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

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

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

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

What do San Francisco, San Mateo, and Berkeley have in common with Jackson, Miss.; Lake Charles, La.; and St. Louis, Mo., have in common? Basically nothing, right? Unfortunately for everyone involved, all six cities are on a recently published list of the "18 Fastest-Declining Cities in the U.S." They are accompanied by Monterey Park, South San Francisco, Daly City, and four other California cities, meaning that California cities comprise more than half of the list. San Francisco took the "top" spot for the most rapidly declining city. As you may already have guessed, this report is not exactly scientific. For one thing, it was published by a site called "Insider Monkey." More importantly, it relied on just one metric (population decline) and a brief, anomalous time period (2020-2022). Silly as this ranking may be, it should give Californians pause. "Rapid decline" connotes all sorts of urban destitution. You'd think someone shut down our factories, set our rivers on fire, boarded up our businesses. These are the hallmarks of legacy cities where work has disappeared or where structural inequities have been impossible to shake. These misfortunes explain, in part, why residents leave the St. Louises and Jacksons of the world. The California specimens -- as well as New York City, which ranked No. 2 -- tell a far different story. Broadly, it's true that California has lost population in recent years. The glib reasons are the pandemic and housing prices. Those reasons are valid, but they're also nebulous. They don’t stir the emotions the way a factory closure might. And so many Californians plod along, oblivious to, or even gleeful about, the state’s population decline. I'd like to think, though, that the ignominy of being called out by something with "Monkey" in its name would lead to some soul-searching. The cities that "declined" in previous generations arguably did so through little fault of their own. The Toledos, Clevelands, and Buffalos of the world were subject to global macroeconomic trends, such as overseas manufacturing. California's decline, though, is very much self-inflicted. The 750,000 or so people who left the state in 2020 didn't necessary leave behind blighted, vacant homes. They were probably renting in the first place. Many of them are leaving because they have, or want to have, children. (Causing, as well, an invisible brain drain that will set in 20 or so years from now.) These young adults who are leaving behind mom and dad, to rattle around half-empty houses where they might have raised two or three kids. These empty-nesters have more than enough equity to keep the lawn mowed and the paint fresh. From curbside, California looks as idyllic as ever when, in fact, their neighborhoods have shrunk.  A recent article in the San Diego Union-Tribune reports that the average homeowner tenure in San Diego has doubled since 2005, from seven years to fourteen. Household size has declined by 9%, 7.5%, and 5% in Los Angeles County, Orange County, and the Inland Empire, respectively. Some young adults might want to buck this trend by living in the literal houses where they grew up, except, thanks to Prop. 13, their parents are essentially imprisoned in homes with low tax bases. Insider Monkey's listicle belies a greater tragedy about the American economy. It's one thing if, say, a middle-income couple moves from a rental in Daly City to a starter home in Reno. They’re moving up in the world, albeit it a few hundred miles away. It's another matter entirely if someone desperately wants to trade Toledo, Detroit, or, Jackson for better job prospects in a Los Angeles or San Jose--but is barred by unaffordable rents. That's what economist and New York Times columnist Paul Krugman describes in a piece published just a few weeks ago: Technology... has made America as a whole richer, but it has reduced economic opportunities in rural areas. So why don’t rural workers go where the jobs are? Some have. But some cities have become unaffordable, in part because of restrictive zoning — one thing blue states get wrong — while many workers are also reluctant to leave their families and communities. His point is that we can't necessarily reverse the economic decline of rural areas (or of legacy cities, for that matter). But, intra-national migration could rebalance the economic scales, matching eager workers with opportunities, if suitable homes were available. That's exactly what happened in California for a good half-century. The economy boomed, the population grew, and the rest is history. Today, California's restrictive zoning hurts the state and, according to Krugman, the entire nation alike. California's "decline" is not a function of a lack of prosperity. It is because of prosperity. More specifically, it's due to our inability to manage our prosperity. The trouble with prosperity is that the people who benefitted most from it in the past are often least likely to promote -- or even tolerate -- it in the present. If your screenplay, search engine, or pistachio orchard has already paid for your house and your retirement fund, what do you care about the people who were born too late?  Planners have devised plenty of policy solutions to reverse this "decline." They've being implemented as we speak, through new housing elements, some California Environmental Quality Act reforms, density incentives, and whatnot. Even so, those are half-measures. A little enthusiasm wouldn't hurt. A state that once was the epitome of optimism has grown dour. Californians -- mostly the wealthy ones -- have lost their sense of state pride. That's how a word like "decline" gets so easily attached to us. Californians should be embarrassed by it. We should be outraged. I'm aware of the hazards of referring to the nonspecific "we." But, one trait the vast majority of Californians share is that we live here by choice. We need to get excited about our state -- its economy, landscape, people, values, and everything else -- and get excited about allowing other people to participate in our prosperity. That starts with providing them with proper places to live, afford other people the choice of living here. Maybe Insider Monkey is the enemy we didn’t know we needed. Obviously, being accused of “decline” is no fun. It’s a blow to the collective ego. The difference between California and, sadly, many other states is that our decline is taking place by choice. We’re also choosing to adopted polices to build more housing and reverse population loss. Much of that work has already been done. Planners who have drafted new housing elements and legislators who have sponsored new laws can, and should, now add some cheerleading to their repertoire. All the regulations in the world aren’t going to create demand and aren’t going to create excitement for new development. If we can reframe population loss as “decline – and, conversely, frame population gain as prosperity – some of those slow-growth sentiments might recede. California’s future depends on attitude as much as on demographics or economics. If that doesn't happen, and people keep leaving, I can think of at least a few cities that would be overjoyed to welcome them. The average home price in Jackson is $115,000.

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

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

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

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

In the past few years, the California legislature has upzoned just about everything that could be upzoned in the name of housing: transit-oriented areas; jobs-rich areas; high-resource neighborhoods; malls and big box stores; college campuses; church parking lots; and, yes, your backyard. (Or, at least, many backyards — by way of ADU laws and the Senate Bill 9 “duplex law.”)

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

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