Administered through the National Housing Trust Fund (NHTF) Program, these funds aim to address the housing affordability crisis by emphasizing the construction or rehabilitation of safe, affordable housing for those experiencing homelessness or at risk. Monaco-based billionaire Patrice Pastor has & agreed to comply with the California Coastal Commission's requests regarding the Rocky Point property in Big Sur that he purchased for $8 million in 2021. He will put up “coastal access” signs, build a public restroom, improve trails and guarantee public parking spaces in order to comply with local regulations. & The San Diego Association of Governments has identified three potential alignments for a train tunnel in Del Mar, necessitated by eroding seaside bluffs where the current tracks run. If the project is approved, pending environmental review and other approvals, it could be completed as early as 2035. The three alignments, of roughly 1.7 miles each, were narrowed down from an original list of 20. & The California Transportation Commission is being sued by five different organizations in connection to a highway expansion project, the I-80 Yolo Causeway, in Northern California. The lawsuit alleges that Caltrans's environmental impact report for their proposed upgrades is deceptive as it overestimates congestion reduction while undercounting vehicle miles traveled, traffic impacts, greenhouse gas emissions, air quality impacts, energy use impacts, and wildlife impacts. A new proposal by N17 Development would & build the tallest building in Silicon Valley, standing at 431 feet tall and consisting of condominium units averaging 1,460 square feet each and a 130-key hotel. Located in Menlo Park, the tower would be part of a larger mixed-use neighborhood plan named Willow Park which will create hundreds of homes, office space, hotel rooms, retail, a school, and public parks.

Gov. Gavin Newsom and legislative leaders are at odds over the 2024-2025 budget, with some housing and planning programs hanging in the balance.

Transbay Transit Center Receives $3.4 Billion from Feds San Francisco's ambitious plan to transform the Transbay Transit Center, located at the Salesforce Tower, into the "Grand Central Station of the West" has garnered substantial federal support, with a pledged $3.4 billion toward the downtown rail extension project. The extension aims to connect California's High-Speed Rail and the Peninsula's Caltrain commuter rail to the heart of downtown, revitalizing the dormant transit hub. Despite the project's expected completion in 2032 and projected costs of up to $8.25 billion, securing matching funds remains a challenge for local leaders. The federal funding commitment covers approximately 41% of the projected cost, but additional funding sources are needed to move forward with construction, slated to begin in 2025. The envisioned project includes new tunneling and an underground concourse linking commuters to BART's Embarcadero Station, contingent on securing necessary funding. State Updates Income Thresholds for Affordable Housing The Department of Housing and Community Development released its 2024 State Income Limits for California, reflecting updated median income levels across the state's counties to determine eligibility and calculate affordable housing costs for various assistance programs. Marin County has the highest median income in the state at $186,600, with $109,700 a year income for one household member qualifying as “low income.” Los Angeles County's median income sits at $98,200 and $77,700 constituing low income for one household member. San Diego County, the second most populous county in the state, has an area median income of $119,500, with $84,900 considered low income. The methodology behind these income limits involves adjustments based on federal guidelines from HUD and California's statutory provisions, including the 2013 Hold Harmless Policy. The state's Hold Harmless Policy, implemented in 2013, prevents any decrease in income limits or median family income published by HUD from being applied to California's State Income Limits. This policy ensures that income limits established by HUD, which may fluctuate due to various factors, do not lead to a decrease in affordability for Californians seeking housing assistance. Report: 95% of California Residential Land Zoned for Single-Family A new report from the Othering and Belonging Institute at UC Berkeley analyzes the state of single-family zoning in California, covering racial and demographic impacts, economic characteristics, statistical relationships, and zoning reform. Their findings show that 95.80% of California's residential land and 30% of all land is single-family-only zoning. Further, excluding unincorporated areas, 82% of residential land is zoned as single-family-only, averaging 77.82% across 519 jurisdictions with a median of 83.93%. They also found a direct correlation between increased single-family zoning restrictions and the percentage of white residents as well as with median household income and the percentage of single-family-only zoning by jurisdiction. To conclude, the report presents a list of target cities for zoning reform using categories such as proximity to central business districts and poor performance in meeting RHNA targets for affordable housing. San Francisco Tops List of "Urban Mobility Readiness" A report conducted by the Oliver Wyman Forum and UC Berkeley situates cities across the world within an Urban Mobility Readiness Index, evaluating their approaches to public transit systems, electric vehicle use, and general mobility in terms of social impact, infrastructure, market attractiveness, system efficiency, and innovation. On their recent list, San Francisco took first place, while Los Angeles ranked seventeenth, both displaying a well-rounded approach to urban mobility. Analysts praised San Francisco for its incentives for purchasing electric vehicles and its Slow Streets program, which sections off roads for pedestrian, bicyclist, and other vehicle-free uses. Researchers found that the city could improve its public transit policies, citing public transit as pivotal for urban vitality. Potentially Destructive Desert Solar Plant to Break Ground A controversial 2,300-acre solar project in eastern Kern County will break ground this month. It faced much community pushback as residents worry about the removal of 3,500 Joshua trees and habitat destruction for endangered animals, including the desert tortoise. While the project, located near the Mojave Desert towns of Boron and Desert Lake, will provide much-needed sustainable energy for 18,000 coastal California homes, neighboring residents claim that their backyards are being destroyed and they aren't benefiting from it. The Kern County Board of Supervisors unanimously approved the project, in 2021. In response to environmental concerns, the county emphasized that Avantus, the project developer, has put $1.4 million into a fund that works to protect Joshua trees in other areas of the state. CP&DR Coverage: Court Rules Huntington Beach Must Adopt Housing Element & A trial judge has ruled that Huntington Beach - perhaps the most resistant city in California to state housing law - must adopt a housing element. Attorney General Rob Bonta said the judge is requiring the city to adopt the housing element within 120 days - which would be mid-September - though the judge's order didn't seem to include that specification. In the ruling on May 15, Judge Katherine Bacal rejected all of Huntington Beach's arguments for not adopting its housing element. Perhaps most significantly, she rejected the city's argument that passage of the housing element required analysis under the California Environmental Quality Act, noting that the legislature had specifically exempted housing element passage from CEQA. Quick Hits & Updates Lathrop, a suburban city about 10 miles south of Stockton, has become the fifth-fastest growing city of at least 20,000 people in the United States. Its population doubled, from 19,000 in 20213 to 40,000 in 2023. As Bay Area residents move to the Central Valley in search of more affordable housing, Lathrop will prioritize development, housing, and business to keep up with the increased growth. & San Diego County's unhoused population increased only by 3% from Jan. 2022-2023, a stark contrast and improvement to the previous tally which showed a 22% jump. With both the city of San Diego and the state legislature facing millions of dollars in deficits, there is much concern surrounding the future of programs and resources that assist in decreasing the unhoused population statewide and citywide. & Two San Francisco mayoral candidates have presented plans to bring a satellite university campus downtown into vacant spaces in an effort to revitalize the area post-pandemic. Mayor London Breed announced a proposal offering city grants to develop a satellite campus of an (unnamed) historically Black college , while District 11 Supervisor Ahsha Safai suggested legislation to create a fund for public universities to purchase distressed properties for educational use. (See related CP&DR coverage.) The San Francisco 49ers and the City of Santa Clara have restructured terms in the original Levi's Stadium agreement after years of legal litigation and lawsuits. The new settlement establishes a new threshold of $360,000 per game for policing, covered by the 49ers and reduces the Stadium Authority's reimbursement obligations. U.S. Rep. Doris Matsui has requested $5 million in federal funding to support the Downtown Sacramento Partnership's plan for a park connecting downtown and the Sacramento River, with hopes of revitalizing the latter area and providing green space. The Sacramento Stitch Park Riverfront Reconnection Project aims to connect these two areas currently divided by Interstate 5 in order to host both special community events and passive recreation. & In an affluent neighborhood of northwest Fresno, the Planning Commission unanimously & rejected an 82-unit housing development proposal, citing concerns about traffic and community impact. Despite recommendations from city staff to approve the project, commissioners voted against it after facing overwhelming opposition from residents during a well-attended hearing. & The Cupertino City Council adopted its 2023-2031 Housing Element on May 14, fulfilling state requirements to update housing needs and policies. With an allocation of 4,588 new housing units, the city is now proceeding with the rezoning process, expected to be completed in July, before final submission to HCD for certification. Two San Francisco nonprofits, Artists Hub on Market and Mercy Housing of California, are proposing to build around 100 affordable housing units for artists at 1687 Market St., funded by a $100 million donation from an anonymous donor. The project aims to include apartments, community spaces, studios, rehearsal rooms, a theater and a ground-level cafe, with all units designated for artists and individuals in arts administration earning at or below 80% of the San Francisco Area Median Income. In an analysis by the Public Policy Institute of California, the federal government's 2023 Annual Homelessness Assessment Report (AHAR) highlights California's struggle to meet the growing need for homeless housing programs despite promising growth in permanent housing capacity. While federal support during the pandemic bolstered permanent housing, recent declines in rapid re-housing capacity indicate challenges ahead. The state also faces a shortage of shelter beds, with only 71,131 beds available for an estimated 181,399 homeless individuals, prompting calls for increased transparency and careful use of funding to address homelessness. Environmentalists are concerned about a proposed housing project including 1,500 homes in the hills southwest of Pittsburg overlooking Thurgood Marshall Regional Park. Save Mount Diablo and other environmental groups are urging for a buffer zone between the development and open space to mitigate environmental impacts, while the developer maintains that the project satisfies all environmental regulations and that the delays are primarily caused by misunderstandings. The Contra Costa Local Agency Formation Commission has postponed the decision on annexation, citing concerns raised by Save Mount Diablo and other environmental advocates. The Sacramento City Council approved a plan to develop Innovation Park on the former site of the Sacramento Kings' arena, aiming to create a vibrant area with businesses, housing and a teaching hospital. The project, expected to generate billions for the city and create thousands of jobs, will be funded through an enhanced infrastructure financing district, with a portion allocated for affordable housing and a requirement for local workers. The estimated cost of building a water tunnel beneath the Sacramento-San Joaquin River Delta has risen to $20.1 billion, according to the California Department of Water Resources. The department's analysis concluded that the benefits of the proposed Delta Conveyance Project, including improved water supply reliability in the face of climate change and sea level rise, would outweigh the costs, although opponents argue it is a costly project that would harm the delta's ecosystem.

CP&DR Vol. 39 No. 5 May 2024 Report