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- CP&DR News Briefs July 15, 2025: New State Agency; 30 x 30 Goals; Fair Housing Laws; and More
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 . New Housing and Homelessness Agency to Launch July 2026 Gov. Newsom announced the creation of the California Housing and Homelessness Agency, consolidating multiple existing departments into a new body. State lawmakers approved the move earlier this month, and the agency is set to be operational by July 2026. The move heeds calls from some experts and advocates to centralize the state bureaucracy to better address homelessness and housing costs. Under Newsom, California has seen unprecedented investment to fight homelessness and bring down housing costs, but so far results have been mixed. Since 2019 the state has directed $27 billion to local homelessness efforts statewide, but homelessness increased around 24% to 187,000 people during that time. A state audit found that $24 billion in homelessness funding was not properly tracked. The state missed Newsom's goal of 3.5 million new homes by 2025, and the governor set a new goal of 2.5 million by 2030. However, in 2024 the state's homeless population increased by 3% compared to the 18% average nationawide, a figure experts have attributed to California's investments. Report Shows Progress toward 30 x 30 Conservation Goals California has advanced toward its goal of conserving 30% of its land and coastal waters by 2030, with current figures at 26.1% and 21.9%, respectively, according to a recent progress report from the Natural Resources Agency. The 30x30 Initiative, established by Governor Gavin Newsom in 2020, also focuses on supporting biodiversity, increasing public access to natural spaces and addressing climate-related challenges. Recent progress includes new national monument designations and marine protections, though ongoing federal policy shifts could affect these gains. Some environmental organizations have questioned whether certain newly protected areas, such as the Chumash Heritage National Marine Sanctuary, meet the standards needed to count toward the 30% target. State officials plan to continue expanding conservation efforts through the integration of nearby private lands into public park systems and emphasize the broader environmental benefits of the initiative. Bonta Joins Protest against Repeal of Federal Fair Housing Regulations California Attorney General Rob Bonta, along with 20 other attorneys general, sent a letter to the U.S. Department of Housing and Urban Development opposing a proposed repeal of regulations requiring fair marketing of affordable housing. These “affirmative marketing” rules, established under the Fair Housing Act in the 1970s, aim to ensure that federally assisted housing is promoted to all eligible groups, especially those historically excluded. The attorneys general argue that removing these rules could lead to discriminatory practices and undermine decades of efforts to combat housing segregation. Critics of the proposed repeal also say it lacks clear legal justification and could reduce equitable access to housing opportunities for marginalized communities. Union, Residents Object to Financing District for Sacramento Railyards Unite Here Local 49 and residents of Sacramento's Railyards district allege the city is delaying the verification of protest letters that challenge a proposed special tax financing district to develop a massive mixed-use complex, including a new soccer stadium. They argue that a majority of residents have submitted valid protests, which, under a 2019 state law, could halt the city's agreement with developers for up to a year. The union is now considering legal action, claiming the delay undermines efforts to secure stronger affordable housing commitments. City officials say they are working through a legally complex and untested process to confirm residency within the newly built apartment complexes. Supporters of the financing plan argue that public infrastructure funding is necessary to move forward with development. HCD 2024 Housing Progress Report Finds Growth in Affordable Development The Department of Housing and Community Development (HCD) released its 2024 Annual Progress Report, offering a statewide look at residential permitting and development. The report found growth in affordable development, with the lower income units accounting for 22.8% of permitted units and 20.7% of completed units in 2024, up from 9% and 7% respectively in 2018. Lower income unit production rose from 17,872 in 2023 to 20,514 in 2024. Multifamily housing production remained high with 343,236 units in the housing pipeline up from the previous five-year average of 296,432, and ADU production saw a record high of 30,600 in 2024 up from 28,666 in 2023. The report also emphasized faster development timelines, with the average time from application submission to planning approval decreasing from 145 days in 2018 to 58 days in 2024. The report credited the Housing Accountability Unit for much of the acceleration. The state also saw a moderate increase in deed-restricted affordable units from 49,000 in 2023 to 51,000 in 2024, including an increase of 7,000 units from the increased Density Bonus incentives for projects with affordable housing components passed in 2021. Palisades Tahoe Agrees to Scaled-Down Village Development Alterra Mountain Company, owners of Palisades Tahoe ski resort, reached a settlement with environmental groups Keep Tahoe Blue and Sierra Watch to reduce the scale of a planned development in Olympic Valley (formerly Squaw Valley). The agreement ends a fourteen-year dispute over plans for the development, which was originally proposed in 2011 and revised in 2014. In the settlement, Alterra agreed to reduce the total number of bedrooms from 1,493 to 896, reduce commercial space from 278,000 square feet to 222,000, eliminate plans for an indoor waterpark, create a conservation easement at the base of Shirley Canyon to preserve public land access in perpetuity, and prevent additional development within the boundaries for 25 years. (See related CP&DR coverage.) CP&DR Coverage: CEQA Legislation Roundup: AB 130, AB 131, SB 79 On July 1, the provisions of AB 130 and SB 131 - the two budget trailer bills that reformed the California Environmental Quality Act to streamline housing approvals - went into effect. In an unprecedented move, Newsom had basically held the budget hostage over CEQA reform, especially on infill housing. Because the trailer bills were tagged as “urgency” bills, they took effect July 1. The bills greatly expand exemptions for infill housing and also carve out exemptions for a variety of non-residential projects. Although the bills represented something less than comprehensive CEQA reform, they were probably the most significant legislative changes to CEQA in this century. And while the infill housing got the most publicity, a wide range of other provisions are also important. Meanwhile, SB 79, which is still pending, would effectively transfer land-use authority from local governments to transit agencies for land owned by transit agencies that is located near transit stations - and permit buildings of up to 100 feet high immediately adjacent to the busy stations. It would exempt many projects on such land from the California Environmental Quality Act because many would qualify for a CEQA exemption under Wiener's SB 423, his successor bill to SB 35. The League of California Cities is fiercely opposed to the bill. But so are environmental justice Democrats and anti-regulation Republicans. Quick Hits & Updates The first round of funding from Proposition 1's Homekey+ program has awarded nearly $103 million to create 315 units of permanent supportive housing for veterans and individuals with behavioral health challenges across five California counties. The initiative, part of a broader $6.38 billion bond approved by voters, aims to address homelessness by combining affordable housing with wrap-around services, with future awards continuing on a rolling basis as the state evaluates over $1 billion in pending applications. The Santa Monica City Council voted , 6-1, to prioritize transforming the 192-acre Santa Monica Airport site into a public park focused on open space and recreational facilities after its closure in 2028. The approved plan includes ecological restoration and adaptive reuse of existing buildings in line with a 2014 voter-approved measure requiring public approval for non-park uses, while the one dissenting councilmember called for exploring a mix of uses, including housing. The Los Angeles City Council is considering a proposal that would allow homeowners to sell ADUs separately from the main home, in a move seeking to increase the housing supply as LA's average household size shrinks. 41% of new housing permits issued last year in LA were for ADUs, and since 2023 california state law has a pathway for selling ADUs, but cities must adopt the changes locally. San Francisco District 5 Supervisor Bilal Mahmood has introduced a reform measure targeting language in the city's housing code limiting the number of unrelated people allowed to live together to five. Although the rule has largely fallen into obscurity, Mahmood says it often hamstrings co-op housing as bedrooms sit empty in compliance with the law, and changing the wording could help maximize available housing. State officials issued a statement harshly criticizing the Trump administration's termination of $4 billion in grants for the state's high speed rail program, claiming the termination was politically motivated and based on inaccurate analysis. The Rail Authority pointed to 59% construction completion on the initial 119-mile central valley route as progress compliant with funding conditions. San Francisco, Downtown Los Angeles and San Jose rank among the California cities with the highest office vacancy rates and greatest potential to convert empty office buildings into housing, with San Francisco alone capable of adding over 61,000 new apartments. These cities are also seeing some of the fastest year-over-year vacancy increases, highlighting both the urgency and opportunity to repurpose underused commercial space to help ease California's housing shortage. Twenty-four city-owned buildings in San Francisco are at risk of collapse in a major earthquake, and another 26 are at risk of severe damage, according to the city's Seismic Hazard Rating. The buildings at risk include the Hall of Justice and multiple fire stations, police stations and homeless shelters. Since 1990 the city has spent $20 billion on seismic retrofits, which are not required by state law and are funded by voter-authorized bond measures. The city of Elk Grove approved the sale of 20.5 acres of land to developer CenterCal for Project Elevate, a mixed-use development that may, but is not required to, include a housing component. The sale will not formally close until CenterCal secures entitlements and building permits, and the company expects to break ground in 2028. California's First Appellate District Court of Appeal upheld a ruling against the city of Oakland in favor of a development company over plans to build a coal export terminal in West Oakland. After the ruling, Oakland Bulk and Oversized Company can keep and extend its lease to city-owned waterfront land in order to restart work on the coal terminal.
- CP&DR News Briefs July 8, 2025: S.D. Affordable Housing; Fresno Prohousing Woes; Plan Bay Area; and More
This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Court Orders San Diego to Locate Affordable Housing More Equitably A federal judge approved a settlement requiring the City of San Diego to encourage distrubtion of future affordable housing projects more equitably, with at least 70% located in moderate- to high-resource neighborhoods instead of concentrating them in lower-income areas. The agreement comes after a six-year legal battle brought by residents of southeast San Diego who alleged the city's past policies violated fair housing laws by clustering poverty. Under the deal, the city must update community plans, annually report progress and take steps to promote integration, including financial incentives for grocery stores in underserved areas and support for first-time homebuyers. While San Diego denies any wrongdoing, officials say the settlement aligns with existing goals and helps avoid prolonged litigation. The court will retain oversight to ensure compliance with the terms. Fresno Adopts Policies in Hopes of Restoring Prohousing Status The City of Fresno is working to regain its Prohousing status, which allows access to millions in state housing grants, by passing several housing policy updates aimed at streamlining development. Recent council actions include recognizing tiny homes as primary residences, reducing mobile home park density requirements and eliminating certain parking mandates. A more controversial proposal to streamline housing approvals near transit and office zones was postponed due to opposition. A related rezoning plan in southwest Fresno was also delayed amid long-standing community resistance and criticism from a state senator. Meanwhile, the council approved funding for local community projects, including a senior center and LGBTQ-serving nonprofit. (See prior CP&DR coverage .) Final Draft of Plan Bay Area 2050+ Envisions $1.4 Trillion in Investments The Metropolitan Transportation Commission and the Association of Bay Area Governments released the Final Blueprint analysis of Plan Bay Area 2050+, roadmap for growth and investment in the Bay Area that plans for 900,000 new households and 1.3 million new jobs by 2050. The analysis precedes environmental review under CEQA, which is set to commence as early as July 17. Directing over $1.4 trillion in investments, the plan is the result of extensive public engagement over the past two years and focuses on transportation, housing, economic development, and environmental resilience. Key findings include the potential to double the share of people commuting by bike, foot, or transit through investment in transit and land use strategies to promote growth near transportation hubs. The plan proposed housing production and renter protections that could reduce percent of income spent on housing by 42% for low income families and 12% for all levels. Environmental resilience and retrofitting proposals could protect 95% of vulnerable homes from sea-level rise and reduce risk of wildfire damage by 50% according to the report. Los Angeles Allocates Funds from Controversial "Mansion Tax" The Los Angeles City Council approved a plan for spending $425 million raised from Measure ULA for homelessness and affordable housing programs. Since its approval by voters in 2022, the controversial measure, also known as the "mansion tax," has raised $702 million. The 2025 ULA spending plan is greater than all previous years combined. It allocates $100 million for homelessness prevention through at-risk tenant support and eviction defense, and $288 million for the production and preservation of affordable housing. Since its adoption the measure has received criticism from the real estate industry, and recently several reports found that by reducing property sales Measure ULA ultimately limited new development, including multifamily and affordable housing. Proponents of Measure ULA defended the tax as a valuable source of funding for affordable housing. Joe Donlin, the director of United to House LA, criticized the reports as "lies" and "hate from big money real estate". (See related CP&DR coverage .) Demise of Federal "Roadless Rule" Could Weaken Protection of 4.4 Million Acres in California The US Department of Agriculture will rescind the 2001 'Roadless Rule' protecting 58 million acres of national forestland from road construction and logging, around 30% of national forestland. USDA Secretary Brooke Rollins claimed the move overturns obstacles to management and wildfire prevention, while environmental groups blasted the decision as a liquidation of public lands that would open national forests to drilling, mining, and logging. Advocates also refuted the claim that the decision helps wildfire management and future sustainability, pointing to the effects of logging on the forest conditions that create wildfires, as well as research showing that roadbuilding and development can fragment ecosystems, increase erosion, and lead to more sediment pollution in drinking water. In California over 4.4 million acres of national forest are protected by the roadless rule, including the Angeles, Tahoe, Inyo, Shasta-Trinity and Los Padres National Forests. Nearly 500 Jurisdictions Subject to Streamlining for Affordable Housing The California Department of Housing and Community Development (HCD) updated its list of cities and counties subject to streamlined approvals under the Streamlined Ministerial Approval Process (SMAP). SMAP is a state program that fast-tracks approval for certain developments in jurisdictions that have not met housing targets. HCD also launched an online SMAP dashboard showing real-time Housing Element compliance data for jurisdictions. Jurisdictions are assigned exempt, 10%, or 50% affordability streamlining status. Localities which have a compliant Housing Element, have submitted their latest Housing Element Annual Progress Report (APR), and which have made sufficient progress on their Above Moderate Income, Lower Income, and Very Low Income Regional Housing Needs Allocations (RHNAs), are exempt from SMAP streamlining. Forty jurisdictions are exempt. Two-hundred-one jurisdictions with have streamlining for at least 50% affordability, and 298 have streamlining for at least 10% affordability. CP&DR Coverage: Fulton on Implications of Supreme Court Ruling for CEQA The U.S. Supreme Court's ruling involving the National Environmental Policy Act does not directly affect California's environmental review process. But the NEPA ruling is likely, some lawyers say, to expand the gulf between NEPA and the California Environmental Quality Act. And it is possible - though not likely. - that the case will affect CEQA reform discussions in Sacramento. The important point to note is that this separates NEPA from CEQA even more than was already the case. “Reasonably foreseeable” developments and “cumulative impact” are bedrocks of CEQA analysis. So they'll continue to be analyzed in, for example, transportation projects that involve both state and federal funds. But the anti-piecemealing argument that lies at the heart of “reasonably foreseeable” is so deeply embedded in CEQA that it's hard to see - both politically and practically - how to extract it. In the meantime, combined EIR/EIS documents for state/federal projects will continue to have to worry about what's reasonably foreseeable. Quick Hits & Updates A federal judge declined to place Los Angeles' homelessness programs under court control but found the city had failed to meet key requirements of a settlement agreement, including missing housing targets and providing unreliable data. Instead, the judge ordered the appointment of an independent monitor to oversee the city's progress, signaling serious concerns about transparency and accountability while stopping short of full receivership. Kern County supervisors are considering a proposed overhaul of the county's oil and gas zoning rules, which could streamline permits for nearly 2,700 new wells annually in unincorporated areas. The plan, reintroduced after past legal challenges, includes a new permitting system and CEQA updates, drawing both support from industry advocates citing economic need and criticism from environmental groups concerned about community health impacts. The Oceanside Planning Commission has endorsed a transformative mixed-use redevelopment of the Oceanside Transit Center, encompassing over 500 new apartments (with 15% designated as affordable), a boutique hotel, expanded retail and dining spaces and more than $100 million in transit and parking upgrades. The project, led by Toll Brothers Apartment Living under a 99‑year lease, now moves to the City Council and California Coastal Commission for final approval and has already sparked debate over proposed changes to bus circulation and pedestrian access. The Los Angeles Harbor Commission approved a 6,200-person lawn-style amphitheater as part of San Pedro's long-delayed West Harbor redevelopment, which also includes an expanded Ferris wheel and a major parking structure. This project, seen as a cultural revival for the area, is expected to take up to 16 months to build and aims to compete with Long Beach's planned 12,000-seat venue. A poll of registered California voters from the UC Irvine School of Social Ecology found that 70% think housing is a major funding priority. The poll also found that 33% of likely voters listed housing as their single biggest priority, more than double the second largest response of healthcare. The aging Benicia-Martinez Railroad Drawbridge is causing significant delays for Capitol Corridor trains due to frequent vertical lifts for maritime traffic. The bridge poses a major obstacle to the rail service's Link21 plan, which calls for faster and more frequent service between the Bay Area and Sacramento. Officials are considering two $10 billion-plus proposals to build a new, higher rail bridge. Two Los Angeles City Councilmembers introduced a motion to explore ending parking requirements for new developments citywide, aiming to reduce housing costs and boost affordability. While the policy is still in early stages, supporters say it could give renters more options and lower construction expenses, though critics worry it may worsen parking shortages in residential neighborhoods. The San Jose City Council unanimously rejected a proposed 17-story apartment and retail project in West San Jose, siding with residents who argued it was too large and not in line with the city's character. Despite support from housing advocates and offers from the developer to scale the project down, officials said the plan conflicted with the city's general goals for targeted growth and would be revisited during broader planning updates. The Irvine City Council is moving toward stricter regulations on sober living homes, including proposals for a 1,000-foot buffer between facilities and mandatory 24/7 on-site managers, following a violent incident at one such home. This local push reflects a broader trend across Orange County, where cities like Costa Mesa and Mission Viejo have enacted similar rules after legal victories affirmed their authority to regulate these group homes for safety and oversight. (See related CP&DR coverage .) Rise East, an urban revitalization plan for East Oakland, has secured $100 million in funding for the project. The community-led plan concentrates on the area home to the highest concentration of Black residents in East Oakland, and will support projects including affordable housing, youth workforce programs, cultural spaces, and revitalization of the MacArthur Blvd commercial corridor.
- How Will The State's New VMT Infill Housing Fees Work?
The state is going into the VMT mitigation banking business, but exactly how all this will work is pretty unclear.
- CP&DR’s Quick-And-Dirty Guide to Everything the Legislature Did on Housing and CEQA
On July 1, the provisions of AB 130 and SB 131 – the two budget trailer bills that reformed the California Environmental Quality Act to streamline housing approvals – went into effect. Although the bills represented something less than comprehensive CEQA reform, they were probably the most significant legislative changes to CEQA in this century. And while the infill housing got the most publicity, a wide range of other provisions are also important.
- What the CEQA Bills Will Do
Gov. Gavin Newsom signed the most significant reforms to the California Environmental Quality Act in memory yesterday (June 30) in signing the so-called “trailer bills” to the 2025-26 state budget.
- CP&DR News Briefs July 1, 2025: Berkeley Officially Ends Single-Family Zoning; SACOG Regional Plan; Sant Monica Mountains Rec Area; and More
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 . Berkeley Finalizes Citywide Multiunit Ordinance The Berkeley City Council unanimously adopted a landmark Middle Housing ordinance ending a century-old single-family zoning policy, allowing small apartment buildings across most of the city. The policy permits up to eight units on standard lots, aiming to increase housing options for middle-income residents, young families and people of color, while excluding the fire-prone hillside areas for now. The move follows years of advocacy for more inclusive housing and is rooted in Berkeley's historical role in establishing exclusionary zoning. Supporters say the ordinance addresses racial and economic inequality, while opponents argue it lacks affordability guarantees and could lead to displacement and speculation. A follow-up report will evaluate the ordinance's equity and effectiveness after it takes effect in November. (See related CP&DR coverage .) SACOG Releases Draft Regional Plan The Draft 2025 Blueprint from Sacramento Area Council of Governments (SACOG) outlines a long-range plan to guide land use and transportation investments across the Sacramento region through 2050. It aims to reduce greenhouse gas emissions and vehicle miles traveled by promoting compact, mixed-use development and expanding options for walking, biking and transit. The plan reflects input from over 6,000 community members and offers local governments tools and data to align development with regional goals and streamline environmental review. SACOG will continue monitoring implementation through monthly updates and provide technical assistance to ensure ongoing progress. (See related CP&DR coverage .) Senate to Consider 118,000-Acre Addition to Santa Monica Mountains National Recreation Area A U.S. Senate bill introduced by Sen. Adam Schiff calls for the addition of over 118,000 acres of the Rim of the Valley corridor to the Santa Monica Mountains National Recreation Area. The corridor is a non-contiguous “green belt” surrounding the San Fernando Valley and enclosing existing parks and historic sites such as Griffith Park and Olvera Street. Such an addition to the 154,000-acre Recreation Area would bring consolidated management and federal funding and expertise to the new areas. Efforts to protect the Rim of the Valley date back to the mid-1970s. The latest bill comes as the Trump administration is proposing cutting $1.2 billion dollars in funding for the National Park Service, around 30% of its operating budget. Activists say the funding cuts would leave the Santa Monica Mountains vulnerable to cession to state control. Rep. Laura Friedman is expected to introduce a version in the House. Proposal to Sell Federal Lands Removed from Budget Bill The Senate Parlimentarian ruled out the sale of more than 3,200 square miles of public land from the GOP's spending bill after determining the proposal violated Senate rules. The plan, proposed by Utah Senator Mike Lee, would have opened millions of acres in western states to sale to states or other entities for use building housing or infrastructure. The Parlimentarian also ruled against other GOP proposals such as changes to oil and gas lease permitting on federal lands and the construction of a new mining road in Alaska. Lee said he plans on submitting a revised plan which excludes the sale of U.S. Forest Service Land and only allows the sale of Bureau of Land Management land within five miles of population centers. CP&DR Coverage: How Hollywood Contributed to, and Suffers from, L.A.'s Housing Crisis Moviemaking in Los Angeles County is flickering out, with 31% fewer filming days in 2024 compared to 2020. This year is shaping up to be worse. One of the reasons production "ran away" in the first place is that the cost of labor in Southern California is exorbitant. It's cheaper to pay gaffers in Atlanta and extras in Vancouver than to pay them for the same work in Hollywood. Ideally, Hollywood should promote exactly the type of neighborhoods that it likes to shoot. Movies and TV shows disproportionately portray busy, walkable, attractive urban neighborhoods that are easy to create on a studio lot but almost impossible with conventional zoning, financing, and infrastructure.The entertainment industry needs to understand that a cheaper city will also be a more creative city, where artists can thrive without worrying so much about eviction or starvation. A more creative city means better (and maybe more profitable) shows, movies, music, and art. Quick Hits & Updates The Office of Land Use and Climate Innovation is kicking off a comprehensive update of the state's General Plan, Specific Plan, and Tribal Consultation Guidelines (collectively known as LCI's Planning Guidelines). This update process will engage diverse partners—planners, local staff and officials, and other community members involved in planning processes—to help shape guidance and resources that support local planning efforts and foster the growth of vibrant, resilient and inclusive cities and counties across California. Planners can attend the project launch workshop virtually, July 15, at 10 a.m. For questions email: planningupdate@lci.ca.gov. A federal judge ruled that LA officials failed to follow a settlement agreement to provide more housing for homeless people. The ruling found that the city breached its settlement agreement with L.A. Alliance for Human Rights by not providing a plan for creating a promised 13,000 new shelter beds by June 2027, missing milestones for those beds, and failing to provide accurate data about homelessness. Quarterly progress hearings have been ordered for the city and L.A. alliance. The judge characterized the ruling as progress, not punishment, saying he wanted the city to succeed. Six Flags, the parent company of California's Great America in Santa Clara, announced the amusement park's likely closure after the 2027 season. The company's lease on the park's land ends in 2028 with a 5-year renewal option, and no final decision has been made. In 2022, San Francisco real estate firm Prologis bought the park's land from then-owner Cedar Fair for $310 million, with Cedar Fair agreeing to lease back the land for 6-11 years, ending park operations afterwards. Developers behind a proposed eight-story building near the Santa Barbara Mission filed a legal petition against the city, arguing that its repeated rejection of their application violates Builder's Remedy provisions. The city has deemed the application incomplete multiple times, most recently citing inconsistent floor area details, prompting the developers to seek court intervention after a similar case was previously dismissed. Solano County officials are urging Suisun City to pause annexation plans tied to the California Forever project until the county completes a multi-year General Plan update, citing concerns about scale, land use and lack of coordination. Suisun City, which has already signed a reimbursement agreement with the developer, defends its actions as transparent and collaborative, while critics warn the move could undermine regional planning and bypass voter input. (See related CP&DR coverage .) The Department of the Interior under the Trump administration is supporting a controversial plan to utilize the Mojave Desert as a source of water for parts of Arizona, as strain on the Colorado River increases. The project is led by Cadiz Inc., a Los Angeles-based water company that has faced decades of opposition over environmental concerns and regulatory hurdles in California. The current rules governing water usage from the river expire in 2026, and Arizona has already committed to cutting over a quarter of it's river water use. Taking water from the Mojave desert has faced stiff opposition in California in the past. A report identifies 49 commercial properties in downtown San Francisco suited for housing conversion, with the potential to create 4,400 new homes and $15.5 million annually in tax revenue. New proposed legislation would designate an "Downtown Revitalization District" which would financially incentivize developers converting buildings to housing. Until now, developers have been discouraged by high conversion costs, despite historic office vacancy rates. The California Attorney General's Office warned Stanislaus County that its General Plan and Housing Plan fail to meet state requirements on environmental justice, climate adaptation, and identifying disadvantaged communities, specifically under SB 1000, a 2018 law requiring local governments to identify disadvantaged communities and include environmental justice in their land use planning. The California Legislative Analyst's Office recommends closing five more state prisons due to an anticipated surplus of 15,000 prison beds by 2024-25, potentially saving the state over $1 billion annually. Despite financial incentives, Governor Gavin Newsom has not committed to these reductions, prompting calls from organizations like Californians United for a Responsible Budget to redirect funds to community-based resources and reentry programs. The U.S. Social Progress Map evaluates quality of life across U.S. cities using 50 indicators covering basic needs, wellbeing and opportunity, revealing that six of the top ten cities for social progress are in California. Leading the rankings are San Ramon (#1) and Pleasanton (#2) in the Bay Area, followed by Folsom (#5), Carlsbad (#7), Irvine (#8) and Fremont (#10). This comprehensive tool helps policymakers and communities make data-driven decisions to promote equity and wellbeing beyond traditional economic measures. San Francisco is reconsidering the implementation of congestion pricing, inspired by the success of New York's recently implemented program, which has significantly reduced traffic, commute times and increased transit use. Despite slow downtown recovery and political resistance, officials are exploring the idea, particularly as a potential solution to the city's transit funding challenges amid a projected budget deficit for BART and Muni.
- Budget Bill Would Expand CEQA Infill Exemption
Significant reforms to the California Environmental Quality Act have been included in a “budget trailer bill; and could take effect as soon as next week. The bill also amends the Permit Streamlining Act to speed up ministerial projects. Although at tentative deal was announced Tuesday night as part of a budget agreement, the trailer bill still must be approved by the Legislature and signed by Gov. Gavin Newsom. The legislative analysis of AB 130, the trailer bill, can be found here. Most of the CEQA provisions were moved over from Assemblymember Buffay Wicks’ AB 609. Most importantly, the bill significantly expands the CEQA exemption for infill development ; an exemption that is already being used more and more frequently by cities. Currently, to qualify for the exemption, a project must be less than 5 acres in size and 75% surrounded by urban development. The trailer bill expands the CEQA exemption to include projects of 20 acres or less. The projects can still be 75% surrounded by urban development ; but also applies to projects where 75% of the land within a ¼-mile radius of the site consists of urban development. This essentially brings neighborhood context into the definition of infill, rather than just the parcel. (Builder’s remedy projects seeking a CEQA exemption would still be limited to 5 acres.) The infill exemption applies only to projects of a certain density ; specifically, half of the so-called “Mullin densities; contained in SB 375. The minimum densities would be at least five units per acre for an unincorporated area in a nonmetropolitan county, 10 units per acre in a suburban jurisdiction, and 15 units per acre in a metropolitan jurisdiction. Any project below these densities would be subject to CEQA. To qualify for the exemption, projects still must conform with the local general plan and any specific plans. The trailer bill would also impose Permit Streamlining Act deadlines on ministerial approvals for the first time. Up to now, PSA deadlines have applied only to discretionary approvals. The trailer bill would impose a 60-day shot clock on ministerial projects.
- CP&DR News Briefs June 24, 2025: Federal Land Sale; TIF for Fire Recovery; S.F. Planning Director Controversy; and More
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 . Feds May Sell Millions of Acres Across Western States Senate Republicans have introduced a proposal for the Forest Service and Bureau of Land Management to sell between 0.5% and 0.75% of their total 438 million acres of land. That would amount to 3.3 million acres of federal land in 11 western states, including parcels near California landmarks like Yosemite, Lake Tahoe and the Trinity Alps, and large swaths of the Sierra Nevada Mountains. The plan, part of President Trump's budget package, claims to be aimed at addressing the housing crisis by allowing construction on these lands, though specific sale locations remain unspecified. Some interpretations of the bill place the number of acres open to sale at far more -- up to 250 million acres, mostly in the West. While proponents argue the sales would generate between $5 billion and $10 billion in revenue and support economic development, critics warn the move threatens public access to outdoor spaces. Exemptions would apply to protected areas like national monuments and wilderness regions, but concerns remain about the feasibility of developing rural tracts lacking infrastructure. The proposal faces an uncertain path forward, with even some Republicans expressing reservations. Local Authority Could Aid Fire Recovery with Tax-Increment Financing An independent panel is calling on the California Legislature to create a new local authority to oversee rebuilding after the Palisades and Eaton fires. The Blue Ribbon Commission on Climate Action and Fire-Safe Recovery issued over 50 recommendations, including the creation of a Resilient Rebuilding Authority led by a board with members appointed by the governor, state lawmakers and local governments, with guidance from citizen advisory boards. The Commission recommended the proposed authority buy fire-razed lots--using increment financing, in an echo of the state's defunct redevelopment system--and coordinate development and construction at scale, with displaced residents being first in line for new homes. Commission members say this approach will prevent land from being bought up by investors and developers to be turned into more expensive homes. The commission also recommended a ballot measure for the creation of a new Los Angeles County Fire Control District, focused on wildfire management and fire risk reduction. Other recomendations include encouraging constructing all-electric homes, standardizing soil testing and cleanup, creating "buffer zones" around urban-wild boundaries, "fire-hardened" construction codes, additional water storage capacity and dousing systems, and voluntary programs shifting development to low-risk areas. Amid Controversy over Appointment Process, San Francisco Names Planning Director Mayor Daniel Lurie has name Sarah Dennis Phillips has been named San Francisco's new city planning director. Her contentious selection process culminating in three of the seven planning commission members walking out and refusing to vote on the appointment, objecting to the decision process. Mayor Lurie's office submitted Phillips, currently the executive director for the city's Office of Economic and Workforce Development, for the position less than a day before the vote. In the past, planning director appointments involved a search process of several months. The three protesting commissioners were appointed by the Board of Supervisors, while the four voting for Phillips were appointees of former Mayor London Breed. Phillips will oversee the finalizing of a rezoning allowing for 46,000 new housing units, due to be adopted by the Board of Supervisors by Jan 31, 2026. She succeeds Rich Hillis, who had held the position since 2020. Yurok Tribe Completes Acquisition of 47,000 Acres in North State The Yurok Tribe in Northern California has finalized the largest “land back” transfer in the state's history by acquiring 47,000 acres around the Blue Creek watershed, doubling their modern land holdings and restoring ancestral territory. This land, adjacent to their reservation near Klamath in Del Norte County, includes vital salmon sanctuary areas and is being managed as a community forest with sustainable logging and ecological restoration efforts. The acquisition complements recent dam removals on the Klamath River, enhancing habitat for migrating salmon and steelhead and reflects a partnership between the tribe, Western Rivers Conservancy and public and private funders. The Yurok Tribe is the largest in California, with over 5,000 enrolled members. CP&DR Coverage: Sacramento Updates The Assembly Downtown Recovery Committee has pulled together 13 already introduced bills into a downtown “package” designed to help downtowns as they recover from Covid-related declines. The “package” was announced by the committee's chair, Assemblymember Matt Haney, D-San Francisco. The bills cover a wide range of topics including streamlining Medi-Cal enrollment for the homeless, streamlining alcohol licenses and restaurant openings, and creating an option for cities and counties to permit bars to open until 4 a.m. Three of the 13 bills will be of particular interest to planners, developers, and property owners, with two of them using a tax-increment-like mechanism to help finance adaptive reuse of buildings, including conversion of office buildings to residential use. In his “May revise” budget for next year, Gov. Gavin Newsom has proposed creating the long-awaited state vehicle miles traveled mitigation program, with mitigation to be allocated on a region-by-region basis. In all likelihood, the VMT mitigation bank funds will wind up as yet another layer of financing for affordable housing, similar to funds available from the Affordable Housing and Sustainable Communities program. The complication is that, as the California State Association of Counties pointed out, “This is notable as there is no current standard for VMT assessment, reduction, or mitigation price used in the state.” Quick Hits & Updates A San Diego judge dismissed the lawsuit seeking to mandate Del Mar's approval of the 259-unit Seaside Ridge housing project, ruling that the developer must first appeal the city's denial through local channels before seeking court intervention. While the developer argues Del Mar violated state housing law by rejecting the project under the builder's remedy during a period of Housing Element noncompliance, the city maintains the application was incomplete and no final decision was made, making court action premature. (See related CP&DR coverage .) San Diego will cap the number of ADUs that can be built on a single-family lot, closing a loophole in ADU incentives that led to a handful of cases in which property owners built over a dozen on a single lot. The council also adopted new rules capping ADUs at two stories, setting a maximum size of 1,200 square feet, and allowing homes to be sold rather than only rented. Councilmembers characterized the move as a correction to a program intended to ease housing supply, but which had led to some exploitation. STV and Sonoma-Marin Area Rail Transit (SMART) have opened a new commuter rail station and 3.2-mile extension in Windsor, featuring upgraded track, bridges, crossings and a fully integrated pedestrian path. This extension marks a major milestone in SMART's effort to complete a 70-mile rail corridor from Larkspur to Cloverdale, aimed at improving regional mobility and sustainable transportation in the North Bay. (See related CP&DR coverage .) Berkeley officials approved a 28-story, 599-unit apartment tower at 1998 Shattuck Avenue, which would be the city's tallest residential building, signaling a significant shift in local housing politics. Despite growing support for high-density development and state laws encouraging it, developers say high construction costs, tariffs and financing challenges make it unlikely the tower will be built soon. Belvedere released a revised housing plan that clarifies previous proposals without altering the number or location of units, and the state has informally indicated the changes are sufficient to move the plan toward certification. Although the city remains out of compliance with state housing law and faces potential penalties, officials expect the plan to be approved contingent on final zoning changes that support at least 160 new housing units through 2031. California High-Speed Rail Authority officials are disputing findings of the Federal Railroad Administration's audit, calling the report inaccurate and misleading. The audit recommends rescinding $4 billion of federal funding for the project, originally planned as an $33B LA to San Francisco line opening in 2020. After massive delays and cost hikes, the Rail Authority is now focusing on the completion of a 172-mile central valley line, with construction fully funded for 119 miles from Shafter to Madera. The 2025 Happy City Index ranks San Diego as the 34th happiest city in the world, recognized for its efforts in sustainability, public health and livability. Other California cities appearing in the top 200 include San Jose and Los Angeles, though they rank lower due to challenges in affordability and transportation. The Justice Department's new legal opinion says President Trump can revoke or alter national monuments created by previous presidents, putting California's recently designated Chuckwalla and Sáttítla Highlands monuments at risk. This move has sparked strong opposition from conservationists and lawmakers, with potential legal battles expected over the authority to undo these protections. Los Angeles, in partnership with CityLab-UCLA, is addressing its housing affordability crisis by reimagining approximately 24,000 small, vacant residential lots scattered across the city. Through a design competition led by CityLab-UCLA, architects proposed compact, multi-unit housing prototypes that avoid traditional single-family homes in favor of space-efficient designs with outdoor areas and natural light. The city plans to pilot these models on a dozen publicly owned lots to demonstrate how such underused parcels can support affordable homeownership. The City of Sacramento has proposed charging residents $120 dollars a year for parking permits to park in front of their own homes to help cover its $44 million budget deficit. The residential permit program, affecting around 30,000 residents in various areas of the city, has been free since its creation. LA Metro will move forward on a plan for the underground construction of the proposed Southeast Gateway line between Union Station in downtown and the city of Artesia. So far the city has identified $2 billion in funding for the first section between the A line Slauson Station and Artesia, the section is projected to cost $5 billion. One proposed solution to the shortfall is an enhanced infrastructure financing district.
- CP&DR News Briefs June 17, 2025: Sacramento Soccer Stadium; Suisun City Annexation; Bakersfield vs. Bike Lanes; and More
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 . Sacramento City Council Advances Plan to Develop Soccer Stadium at Railyards The Sacramento City Council approved key steps to advance a new, privately funded soccer stadium for Sacramento Republic FC in the downtown Railyards, a long-anticipated project expected to generate over $8 billion in one-time economic impact and thousands of jobs. The vote included a "definitive documents" resolution, indicating that the city and developers are in alignment, and the approval of the expansion of the Railyards Enhanced Infrastructure Financing District. While supporters praise the stadium as a catalyst for revitalizing the 237-acre site, with backing from Wilton Rancheria and over $217 million committed, opponents, including labor unions and housing advocates, argue the financing plan lacks transparency, prioritizes private developers and neglects affordable housing. The infrastructure plan, which leverages future property tax revenue through an Enhanced Infrastructure Financing District (EIFD), would offer $92 million in tax rebates for roads and utilities but not fund the stadium itself. Critics worry the plan is being rushed amid Sacramento's $44 million budget shortfall, though city leaders insist the stadium poses no fiscal risk and will ultimately benefit the city financially. The full Railyards development, including a 20,000-seat stadium, retail venues, housing and a major medical center, is slated for completion by 2027. (See related CP&DR coverage .) California Forever Will Fund Efforts to Explore Annexation of Properties to Suisun City The Suisun City City Council approved , on a 3-1 vote, a reimbursement agreement, which is a initial step toward annexing over 22,000 acres of California Forever-owned land, with the possibility of adding 150,000 residents by 2048. The agreement allows California Forever to fund city staff and environmental review costs without obligating Suisun to finalize annexation, though a $10 million public benefit package could follow if the project proceeds. California Forever, which failed to pass a ballot initiative last year due to environmental and fiscal concerns, has shifted strategies by offering property purchases and grants to build goodwill in financially struggling Suisun. The plan has sparked fierce debate, with supporters citing economic revitalization and opponents warning of lost open space, mistrust in the developer and lack of voter input. The Solano County Board of Supervisors asked Suisun City to pause annexation talks with California Forever while the county updates its general plan, raising concerns about transparency and potential Brown Act violations. (See related CP&DR coverage .) Kern County Grand Jury Improbably Weighs in on Bike Lanes In an unusual move, Kern County Civil Grand Jury released a report titled "The Proliferation of Bike Lanes: Whose Road is It?", in which it criticized Bakersfield's bicycle infrastructure planning. The report acknowledges benefits such as reduced injuries and emissions, but argues bike lanes are impractical due to the city's heat, air quality, and traffic. It accuses the firm Alta Planning + Design, responsible for the city's most recent bike and pedestrian plan, of being "biased towards bicycles". Critics of the report have raised concerns of the Civil Grand Jury overstepping its role, arguing the report does not fall under the Grand Jury's mandate to investigate "inefficiencies and misconduct in government", as described on Kern County's website. The Civil Grand Jury has recommended revising RFP materials to "better identify potential biases or conflicts of proposals", conduct auto and bike counts before constructing new bikeways, and develop a cost-benefit model for bike lanes (a model already exists and is in use). Studies Contemplate Increased Tsunami Danger New studies indicate that California's entire coastline is more vulnerable to tsunamis than previously thought, with the potential for widespread destruction and potentially displace or endanger over 680,000 people during daytime hours. The state faces two types of tsunami threats: distant-source events, which offer hours of warning but can still inundate major coastal cities, and near-source tsunamis, which strike within minutes, leaving little time to evacuate. In Southern California, distant tsunamis could bring waves as high as 15 feet and over $1.4 billion in damages, while local events could generate even higher surges in places like Catalina Island and Palos Verdes. The Bay Area and Central Coast are similarly exposed, with possible fatalities in the thousands and economic losses topping $10 billion combined. Northern California is the most at risk due to its proximity to the Cascadia subduction zone, where a major quake could trigger waves up to 50 feet and inflict over $1 billion in damages to Del Norte County alone. (See related CP&DR coverage .) Los Angeles Considers Major Subway Expansion LA Metro released new details for the Sepulveda Transit Corridor Project, an ambitious rail proposal to connect the San Fernando Valley and the Westside with a rail service. The project is currently in the planning phase and under environmental review alongside five alternative proposals that call for either a monorail or a heavy rail solution with above-ground, underground and combination alignments. LA Metro's established goals of the project are to improve mobility, access and equity, support community and economic development, improve sustainability, provide low-cost transportation, and enhance resiliency. The project will run between the Van Nuys Metrolink/Amtrak station and Metro E Line. The Measure M expenditure plan has identified $9.5 billion of funding. CP&DR Legal Coverage: Anti-Housing Litigants Rebuffed in Eureka; Aesthetics and CEQA Opponents of downtown affordable housing in Eureka may have lost a ballot measure last fall, but they are continuing a barrage of litigation to try to stop conversion of three downtown parking lots to housing. "Citizens for a Better Eureka" lost the latest round, however, when an appellate court ruled that the designated developer - an affordable housing affiliate of the Wiyot Tribe - is indeed a “necessary party” to a lawsuit filed by Citizens for a Better Eureka challenging the city's claim that its declaration of a downtown parking lot as surplus land qualified for a Class 12 exemption under the California Environmental Quality Act. The battle over the downtown parking lots has been going on for several years, in large part because opposition to building affordable housing on the lots has been bankrolled by “local billionaire” Ron Arkley. Reversing a lower court ruling, an appellate court has thrown out the City of Mount Shasta's mitigated negative declaration for a charter school and ordered the city to do an environmental impact report. The ruling would seem to run counter to the current trend - at least in the legislature - to minimize the use of EIRs. The main issue in the situation is aesthetics. The charter school plans to use prefabricated metal buildings, which are allowable in industrial zones in the city but not in residential zones. Quick Hits & Updates The UCLA Luskin Center for Innovation and American Forests launched a national Shade Map that identifies areas lacking shade infrastructure across over 360 U.S. cities to help governments address extreme urban heat. By showing where and when shade from trees and buildings exists, especially in cities like Austin, Detroit and Phoenix, the tool enables targeted planning to improve heat resilience and equity in vulnerable communities. The proposed Zero Emission Passenger Rail and Trail project, consisting of a 22-mile rail line between Santa Cruz and Pajaro alongside 12 miles of the Coastal Rail Trail, will cost an estimated $4.3 billion. The high cost reflects major infrastructure upgrades, including replacement of 28 bridges, new right-of-way, stations and advanced train control systems, with operational plans featuring zero-emission Stadler FLIRT trainsets running every 30 minutes. The project expects weekday ridership between 3,500 and 6,000 passengers and includes potential future connections to San Francisco and existing tourist rail operations. A new housing progress report shows Los Angeles permitted more than 17,200 housing units last year, which is only around 30% of the yearly rate needed to comply with state law requiring the city to permit more than 456,000 new homes between 2021 and 2029. The city permitted 18,618 new homes in 2023, and 23,422 in 2022. On May 7, the California Air Resources Board accepted the Southern California Association of Governments' determination that Connect SoCal 2024 Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) meets CARB's greenhouse gas emission reduction targets. CARB's acceptance ensures transportation projects in the SCAG region remain eligible for all Senate Bill 1 funding programs. The San Jose City Council voted to increase the number of new homes qualifying for a 50% tax break under the multifamily housing incentive program from 1,500 to 1,800, The Council also signed off on $4.1 million in program tax incentives for Urban Catalyst's 278-apartment development, the latest in a series of breaks for apartment projects as the city seeks to boost housing supply. The Los Gatos Town Council approved its first Builder's Remedy project, a four-story mixed-use development near the high school, amid debate over traffic, safety and design impacts. While praised for its architecture and walkability, the project sparked debate over congestion concerns, with some officials warning of adverse effects and others asserting no legal basis to block or significantly alter the plan under state housing laws. Pro-housing advocates in San Diego are pushing to eliminate the city's longstanding 5,000-square-foot minimum lot size to allow denser, more affordable housing developments like two- to three-story single-family homes on smaller lots. They argue this change would increase housing supply, lower home prices and boost property tax revenues for the city, potentially generating tens to hundreds of millions annually depending on development scale.
- Mobility Hubs Hold Promise for Small-Scale TOD
If California High Speed Rail becomes operational, it would create arguably the most massive opportunities for transit oriented development the United States has ever seen. But, even at full build-out, not every city will have a high-speed rail station. And, the way things are going, maybe none will. On the other end of the transportation spectrum, where investments are minuscule by comparison, are mobility hubs. Rather than billion-dollar stations, mobility hubs might consist of a few bike lockers, a scooter corral, or a bus bay. Rather than serve trainsets that go 200 miles per hour, they rely on modes like electric scooters and the humble city bus. Collectively, mobility hubs could serve just as many people across California as do heavy infrastructure like light rail and present many transit-oriented development opportunities. Transportation planning organizations across the state are promoting them enthusiastically. "As we see the future, where we're not going to be expanding freeways, we're going to need a little more transit capacity, and that's how we're going to be able to enhance mobility in the region," said Kome Ajise, executive director of the Southern California Association of Governments. "Mobility hubs help to stage that particular concept of transit. It's about bringing together multiple modes into one location."
- CP&DR News Briefs June 10, 2025: California Forever; SB 79 Progress; Trump vs. High Speed Rail; and More
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 . Sramek Lays Out Expansive Vision for Manufacturing at California Forever In a post on X, Jan Sramek, founder and CEO of California Forever, revealed a new vision for the company's proposed "new city" in Solano County. As the Trump administration is calling for manufacturing to "return" to the United States, Sramek envisions a high-tech manufacturing hub similar to the special economic zone in Shenzhen, China's. Sramek offered up land already owned by California Forever for industrial activities such as shipbuilding, and he argues that the location is ideal due to its proximity to Silicon Valley. He states that existing policy momentum, including bipartisan support for re-industrialization and the 73-0 passages of a resolution in the State Assembly to support shipbuilding, means the state is already shifting towards this possibility. Sramek envisions seamless travel between headquarters and manufacturing sites using autonomous vehicles and eVTOL aircraft, and states the project is already pre-zoning and pre-clearing manufacturing space so projects can break ground in 90 days. He concluded that successful manufacturing relies on geographic clustering of suppliers and innovators, advocating for a concentrated industrial zone in California to reclaim national competitiveness. Major Infill Bill Passes in State Senate The California's Senate narrowly passed Senate Bill 79, a bill aimed at encouraging mid-rise housing development near high-frequency public transit to support both ridership and the state's housing supply. The bill, authored by Sen. Scott Wiener and supported by YIMBY groups statewide, distinguishes between transit types and allows taller buildings near heavy rail while limiting development around lower-frequency lines. In a statement, California YIMBY referred to it as "the most important housing legislation in a generation." Critics argue the bill could displace vulnerable communities and weaken local control over land use, though supporters highlight existing affordability mechanisms built into the legislation. The bill allows cities to propose alternative density plans for specific transit areas to retain some planning flexibility. It now goes to the Assembly. (See related CP&D coverage .) Revocation of Federal Funds Could Freeze High Speed Rail The Trump administration plans to revoke $4 billion in federal funding for California's high-speed rail project, jeopardizing the already-delayed and over-budget efforts. Without this funding, even the limited Central Valley segment between Merced and Bakersfield faces potentially decade-long delays due to a major funding shortfall. The Federal Railroad Administration cited missed deadlines, cost overruns and unrealistic projections in its justification, prompting criticism of the project's management. California officials remain committed to continuing construction using state funds and are likely to challenge the federal decision in court, though legal success is uncertain. The move has reignited political tensions and raises broader questions about infrastructure priorities, federal-state relations and the long-term viability of the high-speed rail vision. 2022 San Francisco Housing Law Results in Scant Development San Francisco's 2022 fourplex legislation, aimed at easing housing construction, has failed to deliver results, with only 11 applications submitted and no projects completed. YIMBY advocates had predicted its ineffectiveness, citing high construction costs, limited financing options and excessive bureaucracy as major barriers. The city's permitting process has proven especially difficult for small-scale developers without the resources of larger firms, leading to project delays and cancellations. A city-commissioned report from 2022 confirmed that most small developments under current economic conditions are financially unfeasible. While officials defend the legislation as a step forward, critics argue that without substantial reform to permitting and financial incentives, San Francisco will continue to struggle with building “missing middle” housing. CP&DR Coverage: How Lithium Extraction Could Transform the Imperial Valley Under discussion since the 2022, the Lithium Valley Specific Plan would govern 51,785 acres of northern Imperial County, along the southeastern edge of the Salton Sea and just north of the City of Calipatria. Though the plan is on the verge of adoption—with companies including Controlled Thermal Resources, Berkshire Hathaway, and EnergySource eager to break ground or expand existing operations—portions of the plan face at least one legal threat from environmental justice advocates. The plan hopes to attract industries that would process lithium and manufacturing lithium-related products onsite (much of which currently takes place overseas). It envisions 70 million to 80 million square feet of industrial and related development, including data centers for major tech firms, and up to 82,000 workers. The goal is to develop a comprehensive energy-based economy rather than an isolated extractive activity. Quick Hits & Updates The California Air Resources Board issued a pre-proposal solicitation for six research projects focused on sustainable transportation, land use, housing and building practices for fiscal year 2025-26. With an emphasis on equity and climate goals, these projects—ranging from wildfire recovery in disadvantaged communities to examining the housing impacts of zero-emission regulations—invite multidisciplinary researchers to submit pre-proposals by July 14. Researchers at Lawrence Livermore National Laboratory have developed a new method to monitor earthquakes with vastly improved precision by transforming fiber optic cables into thousands of virtual seismic sensors. Their approach, using a device called an interrogator, offers data 1,000 times more detailed than conventional methods and could significantly enhance early warning systems, uncover hidden fault lines and improve urban seismic safety across the Bay Area and beyond. The Congress for the New Urbanism included I-980 in Oakland and US 101 in San Mateo County in its biennial Freeways Without Futures report. Selected by a jury, the report identifies harmful urban freeways to draw attention to their socioeconomic and environmental effects and advocate for the replacement of these highways. The Peninsula Open Space Trust purchased nearly 2,500 acres of land south of Gilroy in Santa Clara County, representing about a third of the Sargent Ranch property, after controversy over the ownership group Sargent Ranch Partner's proposed plan to create a sand and gravel mine on the land. Strada Investment Group has proposed two high-rise residential towers totaling 1,500 units in San Francisco's South of Market area, marking the first major shift from office to housing under new Central SoMa rezoning rules. The project would include 150 affordable units, with the remainder market-rate, and reflects a broader move to repurpose stalled office developments for housing. UC Berkeley Team Blue won the Council of Large Public Housing Authorities' 2025 Innovation in Affordable Housing Student Design and Planning Competition. Team Blue won $15,000 and will present their design for the 2025 theme “designing for disasters” at the CLPHA Summer Meeting. Governor Newsom appointed Miranda Flores as Chief Deputy Director of Governor's Office of Land Use, Climate, and Innovation. She comes to LCI from the California Natural Resources Agency where she served as Deputy Secretary of Legislation since 2020. Prior to her appointment at CNRA, she worked at Assembly Member Bill Quirk's office. The federal government is selling the historic 1930s US Courthouse in downtown Los Angeles, hoping to reduce its real estate footprint by offloading underused properties. While the office space market Downtown is weak, some see long-term potential in developing the building. San Francisco is holding public hearings over the Prologis SF Gateway project, which if approved would be the city's largest industrial development deal in over a decade. Bayview-Hunters Point resident groups are advocating against the project, arguing that the area already suffers greatly from existing industrial polution and cannot withstand more development. A Politico and UC Berkeley poll found that 37% of California voters support more aggressive measures to address homelessness, including arresting individuals who refuse shelter. Another 24% of voters somewhat support them, 38% oppose, highlighting a divide between public opinion and state leadership on handling the crisis. San Francisco's Upper Great Highway, now known as Sunset Dunes, has been permanently closed to vehicles, transforming it into a 2-mile coastal park. Despite Proposition K passing with 54% voter approval, the decision remains contentious, with significant opposition from west-side residents who rely on the highway for commuting. In response, Supervisor Connie Chan is considering a ballot measure to reopen the highway to cars on weekdays while keeping weekend closures for recreation. The Tijuana River, heavily polluted by raw sewage and industrial waste from Mexico, has been ranked as the second most endangered river in the U.S. due to its severe environmental and public health impact. Environmental groups are urging the U.S. government to provide more funding for wastewater treatment infrastructure and for both the U.S. and Mexico to collaborate on fixing pollution issues on both sides of the border.
- What's Actually In SB 79
As virtually every major media outlet in California has reported, SB 79 – Sen. Scott Wiener’s bill that would give significant land-use power to transit agencies – barely squeaked by in the Senate last week and is now in the Assembly.

