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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 . San Diego Prevails in Five-Year Legal Battle over Tax Measure Five years after its approval by voters, litigation over San Diego's Measure C hotel tax has concluded with California's Fourth District Court of Appeals ruling in favor of the measure. Plaintiff California Taxpayers Action Network electing not to appeal to the state Supreme Court. Measure C, which raises hotel tax rates to fund homeless services, road repairs, and a convention center expansion, passed with 65.24% support in 2020, but spent years tied up in a legal battle over whether the measure needed a supermajority to pass. San Diego began collecting the new tax in May, and has raised $35 million so far. The City anticipates $1.04 billion in additional revenue from the measure in the next ten years. Measure C raises San Diego's transient occupancy tax from 10.5% to 11.75 - 13.75%, with properties closer to downtown seeing the largest increases. The prospect of expanding the convention center is now in doubt, with construction cost increases pushing the price of such a project much higher than the $850 million that was projected when Measure C went on the ballot in 2020. The City also lacks control over a waterfront property seen as key for expansion, and a settlement with the leaseholder prevents progress on an expansion plan through the end of 2026. City officials are discussing modernization of the existing facility, and the convention center has already identified $400 million worth of investment needed over the next twenty years. Nonprofit Launches Tech Portal to Support Wildfire Rebuilding in L.A. County Builders Alliance, a not-for-profit organization formed in response to the January 2025 Palisades and Eaton Fires, has launched a first-of-its-kind, tech-enabled portal to support fire survivors’ rebuilding efforts. The portal offers a robust library of homes, with pricing up front, filtered by specific lot, zoning, the owner’s preferences and price range. The portal is initially supported by 10 participating homebuilders dedicated to achieving significant time and cost savings and end-to-end project management, making rebuilding do-able for as many homeowners as possible. Participants are experienced, licensed homebuilders, ranging from small boutique firms to larger companies. The no-charge Builders Alliance Portal is a digital representation that maps every residential parcel in the Palisades and Eaton fire areas. Employing AI technology, the map is trained on local zoning regulations and pairs each lot with extensive menus of designs and costs. Establishment of this Builders Alliance is a key recommendation of Project Recovery, the plan offered by ULI Los Angeles, UCLA Ziman Center for Real Estate and USC Lusk Center for Real Estate in response to the Los Angeles wildfires. Menlo Park Moves toward Ballot Measure to Determine Fate of Downtown Development Menlo Park is weighing a citizen initiative that would give voters the power over approval for redeveloping city parking into affordable housing. The measure stems from a fight over a city plan to turn three downtown parking lots totaling 556 spaces into at least 345 affordable housing units. The community group Save Downtown Menlo opposes the project, arguing that the loss of car access could significantly hurt local businesses, and gathered signatures to place the initiative on the ballot. Advocates for the project say it is essential to meeting housing needs in the community and staying on track with state housing mandates to avoid harsh penalties. The city commissioned urban planning firm M-Group to study the measure's impact on the city. The report will cost the city $164,000, and is required to be completed in 30 days. Major Infill Development Proposed for San Francisco A developer is proposing to replace a closed Safeway grocery store in San Francisco's Western Addition that would add more than 1,800 homes to the city, representing the largest housing push the area has seen in decades. Align Real Estate’s plan leverages recent state laws that permit significantly higher density in exchange for affordable units, with approximately 15% of the homes reserved at or below market rate. The project envisions a mix of mid- and high-rise buildings up to 300 feet tall, along with a large underground garage and phased construction. Because Safeway’s departure left the neighborhood without a full-service grocer, the developer also intends to include a smaller grocery store and is seeking a tenant while exploring whether the existing building can be temporarily reactivated. City officials see the proposal as aligning with San Francisco’s broader push to accelerate housing approvals, even as other large projects have stalled amid economic headwinds. Community leaders and the district supervisor have expressed cautious support, noting the project’s potential to restore services, reconnect parts of the Fillmore and contribute significantly to the city’s long-term housing goals. CP&DR Coverage: Housing Element EIRs Could Get More Complex Under New Law Under a new state law, rezonings related to the housing element aren’t subject to the California Environmental Quality Act. But UC Davis law professor Chris Elmendorf says there’s a tradeoff: environmental impact reports will almost certainly be required for all housing elements, putting more pressure on cities and counties to identify the environmental impact of every possible housing site at the housing element level. Elmendorf also pointed out that the new statutory exemption for infill housing is “cleaner” and more expansive than the so-called Class 32 exemption, a categorical exemption that has been widely used in recent years. SB 131 – one of the budget trailer bills – contained a provision exempting from CEQA upzonings to implement the housing element. This provision was paired with the infill housing exemption in AB 130, which essentially exempted projects that implement the housing element. Quick Hits & Updates  Fresno's Planning Commission approved the highly controversial 9,000-acre, 45,000-home Southeast Development area (SEDA) by a vote of 4-3, despite intense opposition from a broad coalition of residents. Citizen groups who oppose the project say they are prepared to gather signatures for a ballot measure that would subject development on agricultural lands to direct voter approval. During the public comment session, residents expressed strong opposition to taking on the $3 billion budget shortfall SEDA would create, plus concerns about pollution from the new development.  The Perris City Council has requested the city attorney to draft a moratorium on new warehouses, potentially becoming the latest of several Inland Empire cities to impose such a measure as the logistics industry explodes in the area. Perris currently has the third highest warehouse prevalence among Inland Empire cities, and its logistics space per resident could increase from 1,000 sqft to 2000 sqft if every project in the planning pipeline were approved and constructed. The governing board of Los Angeles International Airport approved new $1.5 billion construction project, which will replace 4.4 miles of roads entering and exiting LAX and create new elevated roadways to separate airport-related and local traffic and reduce congestion. Critics questioned the need for the new roadway in light of the impending opening of the airport's automated people mover and new transit connections.  San Diego’s Planning Commission unanimously endorsed a proposal to boost housing production by loosening rules governing historic preservation. The plan would give the City Council more authority over historic designations, allowing it to overturn decisions by the Historical Resources Board based on judgment rather than procedural mistakes. The California High-Speed Rail Authority will issue a request for qualifications for private investors to build, operate, and maintain sections of the state's high speed rail project. HSR CEO Ian Choudri said private investment, enabled by the state's new $20 billion funding guarantee, could speed up construction and lower the taxpayer burden, but would require changing a state law mandating the first section built be from Bakersfield to Merced. Choudri says the line to Merced will still be built, but the initial focus would shift to a Bakersfield to Gilroy line that promises to be more financially appealing to investment according to a report from this August. Berkeley’s Zoning Adjustments Board approved a 20-story student housing project with 137 market-rate units and 32 affordable units, using California’s density bonus law to bypass local labor rules, including the HARD HATS ordinance and Southside prevailing wage requirements. Local construction unions have appealed the project, arguing the concessions misuse the state law and undermine worker protections, while developers say complying with the labor mandates would significantly increase costs and delay construction, which is slated to start in January 2028. An LA County Superior Court judge denied a request from the Rose Bowl Operating co. and the City of Pasadena for a temporary restraining order in the legal fight to keep UCLA football games at the Rose Bowl. Attorneys for the Rose Bowl and Pasadena accused UCLA of conducting back-room discussions to move home games to SoFi stadium, which would breach a lease signed in 2014 with no opt-out clause to keep UCLA home games at the Rose Bowl through 2044 in exchange for the stadium making $200 million worth of renovations funded with public bonds.

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 . Los Angeles to Tighten Rent Increases for Rent-Stabilized Units With a city council vote last week, Los Angeles will reduce its cap on annual rent increases for rent-stabilized apartments from 3-8% to 1-4%, the first change to rent stabilization in LA in 40 years. Applying to units built before 1978, the change affects nearly half of the city's residents. According to the LA housing department, over 60% of LA residents are renters. The LA times says more than half LA renters qualify as rent-burdened, meaning they spend more than 30% of their income on rent, and 1 in 10 LA residents spend more than 90% of their income on rent. Proponents of the change say it will help provide desperately needed relief to vulnerable renters and improve affordability in the city. Council members John Lee and Bob Blumenfeld, who voted against the cap change, criticized the move as discouraging development and investment and making it more difficult for landlords to maintain buildings. The pro-housing group YIMBY Action highlighted the change's potential harm to the city's housing supply by causing developers to avoid building on rent-controlled lots. Councilmember Nithya Raman, who introduced the proposal, affirmed the importance of increased housing supply as the ultimate solution to the affordability crisis, and vowed to work to ensure the rent changes do not slow new production. Newsom Defies Trump's Reported Plans to Open California Coast to Oil Drilling The Trump administration has proposed a plan to open six lease sales for oil drilling off the coast of California between 2027 and 2030, as part of a wider proposal to also open new oil operations in the eastern Gulf Coast and the High Arctic north of Alaska. Governor Newsom condemned the plan, saying it would "never happen", saying “as it relates to offshore oil drilling, it’s overwhelmingly opposed by members of all political parties in the state of California,” during a press conference. Experts noted that California does not have the same existing infrastructure for offshore drilling as many states on the Gulf of Mexico, and there is uncertainty if companies would be interested in new projects in California. Critics contend that the proposal is driven as much by politics as by energy policy, especially as Trump has repeatedly targeted California’s environmental agenda and received significant industry support. Although oil companies have shown some interest, analysts note that the region’s limited reserves, strict state regulations and global low oil prices make large-scale investment unlikely, and any new activity would face California’s extensive legal and political barriers to onshore infrastructure. Malibu Declares Entire City to be in Fire Danger Zone The Malibu City Council voted unanimously to adopt an ordinance designating the entire city as a Very High Fire Hazard Severity Zone, based on the State Fire Marshal's severity map released in March. Malibu is now one of a very small number of cities in California to be entirely designated Very High Fire Hazard. The universal designation could help the city adopt more aggressive fire regulations. The move comes amidst growing debate over "Zone Zero" regulations stemming from Governor Newsom's Executive Order N-18-25, which would require no trees within 30 feet of houses in the highest-risk areas. Critics argue these rules could be environmentally detrimental and counterproductive for safety, as the right species of trees can actually help shield homes with the right placement. Tule Tribe to Regain Control of 17,000 Acres of Ancestral Land California will return over 17,000 acres of land to the Tule River Indian Tribe, according to a recent announcement by the governor's office. The nonprofit Conservation Fund purchased the two cattle ranches in Tulare County, and the state helped fund and facilitate the transfer to the tribe. Situated east of Porterville and west of Giant Sequoia National Monument, the land is mostly undeveloped and adjoining to the south end of the tribe's existing 55,000 acre reservation. Governor Newsom hailed the transfer as a step towards restoring the Tule Tribe's stewardship of their ancestral lands, and acknowledged the tribe's historical mistreatment by the state. At a land return and tule elk reintroduction ceremony marking the transfer, Tribal leaders emphasized how the return will help the tribe maintain access to food and medicinal resources, preserve cultural sites, and further stewardship and wildlife reintroduction efforts. The Tule River Indian Tribe is a federally recognized tribe whose members descend from many different Yokut-speaking communities originating from all across Tulare Lake basin and the southern Sierra foothills. Fresno Development Plan Faces Fierce Opposition A broad coalition of Fresno community members gathered last week to demand that Mayor Jerry Dyer kill the controversial Southeast Development Area (SEDA) megaproject and start a comprehensive process to create a new general plan for the city. If Mayor Dyer refuses, the coalition said they are prepared to gather signatures for a ballot measure establishing an urban growth boundary for Fresno, which would effectively strip the mayor and city council of approval power for fringe developments and hand it directly to voters. The ultimatum comes after a city report estimated that developer fees would cover at most just 20% of the project's infrastructure expenses, leaving taxpayers responsible for a $3 billion funding gap. The coalition against the 45,000-home plan area spans across Fresno's political spectrum, and the most recent press conference included representatives from the Central Labor Council, which represents 105,000 workers, former Mayor Ashley Swearengin's DRIVE initiative of the Central Valley Community Foundation, as well as neighborhood and community groups from across the city. For the time being, Mayor Dyer has continued to push SEDA forward, and presented phase 1 to the city council last week. (See related CP&DR coverage .) CP&DR Coverage: Lawsuit to Block La Jolla Cityhood Thrown Out The acrimonious battle between the City of San Diego and La Jolla citizens who want a separate city continues in court – with the citizens recently winning a battle to throw out a lawsuit from the city on anti-SLAPP grounds. The city sued the San Diego Local Agency Formation Commission over the incorporation attempt, saying the LAFCO acted improperly in certifying that the incorporation proponents had gathered enough signatures to put the proposal on the ballot. In a ruling issued October 24, San Diego Superior Court Judge Judy S. Bae granted ACLJ its request for an anti-SLAPP motion. The judge in the case essentially concluded that the citizens’ attempt to move the La Jolla incorporation attempt forward constitutes free speech. Quick Hits & Updates National City’s council unanimously rejected a proposed biofuels rail transfer station, signaling a break from the heavy industrial uses that have long polluted the community and limited access to the bay. Leaders and residents framed the decision as the beginning of a broader push toward environmental cleanup and waterfront revitalization. The Menlo Park City Council is commissioning a study on a ballot initiative that would require voter approval before converting downtown parking lots into affordable housing, a plan that has split residents between concerns over lost parking and the need for more housing. Supporters want a special election to decide the measure, while councilmembers emphasized the importance of meeting state housing requirements to avoid penalties or loss of funding. The Link Union Station project, which will add run-through tracks to Los Angeles Union Station and allow direct Metrolink and Amtrak service across Southern California, has advanced with Metro’s approval of a supplemental environmental study. The updated $3 billion plan streamlines earlier designs to cut costs, including reducing the number of raised platforms, narrowing the passenger tunnel expansion and scrapping a full rail yard canopy, while facing funding gaps and possible legal challenges from the City of Vernon before construction begins in 2026. A long-awaited 25-acre park in San Diego County's Alpine community has been delayed indefinitely after a judge ruled that San Diego County’s environmental review failed to address impacts on local wildlife, wildfire risks and traffic. Conservation groups want the court to revoke the project’s approvals, leaving residents divided between those seeking long-promised recreation space and others who say the park would harm Alpine’s character. Santa Clara's Measure A, a tax increase proposed as a counter against Trump administration healthcare cuts, was passed by voters earlier this month. The measure will raise county sales taxes by 5/8ths of a cent, which is estimated to generate $330 million per year to offset federal funds lost by the county hospital system through cuts to Medicaid in the GOP-led Big Beautiful Bill. Critics pointed out that the money will go into the County's general fund, with no legal mechanism to ensure it is spent on hospitals. A tax increase with a specific allocation would have had to pass with a two thirds majority. The Strategic Growth Council awarded $128 million in Sustainable Agricultural Lands Conservation (SALC) grants in Round 10 of the program for the permanent protection of 40,000 acres (62.5 square miles) of croplands and rangelands, including returning 11,000 acres to California Native American Tribes. 48 of the 52 projects funded are acquisition grants for deed restrictions preventing the conversion of agricultural land to development. A new report on housing development in Palo Alto found that none of the multifamily development prototypes examined are economically viable in current conditions. The report attributes the lack of feasibility to rising construction costs and interest rates, some of the highest local fees in the region, and demand for higher returns from investors. The study found that removing affordable housing requirements and local fees, which help fund essential city services and affordable housing, improved feasibility substantially. The San Luis Obispo County Board of Supervisors approved the new Regional Housing Incentive Program. The program allows developers to earn "incentive points" by adding affordable units to developments or paying in-lieu fees, which they can then spend on a variety of zoning exceptions including incentives for parking, design standards, floor space and land uses, and density. Critics on the Board said the program may not accomplish much as it only targets to raise around a third of the funding needed for the county's minimum target for affordable housing, while proponents lauded the program as a step in the right direction which would not be the last incentive for affordable housing.

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.

La Cañada Flintridge has abandoned its efforts to right off a controversial builder’s remedy project and has approved the project.

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 . Los Angeles Mayor Lifts Emergency Declaration that Facilitated Affordable Housing Development Mayor Karen Bass announced that Los Angeles will lift its homelessness state of emergency on November 18, marking the end of the executive powers that enabled rapid action through measures like Inside Safe and Executive Directive 1 (ED1), which expedites the development of affordable housing developments. While homelessness has declined modestly for two consecutive years, City Council members pushed to end the emergency to restore transparency and formalize successful programs, including efforts to codify ED1 into permanent law. If that language is not finalized before the deadline, the city will temporarily halt accepting new affordable housing applications under ED1. Bass emphasized that lifting the emergency does not signal the end of the crisis but a transition toward long-term, sustainable systems. Meanwhile, Bass issued a separate executive order, EO10, to accelerate post-fire commercial rebuilding in Pacific Palisades, focusing on targeted, expedited recovery efforts even as the homelessness emergency winds down. (See related CP&DR coverage .) Shafter Protests At-Grade Alignment of High Speed Rail Frustrated by a new California High-Speed Rail proposal that would run the train through town at ground level, Shafter's City Council voted to reject the plan, with the mayor saying he'd rather see the project “go around the city” than tear up local streets. The revised design, meant to cut costs and shorten construction by two years, would replace elevated tracks with a network of underpasses and overpasses, but residents argued it would harm small businesses, disrupt schools and divide neighborhoods. Rail officials said the change reflects “lessons learned” from earlier construction in Fresno and would reduce community disruption, emergency access issues and the need for millions of cubic yards of fill dirt. Despite those claims, Shafter leaders say the city won't benefit economically from a system that doesn't include a station and only brings local impacts. Report: Los Angeles County Lost Half-Million Residents since 2015 Neighborhood Data for Social Change at USC Lusk Center for Real Estate released its State of Los Angeles County Housing and Neighborhoods (SOLACHAN) report, presenting detailed data on the region's housing, demographics and affordability. The report found that, since 2015, LA County's population has decreased by over 500,000 people, including a loss of 280,000 foreign-born residents, despite the number of households continuing to increase. The report found that housing production has fallen from over 70,000 new units per year in the 1950s to fewer than 15,000 per year in the 2010s, with only 10% of recent rental units affordable to lower-income households while permitting timelines triple the national average. Homeownership has also dropped to 45% of residents, its lowest level in more than 50 years, with Black and middle-income households seeing the largest declines. The report found over 90% of renters earning under $50,000 spend more than 30% of their income on housing. Despite a 57% increase in permanent housing beds for unhoused residents, and the number of unsheltered residents dropping 15% in two years, 66% of people experiencing homelessness in the county remain unsheltered, the largest percentage in the country. CP&DR Coverage: San Diego Midway Project; Referendum Nixed in Livermore San Diego's Midway redevelopment project has been held up by litigation again, as an appellate court has ruled - for the second time - that the city did not prepare adequate environmental documents in preparation for a ballot measure lifting the city's 30-foot coastal height limit. In reversing a lower court ruling, the appellate court also concluded that the state's reforms of the California Environmental Quality Act adopted back in June do not apply to the Midway plan. The effect of the ruling is to invalidate the ballot measure lifting the coastal height limit -- for the second time. Eden Housing has been trying to build an affordable housing project in Downtown Livermore since 2018. Two local groups with the same backer have gone to court with different lawsuits to stop the project - or at least move it. One legal skirmish got caught up in the underbrush of referendum law, specifically the question of whether the city's approvals were administrative or legislative. In a second decision on that case, the First District Court of Appeal has ruled that Livermore's latest approvals were entirely administrative - and therefore a referendum on the project can't go forward. The published ruling reversed the decision of Alameda County Superior Court Judge Michael M. Markman. Quick Hits & Updates The San Francisco Arts Commission voted 8-5 to temporarily dismantle the Vaillancourt Fountain in San Fransisco's Embarcadero Plaza, the latest development a fight over the monuments fate sparked in 2024 by the announcement of plans for an overhaul of the plaza and a new park. The Recreation and Park Department called for the removal, saying the city could not afford the estimated $29 million for a full restoration. The owners of a five-acre property near the Santa Barbara Mission, who plan to build an eight-story housing project under builder's remedy, are suing Santa Barbara County over nearly $200,000 in property taxes. The Mission LLC claims the site is exempt because it hosts religious services by the Unitarian Universalist Mission, but the county argues the property does not qualify since it has been largely vacant and not used exclusively for worship. The state's Court of Appeals has allowed preliminary geotechnical work to proceed on the $20 billion Delta Conveyance Project, reversing a lower court injunction blocking the work pending additional environmental certification. The project, aiming to transport water from the Sacramento River to southern parts of the state, remains controversial due to the environmental concerns, local opposition, high costs and ongoing legal and funding roadblocks. Jim Wunderman, 22-year veteran CEO of the Bay Area Council, is leaving to become head of public affairs for California Forever, a billionaire-backed plan to build a new city of 400,000 residents in Solano County with dense housing, middle-income jobs and a large advanced manufacturing campus. The former-CEO's departure comes as California Forever submits a revised plan to extend Suisun City, amid criticism from environmental groups and local ranchers concerned about agricultural impacts, traffic and sprawl. San Diego's Coastal Resilience Master Plan (CRMP) outlines a citywide approach to adapting to rising sea levels with dune restoration and dynamic shoreline design as opposed to seawalls, as coastal squeeze threatens 70% of the state's beaches by 2100. The plan emphasizes community engagement, with workshops, volunteer restoration events and partnerships with loca organizations hopes to protect beaches, habitat and public access.

Voters resoundingly favored new housing Santa Cruz and Sausalito, two cities that have historically had strong anti-growth movements. In Sausalito, a pair of complementary measures designed ot help the city comply with state Housing Element law passed easily. In Santa Cruz, a competition between two measures to promote affordable housing proved to be a snooze, as the more aggressive measure won by a comfortable margin whereas a watered-down measure barely broke double-digit percentages.

The California Chamber of Commerce is floating a ballot measure that would create a series of “shot clocks” for actions under the California Environmental Quality Act.

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 . Supervisors Amend San Francisco's "Family Zoning"; Plan May Produce Far Less Housing than Intended San Francisco Mayor Daniel Lurie's proposed "Family Zoning," intended to meet state housing mandates by allowing taller, denser construction in the city's north and west sides, has sparked debate and a number of last-minute amendments from the Board of Supervisors. The plan aims to add up to 36,000 homes, although a new analysis projects that the number would likely be half that by 2045 due to high construction costs and a weak market. Supervisors have enacted measures to protect rent-controlled tenants, exempt historic buildings, and ensure that development on public lands is 100% affordable, while offering incentives for family-sized units and small businesses. According to a recent analysis by the City Controller's office, the plan, despite upzoning 92,000 parcels, is likely to produce at most 14,646 actual new units in the plan area. The discrepancy between the city's goal and the controller's estimate stems from the controller's economic analysis, which considers projects that are likely to pencil out for developers, based in part on an 8% increase in construction costs and 25% decrease in sale prices for condos since 2019 (adjusted for inflation). Study Finds Exorbitant Housing Development Costs in California A report out of RAND compares the cost of building market-rate and subsidized affordable apartments across California, Colorado and Texas, using data from over 140 projects and found that California has the highest production costs in every category, largely due to longer development timelines, higher fees and strict design and labor requirements. Notably, multifamily housing in California can cost more than twice as much per square foot as in Texas, with wide variation even within the state. The findings suggest that reducing delays, streamlining permitting and inspections and revising fee structures could significantly lower costs and boost housing supply. If California matched the efficiency and cost levels of states like Texas or Colorado, it could produce far more affordable housing with the same public investment. Los Angeles County Lost Half-Million Residents since 2015 Neighborhood Data for Social Change at USC Lusk Center for Real Estate released its State of Los Angeles County Housing and Neighborhoods (SOLACHAN) report, presenting detailed data on the region's housing, demographics and affordability. The report found that, since 2015, LA County's population has decreased by over 500,000 people, including a loss of 280,000 foreign-born residents, despite the number of households continuing to increase. The report found that housing production has fallen from over 70,000 new units per year in the 1950s to fewer than 15,000 per year in the 2010s, with only 10% of recent rental units affordable to lower-income households while permitting timelines triple the national average. Homeownership has also dropped to 45% of residents, its lowest level in more than 50 years, with Black and middle-income households seeing the largest declines. The report found over 90% of renters earning under $50,000 spend more than 30% of their income on housing. Despite a 57% increase in permanent housing beds for unhoused residents, and the number of unsheltered residents dropping 15% in two years, 66% of people experiencing homelessness in the county remain unsheltered, the largest percentage in the country. Report Blames Slow Transit Development on Permitting & Regulations The nonprofit Circulate San Diego released a report titled "Powerless Brokers: Why California Can't Build Transit", addressing why public transit construction in California is typically very slow and expensive. The report finds permitting and regulation challenges to be the primary culprit: transit authorities do not have the power to construct projects approved by elected officials or ballot measures, and must seek third-party permits from local governments, special districts, state agencies, and public and private utilities. The Powerless Brokers recommends reassigning permitting responsibilities from third parties to the transit authorities, incentivizing local governments to prioritize transit and streamline permitting, extend CEQA exemptions for sustainable transit, and encourage more leadership from Caltrans. CP&DR Coverage: Newsom Signs over 40 Land Use Bills Although SB 79 and the big infill housing exemption from the California Environmental Quality Act got all the headlines this year, the Legislature was active on a variety of planning and development bills this, with Gov. Gavin Newsom signing more than 40 bills into law. Unlike last year, Newsom vetoed no bills on CP&DR's list. As usual, most of the bills had to do with housing. But the new legislation includes reforms to laws related to accessory dwelling units, general plan law, and the Regional Housing Needs Assessment reporting process, as well as a cleanup bill to last year's controversial warehouse bill. Highlights include SB 79, overrides local zoning to require midrise housing near major transit stations; AB 130 and SB 131 major infill housing and other CEQA exemptions; SB 786 prioritizes housing elements over other general plan elements, while AB 39 requires decarbonization or electrification plans in larger cities, and more. Quick Hits & Updates The San Diego Planning Commission endorsed an update to the College Area Community Plan, last updated in 1989, which would keep most of the area zone for single families while allowing medium- to high-density hosuing adjacent to SDSU and along major arteries like College Avenue, Montezuma Road, and El Cajon Boulevard. The plan would also add protected bike lanes and bus-only lanes. Critics of the plan raised concerns that the area has insufficient parks, fire stations, parking, and other infrastructure to support a substantial population increase. Pasadena City Council revealed two competing concepts for the future of the stub, "Gardens and Terraces" and "Boulevard and Plaza" for the unfinished stub of the 710 Freeway. The stub was relinquished to Pasadena by the state in 2022 after sitting abandoned for nearly fifty years. Both plans call for two-way streets, parks, bike paths, and new housing to revive the area. The Council also heard testimonies from families displaced when construction on the project started in the 1960s and 70s, destroying predominantly African American and Latino neighborhoods. According to a recent audit by the California State Auditor, UC, CSU, and California Community College systems have not done enough to ensure access to affordable housing. The report recommends clarifying state law to assign system offices (Presidents and Chancellors) greater oversight and responsibility for planning campus housing and requiring system offices to biennially assess unmet housing demand on campuses. California's High Speed Rail Authority filed for preliminary injunction against the U.S. Department of Transportation's transfer of $4 billion in grants frozen by Transportation Secretary Sean Duffy, alleging that the department unlawfully revoked the money despite the project passing compliance reviews. California Attourney General Rob Bonta wrote that Trump officials were attempting to transfer much of the funds to other projects before the case could be decided. Housing Trust Silicon Valley launched its Building Impact Initiative, a landmark $200 million fund designed to accelerate affordable housing across the Bay Area. Tech giant Apple contributed a substantial but undisclosed sum to the fund. A poll from Bay Area regional think tank Bay Area News Group and Joint Venture Silicon Valley suggests in-person work is rebounding, while still below pre-pandemic levels. 63% of Bay Area respondents reported working fully in person, up from less than half of respondents last year, and just 9% reported working fully remotely. The CEO of the think tank called the results "surprising", but pointed to companies wanting to reinforce culture and productivity as reasons for calling people back to the office. The Redlands Planning Commission voted 5-1 to recommend to the City Council a citywide ban on new warehouse development. The Commission cited concerns about the extensive development of warehouses on already developed sites and ensuring diverse land use. Redlands has seen 28 million square feet of warehouse development in the past quarter century, vastly outstripping every other type of development. Irvine and San Francisco ranked second and seventh, respectively, in safest cities for cyclists in the new Pedestrian & Cyclist Safety Report, which analyzed nearly 300 U.S. cities with populations over 100,000. The report praised Irvine's extensive use of separated bike paths and protected crossings to allow cyclists to go nearly anywhere without entering high-speed traffic, and noted San Francisco's use of slow streets and car-free corridors. The report emphasized that pedestrian and cyclist safety is the result of policy and planning, not luck or statistical variance. The US Senate passed the ROAD to Housing Act, a bipartisan bill that seeks to tackle the nation's housing crisis through a wide range of provisions that reduce red tape, incentivize housing construction, and streamline federal review procedures. The bill's sponsors, Senators Elizabeth Warren and Tim Scott, hailed the bill as landmark legislation to combat housing shortages.

by CP&DR Staff Vol. 40 No. 10 October, 30 2025 Report

Under a new state law, rezonings related to the housing element aren’t subject to the California Environmental Quality Act. But UC Davis law professor Chris Elmendorf says there’s a tradeoff: environmental impact reports will almost certainly be required for all housing elements, putting more pressure on cities and counties to identify the environmental impact of every possible housing site at the housing element level.

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 . Bay Area MPO Advances Regional Plan for 2050 The Draft Plan Bay Area 2050+ presents 35 regional strategies designed to guide housing, transportation, the economy and the environment through 2050 in the Bay Area. The plan aims to increase housing options near transit, improve affordability, and strengthen coordination across local jurisdictions. Transportation strategies focus on enhancing reliability, expanding transit and active travel networks and improving safety and accessibility. Economic measures emphasize supporting local job centers, diversifying employment opportunities and promoting workforce development. Environmental actions prioritize protecting open space, reducing greenhouse gas emissions and preparing for climate-related risks such as flooding and wildfires. Overall, the plan provides a regional framework for coordinated growth and investment while balancing equity, resilience and sustainability goals. Fresno to Upzone 11 Square Miles in Southwest of Highway 99 The Fresno City Council approved the West Area Neighborhoods Specific Plan on October 16 after a multi-year process that included extensive community outreach, more than 60 public meetings and input from a steering committee. The plan, covering 11 square miles and roughly 50,000 existing residents, sets a long-term framework for coordinated growth west of State Route 99, focusing on expanding housing, improving transportation connections and adding parks and community amenities. It identifies “catalytic corridors” for higher-density, mixed-use development near transit, outlines a prioritized list of park and infrastructure projects and establishes a capital improvement program to fund early transportation and VMT-mitigation projects. A key feature is its dual land-use designations for some parcels, balancing future development potential with opportunities for new regional and neighborhood parks. The plan's adoption also updates Fresno's General Plan land-use map and zoning, increasing citywide housing capacity by several hundred units while protecting agricultural and rural edges. Moving forward, the city will monitor progress through five-year reviews, project-level evaluations and updates to ensure investments align with the plan's goals. (See related CP&DR coverage.) Federal Government Explores Partial Development of Camp Pendleton The U.S. Department of Defense is exploring the possibility of leasing or developing parts of Camp Pendleton, the 125,000-acre Marine Corps base representing Southern California's largest remaining stretch of undeveloped coastline. While no decisions have been made, the proposal—aimed at generating federal revenue—has raised questions about potential environmental impacts, local collaboration and how commercial activity might alter the base's long-standing role in military training and conservation. Massive Commercial Redevelopment Proposed for Los Angeles Refinery Phillips 66 has revealed redevelopment plans for its refinery in Wilmington, after the plant processes its last oil shipment this October. After hundreds of meetings with local residents, Catellus Development Corp. and Deca Cos., hired by Philips 66 last year, revealed plans for Five Points Union, a complex centered around a new town center with 400,000 square feet of space for stores, restaurants, and cafes, two playgrounds, and new walking paths. The majority of the 440-acre site would be occupied by eight warehouses ranging from 250,000 to 1 million square feet. The town center will be part of the initial development, while the warehouses will be built in phases potentially spanning more than 20 years. The project would also redesign the frontage of Anaheim and Gaffey streets, adding new tree canopy coverage and pushing the sidewalks back from the road. Implementing the plan will require city approval, as well as remediating underground pollution. City officials and community members expressed the importance of removing the 25 million gallons of butane tanks. Complaints of pollution, flaring, and fires from have increased in recent years as the plant has aged. State Disburses $414 Million for 30 Housing Projects California has awarded more than $414 million to fund 30 affordable housing projects, creating over 2,000 new homes, nearly all of which will serve low- to extremely low-income residents. The funding, distributed through Governor Gavin Newsom's Multifamily Finance Super NOFA program, streamlines the application process for developers, allowing them to access multiple housing programs through one coordinated system, an approach that has supported more than 12,600 affordable homes statewide since 2020. The new awards will finance multifamily, farmworker, veteran and infill infrastructure housing projects, helping seniors, large families and individuals with special needs. State leaders say the initiative reflects Newsom's broader housing strategy to address homelessness, improve behavioral health care and reform zoning and permitting to speed construction. Officials emphasize that these efforts are producing measurable results, with California outpacing most states in slowing homelessness growth and expanding affordable housing access. CP&DR Coverage: Court Rejects Redondo Beach Overlay District for Limiting Housing In the latest housing element skirmish from Redondo Beach, an appellate court has ruled that the city's mixed-use overlay district doesn't meet the requirements of the housing element law. The city argued that the overlay met the housing element law's provisions involved mixed-use developments. But the Second District Court of Appeal ruled the other way. The case was brought by New Commune DTLA, an entity controlled by developer Leo Pustilnikov, who controls the former AES power plant near the beach in Redondo Beach. The city made a complicated argument that 20 units per acre was not required on all sites because, even though mixed-use sites must have a minimum of 50% residential, the law also requires that 100% residential projects must be allowed in mixed-use zoning (even though there are no mixed uses). The court did not buy the argument. Quick Hits & Updates A recent report from the Council of Infill Builders outlines barriers and strategies for expanding affordable housing through infill development in Marin County. It identifies obstacles such as high construction costs, complex permitting, limited funding and community opposition, and proposes solutions including streamlined approval processes, reduced fees and parking requirements and coordinated funding across jurisdictions. San Diego County Supervisor Jim Desmond has introduced legislation aimed at prioritizing homeownership opportunities for local residents and urging the state to restrict foreign and corporate investment in residential real estate. The proposal seeks to address concerns that such investments contribute to rising housing costs and limit access to homeownership for working families. The Sonoma County Fairgrounds, a 90-acre site historically used for horse racing, is being considered as a potential location for professional men's and women's soccer teams through a partnership with the United Soccer League and local officials. The Redlands Planning Commission voted 5-1 to recommend to the City Council a citywide ban on new warehouse development. The Commission cited concerns about the extensive development of warehouses on already developed sites and ensuring diverse land use. Redlands has seen 28 million square feet of warehouse development in the past quarter century, vastly outstripping every other type of development. Fourth & Central, a proposed multi-use mega-development in Downtown LA's Skid Row neighborhood, took a major step forward when the Planning Commission unanimously recommended the project for construction, setting up LA City Council to consider final approval later this year. The 7.6-acre project would include 1,589 apartments with 249 affordable units, 401,000 sqft of office space, and 145,000 sqft for restaurants and retail, all across 10 buildings of various heights up to 30 stories. In a letter to LA City Council, Mayor Karen Bass proposed a one-time 3-year pause on Measure ULA, the "mansion tax", for homeowners affected by January's fires. In the letter, Bass said that the pause would help homeowners sell their burned properties and gain funds to rebuild or relocate, stimulating sales that were being discouraged by the measure. Measure ULA, a non-marginal tax of 4-5.5% taking effect on any property purchase over $5 million, was approved by voters in 2022 and has been linked by an April 2025 UCLA report to a 50% decrease in sales over $5 million. The California Housing Defense Fund nonprofit filed a lawsuit against the city of Los Altos Hills, claiming the city unlawfully denied development approval for a proposed multifamily senior housing development consisting of 62 units across two properties. The applicant and plaintiff, Forrest Linebarger, has been trying to develop the property for 12 years but has been embroiled in legal battles with the city. He says Los Altos Hills has no interest in developing affordable units or tackling the housing crisis. San Francisco Mayor Lurie unveiled the Fisherman's Wharf Forward project, beginning with a new public plaza on Taylor Street, featuring seating, retail pop-ups and improved access to the inner lagoon. City leaders and the Port of San Francisco say the plaza, along with new lighting, an overlook and longer-term infrastructure upgrades, will reenergize the city's top tourist district as part of San Francisco's broader downtown recovery.

by CP&DR Staff Vol. 40 No. 9 September 25, 2025 Report