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- New Scoping Plan Will Tighten Screws On VMT
In spite of the California’s move toward electric vehicles, the Air Resources Board’s new scoping plan doesn’t let up on reduction in vehicle miles traveled – indicating that the state will continue to push local governments on land-use policies to reduce driving. CARB’s new goal of carbon neutrality by 2045 could also turn environmental analysis upside down under the California Environmental Quality Act.
- Malicious Prosecution Suit Against Prominent CEQA Lawyer Moves Forward
In an extraordinary case, an appellate court has ruled that a malicious prosecution case against prominent lawyer Susan Brandt-Hawley may move forward. In rejecting Brandt-Hawley’s anti-SLAPP motion, the First District Court of Appeal found that the San Anselmo homeowner who brought the lawsuit is likely to succeed on the merits and also on the issue of malice.
- Is CEQA Headed Down A Path To Analyzing Socioeconomic Impacts?
Is the noise made by drunken students late at night a “significant impact” under the California Environmental Quality Act? How about displacement of residents who become homeless?
- CP&DR Vol. 37 No. 12 December 2022 Report
CP&DR Vol. 37 No. 12 December 2022
- The Top Stories of 2022
The most telling CP&DR headline of 2022 came very early in the year, on January 10: "Cities Move Quickly to Regulate SB 9 Housing Units."
- CP&DR News Briefs December 20, 2022: Prohousing Cities; San Jose Development; S.F. Housing Lawsuits; and More
HCD Releases Prohousing Guidelines; Names Six Eligible Cities The Department of Housing and Community Development (HCD) released its Prohousing Incentive Pilot Program Final Guidelines, Notice of Funding Availability, and application. Six cities are currently eligible for participation to receive rewards for meeting housing goals. Sacramento, Citrus Heights, Fontana, Oakland, Roseville, San Diego, and West Sacramento are now eligible for community development resources, which offer $25.7 million in additional funding. These cities, in addition to meeting housing goals, have demonstrated that they are prioritizing climate-smart housing by streamlining development, upzoning, or prioritizing affordable housing in neighborhoods that have systemically excluded low-income residents and residents of color. San Diego, for example, amended zoning to allow for 98,000 additional units, establishing an affordable ADU Bonus program, and waived density limitations for affordable housing. (See related CP&DR coverage .) San Jose Reaches Agreement to Develop 32,000 Homes in North San Jose After years of threats of lawsuits from the County of Santa Clara, City of San Jose has reached an agreement with the county that will enable the realization of long-approved plans to build thousands more homes in North San Jose, at least 20% of which will be affordable. The move confronts restrictions contained in a 2006 agreement between several local governments that have prevented any housing from being built in North San José for over a decade. Now, the city may move forward with aspects of a 2005 plan to add 32,000 homes, over 25 million square feet of office and industrial space, three million square feet of retail and commercial space, and 1,000 hotel rooms alongside transportation improvements. San Francisco Faces Lawsuits over "Pattern of Delay" in Approving Housing Projects YIMBY Law has refiled two lawsuits against San Francisco after finding additional evidence demonstrating a pattern of behavior wherein the city delays housing projects beyond timelines outlined by state law. The lawsuits argue that this behavior from the city perpetuates the housing shortage and affordability crisis in San Francisco. YIMBY Law filed two lawsuits against the city of San Francisco between December 2021 and January 2022. Each lawsuit alleged that the city illegally denied a housing project, one at 450 O’Farrell Street and one at 469 Stevenson Street. YIMBY Law has since won a demurrer hearing in the O’Farrell case. These claims argue that San Francisco systemically delays housing projects at multiple stages during the permitting process, extending time frames for review and approval well beyond legal limits outlined by state laws such as the Housing Accountability Act. Los Angeles to Phase Out Oil Drilling Los Angeles City Council members unanimously approved a plan to ban new oil wells and phase out all existing drilling throughout the city. Now, oil and gas operations, which include 26 fields and over 5,000 wells, must end production in the next 20 years. The move is historic; though oil tycoons warn against financial troubles and dependency on foreign oil, the plan will significantly improve the health of neighborhoods where drilling pollution has caused severe burdens, particularly for residents of color and low-income residents. As operations begin to phase out, the drilling-heavy locations of Wilmington and harbor areas will see significant change, as well as West Los Angeles, South Los Angeles, and the northwest San Fernando Valley. CP&DR Coverage: Macroeconomic Forces Threaten Statewide Housing Production A likely slowdown in housing development is coming at the most ironic moment possible. Over the past ten years, the state’s economy, and demand for housing, has been robust. But, local opposition to development, coupled with the absence of incentives and policies at the state level, often impeded housing development at a time when capital was readily available. Now, right when the state needs more housing the most—and has taken significant steps to try and increase it—market forces might intervene to impede construction. Bills signed this year include SB 6 and SB 2011, both of which promote conversion of commercial properties to residential, and AB 2097, which reduces parking requirements. Even if these bills aid certain developers on certain projects, their influence is likely to be obviated by economics. Quick Hits & Updates On her first day in office, newly-elected Los Angeles Mayor Karen Bass declared a state of emergency on homelessness. Most details about her plan to address the crisis, titled "Inside Safe," are still to come but will include efforts to provide housing near where the unhoused person already lives. Over the past ten years, Los Angeles faced the second-highest number of pedestrian deaths in the country, with 1,133 residents dying in crashes between 2011 and 2020. Though Los Angeles and New York City, which was at the top of the list, both planned "Vision Zero" initiatives for preventing further deaths, traffic fatalities have only worsened, particularly for people of color. (See related CP&DR coverage .) Los Angeles City council members voted unanimously in favor of the Livable Communities Initiative (LCI), intended to create 15-minute neighborhoods where housing, jobs, transit, grocery stores, and other necessities are all in near proximity. Now, the Departments of City Planning, Building and Safety, and Transportation will produce reports on strategies for implementing the LCI. All but one San Bernardino City Council member approved plans for the $8 million demolition of the city's Carousel Mall, which will take place over five years after the mall originally closed. The City of Hesperia and the San Bernardino County Sheriff's Department must pay $1 million to settle a lawsuit for discriminating against Black and Latino renters. The U.S. Department of Justice found that officials promoted policies that allowed for the eviction or exclusion of tenants with criminal histories, laws that have disproportionately burdened Black and Latino residents. Lyft is ending its shared bicycle and scooter services in Santa Monica and Los Angeles, citing a lack of dedication from local governments. The company plans to seek long term public-private partnerships for future implementation. The San Jose City Council will review a change to a transportation analysis policy that would allow developers to transform the closed 114-acre Pleasant Hills Golf Course into housing, retail, or commercial space. Opponents are concerned about the reduction of open space and a lack of community involvement in the planning process. Alameda is officially the first Bay Area municipality adopt a housing element approved by the state, narrowly passing in a 3-2 council vote. Officials have planned for 5,300 new units created with inclusive neighborhoods, confronting homelessness, and improving transit in mind. Plans to build a wildlife crossing between the Santa Susana Mountains and the San Gabriel Mountains are underway, with planners looking for a way to restore habitats across the I-5 corridor. Officials will also consider options for a crossing above the SR 14 Freeway. (See related CP&DR coverage .) Fodor's Travel has recommended against traveling to Lake Tahoe due to the increase in second-home dwellers in the area who have caused traffic and pollution burdens along the trails and beaches. The guide, citing the increase in fine pollution particles, which are now impacting the Lake's clear waters, suggests that visitor interaction with Tahoe needs to become more mindful. A $400 million project to revitalize Dana Point Harbor will include exclusive restaurants and retailers as well as open green areas and spaces for concerts and other events, according to recently-released renderings. Developer Dana Point Harbor Partners intends to begin construction in early 2023.
- Land Use Laws Override Political Reform Act
The City of Los Angeles has defeated the AIDS Healthcare Foundation in yet another land use-related case – this one arguing that the Political Reform Act trumps land use law because L.A.’s Planning and Land Use Management (PLUM) Committee included two city councilmembers who were charged with bribery on certain land use decisions.
- Economic Headwinds Push Back on State Housing Goals
Roughly speaking, for every percentage point increase in prevailing interest rates for construction, the collective cost of producing the estimated 2.5 million housing units that California needs, at a conservative half-million dollars per unit, increases by $12.5 billion per year.
- CP&DR News Briefs December 13, 2022: Housing Legislation; San Jose Parking Minimums; San Francisco Housing Element; and More
Wiener Introduces Bill to Facilitate Housing on Properties Owned by Nonprofits, Faith Organizations With an early kickoff to the 2023 housing legislation season, Sen. Scott Wiener and coauthors have introduced Senate Bill 4, which would allow nonprofit colleges and faith organizations to build more housing by streamlining environmental review processes and reducing zoning restrictions. Under SB 4, churches, mosques, and synagogues would be able to plan for more multifamily housing on their properties with fewer costs and hurdles. Lawmakers and affordable housing proponents celebrate SB 4 since religious and nonprofit institutions often own excess land that is conveniently located near transit and job centers. As a result, the potential for housing is plentiful, with a UC Berkeley estimate suggesting that religious institutions hold 40,000 acres of developable land, and could often be 100% affordable. San Jose Abolishes Parking Minimums San Jose is now the largest city in the state to abolish parking minimums for new developments, aligning with increasing desires to reduce auto-dependency, sprawl, and carbon emissions. The city joins San Francisco in abolishing minimums, and its policy exceeds reductions in Los Angeles, San Diego, Berkeley, and Oakland. Now, the new policy, in slashing requirements to spend tens of thousands of dollars on parking spaces, may improve abilities to build more housing. However, some officials and residents are concerned about the impacts on communities where parking spaces are already a treasure hunt. Meanwhile, those in support stress that the new policy does not prevent developers from accounting for parking spaces; rather, they will be able to choose whether or not parking makes sense for their development. San Francisco Struggles to Draft Approve-able Housing Element San Francisco must supply 82,000 housing units by 2030 under the RHNA, but its recently released draft Housing Element currently only plans for about 60,000 units in the best case scenario. Current proposals would add new units to existing apartments, develop vacant lots, and produce huge developments; planners have mapped the 44,408 projects that could be produced from the residential development pipeline as well as the 11,290 units that would come from underused or vacant sites. Another 3,880 units are "non site-specific" and could be developed if the city makes zoning changes. However, San Francisco must still find ways to provide 22,000 more units, or 34,000 units if the city wants to meet its "target" of 93,500. However, threats of recession, high construction costs, and expensive city fees and requirements are expected to complicate the city's plans. Housing Elements in the Bay Area must be approved by January 15 or else may be subject to state-imposed penalties. Hotly Contested, Litigated Lafayette Development to Move Forward The Terraces of Lafayette project will move forward after a California appellate court sided with the city and against Save Lafayette, a citizens group arguing that the project is out of compliance with CEQA and the city's General Plan. The appellate court relied on the Housing Accountability Act, suggesting that the city could not reject a housing project for low or moderate-income households since it adhered to CEQA and General Plan requirements. Now, over a decade since the city approved the developer's application, the 315-unit apartment building may soon move forward, but several histories of legal challenges suggest that the city and developers might expect more of a fight; Save Lafayette is expected to appeal again. (See related CP&DR coverage .) CP&DR Coverage: Court Rejects EIR for Capitol Expansion in Sacramento The environmental impact report for the billion-dollar renovation and expansion of the State Capitol complex in Sacramento has been partially thrown out , mostly because the Department of General Services made changes to the design after circulating the revised EIR. 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. Quick Hits & Updates Costa Mesa voters approved Measure K by just 22 votes in November, and now a resident has requested a recount of the results. Measure K would reduce requirements for voter approval of large developments to streamline housing and commercial development, leading to concerns about the silencing of residents' interests. (See related CP&DR coverage .) Los Angeles County Metro's assessment of the NextGen Bus Plan, a bus network intended to increase ridership by growing the number of bus lines, improving frequency, and create safer waiting stops. The assessment found that accessibility improved with the new network, especially for people in Equity Focused Communities. The Guerneville Forest Coalition has filed a lawsuit to prevent logging near a 2,000-year-old redwood tree in Sonoma County. The group is fighting against Cal Fire, which approved a timber harvest plan that could impact the 340-foot Clar Tree that has avoided harm three times in the past 25 years. San Francisco Mayor London Breed's plan to allow the redevelopment of gas stations, parking lots, and other auto-related properties into housing will move forward after the Board of Supervisors approved the legislation following 14 months of delays. The Cars to Casas policy may not result in tangible impacts until the housing market and construction costs improve. BART and San Francisco-based developer Bridge Housing have entered a two-year Exclusive Negotiating Agreement to construct a transit-oriented housing development near the North Berkeley Station. The 5.5-acre site could hold 500 to 1,200 homes, 35% of which would be affordable. The most recent proposal for Redwood City's Sequoia Caltrain station will not lose thousands of square feet of office space, featuring over 1,000 housing units and a new Caltrain station instead. The new transit district will significantly contribute to the 4,588 units required by 2031 according to the city's RHNA allocation. The only three renters among the 120 senators and assemblymembers working at the California Capitol have formed a Renters' Caucus that attempts to increase political power for the 17 million California residents who live in rented units. The caucus could increase leverage for those facing eviction threats, financial difficulties, and rising rents, all heightened throughout the pandemic. A recent report from the Public Policy Institute finds that, as economic inequality expands, low-income Californians remain very concerned about housing costs, with 36 percent of such residents worrying about bills every day. Renters were also much more likely to worry about housing costs than homeowners. Four former Sears stores are now under the ownership of a single seller, with redevelopment plans expected to come. The four locations -- Fairfield, Sacramento, Salinas, and Ventura -- were all facing record low sales. The San Diego County Board of Supervisors approved plans to pursue an Enhanced Infrastructure Financing District that would fund a proposed 130-mile multi-use trail and river park. County staff will next seek approval from the City of San Diego.
- Court Gets Down In The Weeds On Capitol CEQA Case
In a case that could be viewed as an example of judicial micromanagement under the California Environmental Quality Act, the environmental impact report for the billion-dollar renovation and expansion of the State Capitol complex in Sacramento has been partially thrown out, mostly because the Department of General Services made changes to the design after circulating the revised EIR. 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.” Justice Louis Mauro concurred on some aspects of the ruling but dissented on the question of having to provide a specific additional visual representation. Reversing a Sacramento County Superior Court judge, the Third District Court of Appeal found fault with the EIR’s project description, its project description, its analysis of the project’s impacts on historical resources and aesthetics, and its analysis of alternatives. All the EIR inadequacies, however, stemmed from late changes to the design that were included in the final EIR but not the revised EIR that was circulated.
- Legal Briefs: Project Moves Forward in Pasadena, Plan Moves Forward in Glendale
Contaminated Site in Pasadena Cleared For Development
- CP&DR News Briefs December 6, 2022: Salton Sea Funds; By-Right Development; Builder's Remedy Woes; and More
By-Right Projects Approved Faster, Especially With Affordable Housing By-right entitlement, which enables developers to apply for multifamily housing permits directly, leads to faster permitting processes and more dependability in approval time, according to a recently-published study , "Does Discretion Delay Development?" on discretionary versus by-right building processes. A team of researchers from UCLA found that by-right projects saw 28% faster permit approvals compared to discretionary processes, where public entities must first vote to allow the developer to apply for a permit. Due to the delays caused by discretionary review, the authors recommend that planners should encourage by-right permitting, which makes it easier to build multifamily housing and therefore increase housing availability. Additionally, findings suggest that faster approval processes were associated with increases in project size and number of affordable units. $250 Million in Federal Funds Secured for Salton Sea Plans for Salton Sea restoration projects will move forward after the Imperial Irrigation District (IID) voted to enter an agreement with federal and state officials that will contribute $250 million in Inflation Reduction Act funds to minimizing the impacts of severe drought. The agreement includes a commitment from the IID to not use 250,000 acre-feet of Colorado River, itself facing worsening drought. Imperial County farmers and environmental groups strongly opposed the decision, as the IID voted 24 hours after the proposal was made public and right before new board members would be sworn in; groups suggest that the agreement demonstrates little care about community input and is an insulting result when Imperial Valley residents have experienced extreme climate burdens for decades. (See related CP&DR coverage .) Aspects of "Builder's Remedy" Could Impede Development The Housing Accountability Act's complex Builder's Remedy and savings clauses may lead to stalls in housing construction. These problems can be overcome with future legislation to streamline development, according to recent analysis from a researcher at UC Davis. Author Jordan Wright points out that, while builder's remedy prevents cities from blocking affordable housing if the city's housing element is out of compliance, a savings clause secures cities' ability to force development standards on those projects. In this research, Wright proposes that courts either render standards on builder's remedy projects invalid or allow "saved" development standards that can only be applied if they align with the proposed density of the builder's remedy project. The research is intended to prevent the savings clause from obstructing projects and worsening the affordable housing crisis. (See related CP&DR coverage .) Sprawl Increases Flood Risk in Los Angeles Basin The impact of a severe flood in Los Angeles could be harsher than expected and would largely burden Black communities, according to a recent report from UC Irvine. The researchers found that nearly one million Los Angeles residents live in an area at-risk to an extreme flood, a number 30 times the amount currently suggested by the Federal Emergency Management Agency. In terms of risk, Black residents are 79% more likely than white residents to face waist-high flooding. Latino and Asian residents are, respectively, 17% and 11% more likely. While the Los Angeles Basin may be overwhelmed by a severe storm, researchers cannot anticipate when the next flood will occur. However, they have confirmed that urban sprawl has contributed to a lack of unpaved ground that would absorb runoff and minimize the impact. CP&DR Coverage: Fulton's Take on New Housing Laws No matter whether they are agree or disagree with the goals of the new laws – and there are plenty of people on both sides – local planners’ heads are spinning trying to keep up with what’s going on. And yet, pro-housing legislators keep introducing new bills, hoping to take credit for any bump in housing production. The truth is that it’s still too soon to say whether these laws are working. But it may be time to consider whether they should be consolidated in a way that simplifies the housing production effort. Consider two possibilities, one involving the newly powerful and controversial “Builder’s Remedy” (see previous CP&DR coverage here and here ) and the other involving SB 9. Quick Hits & Updates Fourteen veterans living in West Los Angeles have filed a lawsuit in federal court, asking that the U.S. Department of Veterans provide 1,200 permanent homes. The plaintiffs are also seeking 2,500 units for lease and other supportive services within a five-mile radius of the West Los Angeles veterans campus. Developers' newest plan for San Francisco's Piers 30-32 involves an Olympic-sized swimming pool, a shallow pool, a hot tub, showers and saunas, lockers, and rentals for kayaks and other water-related activities in addition to office space. Strada Investment Group and Trammell Crow hope that their latest waterfront recreation vision will be approved after state agencies rejected their previous prioritization of office space. Los Angeles Mayor Eric Garcetti introduced the BLAST initiative, which would implement a Bike Lane Acceleration and Safety Team. BLAST is suggested to collaborate with the Bureau of Street Services and the Transportation Department to contribute 24 protected bikeway projects by July of 2023. While Tesla, Oracle, and Hewlett Packard Enterprise have all relocated their headquarters out of California, many other smaller companies are leaving as well, exiting in 2021 at twice the rate than they did in 2020 and 2019. The moves reflect business costs that are encouraging business owners to seek less regulation, lower taxes, and reduced living costs. San Diego's plan to divert developer money rooted in wealthy neighborhoods to infrastructure construction in low-income neighborhoods is facing a lawsuit from Livable San Diego, an anti-density neighborhood group claiming that the city's proposal is unfair and unconstitutional. Thanks to $400 million in city-issued bonds, a mixed-use development project with a hotel, restaurants, and new businesses may soon complement Anaheim's city-owned Honda Center. Officials intend to rely on increased tax revenue generated from the new OC Vibe project rather than Honda Center revenue sharing. (See related CP&DR coverage .) New analysis from the State Auditor on Richmond's financial stability demonstrates that the city remains at high risk due to anticipated deficits, high pension debt, and mismanagement of the housing authority. The audit predicts long-term deficit, with a projection of a $6.7 million deficit beginning in fiscal year 2023-2024.

