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When is a fee not a fee? When it’s an in-lieu fee imposed as part of an inclusionary housing ordinance. At least that’s the opinion of a federal judge ruling in a case from San Diego.

Both the Senate and the House have passed housing bill with bipartisan support. And while neither bill is likely to become law in its current form – there is a dispute over whether to place restrictions on investors who build so-called “build to rent” housing projects – some housing bill could still pass, with implications for local planners in California.

All those state housing laws have changed a lot of things in the world of California land-use planning. But one change that has not received enough attention is how the work of planning commissions has been affected.

This article is brought to you courtesy of the paying subscribers to  California Planning & Development Report . You can subscribe to  CP&DR  by clicking  here . You can sign up for  CP&DR ’s free weekly newsletter  here . State Fire Marshall Weighs in on Safety of "Single-Stair" Buildings A new report from California’s Office of the State Fire Marshal examines  whether the state should allow mid-rise apartment buildings with only a single staircase, a design common in many other countries but largely banned in North America. The report, which was submitted several months late, was mandated by Assembly Bill 835 (2023). Currently, California building codes require apartment buildings taller than three stories to have at least two staircases to provide multiple escape routes in case of a fire. The report, released about two months after its legal deadline, takes a generally skeptical view of allowing single-stair buildings, citing safety concerns and emphasizing the importance of redundant exits during emergencies. However, it offers recommendations in case lawmakers decide to move forward with changes to the building code. Housing advocates and architects have pushed for “single-stair reform,” arguing the requirement for two staircases raises construction costs and makes it harder to build small apartment buildings on tight urban lots. The report estimates that adding a second staircase can account for about 7.5% to 12% of a mid-rise building’s construction costs. HCD Launches Site to Catalog over 1,200 Letters Issued on Housing Elements The Department of Housing and Community Development (HCD) has released  a Housing Accountability Unit Letters Dashboard, a site to access all letters issued by the Housing Accountability Unit. Since its formation by Gavin Newsom in 2021 the department has issued over 1,200 letters regarding enforcement and technical assistance to ensure compliance with state housing law. Topics cover ADU ordinances, the Housing Accountability Act, housing element implementation, and Density Bonus Law. All letters are now listed via the Housing Accountability Unit Letters Dashboard and searchable by jurisdiction, date, subject matter, and statutory reference. Interior Department Drastically Cuts NEPA Protections on Federal Lands The Interior Department, responsible for public lands and waters, recently rescinded  nearly eighty percent of previous environmental regulations under the National Environmental Policy Act (NEPA). A press release from the department cited delays and cost concerns for energy, minerals, livestock grazing, infrastructure, wildfire mitigation, water projects and conservation efforts as the catalyst for the rollback. The Interior also oversees activities including drilling and mining on the nation’s lands and in its waters. NEPA requires the federal government to conduct a thorough environmental review and impact report before approval, and serves as a last protection for health and the environment. Critics of NEPA characterize it as an obstacle in the way of energy, infrastructure and conservation projects. High Speed Rail Stations May be Slimmed Down to Cut Costs The California High‑Speed Rail Authority is considering redesigning  planned stations in California’s Central Valley to be smaller and more cost‑effective, a move officials say could save roughly $2 billion as part of efforts to adjust the high-speed rail project to current budget realities. Federal funding cuts led the authority to reevaluate elements of the project and develop its 2026 business plan, which emphasizes cost savings and efficient deployment of resources. Rather than eliminating stations entirely, leaders are looking at “right‑sizing” them so they reflect anticipated early use while keeping options open to adjust in the future. The Legislative Analysts Office reviewed  HSR's recent supplemental project update report, noting available funding may not cover the cost of the initial Bakersfield-to-Merced segment. CP&DR Coverage: Population Growth in Inland Areas State demographers reported that California’s population had increased again in 2024 – if only slightly – making the third year in a row the population had gone up. That’s a market change from the pandemic years, when the state’s population dropped significantly for the first time ever. It ’s possible that this increase has been driven by Biden-era illegal immigration, in which case it probably won’t last. But it’s interesting to see where  in the state the population has been growing. CP&DR  looked at population growth over the past three years, starting in 2022, which was the end of the pandemic and the low point in California population. The results aren’t surprising: Inland population is growing way faster. But the rate of growth in inland areas is way outstripping coastal areas, with one surprising exception: San Diego. Quick Hits & Updates A new "DepaveLA" analysis found  that about 44% of Los Angeles County’s 312,000 acres of pavement may be unnecessary and could potentially be replaced with trees, green space, or storm-water infrastructure. Researchers say much of this excess pavement is in parking lots and private property, where design changes like angled parking or small tree wells could remove thousands of acres of asphalt while reducing heat and flooding. The Stanislaus Regional Housing Authority  has been designated  a “High Performer” by the U.S. Department of Housing and Urban Development under its Section Eight Management Assessment Program (SEMAP), receiving a perfect 100% score for fiscal year 2025. The SEMAP evaluation measures how effectively agencies administer the Section 8 program, including inspections, rent calculations, waitlist management, and proper use of federal funds. Los Angeles’ encampment cleanup program may displace  far more unhoused people than it helps, according to a new study from the UCLA Luskin Institute. Researchers observed that for every one person connected to services, about five people were forced to relocate, with many repeatedly moved during sweeps. Among 51 unhoused residents surveyed, 37% said they had been forced to move more than five times in the previous month, and only one person ultimately obtained shelter through the program. A policy brief by SPUR   proposes  creating a new downtown revitalization authority to coordinate redevelopment in San Francisco. The group argues that concentrating planning, financing, and project delivery in a single entity would streamline efforts to revive the city’s struggling downtown, including real estate projects, public spaces, and support for small businesses and mixed-use districts. The Los Angeles Metro Construction Committee approved  an additional $210 million for the long-planned Link Union Station  (Link US) project, which will add run-through tracks at Los Angeles' Union Station. The project would allow trains to pass through the station instead of reversing, increasing capacity from about 180 to 278 trains per day and cutting dwell times from roughly 20 minutes to about 5 minutes. The Riverside County Transportation Commission   approved  an $80 million contract to conduct a Tier 2 environmental study for the proposed Coachella Valley Rail Project, which would connect Los Angeles, Riverside County, and the Coachella Valley. The study will prepare detailed environmental documents and planning needed to move the 144 mile passenger rail project closer to construction. New regulations for short-term rentals (STR) in Del Mar  and Encinitas  have been approved  by the Coastal Commission and will soon go into effect. The ordinance caps the number of STR permits at 129 city‑wide with area‑specific limits and enforces a three‑night minimum stay, among other restrictions designed to balance tourism with housing and neighborhood impacts San Francisco is creating  a tax incentive district aimed at converting vacant and underused downtown office buildings into housing. The program is projected to make roughly 50 properties eligible for redevelopment, producing up to 4,400 new units. Covering key areas such as the Market Street corridor, the Financial District, Union Square, and neighborhoods south of Market, the district offers qualifying projects annual incentive payments for 30 years to help offset conversion costs. The EPA is proposing  a $24 million cleanup at the previous site of the Lorentz Barrel & Drum Co. Superfund site in San Jose, near San Jose State University. The 5-acre site functioned as a steel drum cleaning facility beginning in 1947 until 1987, when owner Ernie Lorentz was jailed following decades of dumping contaminants into the ground and storm drains. Mike Montgomery, director of the U.S. EPA’s Superfund and Emergency Management Division, says that about 90% of the cleanup has been completed, and this last effort would serve to clear low concentrations of contaminants that have thus far evaded cleanup.

A revision to SB 79 that could expand its reach appears to be barreling through the Legislature quickly right now. Beyond that, the 2026 legislative session doesn’t appear to be shaping up to be as dramatic as 2025 – with one possible exception.

This article is brought to you courtesy of the paying subscribers to  California Planning & Development Report . You can subscribe to  CP&DR  by clicking  here . You can sign up for  CP&DR ’s free weekly newsletter  here . Supreme Court Declines to Hear Huntington Beach Housing Case The US Supreme Court declined  to hear the City of Huntington Beach’s lawsuit against the state. Huntington Beach leaders argued that charter cities shouldn’t have to comply with California’s state-mandated housing plan requirements. The court’s denial of the city's petition for a writ of certiorari leaves in place a decision by the U.S. Court of Appeals for the Ninth Circuit that affirmed the dismissal of the City’s lawsuit. A San Diego Superior Court judge had ordered  Huntington Beach to adopt a compliant housing plan by spring, yet the city council has not publicly begun discussions on this. California officials including Gov. Gavin Newsom and Attorney General Rob Bonta praised the Supreme Court’s decision, saying the city wasted taxpayer dollars fighting what they see as meritless claims. Huntington Beach’s mayor responded that the city will continue to defend what it sees as local control, even as legal options narrow. “We look forward to holding the City fully accountable in state court, where we recently secured a decision that requires it to remedy its violations and significantly restricts the City’s local control until it does so," said Attorney General Rob Bonta in a statement. (See related CP&DR coverage .) San Diego Creates Overrides to Historic Preservation Rules The City of San Diego will override  existing historic preservation rules through  a package of changes that the City Council approved, 5-1, despite objections from area historians and residents concerned about preserving local character. The changes include allowing the City Council to overrule the city’s Historical Resources Board when the board designates a property historic, and it allows developers to take advantage of Complete Communities incentive in Ocean Beach as long as the property is not a historic cottage. Supporters, including several council members and the Building Industry Association, called the reforms modest but important steps to provide certainty for builders. Opponents, including the Save Our Heritage Organisation, argued the move politicizes preservation decisions and is unnecessary, noting that only about 1% of the city’s housing stock is historic and appeals are rare. Southern California Mountain Lions Granted Threatened Species Status The California Fish and Game Commission will grant  threatened species status to over 1,400 mountain lions across six populations within Southern California and the Central Coast. Projects that could affect these animals may now need an incidental take permit. Commissioner Erika Zavaleta said that though the lions do not face imminent extinction, this protective measure was taken to prevent further damage to a population that, according to researchers, faces a 16-28% chance of extinction in the next 50 years. The biggest threat to the lions has become limited gene flow due to their fractured and dwindling habitat, due largely to freeways and development encroaching further on their land, combined with car collisions, rat poison and disease. While supporters say this is a necessary step in protecting the species, opponents such as ranchers and farmers say the species is well-protected by state law, and these changes make it increasingly difficult to kill lions that pose a safety threat to people and livestock. San Jose Rolls Out Program to Encourage Housing Development The San Jose City Council has adopted  a series of housing initiatives, including expanded benefits for office-to-residential conversions downtown, aimed at jump-starting thousands of stalled housing units. The city has approved tens of thousands of homes since 2020 but fewer than one-third have broken ground, leaving San Jose behind the state mandate to plan for 62,200 units by 2031. The downtown high-rise incentive program will now offer major tax and fee reductions for office conversions, including waiving inclusionary housing requirements, a 100% reduction in building and construction taxes, and a 50% reduction in park impact fees for the first 500 units; the next 1,000 units would receive a 50% tax cut and 30% park fee reduction. The city is also expanding its multifamily housing incentive program from 1,800 to 3,600 units, with a 50% cut in construction taxes. CP&DR Coverage: Despite AB 130, Glendale Rejects Sears Redevelopment Design Last year, the Glendale City Council surprised  housing advocates by going against the staff recommendation and rejecting a 682-unit redevelopment on the 4.5-acre site of a long-shuttered Sears store in the heart of downtown. Despite warnings by Chief Assistant City Attorney Gillian van Myuden and Mayor Ara Najarian, the city council voted 4-1 to reject the project’s design – technically, only the design was under consideration. The project apparently met the city’s objective design standard requirements under the Housing Accountability Act, which makes it difficult for the city to turn down a qualifying project. It was a good example, from the prohousing perspective, of the limitations of AB 130. The new law exempts projects of 20 acres or less from CEQA and creates a shot clock that forces a decision to be made. In the aftermath of the vote, the developer is said to be considering taking legal action against the city to see if the denial violates state housing law. Though AB 130 may have hastened the city’s vote, it did not affect its legal obligations one way or another. The council has since reversed its decision. Quick Hits & Updates The Rancho Cordova  City Council unanimously approved  a proposal to develop a new 7,500-seat multi-use arena and surrounding entertainment district on city-owned land, part of a broader effort to create a downtown hub with housing, hotels, retail, and public space. The project, proposed by KozPure Development, LLC with Alpha One Sports and Entertainment Group, LLC, could include two or more hotels, at least 640 residential units, a retail and dining district, and a public plaza. The Riverside  City Council unanimously certified  the environmental impact report for a massive proposed redevelopment called Riverside Alive, which would expand the Riverside Convention Center by 189,000 square feet and would allow the convention center’s parking lot to be replaced by up to five underground parking levels, 168 residential units, 376 hotel rooms and approximately 282,000 square feet of commercial space. In 2005, Stockton-based developer Grupe Company pledged , and soon after withdrew, nearly $500,000 to help update Riverbank’s  general plan after their development in the area was scaled back following public outcry. Now, Grupe has been selected by the state in partnering with Napa developer Keith Rogal to redevelop the former Sonoma Developmental Center , a campus for the developmentally disabled that was closed by the state in 2018, into a large mixed-use project with 990 housing units, 130,000 square feet of commercial space and a 150-room hotel. (See related CP&DR coverage .) A new executive order made  available $10 million in state funding to help Los Angeles -area fire survivors access factory-built and modular homes to speed rebuilding and help maintain neighborhood character after the 2025 wildfires. As a result of continued executive orders, the state has approved 3,000 approved building permits at three times the speed as prior to the January 2025 wildfires. San Diego Unified School District  board voted  to advance a proposal for 1,500 affordable units for educators at their University Heights headquarters, producing housing for 10 percent of the district’s staff. The district defines an affordable unit as one that costs the renter less than thirty percent of their income. A proposed extension of Metrolink  service to run daily north-and southbound trains to Santa Barbara has been canceled  after local planners proposed a similar service through Amtrak Pacific Surfliner instead. The Santa Barbara County Association of Governments learned that negotiating new agreements with the Union Pacific Railroad to allow Metrolink onto its tracks would be delayed into 2026, which undercut the original plan’s timing and feasibility.

A century or so ago, the Sears Corp. sold tens of thousands of catalog homes that were constructed across the United States. Today, the Sears company is still creating homes, as its former stores are converted and redeveloped into housing developments.

A contentious three-year planning effort to redevelop a former state mental hospital in Sonoma County is coming to a close, with land use decisions expected by the Board of Supervisors during December—or else the state takes back control of the property. Current proposals call for allowing a development that has 1,000 housing units and creates 900 jobs in retail and offices uses on the site of the Sonoma Developmental Center (SDC), which closed in 2018. Those numbers could increase if the state takes control. Local residents are asking for only 450 units, while developers are expected to propose a far higher number. Affordable housing and open space preservation are expected to be hallmarks of whatever is approved. The board is expected to act at a special December meeting to approve a specific plan and EIR for the 945-acre site. Current plans call for over 700 acres to be preserved as open space, and development to occur within the existing footprint of buildings on the site, which is located in a wine growing region halfway between the cities of Santa Rosa and Napa. The open space will be integrated into adjacent Jack London State Historical Park on the west and Sonoma Valley Regional Park on its east. Unlike other mental hospitals that the state has closed, the SDC site is in a rural area prone to wildfire, with little transportation access and 130 aging structures. Buildings on the site burned during big fires in 2017. And yet, housing pressures are fierce. With a population of about a half million people, Sonoma County grew only by 1 percent between the 2010 and 2020 censuses. But like much of California, it needs more affordable housing, as residents continue to be priced out of existing units. Most of the county’s growth has occurred in its cities along Highway 101, north and south of Santa Rosa, its most populous city. The 2023-2031 Regional Housing Needs Assessment allocation for unincorporated Sonoma County is 3,881 units. California’s Department of General Services is currently trying to determine which developer to choose for the 180-acre project to be built around existing buildings at SDC. One development project, submitted by local environmentalists, calls for 450 homes and the creation of 600 jobs. Two other big-name developers have submitted proposals, according to the Kenwood Press— Napa developer Keith Rogal and Related California, which is building a huge project near Santa Clara’s Levi’s Stadium. Details of their SDC proposals have not yet been released. County Supervisor Susan Gorin, whose district encompasses SDC, said she expects a developer to be chosen sometime next year.

A trial judge has ruled that Huntington Beach – perhaps the most resistant city in California to state housing law – must adopt a housing element. Attorney General Rob Bonta said the judge is requiring the city to adopt the housing element within 120 days – which would be mid-September – though the judge’s order didn’t seem to include that specification.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Self-Certification Movement Spreads to Los Angeles County Los Angeles County has introduced a pilot initiative allowing licensed architects and engineers to self-certify that their building plans comply with county codes, hoping to expedite the rebuilding process in unincorporated areas impacted by recent Eaton and Palisades fires. Despite self-certification, projects still require approval from other departments including Regional Planning, Public Health and Fire Departments before a building permit is issued. Licensed professionals assume full responsibility for compliance fof their plans. The county plans to conduct random audits on plans and inspections throughout construction phases to guarantee compliance. Plans can be submitted via the online portal or at designated One-Stop Permit Centers in Calabasas and Altadena. (See related CP&DR coverage .) S.F. Mayor Seeks to Reduce Commercial Vacancies San Francisco Mayor Dan Lurie introduced legislation aimed at simplifying the city's permitting system in the hopes of supporting small businesses. Under the proposed ordinances, minor upgrades including outdoor seating, signage and minor upgrades would not require permits. The legislation also seeks to broaden the types of businesses allowed in ground-floor spaces to address widespread commercial vacancies. These changes build on earlier reforms expanding service hours, removing minor approval steps and introducing centralized online resources. While the initiative has broad support, some critics voiced concern about limited community impacts and potential impact on neighborhoods facing economic pressure. Menlo Park Ballot Measure Would Quash Housing, Preserve Downtown Parking Save Downtown Menlo Park is seeking to place an initiative on an upcoming ballot requiring voter approval on any city plans to diminish downtown parking. The group, which recently filed a notice of intent with the city of Menlo Park, seeks to halt the proposed development of at least 340 housing units on Parking Plazas 1, 2, and 3 in downtown Menlo Park. Opponents of the project argue that by eliminating over 500 parking places, it would harm nearby small businesses that rely on parking access for patronage and diminish the downtown's capacity as a community center. Save Downtown Menlo Park also sued the city in April to try to stop the project. At least 10% of Menlo Park's roughly 20,000 registered voters must sign the initiative before a measure can be placed on a ballot. Multiple developers have submitted site proposals, and city officials say they will recommend next steps to the city council this month. Texas-Based Plaintiff Seeks to Undo Designation of Chuckwalla National Monument A lawsuit filed in federal court this month seeks to overturn President Biden's creation of the 624,000 acre Chuckwalla National Monument in Southern California, arguing President Biden exceeded the authority of the Antiquities Act, and that the act itself is unconstitutional. The suit, filed by the Texas Public Policy Foundation on behalf of a Michigan resident with mining claims and the BlueRibbon Coalition, claims the designation violates the act's requirement that monuments be limited to the smallest area that meets protection needs. It also claims the monument would place onerous restrictions on Plaintiff Daniel Torongo's mining claims, as well as on outdoor recreation access. Package of Bills to Revitalize Downtowns Introduced in Assembly Assemblymember Matt Haney (D-San Francisco) as Chair of the Downtown Recovery Committee, unveiled a legislative plan to help breathe life back into the state's urban cores. Joined by mayors from across the state and members of the Assembly's Downtown Recovery Committee, Haney, who recently conducted a "tour" of nine downtowns across the state, announced a package of 13 bills--five of which are sponsored by Haney--aimed at reversing high vacancy rates, supporting small businesses, tackling homelessness, and reigniting local economies. The Recovery Committees bill package includes measures to spur infill housing near jobs and transit, streamline approvals for office to housing conversions, support struggling nightlife and entertainment venues, and getting homeless people of the streets and into housing. (See related CP&DR coverage .) CP&DR Coverage: How Feds Could Undermine California Habitat Conservation Plans The Trump Administration has proposed eliminating protection of critical habitat under the Endangered Species Act, which is the foundation of the longstanding system of habitat conservation plans that California has put into place over the last 30 years. It's unclear what the actual impact on California will be given the fact that the state has its own Endangered Species Act, which is in some ways is more stringent than the federal law. But the rule does create uncertainty around the federal habitat conservation plans - as well as state natural communities conservation plans that have been created with federal cooperation - that have shaped private development for decades, especially in Riverside, Orange, and San Diego Counties. In many cases, these conservation plans are now embedded in local general plans as well. The new rule is also aimed partly at federal land, such as land owned by the Bureau of Land Management and the National Forest Service, in order to open up that land for logging, oil drilling, and possibly development of Trump's proposed "freedom towns." Quick Hits & Updates A new report finds that 49 downtown San Francisco properties are prime candidates for conversion into housing, potentially creating up to 4,400 new units under a proposed special financing district. The city hopes to incentivize these projects with long-term developer reimbursements and waiving affordable housing mandates for early projects. A recent survey found rents are rising in most SoCal cities, with only six out of 32 cities surveyed—Temecula, Murrieta, West Covina, Long Beach, Escondido and Santa Clarita—seeing year-over-year declines in April. This time last year, 44% of SoCal areas experienced rent decreases, indicating landlords have regained some pricing power amid increased demand due to unaffordable homeownership and housing losses related to recent wildfires. Former Palm Springs Mayor Steve Pougnet has pled guilty to multiple bribery and corruption charges, admitting he accepted payments in exchange for supporting certain real-estate projects. The payments were alleged to take place between 2012 and 2014 and include up to $375,000 in bribes paid to Pougnet by two developers. California Attorney General Rob Bonta has filed two lawsuits against the Trump administration over a policy that threatens to withhold billions of dollars in transportation and homeland security grants unless states comply with federal immigration enforcement. Bonta argues that this policy unlawfully attempts to coerce states into using their resources for immigration enforcement, as these funds are unrelated to immigration matters and are crucial for public safety and infrastructure. In a leaked email to a donor, the chair of the San Francisco Parks Alliance admitted that the nonprofit misused at least $3.8 million in restricted funds. As the organization collapsed financially, funds designated for specific projects were used to cover operating expenses. Viewed as a critical partner for a wide variety of projects from new parks to habitat restoration, the Alliance now faces calls for a criminal investigation, as well as the possibility of shutting down. According to a report released by Streets for All, proposed state bill SB 79 could generate up to $1 billion annually in property tax revenue for Los Angeles, roughly equivalent to the city's 2025 budget shortfall. A modest growth scenario would generate $200M, more than enough to cover the estimated savings of laying off 1,600 city employees. SB 79 would set minimum zoning densities within a 1/2-mile radius of high quality transit stops, and gives transit agencies more flexibility in developing land they own. The Irvine Company has proposed redeveloping the Oak Creek Golf Course into a 3,100-home village, known as the Irvine Spectrum District Village, situated between Jeffrey Road and Sand Canyon Avenue in Irvine. The plan includes 1,500 single-family homes, 1,600 apartment units, a new school, parks and trail connections, aiming to address the city's housing needs while maintaining proximity to jobs and amenities. Marin County is experiencing a significant outflow of low-income residents due to high housing costs, with data showing the county has the largest rate of negative net migration for low-income households in the Bay Area. This trend is contributing to population losses, school enrollment declines and increasing difficulty for workers to live in the area where they work, further exacerbated by the county's historical resistance to new housing development and policies like rent control. According to the state of the Region 2025 Economic and Election Report, Riverside-San Bernardino-Ontario counties are expected to experience modest economic growth in 2025, driven primarily by the logistics sector and housing demand. While new regulatory changes and uncertainties around tariffs and federal policies could create challenges, lower interest rates will support the housing and construction industries. Despite limited growth in healthcare and education due to state budget constraints, the region is poised to see positive impacts from housing market activity and property tax revenue.

Not long ago, Menlo Park determined  that a guy splitting his lot into two under SB 9 should pay $127,000 in Quimby Fees.

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