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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 . State Gets Serious with Norwalk over Housing Noncompliance Led by HCD's Housing Accountability Unit, the state has filed a lawsuit against the city of Norwalk, claiming that its moratorium on new homeless shelters and supportive housing violates multiple housing laws. In August, Norwalk's City Council imposed the ban, citing concerns over budget strains and disorder due to homeless projects in the area. Governor Gavin Newsom and Attorney General Rob Bonta argue that the ordinance is unlawful and discriminatory, with Bonta criticizing the city's inclusion of homeless shelters alongside businesses like payday lenders and liquor stores. In addition, Norwalk has yet to meet its housing goals . The city has only issued permits for 175 units during this housing element cycle, a mere 3.5% of its 5,034 unit Regional Housing Needs Allocation. On October 3, in response to the city's failure to repeal the ban, the state announced that it was decertifying the City of Norwalk's housing element. The state's action makes the city ineligible for significant housing and homelessness funding and means the city can no longer deny permits to “builder's remedy” affordable housing projects. Wildfire Concerns Prompt Anaheim to Reject Housing Development Anaheim's city council voted 5-2 to reject a proposed 500-unit luxury apartment development in Deer Canyon, citing concerns about the potential impact on wildfire evacuation times and safety in a high-risk fire zone. The fire department, including the fire chief, advised against the project, pointing out the challenges of evacuations in the area, although the developer argued that the project would enhance fire resilience. Many residents, especially those who had experienced previous evacuations, expressed concerns about adding more people and vehicles to a region with limited evacuation routes. Supporters of the project, including labor unions and the developer, emphasized the urgent need for new housing to address California's housing shortage, while also asserting that the development could help improve fire safety. In response to the council's decision, the developer has indicated they may pursue a "builder's remedy," a state law that could allow for a larger development with affordable housing units, bypassing the city's approval. Judge Strikes Down San Francisco Vacancy Tax A San Francisco judge ruled against a voter-approved tax on vacant apartment units, which was designed to increase housing availability in the city. The measure, passed in November 2022 with 54% support, would have imposed taxes on property owners with vacant units for more than 182 days a year, starting at $2,500 per unit and rising up to $20,000 annually. City officials estimated the tax could generate over $20 million yearly to fund affordable housing and potentially release nearly 5,000 units for rent. However, property owners, led by the San Francisco Apartment Association, argued that the tax violated their property rights and was an unconstitutional confiscation of their property. Judge Charles Haines ruled in favor of the property owners, striking down the measure, but did not provide a detailed explanation for the decision. (See related CP&DR coverage .) State Settles Housing Dispute with La Habra Heights The state reached a settlement with the Orange County city of La Habra Heights, requiring the city to adopt a housing plan by July 7, 2025, to allow for the development of 244 housing units, including 164 affordable units. The settlement follows La Habra Heights' failure to update its housing plan on time and adequately address its Regional Housing Needs Allocation target, which had been raised by 72 units due to past deficiencies. The agreement also stipulates that the city must ensure public participation and may face penalties if it remains noncompliant. The housing element is part of California's broader effort to address the housing crisis and ensure that all communities, regardless of size, contribute to meeting the state's housing needs. Once the housing plan is adopted, the city will have to make land available for multifamily and affordable housing, helping to reduce homelessness and promote equity. CP&DR Coverage: Fulton on the New Debates over Exactions Six months after it came, the U.S. Supreme Court's ruling in the Sheetz case is beginning to have an impact on land use planning in California. Unfortunately, the court didn't say what California jurisdictions should do instead, which led to a wide variety of interpretations. The big question is whether California's method of calculating fees - essentially by using an average - conforms to the Sheetz ruling. But are averages okay? Or must cities and counties actually engage in what the Supreme Court has called an ‘individualized determination” for, say, every single home or building in the entire jurisdiction - a huge departure from the past practice of averaging? Quick Hits & Updates The Los Angeles City Council eliminated a rule that allows landlords to evict tenants under the "substantial remodel" exemption within the city's "just cause" eviction regulations. Tenant advocates argue that this exemption has been used to evict long-term renters and raise rents, while landlords claim the change could hinder necessary property improvements. The council's decision, which passed unanimously, instructs the Housing Department and city attorney to draft new rules ensuring tenants can remain in their apartments during remodels, similar to protections already in place for rent-controlled units. The Sacramento City Council adopted the Stockton Boulevard Plan, which aims to promote economic sustainability, housing development and transportation improvements along a major corridor southeast of downtown. The plan focuses on mixed-use development, affordable housing, community services and enhancing pedestrian and biking infrastructure, with efforts to protect and support the local community, particularly Black, Indigenous and people of color residents. Plans for a new 72-story residential skyscraper at 524-530 Howard Street in San Francisco's SoMa district have been approved , thanks to Assembly Bill 2011, which streamlines the conversion of commercial properties into housing. The tower, which could become the city's tallest residential building, will include 672 apartments, with 68 affordable units, along with space for parking and bicycles and a pedestrian bridge connecting to the Transbay Transit Center's rooftop park. A new report from Hilgard Analytics and Zenith Economics reveals a significant decline in residential permitting in Los Angeles, with only 6,907 units approved from January to September 2024, a 30.7% drop compared to the same period in 2023. Factors such as high interest rates, disincentives from Measure ULA, local housing policies and uncertainty surrounding Proposition 33 have contributed to the decline, though some areas in the San Fernando Valley have seen an increase in housing construction. The San Diego Association of Governments will allocate up to $45 million for public infrastructure projects through its Smart Growth Incentive Program, with a focus on climate action, planning and capital improvements. The funding, sourced from the county's TransNet sales tax, will support initiatives such as streetscaping, transportation enhancements and urban improvements, with projects expected to be completed by 2029. Developers have long sought to establish a sand and gravel quarry on Sargent Ranch, a 6,500-acre site near Gilroy, but recent developments have led to a significant preservation effort. The Peninsula Open Space Trust purchased 1,340 acres of the property for $15.6 million, designating it as open space, while ongoing plans for the quarry face continued opposition from environmental groups and local communities, raising questions about the future of the remaining land. Plans for a 1.7-mile people mover connecting Los Angeles Metro's Crenshaw Line to SoFi Stadium and Intuit Dome have been jeopardized after South Bay cities rejected a request for an additional $493 million in funding, threatening $1 billion in federal support. The project, initially backed by the Rams and Clippers and Congresswoman Maxine Waters, has faced growing opposition due to rising costs, design changes impacting nearby properties and concerns over potential disruptions to local businesses during construction, leading to uncertainty about its viability before the 2028 Olympics. The Milken Institute's report on the "best performing cities" in 2024 finds that, despite ongoing inflation and rising interest rates, the U.S. economy continues to grow, with metropolitan areas playing a central role in this expansion. But, four of the five cities experiencing the largest drops in performance are in California. In 2022, over 6 million jobs were added across the US, with 90.7 percent located in metropolitan areas, but some major California metros, such as Los Angeles and Modesto, have seen slower job and wage growth and population decline, while areas in Texas and the Sunbelt have flourished. Sacramento State University plans to replace Hornet Stadium with a new facility designed to host over 25,000 attendees, aiming to enhance its athletic programs and community events while potentially supporting a future move to the Pac-12 conference. Funding for the project has been secured from various sources and construction is expected to take four years, with more details to be announced soon. The Sacramento City Council unanimously approved the American River One housing project, which plans to include nearly 800 residential units and commercial space, despite two appeals challenging its environmental review. The Save the American River Association is pursuing litigation for a full environmental impact report, citing concerns about the project's proximity to the American River, while the construction workers' union LIUNA Local 185 raised issues about worker safety and habitat impacts. Settlement discussions are underway, but no trial date has been scheduled and project representatives have not indicated when construction might begin.

It’s yo-yo time.

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 . In Turnaround, San Francisco Earns Prohousing Designation San Francisco has earned the state's Prohousing Designation. This designation reflects the city's compliance with 18 required actions aimed at resolving legal inconsistencies and enhancing housing production, per a scathing review from the Dept. of Housing and Community Development a year ago. Recent changes include eliminating parking minimums for residential developments and allowing mixed uses in commercial districts. State officials commend the city's commitment to fostering affordable housing and addressing homelessness through structural policy changes. Among the highlights that earned the prohousing designation were efforts such as the citywide elimination of parking requirements for residential development; residential and mixed use developments permitted in all commercial districts; and city legislation to allow the creation of Enhanced Infrastructure Financing Districts, which can be used to finance the development of infrastructure necessary for large-scale housing projects. (See related CP&DR coverage .) State Allocates $1.3 Billion for Public Transit The state will allocate over $1.3 billion from the Transit and Intercity Rail Capital Program (TIRCP) to support 27 public transportation projects designed to enhance transit and passenger rail services statewide. These projects are expected to reduce greenhouse gas emissions by more than 4.3 million metric tons, equivalent to taking 1.3 million gas-powered cars off the road. Among the funded initiatives, Imperial County Transportation Commission will receive $12.6 million to construct a new intermodal center and purchase electric zero-emission vans, marking its first award. Golden Empire Transit will get over $117 million to acquire 18 zero-emission buses, improve bus service frequency and develop infrastructure for affordable housing and retail. Additionally, the Orange County Transportation Authority is set to receive $125 million for coastal rail infrastructure improvements to enhance the resilience of a critical rail corridor. State Audit Reviews Locations of Addiction Treatment Facilities An audit by the Department of Health Care Services revealed concerns regarding residential drug and alcohol treatment facilities in California, particularly their concentration in certain neighborhoods. The report highlighted that state law does not impose limits on the number of these small facilities in residential areas, leading to community worries about their impact. While Health Care Services effectively reviews licensing applications, it has been slow in conducting required inspections, with many facilities facing delays of over six months. Furthermore, the department often does not promptly investigate complaints, taking significantly longer than its internal guidelines suggest. This lack of timely oversight raises concerns about the health and safety of residents. Recommendations include improving inspection timelines and complaint handling, as well as potentially revising legislation to address facility concentration issues in residential communities. (See related CP&DR coverage .) Study Details Causes of Long-Term Drops in Transit Ridership in Los Angeles A new study in the journal Transportation concludes that transit ridership in the U.S. saw significant declines during the 2010s, particularly in Los Angeles, where increased vehicle access played a major role in this trend. The decline coincided with a drop in used car prices, making vehicle ownership more attainable for many residents, which ultimately shifted them away from public transit. While factors such as ride-hailing services and gas prices also contributed, the strong correlation between vehicle access and ridership loss suggests that people were opting for the convenience of cars in a city designed for automobile use. The study highlights the tension between promoting vehicle ownership among low-income individuals and the viability of transit systems that often serve as safety nets for those without access to cars. Ultimately, addressing the structural advantages of driving, such as improved infrastructure and policies, could be key to boosting transit ridership in the future. CP&DR Coverage: Capitol Annex Legal Saga Continues The new State Capitol Annex has survived yet another court challenge, this one arguing that SB 174 - the bill exempting the project from the California Environmental Quality Act - runs afoul of a 44-year-old constitutional amendment designed to protect the Capitol's historic character. The Third District Court of Appeal rejected a preservationist group's argument that even if the bill conformed to the constitution, the Department of General Services cannot be trusted to carry out the legislation constitutionally. Quick Hits & Updates At a recent Fresno City Council meeting, members resorted to drawing lots to decide which council members will eventually vote on the Tower District Specific Plan. The council was unable to reach a quorum because five of the seven councilmembers own property in the area. To address this, the council used a lottery system to select which members could participate in the vote, a first for the council. The update to the Tower District plan, aimed at modernizing land use and protecting residential areas, is expected to take until December 2025 for a final vote. City officials in Fresno are facing criticism and a lawsuit regarding the relocation of a Costco to a new site near the San Joaquin River, where concerns have been raised about increased traffic hazards and environmental impacts from stormwater runoff. The lawsuit claims that the city circumvented proper zoning processes and failed to consider alternative sites that could better manage drainage and safety, reflecting broader issues of economic decline and retail displacement in south Fresno. Humboldt County Supervisors unanimously adopted the county's draft climate plan proposing a comprehensive Regional Climate Action Plan aiming to significantly reduce greenhouse gas emissions through new energy use requirements over the next 20 years. Key elements include forming a Regional Climate Committee, achieving 90% carbon-free electricity by 2030, decarbonizing new residential construction by 2027 and enhancing public transit to cut vehicle emissions, all while ensuring public engagement and further environmental review before final approval by mid-2025. Recent research from NASA indicates a strong correlation between warehouse density in the Los Angeles area and elevated levels of fine particulate pollution (PM2.5), particularly elemental carbon from diesel engines. A study published in September 2024 utilized satellite data to analyze PM2.5 concentrations from 2000 to 2018, revealing that neighborhoods with more warehouses experienced higher pollution levels, raising concerns about associated health risks such as respiratory and cardiovascular diseases. (See related CP&DR coverage.) UC Berkeley is planning a 23-story, 1,634 bed student housing project for first and second-year students. The planned student housing construction costs will range between $425 and $465 million, with final plans presented to the Board of Regents in early 2025. The U.S. Department of Veterans Affairs is appealing a federal ruling requiring it to construct over 2,500 housing units for veterans on its West Los Angeles campus, while also invalidating leases with UCLA and a private school. This move has created uncertainty regarding immediate plans to install modular housing units, as the VA contends that compliance would divert crucial resources from its broader mission to end veteran homelessness, despite previous commitments to expedite housing for disabled and homeless veterans. In WalletHub's ranking of the greenest U.S. cities, several California cities stood out: San Diego, San Francisco, San Jose, Oakland, Fremont and Irvine made the top ten. These cities excelled in various sustainability metrics, while Anaheim was noted for having the lowest greenhouse gas emissions per capita. A former golf course in East San Jose is set to be redeveloped into a mixed-use housing project after city leaders approved new development guidelines aimed at ensuring an abundance of affordable homes. While specific plans from developer Terrascape Ventures are still in progress, the guidelines reflect extensive community input, favoring smaller local businesses and maintaining sufficient green space to benefit the neighborhood. Santa Cruz City Council adopted new policies aimed at managing building heights in the downtown expansion area, proposing a cap of 12 stories in exchange for incentives that include reducing affordable housing requirements. This initiative comes amid ongoing debates about tall buildings in the area, as the city seeks to balance development with community preferences for lower heights and more affordable housing options while navigating state regulations that complicate local control over such decisions. Caltrans will allocate $206 million for 149 local clean transportation projects aimed at reducing pollution, particularly in disadvantaged communities. This funding, part of the Low Carbon Transit Operation Program (LCTOP) supported by California's cap-and-trade program, brings the state's total investment in clean transit to over $1 billion over the past decade, enhancing public health and providing improved transit options across the state.

In addition to previously announced ballot measures (see CP&DR coverage ), California cities are considering a colorful range of ballot measures related to land use November 5. Some are seeking to take on state control over housing; others are expanding or firming up their counties, and still others are wondering about pickleball.

CP&DR Vol. 39 No. 10 October 2024 Report

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 . Tech Entrepreneur Envisions Idyllic, Italian-Inspired Town in Wine Country A new development project called "Esmeralda" is proposed for a 267-acre site near Cloverdale in Sonoma County, following failed attempt to build a resort on the same site, which was once a lumber mill. The Esmeralda Land Company envisions a tech-inspired community resembling a rustic Italian village, aimed at attracting residents seeking a blend of rural charm and modern amenities. The project is being promoted by Devon Zeugel, a former software engineer and tech entrepreneur, who announced his vision on X recently. Zugel, who refers to Esmerelda as "a modern Chautauqua," shared no details about the intended popularion or number of housing units, instead focusing on five design principles: 1. Support a multi-generational community; 2. Prioritize pedestrians & cyclists over cars; 3. Cultivate a culture of learning & building; 4. Protect & harmonize with nature; 5. Promote health & wellness. The project has garnered both enthusiasm and skepticism, with local officials expressing cautious optimism about its potential economic benefits for Cloverdale. The development would be under the jurisdiction of the City of Cloverdale, which will have to approve the zoning and development agreement. San Francisco Institutes Protections for Legacy Businesses San Francisco's Board of Supervisors adopted interim measures to protect legacy businesses from eviction amid proposed rezoning that could raise building heights on many commercial corridors. For the next 18 months, property owners must secure conditional use authorization to fill or demolish spaces previously occupied by businesses operating for 30 years or more. This legislation, initiated by Supervisor Aaron Peskin, responds to concerns about recent property acquisitions threatening established neighborhood businesses. City officials are also considering requiring developers to provide relocation assistance to impacted businesses. While the Small Business Commission supports these protections, it warns they might deter new businesses from moving into legacy spaces, potentially increasing vacancies. Recommendations for future legislation include allowing legacy businesses to take over former legacy spaces without additional barriers and ensuring they have the first right of refusal if faced with displacement. Irvine Adopts Zoning for 15,000 Homes against Airport Land Use Commission's Wishes The Irvine City Council voted to proceed with plans to zone for up to 15,000 homes near John Wayne Airport, overriding concerns from the Orange County Airport Land Use Commission. This decision was necessary to meet a state-imposed deadline for updating housing plans, avoiding potential penalties for the city. Despite a lack of discussion before the vote, some residents supported the development, highlighting the existing urban intensity around the airport. Only Councilman Larry Agran opposed the zoning change, citing environmental and safety concerns linked to the proposed high-density housing. Meanwhile, other city officials defended the move, arguing that delays in housing development create a cycle of inaction. The city has been in communication with various agencies regarding these housing plans, which are part of a broader effort to address housing needs in the area. California Rep. Introduces Federal Bill to Support Housing in Rural Areas U.S. Representatives introduced the bipartisan Rural Homeownership Continuity Act earlier this month, targeting the housing affordability crisis in rural California. This legislation aims to allow families in areas like the San Joaquin Valley to secure federal loans at lower interest rates by facilitating loan assumptions, thus easing financial burdens and promoting stability in communities. Costa emphasized that the act could strengthen rural communities by making homeownership more attainable, which is crucial given the ongoing challenges residents face. LaMalfa highlighted the need to remove bureaucratic barriers that hinder low-income residents from achieving homeownership amid rising housing costs. Overall, the act seeks to improve access to affordable housing, which is critical for many California families struggling to find suitable living conditions. CP&DR Coverage: Planners Consider Consequences of California's Population Loss The Southern California Association of Governments convenes its annual Demographics Summit to help its member jurisdictions understand the trends they are facing. This year's summit had an overwhelming, and overwhelmingly compelling, thesis: the state's population is stagnating. For the first time pretty much since 1848. The reasons center partly on out-migration, of largely middle-income folks who seek lower costs of living in places like Nevada and Texas; that trend is complemented by lack of in-migration, caused largely by California's prohibitive housing costs. Arguably, the stronger force lies in a trend commonly ascribed to developed countries but that is, in fact, sweeping the majority of the globe: plummeting birth rates. A whole lot is going to happen in Southern California, and, likely, statewide until widespread population loss really takes hold. Quick Hits & Updates The Housing Authority of the City of Santa Barbara (HACSB) received two Awards of Merit from National Association of Housing and Redevelopment Officials for two community initiatives: the transformation of Vera Cruz Village into affordable housing for 28 formerly homeless individuals, and HACSB's PBC Summer Program, which supports high school students with college readiness and cultural empowerment, showcasing the agency's commitment to addressing local housing challenges and community needs. A new study out of UCLA found a notable disparity in homeownership demand, with majority non-white neighborhoods seeing loan applications that are over twice as high as those in majority white areas. Additionally, Black and Latino homebuyers face more obstacles in securing mortgages, often encountering higher denial rates and expensive loan options, highlighting the need for policy reforms that address rising housing costs and promote equitable access to financing. A land acquisition will preserve significant hiking areas in Northern California, including three miles of the Pacific Crest Trail, covering 7,000 acres in the southern Klamath Mountains. The deal, facilitated by the Trust for Public Land, involves a $5.3 million purchase for half of the property, with additional funding expected from the federal Land and Water Conservation Fund for the rest and aims to restore ecological health by addressing former logging impacts before integrating the land into the Shasta-Trinity National Forest. Elon Musk's SpaceX has filed a federal lawsuit against the Coastal Commission after the agency rejected a plan for 50 rocket launches this year, claiming the commission overstepped its authority and discriminated against Musk's political views. Tensions have escalated as the commission raises concerns about environmental impacts from increased launches at Vandenberg Space Force Base, while SpaceX argues that its activities should be classified as federal, exempting them from state regulation. Phillips 66 has engaged Catellus Development and Deca to help redevelop its 650-acre Los Angeles Refinery complex, which is set to close next year, marking one of the largest available industrial land parcels near the Port of Los Angeles. Potential future uses for the site include an industrial campus with logistics warehouses or residential developments, particularly on the Wilmington parcel, though any new housing would likely need to be upscale to be financially viable. The California Department of Housing and Community Development published a comprehensive guide aimed at preserving affordable housing throughout the state, detailing relevant laws and legal obligations. This resource addresses key topics such as notifications for expiring assistance, the sale process for affordable properties and outreach efforts, while also emphasizing protections that ensure transparency and long-term affordability. Caltrans is advancing efforts to remove Interstate 980, which has been criticized for its negative impact on the predominantly Black community of West Oakland, by conducting a survey as part of its Vision 980 Study. The initiative, supported by a $680,000 federal grant, aims to explore replacing the freeway with a more community-friendly street to reconnect West Oakland with the rest of the city and address the historical injustices caused by its construction. San Francisco is exploring the feasibility of constructing a gondola system to transport people from the Forest Hill Light Rail Station to Laguna Honda Hospital, aiming to address challenges in navigating the steep terrain. The San Francisco County Transportation Authority has allocated $170,000 for a study to evaluate this project, with the potential for similar systems in other areas of the city, as officials seek alternatives to current transportation methods that contribute to pollution. A new USC study highlights the need for a multifaceted approach to address the unequal distribution of trees in Los Angeles, particularly in under-canopied areas like South L.A., where historical discrimination has led to significant disparities. Despite community leaders recognizing the benefits of trees for public health and identity, budget cuts to the city's Urban Forestry Division threaten progress, underscoring the complexity of integrating urban greening with other pressing social issues like homelessness and gentrification.

While many jurisdictions in California have been working hard to develop housing elements that comply with state law—whether stakeholders like it or not—a ballot measure in the city of Eureka in Humboldt County may lead that city in the opposite direction. If passed, Measure F could incur penalties from the state. That’s the argument made by opponents of Measure F, an initiative they say would upend development on six city-owned downtown parking lots, totaling about 640 spaces, that are slated for affordable housing under the city’s housing element. The measure would maintain the current parking supply on the downtown lots and instead rezone a school-owned parcel outside of downtown for parking. Eureka’s election battle is all the more intriguing because the group sponsoring the measure, Citizens for a Better Eureka, is financed with $1 million from Rob Arkley. Arkley owns Security National Properties, a downtown Eureka-based business with about 200 employees. Security’s employees park in some of the impacted city lots. (Arkley received national attention in 2023 when ProPublica reported that U.S. Supreme Court Justice Samuel Alito stayed free at a Alaskan fishing lodge that Arkley owned, and Alito didn’t report the gift.)

In the early years when the logistics industry started taking over the Inland Empire in the 1980s, the region was a warehouse developer’s dream: large tracts of land and relatively few residents to protest against the pollution and unsightliness with which they are associated. Four decades and roughly 4,000 warehouses later, the region is home to 4.7 million residents — and many of them are clamoring for cleaner air.

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 . Burrowing Owl Receives Endangered Species Candidacy California wildlife officials have designated the Western burrowing owl as a candidate for protection under the Endangered Species Act, responding to significant population declines attributed to habitat loss from urban development, agriculture and renewable energy projects. This decision marks a shift from a previous denial of protections two decades ago, reflecting heightened urgency for conservation measures as the owl's numbers have plummeted to about 6,500 breeding pairs from over 10,500 in 2003. Stakeholders from various industries express concern about the economic implications of stricter regulations, arguing that development plays a crucial role in meeting state needs for housing and clean energy. Nevertheless, conservation advocates emphasize the owl's dire situation and the need for immediate protective measures, highlighting that existing regulations have been insufficient. As the California Department of Fish and Wildlife conducts a status review, the interim protections will require project proponents to navigate new regulatory challenges, potentially impacting future development and land use planning in the state. The burrowing owl is especially notable for being the subject of a 2014 essay by Kim Mai-Cutler, "How Burrowing Owls Lead To Vomiting Anarchists (Or SF's Housing Crisis Explained)." $2.9 Billion Mixed-Use "Urban Village" Coming to Santa Ana The Santa Ana City Council has approved the Related Bristol urban village, a transformative 41-acre mixed-use development costing $2.9 billion, marking a significant milestone for the city. This project is projected to generate nearly 17,000 jobs and $1.5 billion in labor income, alongside 1,215 to 5,529 ongoing jobs, significantly boosting the local economy. Mayor Valerie Amezcua emphasized the development's potential to meet the needs of current and future residents through thoughtful growth and community benefits. The plan includes up to 3,750 residential units, a hotel, extensive commercial space and over 13 acres of public open space, which will remain accessible to the community. Construction is slated to begin in 2026 and is expected to be completed by 2036, enhancing Santa Ana's southern gateway and overall urban landscape. Court Rejects Federal Plan for Off-Roading in Mojave Desert A federal judge has rejected a Bureau of Land Management (BLM) plan for off-road vehicle routes in California's Western Mojave Desert, citing insufficient protections for the endangered desert tortoise and the Lane Mountain milk-vetch. A U.S. District judge ruled that the BLM failed to demonstrate how its route designations minimized impacts on these vulnerable species, which is critical given the tortoise's declining population. The plan would have affected over 3 million acres in five counties, primarily San Bernardino, Riverside. Conservationists are now pushing for measures such as seasonal restrictions on off-road activities in key tortoise habitats to prevent further population declines. The ruling may lead to revised planning that better integrates environmental concerns with land management, addressing the significant impact of human activities on local ecosystems. Greenhouse Gas Emissions Drop Statewide California saw a 2.4% drop in greenhouse gas emissions in 2022, amounting to a reduction of about 9.3 million metric tons compared to the previous year, according to the California Air Resources Board. This decrease was largely driven by increased electric vehicle adoption and a shift to biofuels in transportation, which accounted for over half of the reduction. The emissions level in 2022 marked the lowest since 2020, reflecting a continuation of efforts to reduce carbon footprints while the economy recovers post-pandemic. However, significant challenges remain, as California aims to meet its ambitious climate goals, including a 40% reduction in emissions by 2030 compared to 1990 levels, which requires further action. While transportation remains the largest source of emissions, the state is making strides with renewable energy and electric vehicle sales, suggesting a positive trajectory toward long-term climate targets. CP&DR Coverage: The Conundrum of "Objective Design Standards" Cities and counties in California are aggressively - and sometimes in a coordinated way - adopting the “objective design standards” required by the Housing Accountability Act. But increasingly, local planners say, the waivers and concessions permitted by the state's Density Bonus Law serve to undercut the objective standards. Although the intent of the objective design standards is to ensure that cities do not deny housing projects based on squishy requirements, developers using the Density Bonus Law can get out from under some of those standards even after they are adopted. Quick Hits & Updates HCD released its new Guide to Affordable Housing Preservation Laws to explain how these laws work to preserve affordable homes in California. The guide covers the various protections that promote transparency and accountability as well as incentivize long-term affordability. The Biden administration officially established the Chumash Heritage National Marine Sanctuary off California's Central Coast, which is the first sanctuary to be co-managed with Indigenous peoples. Spanning 4,543 square miles, the sanctuary will prohibit oil drilling and protect vital cultural and ecological resources, while also addressing concerns from some Indigenous leaders about the adequacy of government consultation in the process. The San Francisco Board of Supervisors adopted a scaled-back rent control proposal that would extend protections to about 40,000 renters if California voters repeal the Costa-Hawkins Rental Housing Act in November. The revised legislation, which only applies to buildings constructed before 1994, reflects concerns from developers and housing advocates about its potential impact on the construction market. A state appeals court has cleared the demolition and replacement of the 72-year-old Capitol Annex building in Sacramento, despite opposition from some community groups. The project, mandated by a 2016 law, aims to create a modern, safer structure with larger offices, although costs have escalated from an initial $700 million to an estimated $1.2 billion. Los Angeles is advancing plans to enhance its infrastructure in anticipation of major sporting events, including the 2026 FIFA World Cup and the 2028 Summer Olympics. Mayor Karen Bass has signed an executive directive to streamline project delivery, establish a Capital Planning Steering Committee and coordinate improvements that will provide lasting benefits for the city's streets, parks and public spaces. StoneBridge Properties LLC has filed a lawsuit against the town of Loomis, urging the court to expedite the review process for its 319-home infill project, Hidden Grove. The company claims that Loomis officials are delaying the project beyond what state law allows, despite the proposal being in limbo for over three years without a formal hearing. A recent report from California's Select Committee on Happiness and Public Policy Outcomes reveals a decline in happiness among Californians, with those identifying as "very happy" dropping from 28% in 1998 to 16% in 2023. Factors contributing to unhappiness include dissatisfaction with jobs and finances, with younger individuals, renters and those with lower incomes more likely to report being "not too happy." The committee urges lawmakers to prioritize happiness in future policy development and to work on rebuilding trust between residents and the government. Sonoma County has launched a comprehensive "Master Plan for Aging" to address the needs of its rapidly growing senior population, which is projected to rise from 28% of residents aged 60 and over to 35% by 2030. This 10-year strategy focuses on key areas such as affordable housing, healthcare, transportation and economic security, aiming to improve the quality of life for seniors while also addressing issues of racial and ethnic diversity among the aging population. A family is suing the City of Healdsburg over a $20,000 inclusionary zoning fee they were charged for building two homes on their property, arguing it amounts to "extortionary zoning." The family claims the fee is unconstitutional, as new housing typically lowers prices by increasing supply and they have offered to rent one of their existing units at below-market rates, which the city rejected.

Six months after it came, the U.S. Supreme Court’s ruling in the Sheetz case is beginning to have an impact on land use planning in California. But – typical of Supreme Court rulings these days – Sheetz leaves a lot of question unanswered and practicing planners and land use lawyers are still wondering, or maybe hoping, that future court rulings will clarify things. Sheetz overturned California’s longstanding Ehrlich doctrine, which said that if exactions and impact fees are adopted as part of a legislative decision such as a General Plan update they don’t have to follow the “rough proportionality” rule of the so-called Nollan/Dolan legal doctrine. That doctrine, which emerged from the U.S. Supreme Court rulings in the Nollan  and Dolan cases, says that exactions must be both reasonably related and roughly proportional to the impact of a development . But California had stubbornly held on to the Ehrlich doctrine, which constituted an exception to the rule. The Sheetz case – involving a traffic impact fee imposed on a homeowner in El Dorado County – struck down the Ehrlich doctrine. ( CP&DR ’s coverage of the Sheetz ruling can be found here .) Unfortunately, the court didn’t say what California jurisdictions should do instead, which led to a wide variety of interpretations. More than one planner has reported that, starting the day after Sheetz was issued in April, developers started calling up and saying they didn’t have to pay impact fees anymore. The big question is whether California’s method of calculating fees – essentially by using an average – conforms to the Sheetz ruling. As we explained last spring here , the typical exaction or impact fee regime spreads the cost of infrastructure and other impacts evenly across all development – essentially dividing the cost by the number of units (or the square footage) to arrive at a number. This is essentially what El Dorado County did in the Sheetz situation. But are averages okay? Or must cities and counties actually engage in what the Supreme Court has called an ‘individualized determination” for, say, every single home or building in the entire jurisdiction – a huge departure from the past practice of averaging? At the California Chapter, American Planning Association, conference in Riverside last month, several practitioners had some preliminary answers. But everybody agrees that more clarification from the U.S. Supreme Court – or other courts in California – would help a lot. “What we don’t know is whether … in 3-4 years we’ll get a new clarification ,” said Teifion Rice-Evans, a managing principal with EPS. The consensus was that there’s probably some middle ground between the current practice of averaging and the “individualized determination” the Supreme Court might have in mind. “The question is whether a permit condition imposed on a class of properties must be tailored with the same degree of specified as a permit condition that targets a particular development,” said Lufti Kharuf, an attorney with Best Best & Krieger. Referring to a concurring opinion by Justice Neil Gorsuch, Kharuf added: “Gorsuch suggested yes, but no other justice joined him.” Among the suggestions from the panel were:

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 Blocks Construction of Warehouse Facility in San Bernardino County A recent Superior Court ruling requires a developer to pause construction on a contentious warehouse project in San Bernardino County due to significant flaws in the project's environmental impact report. The county had previously approved the removal of 117 homes to create over 2 million square feet of warehouse space, but environmental groups argued this violated state regulations. Judge Donald Alvarez determined that the county's review process failed to adequately assess environmental impacts and required a thorough re-evaluation. While the developer plans to appeal parts of the ruling, community advocates view the decision as a major victory in their ongoing struggle against the rapid expansion of warehouse developments in the region. The ruling raises important questions about the county's approval processes and the balance between economic growth and community health. (See related CP&DR coverage .) San Jose Adopts Incentives to Attract Businesses to Downtown In response to declining demand for office space in its downtown, San Jose is adopting new incentives to attract tenants and stimulate economic growth. Businesses that lease or purchase at least 2,500 square feet of office space downtown will be exempt from city business tax for two years and two free parking spaces. The city estimates the program will cost it roughly $1 million per year. The city aims to create a more vibrant downtown environment by increasing foot traffic, which is essential for supporting local businesses. A vote on these proposed incentives is set for next week, with hopes that they will help revitalize the area. Details Emerge for High Desert Corridor High Speed Rail Line The High Desert Corridor Joint Powers Agency released a presentation with details of a new high-speed rail line stretching 54 miles between Palmdale and Victor Valley. The line would connect with Brightline West, now under construction, at its eastern terminus and with a yet-to-be approved segment of California High Speed Rail and existing Metrolink commuter rail at its western end. This line is currently in the environmental review phase. Estimated costs for this connector range from $5.8 billion to $6.6 billion, with direct service potentially reducing travel time to under three hours. (See related CP&DR coverage .) California Cities Dominate List of Slowest Markets for Home Sales The housing market in the U.S. has experienced a significant slowdown in 2024, with only 2.5% of homes changing hands—the lowest turnover in 30 years, according to Redfin's analysis. California metro areas are particularly affected, with seven of the nation's ten least-active cities. Los Angeles reported the lowest turnover rate, with only 15 out of every 1,000 homes sold. San Francisco, Oakland, Anaheim, San Jose, Sacramento, and San Diego all had 18 or fewer sales per 1,000. (Phoenix was the most active large city, with 38 sales per 1,000.) Factors such as stagnant wages, high construction costs and a slowdown in hiring, especially in the entertainment sector, are contributing to this decline in Los Angeles. Additionally, other California markets are struggling, with overall sales dropping significantly compared to previous years. In contrast, cities like Phoenix are seeing higher sales activity, indicating geographic disparities in the housing market. CP&DR Coverage: Warehouse Surprise; Housing Bill Bonanza Gov. Gavin Newsom signed all but one of the 40-odd planning and development bills the Legislature passed, including - at the last minute - the controversial bill regulating warehouses. Newsom signed AB 98, the warehouse bill, on September 29, just one day before the deadline. He was under tremendous pressure from business leaders, especially in the Central Valley, to veto it. Some environmental justice groups also opposed it. Altogether, Newsom signed more than 40 planning and development bills, most of which either further tightened state oversight of housing entitlements or punched more holes in the California Environmental Quality Act. Other highlights include a clarification of the Builder's Remedy, changes to Housing Elements, redefinition of "major transit stop" for TOD's, and tweaks to Density Bonus law. Quick Hits & Updates The National Oceanic and Atmospheric Administration (NOAA) has approved the Chumash Heritage National Marine Sanctuary, covering 4,543 square miles of the Pacific Ocean from Santa Barbara to San Luis Obispo County, aimed at protecting marine ecosystems and Chumash cultural sites. This sanctuary, the first nominated by a Native American tribe, will prohibit offshore oil drilling and certain seabed disturbances while allowing collaborative management with the Northern Chumash Tribal Council and other tribes. American National Property and Casualty Company plans to exit the flood insurance market in California early next year, despite a growing number of providers in the state. Currently, only about 187,000 Californians have flood insurance through the National Flood Insurance Program, highlighting a significant gap in coverage amid increasing flood risks and damages. The proposed Sites Reservoir in Colusa County has ignited controversy among local Indigenous tribes, particularly the Kletsel Dehe Wintun Nation and the Cachil Dehe Band of Wintun Indians, who emphasize the land's significance for burial sites and cultural practices. While proponents argue the reservoir will address water needs, tribal leaders express concerns about its impact on ancestral lands and the ecosystem, especially regarding the Sacramento River. The project is currently undergoing environmental reviews, with important decisions expected soon. Los Angeles City Council adopted updates to the Boyle Heights Community Plan, aiming to address housing needs and update zoning regulations around the L.A. River and Pico-Aliso neighborhoods. The plan includes incentives for mixed-income projects that require affordable housing, helping to combat gentrification, according to 14th District Councilmember Kevin de León. This update is part of a broader effort to enhance the quality of life while preserving the neighborhood's cultural identity, with projections of accommodating 38,000 new residents and creating 12,000 jobs by 2040. Los Angeles County Metro's Orange Line rapid bus line is set for a significant $668.5 million upgrade approved by LA Metro's board, which includes the construction of bus overpasses and signal priority upgrades aimed at reducing travel times. The project, scheduled to start in January and complete by 2027-2028, is viewed as a step toward a future light-rail conversion, as the upgrades include infrastructure compatible with such a transition. A Los Angeles County judge ruled that the City of Los Angeles unlawfully blocked a seven-story affordable apartment building in the San Fernando Valley, stating the city retroactively applied new regulations to deny the project. This decision could pave the way for the construction of the 360-unit development in Winnetka and challenges the city's recent restrictions on affordable housing in single-family neighborhoods, which have left numerous projects in limbo. UC San Diego has opened two of the tallest college residence halls in the U.S., Pepper Canyon West, which includes a 23-story and a 22-story tower, accommodating 1,310 upper-division transfer students. These new dorms aim to help UCSD manage a historic enrollment boom, expected to reach 50,000 students in a decade. A recent UC Berkeley Terner Center policy brief highlights public funding as a necessary tool in address the San Francisco Bay Area's affordability crisis. The research concludes the Bay Area's affordability crisis affects many households, with rising housing costs outpacing incomes, almost half of renters spending over 30 percent of their income on rent and increasing homelessness. The City of Los Angeles has agreed to pay $38.2 million to settle allegations that it failed to meet federal accessibility requirements for HUD-funded affordable housing, including not ensuring that units were accessible for people with disabilities and misrepresenting compliance in annual certifications. This settlement resolves a lawsuit filed under the False Claims Act, which accused the city of discrimination and violations of accessibility laws in its housing projects. A study by California-based researchers Anthony Orlando and Chris Redfearn highlights shifts in housing supply dynamics in Texas and California. The study found a trend towards higher-density, multifamily units and a decline in new housing at the periphery, regardless of regional differences in regulation and topography. This shift is linked to a broader issue where housing supply has failed to keep pace with growing demand, leading to significant price increases and decreased housing elasticity.

Cities and counties in California are aggressively – and sometimes in a coordinated way – adopting the “objective design standards” required by the Housing Accountability Act.