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CP&DR Vol. 39 No. 8 August 2024

As California grapples with a deepening housing underproduction crisis, developers might be facing an unexpected challenger: Crotch’s bumblebee. And it could be just the beginning of a new era of endangered species protection, as more insects become eligible for protection – and the methodology for understanding listing and protection might be very different for insects. “I do believe this huge evolution,” said David Smith, an energy and environment partner at the Manatt law firm. “It's not just about Crotch’s bumblebee, but this new era where insects are going to start being listed may get their attention and cause them to think of alternative approaches.” The bumblebee (scientific name: Bombus crotchii ) has an extremely wide range within California, including the Mediterranean region, Pacific Coast, western Mojave desert, Central Valley, and foothills, and has also been observed in southwest Nevada near the California border. They are most active between March and September, with queens most active in the spring.

Group Sues Newport Beach for Adopting Housing Element A recently filed lawsuit against Newport Beach accuses the City Council of violating the city charter by approving housing ordinances and resolutions without allowing voters to decide in the November election. The nonprofit Still Protecting Our Newport argues that this approval bypasses Section 423 of the charter, which mandates voter input for significant land use decisions unless preempted by state or federal law. The city contends that state housing mandates, which require the zoning for 4,845 new residential units by 2029, override this charter provision. The council believes failing to comply with these mandates could result in substantial fines and the imposition of state control over local zoning. The housing plan under dispute proposes 8,174 units, exceeding the state’s requirements by 68% to address potential development challenges. Critics argue that the plan could be revised to better support affordable housing development and reduce the required number of new units. Major Bills on Coastal Housing, Fire Hazard Zones Die in Legislature Two legislative efforts that had attracted attention, and protests, recently have died. Despite a push to limit the ability of the Coastal Commission to deny housing projects in the Coastal Zone, a series of new bills aimed at easing coastal development restrictions and facilitating construction have either stalled or been significantly diluted, leaving the commission's authority largely intact. Most notably, San Diego Assemblymember David Alvarez pulled his bill AB 2560. A proposed overhaul of California’s wildfire hazard mapping system, Senate Bill 610, has been rejected by the state Assembly. The bill aimed to replace the current hazard severity zones with a unified “wildfire mitigation area” classification, which supporters argued would simplify and standardize wildfire preparation. Meanwhile, the Senate Appropriations Committee has advanced Assembly Bill 2986, which calls for a feasibility study on the potential incorporation of East L.A. as a city or special district. Prohousing Jurisdictions Now Number 50; HCD Awards $15.3 Million in Grants The California Department of HCD has granted Napa, San Leandro, and Walnut Creek the Prohousing Designation, joining 47 other communities recognized for their commitment to promoting housing development. Among the highlights on the cities’ applications: Napa the city provides property owners with easy access to dozens of low-cost, off-the-shelf, pre-approved ADU plans; San Leandro developed a Priority Development Area to allow for higher densities and greater floor area ratios and to remove height limits for infill housing near transit, resulting in an additional 2,500 homes; Walnut Creek adopted the Community Benefits program, which provides opportunities for developers to receive additional height limits, greater floor area ratio, and density bonuses for a project in exchange for providing amenities desired by the city. Additionally, nearly $15.3 million in incentives, ranging from $560,000 to $1.25 million, were awarded to 19 previously recognized Prohousing communities to support further housing initiatives. (See related CP&DR coverage .) CP&DR Coverage: Joshua Tree Conservation Act Stymies Developers Wildfire, development, and, most of all, climate change are threatening the western Joshua tree. Surveys indicate that young trees are taking root in only 50% of the current range; in a worst-case scenario, the tree could go nearly extinct. In 2023, at the urging of environmental groups, the legislature passed the Joshua Tree Conservation Act as a trailer bill. The act affords the western Joshua tree the equivalent of threatened status under CESA—including restrictions on residential development and a near-ban on commercial and industrial development on parcels containing Joshua trees--and is believed to be a novel approach to species conservation. The act went into effect earlier this year and is expected to remain in effect for at least 10 years. That may mean 10 years in which desert communities struggle to promote development and meet their Regional Housing Needs Allocation numbers. It is yet another instance in which conservation is complicating the state’s efforts to provide housing – especially on the urban fringes. Quick Hits & Updates The Land Trust of Santa Cruz County recently acquired a 247-acre property near the Pajaro River to create new estuarine habitats for wildlife and aims to protect adjacent coastal areas from flooding. This method reflects a broader shift towards adapting to climate change by working with natural processes rather than solely relying on engineering solutions. Analyzing the 50 most populous states according 2020 U.S. Census Bureau Data using data from FEMA and the US EPA, Policygenius found San Francisco has the lowest exposure risk to the worst impacts of climate change, while Los Angeles is seventh-worst city in the nation in terms of predicted climate change impacts on the city. San Francisco is predicted to have only three days of extreme heat by 2050, compared with Los Angeles's predicted 34 extreme heat days by 2050. Los Angeles also scores badly on social vulnerability and community resilience. Huntington Beach has been  granted a year to create new citywide housing plans after a judge ruled that the city violated state law by refusing to plan for more housing. The city has been in conflict with the state over requirements to allow for at least 13,368 housing units this decade and may face fines if they do not meet the requirement. Additionally, a charter amendment on the November ballot could require voter approval for zoning changes related to the new housing plan. The Santa Clara Valley Water District has allocated $1.7 million to conduct a feasibility study over the next year for a seawater desalination plant on the San Francisco Bay as a part of its efforts to explore new drinking water sources. The proposed plant could produce between 10 to 40 million gallons of freshwater daily by processing 20 to 80 million gallons of seawater, but the project might face significant opposition due to high costs and environmental concerns. The San Antonio Station Alliance is advocating for a proposed BART station at the intersection of 14th Avenue and East 8th in East Oakland, a transit-desolate area where they say the absence of a station reflects historical racial biases in transit planning and leaves a significant portion of the community underserved. Such infill stations are cost-effective, could enhance regional connectivity, and address a lack of economic opportunities, but advocates also underscore the danger of gentrification. An analysis of eight Southern California municipalities responses to the state's 2018 law mandating affirmative action for fair housing in their General Plans' housing elements found that, despite creating numerous programs, most did not effectively advance fair housing goals, with affluent cities continuing to concentrate affordable housing sites in less affluent neighborhoods, highlighting implementation challenges of the affirmatively further fair housing mandate. A study by Enterprise Community Partners concludes that repurposing vacant or underutilized strip malls into affordable or mixed-income multifamily housing and mixed-use developments offers a promising solution to housing affordability and supply challenges, while also supporting economic development and creating green spaces. The study concludes state and local policymakers' support is crucial for such redevelopment projects, which may involve accessing public grants and loans like Low-Income Housing Tax Credits or Community Development Block Grants to integrate community-serving uses. A report from UC Berkeley's Turner Center for Housing Innovation surveyed the small multifamily rental property market and found these properties, typically owned by individuals or small portfolio owners, play a crucial role in providing lower-cost housing, but concerns about habitability and affordability persist, especially in older buildings and among owners facing financial challenges. Further research and policy measures are needed to address these issues and support both tenants and owners in this segment of the rental housing market. The San Diego Board of Port Commissioners has granted a three-year extension to the entitlement phase of the exclusive negotiating agreement with the developer of the $3.8 billion Seaport San Diego project. This extension allows developer 1HWY1, selected in 2016, until October 1, 2027, to secure the necessary government approvals and raise the required capital for the redevelopment of the Central Embarcadero bayfront. California has allocated $351.5 million in the 2024-2025 state budget to enhance Los Angeles' Exposition Park, including nearly six acres of new green space and an underground parking garage, in preparation for the 2028 Los Angeles Olympics. More than 400,000 students in Los Angeles are now enrolled in the Metro GoPass program, which offers unlimited free rides on buses and trains, with over 40 million student boardings recorded as of June. Launched as a pilot in 2021 and made permanent in April 2024, the program has expanded to include 1,600 schools and is seen as a crucial support for student transportation and access to education. HDC  certified Palo Alto's 2023-2031 housing element, marking a significant step in guiding future housing production and policies. This achievement underscores Palo Alto's commitment to affordable housing, highlighted by a record of investing $52 million in housing projects, including recent developments and ongoing initiatives to expand affordable housing throughout the city. San Jose is pioneering a new state law that allows homeowners to sell accessory dwelling units (ADUs) as condominiums, aiming to boost the city's affordable housing options. The city is the first to adopt AB 1033, passed last year, that allows for the sale of ADU. San Jose has already seen significant growth in ADU construction, contributing over 20% of the city's new housing stock in recent years.

Sponsors Remove $20 Billion Housing Bond from Bay Area Ballot The Bay Area Housing Finance Authority (BAHFA) withdrew a proposed $20 billion housing bond measure, Regional Measure 4, from the November ballot due to significant errors in its cost projections. The bond, intended to fund affordable housing across the Bay Area, had faced challenges from opponents suing over its language and financial details, which inaccurately reported projected costs as $670 million instead of the actual $910 million. This setback follows four years of effort by housing advocates and local officials who had hoped to leverage high voter turnout during the presidential election. The decision to pull the measure comes as the last day to withdraw ballot items expired and the bond's critics had argued it would unfairly increase taxes on property owners and renters. Moving forward, supporters of RM 4 will focus on promoting Proposition 5, which seeks to lower the required voter approval threshold for local affordable housing bonds. The withdrawal of the bond measure is a significant blow to affordable housing initiatives in the region, exacerbating funding challenges and potentially impacting future housing development. Plan for Solano County Air Force Base Updated A Solano County commission approved a revised Travis Air Force Base Land Use Compatibility Plan, despite opposition from Suisun City and the now delayed California Forever project. The new plan introduces a Low Altitude Maneuvering Zone (LAMZ) that could limit development in areas previously planned under earlier guidelines. The commission's decision, which passed 6-1 with one abstention and one absence, was criticized by California Forever CEO Jan Sramek for lacking public input and necessary data. Sramek argued that the new zone, which Travis AFB leadership reportedly doesn't consider essential, could damage the project's credibility and hinder future development. Suisun City officials expressed concerns that the LAMZ could significantly reduce potential revenue from planned developments, impacting their finances. The commission's plan aims to protect Travis AFB operations by restricting land uses within the LAMZ and has made adjustments to address some concerns, such as allowing reviews of new conservation projects. (See related CP&DR coverage .) San Jose Diridon Station Upgrade to Cost up to $10 Billion The Diridon Station redevelopment in San Jose is evaluating two design options: a ground-level design costing $3 billion to $6 billion and an elevated-track design costing $5 billion to $10 billion. Public entities are expected to be responsible for most, if not all, of the funding. Both options are designed to upgrade the station and accommodate California High Speed Rail and turn the station into a “. An advisory committee consisting of officials from the City of San Jose, the Santa Clara Valley Authority, Caltrain, the Metropolitan Transportation Commission, and the California High-Speed Rail Authority are exploring new tax measures and creative funding solutions, with a potential new governance entity through state legislation to oversee construction. It will also seek federal funds. The station is the centerpiece of a 250-acre zone that will include a massive complex for Google, which plans to add over 12,000 homes and millions of square feet of office space. The committee is expected to recommend an alternative in about a year. (See related CP&DR coverage .) New Laws Lead to Proliferation of ADUs in Los Angeles County Since state laws changed in 2016 to promote accessory dwelling units (ADUs), Los Angeles County has seen a surge in their construction, with one in five new housing units in the county being an ADU in 2022. According to an analysis by the Los Angeles Times, the county has led in ADU construction, issuing 45,000 permits between 2018 and 2023, and has permitted more ADUs per capita than any other in California. The distribution of ADU permits has varied widely across the county, with cities like San Fernando (69.97 permits per 1,000 housing units), Rosemead (56.84), and Temple City (56.83) leading in ADU approvals. In contrast, cities like Westlake Village (1.16), Cerritos (2.38), and Cudahy (2.88) have issued far fewer permits. Cities that added the most ADUs saw a 1.8% increase in housing stock and a smaller population drop (1.5%) compared to those that added the fewest, which experienced a 2.6% population decline. The growth is driven by streamlined permitting in lower- and middle-income areas, where ADUS are more likely to be rented out, unlike wealthier neighborhoods. CP&DR Coverage: &Fulton on Newsom's "Creative" New Infill Plan & When Gov. Gavin Newsom announced on July 31 that he had signed an executive order to stimulate infill development, most of the publicity was around reforming building codes - and possibly finding a way to ditch the two-stairway requirement for apartment buildings, which YIMBY advocates say would significantly decrease the cost of multifamily housing. But buried in the executive order was a potentially far-reaching concept which, if it is successfully implemented, could have far-reaching consequences for California land use: the idea that infill housing can be a mitigation measure under the California Environmental Quality Act. It's a creative idea. But it's not really about infill housing. It's about mitigating the impact of additional vehicle miles traveled on transportation project under SB 743. If it works, it would mean that transportation funds - state funds, local sales tax funds, and possible federal funds - would be used to build infill housing. Quick Hits & Updates A developer seeking to transform defunct properties once operated by the University of California San Francisco is pushing for the establishment of an Enhanced Infrastructure Financing District (EIFD) to facilitate the project. The EIFD is intended to support Prada Group's plans for redeveloping two significant sites in Laurel Heights: the former UCSF campus and the old California Pacific Medical Center, together adding over 1,300 new homes. Los Angeles has extended the deadline for businesses to secure permanent permits under the “Al Fresco” program to December 31, 2024, due to complications in the application process. The extension aims to assist over 3,000 businesses struggling with new regulations. Mayor Karen Bass has urged city departments to simplify the application process and ensure all completed applications are reviewed and processed within 30 days. Archer Aviation plans to launch its air taxi service in Los Angeles by 2026, using existing infrastructure at locations like USC, LAX and SoFi Stadium to provide quieter, multi-propeller flights over traffic. The company has received FAA clearance for commercial testing and aims to integrate its service with local airports and airlines, such as United and Southwest. While Archer intends to use underutilized existing facilities rather than build new ones, challenges such as regulatory approvals, electrification for charging and affordability remain. A judge blocked San Diego County's Fanita Ranch -- a development project aimed at building 3,000 new homes, citing violations of the city's general plan and state environmental laws due to its location in a high fire hazard zone. The court's decision invalidates the city's attempt to bypass a public vote, which was previously required by local voters. Environmental and wildlife groups view the ruling as a significant victory, reinforcing the protection of sensitive habitats and preventing increased wildfire risks. The Moreno Valley City Council approved a plan to redevelop the Moreno Valley Mall, which will include over 1,600 new residential units, additional retail, office space, two hotels and a conference center. The redevelopment will utilize existing parking lot space and also involve renovating the mall's interior and façade, including repurposing former retail spaces, with groundbreaking for the project anticipated to start in 2024. The Insurance Commission is updating the state's FAIR Plan, a fire insurance pool for homeowners who can't secure traditional insurance, to enhance affordability and reliability. These changes, prompted by Governor Newsom, include expanded coverage, improved financial stability, and greater transparency. (See related CP&DR coverage .) San Francisco has proposed a ban on property management software, like RealPage's YieldStar, which they claim inflates rents and hampers competition. The software's algorithm suggests rental prices and discourages negotiation, contributing to rising rents and higher vacancy rates. The ordinance aims to address these issues and could become a model for other cities also affected by the software. A new study by Michael Manville, a Professor of Urban Planning at UCLA's Institute of Transportation Studies, argues against classifying vehicle miles traveled (VMT) solely as a cost, suggesting it could hinder effective transportation policy and lead to ineffective mitigation measures. The report advocates for improving urban infrastructure to reduce driving and implementing dynamic pricing for road use to manage demand better. Manville suggests that direct pricing and better capacity management are more practical and impactful solutions than the current VMT-based approach. (See related CP&DR coverage .) YIMBY Law has launched a new dashboard to track compliance with Housing Element plans across California; the dashboard aggregates data from the California Department of Housing and Community Development and the US Census, providing a transparent tool for advocates and the public to monitor housing plan implementation. This initiative supports the Campaign for Fair Housing Elements, which seeks to ensure cities and counties fulfill their housing obligations.

Oakland Downtown Plan to Facilitate 29,000 New Housing Units The Oakland City Council adopted the Downtown Oakland Specific Plan (DOSP), its first comprehensive plan for the area, which integrates racial equity into its vision and implementation. The plan calls for the development of over 29,000 housing units -- potentially representing 10% of the city's population -- including more than 7,200 affordable units. It covers a broad area from the Jack London District to Lake Merritt and will guide development through increased housing, job creation, public service improvements, local business support and enhanced safety measures. The DOSP emphasizes cultural preservation, climate resilience and community connectivity, particularly focusing on addressing historical disparities and modernizing the downtown area. It includes amendments to zoning regulations and planning codes to support its goals, such as encouraging affordable housing and public space improvements. City officials and stakeholders have praised the plan for its ambitious objectives and community-centered approach, aiming to revitalize and unite Oakland's diverse downtown. (See related CP&DR coverage .) Federal Government Contributes $5.1 Billion to BART Extension The Santa Clara Valley Transportation Authority (VTA) will receive a $5.1 billion federal grant to help complete the BART extension to San Jose and Santa Clara, marking the second-largest transit-related grant in U.S. history. Despite this significant funding, the project remains $700 million short of the total needed, with officials seeking additional funds before federal money is released. The BART extension, which aims to enhance regional connectivity and support economic growth in Silicon Valley, has faced several delays and a soaring budget, now estimated at $12.7 billion, with the opening date pushed to 2037. Developer Purchases Former Sacramento Kings Arena Site Argent Development, based in Costa Mesa has acquired the 129-acre site of the former Sacramento Kings arena (best known as the Arco Center), moving closer to starting its 183-acre Innovation Park master-planned community in Sacramento's Natomas district. The site sold for $75 million and will now be a part of a development that includes 2,500 housing units, with 10% designated as affordable housing. Infrastructure work is expected to start in 2025, with residential lots available by mid-2026, and will feature a medical campus, a K-8 school, and commercial spaces. (See related CP&DR coverage .) Newport Beach Housing Element Update Avoids Need for Ballot Measure The Newport Beach City Council recently amended its general plan to facilitate new housing development, avoiding a potential November ballot measure that could have resulted in non-compliance with state housing laws. The approved plan aims to add 8,174 residential units by 2029, exceeding the state's requirement of 4,485 units, with possible density bonuses for affordable housing. Despite significant community opposition and concerns about infrastructure strain, the city council chose this approach to meet housing mandates while avoiding conflicts similar to those experienced by neighboring cities such as Huntington Beach. CP&DR Coverage: Court Rules in Favor of Infill Developer In an ongoing dispute among commercial neighbors in Lafayette, a condominium developer appears to be besting an adjacent office building owner. Most recently the city got the go-ahead from an appellate court to use the infill exemption contained in the California Environmental Quality Act because the site doesn't qualify for - in CEQA parlance - an exception to the exemption. &Building on the & Berkeley Hillside case and other cases, the ruling appears to make it more difficult for project opponents to use the "unusual circumstance" exception to the infill exemption. The case came down to the dueling biologists - and which biologist made a more convincing legal argument to the appellate court. The case was originally unpublished but has now been published by the appellate court. Quick Hits & Updates San Francisco voters may face a ballot measure to create an "affordable housing opportunity fund," which would allocate up to $8.2 million annually to subsidize rents for the city's poorest residents starting in 2026. This initiative aims to address the gap where even affordable housing remains out of reach for those earning less than 35% of the median income, amidst insufficient existing rental subsidies. The Department of Housing and Community Development's praised San Francisco for implementing several reforms to streamline housing development and align with state laws. Key actions include reducing bureaucratic hurdles, accelerating review processes and enhancing transparency, which collectively aim to increase housing production and lower barriers for building across all income levels. In November, South Pasadena voters will decide on the Neighborhood Preservation & Local Control Measure, which proposes increasing building heights in select corridors to address affordable housing needs while preserving single-family neighborhoods. Critics argue that the measure, which results from a legal settlement requiring the repeal of a three-story height limit, may threaten existing affordable housing and displace renters without ensuring new affordable units. The city's efforts to promote the measure through a $54,000 educational campaign are seen by some as biased advocacy, potentially overlooking the adverse impacts on vulnerable residents. Beverly Hills developer Leo Pustilnikov has agreed to purchase 17 buildings from the financially troubled Skid Row Housing Trust for $10 million, with the transaction requiring judicial approval next month. This acquisition includes 1,200 units of supportive housing for formerly homeless individuals and Pustilnikov, who is leading the state's largest builder's remedy project in Redondo Beach, plans to partner with the nonprofit Hope the Mission to ensure ongoing social services for tenants while addressing necessary renovations. (See related CP&DR coverage .) The LA Metro A Line light rail extension received approximately $500 million in state funding from CalSTA, marking a pivotal step towards constructing a 3.2-mile light-rail extension from Pomona to Claremont and Montclair in San Bernardino County. This project is expected to cost $798 million in total and be completed by 2030. In September 2023, Oakland saw the largest rent decline among the 100 biggest U.S. cities, with one-bedroom rents falling 7.2% to $1,430—the lowest since 2017—and a vacancy rate of 9.4%. This drop reflects broader trends, as 71 of the top 100 U.S. cities experienced rent reductions including San Francisco where rent also decreased by 4.1%. San Diego approved nearly 9,700 new homes in 2023, largely due to developer incentives, increased approvals for accessory dwelling units, and programs like Complete Communities, according to officials. Despite this surge, the city remains far behind state-mandated housing goals, especially for low-income housing. The California Department of Housing and Community Development released updated guidelines for the Surplus Land Act (SLA) and a new Dashboard that tracks housing units “unlocked” through the SLA. The Act aims to make unused public land available for affordable housing development and has unlocked 28,419 housing units, including 16,773 affordable ones since 2021. The Sonoma County Board of Supervisors has approved the project scope and next steps for constructing a $308 million, 200,000-square-foot government center on the current County campus in Santa Rosa. The new center will house 800 to 1,000 employees and include redevelopment space for up to 1,000 housing units, with a focus on affordable housing. The project will replace a deteriorating government center from the 1950s and is expected to be completed by the end of 2026, with further design and environmental analysis to follow. The long-delayed 280-acre redevelopment project at Candlestick Point may finally begin construction next year. Awarded entitlements in 2010, Irvine-based FivePoint Holdings is planning a massive mixed-use development in conjunction with the neighboring 500-acre San Francisco Naval Shipyard at Hunters Point. The original plan envisioned a total of 10,000 new homes and over 5 million square feet of commercial space, with most of the commercial development focused on the Hunters Point area.

In parts of California’s Mojave Desert, Joshua trees stretch seemingly to the horizon, bringing greenery and whimsy to an otherwise desolate landscape. The habitat of the western Joshua tree a wide swath of inland southern California, from its namesake National Park all the way to the northern reaches of the Owens Valley. It is anything but rare. And yet, wildfire, development, and, most of all, climate change are already threatening the next generation of Joshua trees. Surveys indicate that young trees are taking root in only 50% of the current range; in a worst-case scenario, the tree could go nearly extinct. This invisible precocity led to the Joshua tree’s consideration for endangered status under the California Endangered Species Act (CESA) in 2019 and its protection as a candidate species in 2020. Several years of discussion ensued. When the Fish and Game Commission voted on its official listing in 2022, the commission deadlocked, on a 2-2 vote. In 2023, at the urging of environmental groups, the legislature passed the Joshua Tree Conservation Act (SB 122) as a trailer bill. Brendan Cummings, conservation director at the Center for Biological Diversity, said there was widespread support for conservation, including from the Newsom administration, and the act was necessary to avoid undue delays. “Absent the WJTCA, there would likely be years of litigation and uncertainty regarding the listing of the species under CESA,” said Cummings. The act affords the western Joshua tree the equivalent of threatened status under CESA—including restrictions on residential development and a near-ban on commercial and industrial development on parcels containing Joshua trees--and is believed to be a novel approach to species conservation. “It’s the first time a law has been passed explicitly to protect an individual climate-threatened species in California, and it may be the first anywhere in the country” said Brendan Cummings, conservation director at the Center for Biological Diversity. “It provides real and meaningful protections for the species.” The act went into effect earlier this year and is expected to remain in effect for at least 10 years. That may mean 10 years in which desert communities struggle to promote development and meet their Regional Housing Needs Allocation numbers. It is yet another instance in which conservation is complicating the state’s efforts to provide housing – especially on the urban fringes. The largest cities located within the range of the western Joshua tree include Lancaster, Palmdale, and Victorville.

CP&DR Vol. 39 No. 7 July 2024 Report

San Diego General Plan Update Embraces New Vision for Growth, Sustainability On a unanimous vote, the San Diego City Council adopted a comprehensive general plan amendment called Blueprint SD, aiming to guide the city's growth while addressing climate change, expediting zoning updates and tackling racial segregation. It is the first major general plan update sicne 2008. The plan promotes sustainable housing development in transit-friendly areas and seeks to increase multi-family housing in predominantly white neighborhoods to combat historical segregation. While the proposal received support from pro-growth advocates, it faced criticism from some community groups concerned about potential negative impacts on single-family neighborhoods and existing transit infrastructure. Mayor Todd Gloria emphasized that Blueprint SD represents a significant step toward creating an equitable and sustainable future for all residents. Berkeley Rejects Major Upzoning; Will Study More Modest Version After a lengthy and heated five-hour meeting, the Berkeley City Council voted to revise a proposal aimed at allowing small apartment buildings in predominantly single-family neighborhoods. The initial Middle Housing proposal would have permitted three-story buildings with no unit limits, but the amended version now imposes density restrictions, allowing five to seven units per typical 5,000-square-foot lot. Concerns were raised about the proposal's ability to address the historical context of single-family zoning, which has perpetuated racial segregation since its inception in 1916. Some residents voiced worries about the impact of new housing on lower-income neighborhoods and the potential for increased gentrification, while others argued that not providing more housing options is contributing to the displacement of communities of color. The council's vote directs staff to draft a proposed ordinance, with further town hall meetings planned to discuss the proposal and its implications. (See related CP&DR coverage .) City of Merced Annexes Land Including UC Merced UC Merced has officially been annexed into the City of Merced following a unanimous vote by the Local Agency Formation Commission. The annexation includes 1,140 acres and will pave the way for a new university community that connects the campus with the city. This move, seen as a milestone after 40 years of planning, aims to enhance infrastructure, provide services like fire response and create thousands of affordable housing units. Funding from the Virginia Smith Trust, which was established for educational purposes, will support scholarships for local high school students. While the annexation is expected to foster economic growth and strengthen ties between the university and the city, concerns about funding for fire services remain a topic of discussion among local leaders. (See related CP&DR coverage .) Survey Estimates Amount of Government-Owned Buildable Land Nationwide The Center for Geospatial Solutions used parcel-level data to provide a detailed examination of development potential on federal, state, and local government-owned lands across the United States. The study, titled Who Owns America , identified over 276,000 acres of buildable land in transit-accessible urban areas across the U.S. which is capable of supporting over 1.9 million new homes. California ranks fifth among states with the greatest housing development opportunities with 14,158 acres of buildable land, mainly going in the southern two-thirds of the state. This represents 5.2% of the total buildable area nationwide of which 43.81 acres are federally owned land and 1,052 acres are state land. CP&DR Coverage: Envisioning the "Missing Middle" in California and Elsewhere Los Angeles-based planner Max Podemski explores the history and varieties of working class housing in his new book & A Paradise of Small Houses . In it, Podemski highlights nine cities -- including Boston (triple-deckers, Philadelphia (row houses), Los Angeles (dingbats), Houston (townhouses), and his native Portland (bungalows) -- to figure out how cities accommodated diverse, growing populations. Podemski insists that none of these past trends provides a blueprint for the future. And, yet, there's plenty of inspiration to be found. Podemski recently spoke with CP&DR's Josh Stephens about the past and future of working class housing. Quick Hits & Updates Bay Area voters will decide on a historic $20 billion bond measure this November aimed at building or preserving up to 90,000 affordable homes across the region's nine counties. The measure, unanimously approved by the Bay Area Housing Financing Authority board, would levy a new property tax to fund the initiative, estimated to cost homeowners about $190 annually per $1 million of assessed property value through 2078. While facing skepticism over tax increases, proponents argue the bond is crucial to alleviate severe rent burdens and homelessness, though it requires a two-thirds majority to pass unless a separate ballot measure lowers the threshold to 55%. In San Francisco's Hub District near Market Street and Van Ness Avenue, plans to revive the stalled One Oak housing project are underway. Originally intended as a 40-story condo tower, the project is now proposed to include 516 units of rental apartments, an increase from the previous plan of 460 units. The new development partnership seeks approval for a density boost and a reduction in affordable housing fees, facilitated by recent legislative changes aimed at easing financial viability challenges for residential projects in the city. UC San Diego & received approval from the Board of Regents to build a 6,000-bed housing village to address a severe housing shortage due to rapid enrollment growth and expensive off-campus housing. The $2 billion project, located in a 20-acre area near the Blue Line trolley station and Interstate 5, aims to offer four-year housing guarantees with rent at least 20 percent below market value. Additionally, UCSD received permission to build a $350 million, 150,000-square-foot life science research building on campus. San Francisco city leaders are exploring a new subway project along Geary Boulevard and 19th Avenue, an idea that has been around since the 1930s. The proposed line, which could span over eight miles and cost at least $15 billion, seeks to address future transit needs and support increased housing developments, potentially serving up to 300,000 passengers daily while connecting to the city's existing and future rail networks. Developer TenSouth asserts that the City of Gilroy must approve its 501-unit project on Las Animas Avenue under builder's remedy, citing a July 2 letter from the state's Department of Housing and Community Development that supports this claim. The dispute centers on whether Gilroy's draft housing element, which was not state-certified until August, should affect the project's eligibility, with TenSouth accusing the city of wrongfully delaying the project and threatening legal action. LA Metro published a draft environmental impact report for the K Line's (Crenshaw Line) northern extension to Hollywood, featuring three potential underground routes with varying lengths and ridership projections, ranging from 47,200 to 59,700 daily trips. The project's estimated costs range from $11 billion to $14.8 billion, with construction expected to start in 2041 and funding opportunities being explored through initiatives like an Enhanced Infrastructure Financing District in West Hollywood. (See related CP&DR coverage .) The San Francisco Board of Supervisors unanimously approved a major redevelopment project for the Stonestown Galleria site, which will introduce 3,500 new housing units, extensive retail and office spaces and community amenities over the next two decades. The development, spearheaded by Brookfield Properties, will begin with infrastructure improvements in 2026 and use an Enhanced Infrastructure Financing District for funding, maintaining the existing mall throughout construction. Over 350,000 policyholders are & suing California's FAIR Plan, which provides fire insurance for those unable to find coverage elsewhere, accusing it of failing to cover smoke damage as required by the law and leaving homeowners with unsafe living conditions. The plaintiffs allege that FAIR Plan policies fail to meet state coverage requirements and identify numerous violations; they also argue that a misleading update from 2017 states that the policy only covers “direct physical damage” from smoke and fails to address the full range of smoke-related issues. At Representative Maxine Waters's behest, the U.S. House of Representatives & removed $200 million allocated for the Inglewood Transit Connector from its Department of Transportation budget, putting the project's future at risk. Inglewood Mayor James Butts argues that, despite some business displacement, the project will create 17,000 jobs, with 35% of work being designated to Inglewood residents, and he calls Rep. Waters's suggestion to use buses as impractical.

Bonta Appeals Ruling Exempting Charter Cities from SB 9 Attorney General Rob Bonta is & appealing a Superior Court decision that halted the enforcement of Senate Bill 9 in charter cities. SB 9 took effect in 2023, allowing subdivision of parcels traditionally zoned for single-family homes into configurations accommodating duplexes and fourplexes. The law faced opposition five charter cities asserting it improperly overrides local zoning in charter cities, though supporters argue it's crucial for addressing the statewide housing crisis. Del Mar, along with four Los Angeles County cities, challenged SB 9 in court, contending it violates the state constitution by not effectively promoting affordable housing without interfering excessively with local government. The judge's ruling sided with this argument on April 22, prompting Bonta's appeal, aiming to clarify the law's applicability across all of California's charter cities. Bonta emphasized SB 9's constitutionality and its role in enhancing housing availability and affordability statewide, highlighting ongoing efforts to defend legislative housing initiatives in court. "We firmly believe that SB 9 is constitutional as to every city in the state," said Bonta, in a statement . "As the California Second District Court of Appeal recently held, ensuring housing availability and affordability in California is a matter of statewide importance." November Statewide Ballot to Feature Four Land Use Propositions California voters will face four statewide ballot propositions related to land use this November, covering issues from infrastructure funding to rent control. The ballot will feature ten propositions in total. Proposition 2 proposes a $10 billion bond primarily allocated for school construction and upgrades. Proposition 4 proposes a $10 billion bond to fund climate and environmental projects, aiming to mitigate impacts of climate change and bolster water and wildfire defenses. Proposition 5 seeks to ease voter approval requirements for local housing and infrastructure bonds to encourage borrowing for low-income and affordable housing projects. Proposition 33 proposes granting local governments authority to enforce rent control measures; it's the latest in a string of thus-far unsuccessful rent control measures sponsored by Los Angeles-based AIDS Healthcare Foundation. AB1657 -- which proposed issuing $10 billion in general obligation bonds to fund affordable rental housing programs for lower-income families, supportive housing for the homeless and other critical housing initiatives -- will not & appear on the ballot; concerned about the state's borrowing capacity, the legislature opted instead for Proposition 2, a $10 billion school facilities bond measure. HDC Updates List of Cities Subject to SB 423 Streamlining The California Department of Housing and Community Development has released its 2024 SB 423 Streamlined Ministerial Approval Process (SMAP) Determination, replacing SB 35, to impose streamlined housing approvals in various jurisdictions based on cities' progress toward housing goals. This update, informed by 2023 Housing Element Annual Progress Reports, reveals that 238 jurisdictions are subject to streamlined approvals for housing projects with at least 50% affordability, while 254 jurisdictions must streamline approvals for projects with at least 10% affordability. Forty-seven jurisdictions are in full compliance with SB 423 and are therefore exempt from streamlining. A developer can confirm the jurisdiction's current compliance status using the Housing Element Review and Compliance Report . San Bernardino County Faces Environmental Justice Lawsuit over Warehouse Approvals Two environmental groups have accused San Bernardino County officials of violating federal anti-discrimination laws by approving an excessive number of warehouses and logistics centers in Bloomington, a predominantly Latino community. Earthjustice, representing The People's Collective for Environmental Justice, filed a complaint asserting that these developments expose residents to air pollution and exacerbate housing instability and inequity. The complaint calls for federal agencies to investigate these claims and temporarily halt warehouse construction in Bloomington. Critics argue Bloomington is disproportionately targeted for industrialization compared to other similar communities in the county, citing racial demographics and inadequate community input in decision-making processes. (See related CP&DR coverage .) CP&DR Coverage: Legislature Exempts Its Own Office Building from CEQA The Legislature and Gov. Gavin Newsom have punched another hole in the California Environmental Quality Act - this time in order to move along construction of a new annex to the State Capitol in Sacramento. It's the latest example of the state's growing “Swiss cheese” approach to CEQA, coming on the heels of a similar solution to the People's Park court case last year. There's no way to comprehensively reform CEQA. But when a CEQA stall comes along that bothers the legislators, they simply pass a law providing a one-off end run around the law. Meanwhile, other projects languish. The Legislature, which won't reform CEQA even though the process is time-consuming and expensive, exempted its own office building from CEQA because the process is time-consuming and expensive. That's the Swiss Cheese angle to CEQA. The Legislature gets worked up over something and passes a one-off bill streamlining or eliminating CEQA review for the one narrow thing they're worked up over. Quick Hits & Updates In San Francisco's Dogpatch neighborhood, an approved project to develop a 70,600-square-foot biotech startup incubator facility at 700 Indiana Street faces uncertainty due to an appeal by local neighborhood groups. These groups contest the city's classification of the project as a "non-life sciences" laboratory, arguing that it violates zoning regulations prohibiting "life sciences" uses in the Urban Mixed-Use district. The appeal raises concerns about potential environmental impacts and shadows on nearby Esprit Park, reflecting broader conflicts over land use priorities. (See related CP&DR coverage .) The Draft 2025 Transportation Improvement Program (TIP) released by MTC outlines over 300 Bay Area transportation projects funded with $11.8 billion from federal, state, and local sources through 2028. They will support Plan Bay Area 2050's vision for transportation, housing, economic development, and environmental resilience. The TIP will prioritize investments in transit, bicycling, and walking infrastructure, adheres to financial constraints, and requires approval from the Federal Highway Administration and Federal Transit Administration, alongside a Draft Transportation-Air Quality Conformity analysis. The Santa Clara County Civil Grand Jury's investigative report reveals that the City of Santa Clara likely lost significant revenue from non-NFL events at Levi's Stadium due to a bad deal with the San Francisco 49ers. They criticized city officials for favoring the 49ers in contracts, eventually leading to financial disputes, and called for better oversight and strategies to maximize stadium profits. Additionally, they underscored unethical behavior within City Council, specifically among members who benefited from the 49ers $7.5 million donation to local campaigns, therefore recommending an ethics commission. The ULI Terwilliger Center for Housing announced finalists for the Jack Kemp Excellence in Affordable and Workforce Housing Award and the Terwilliger Center Award for Innovation in Attainable Housing. California Finalists include the Santa Ana Arts Collective, which repurposed a 1965 office building into 58 live-work lofts, and Pointe on La Brea and Watts Works, both of which are in Los Angeles and provide supportive housing for individuals experiencing homelessness. Migration trends in California show a shift away from the Bay Area and Los Angeles towards Sacramento, the Northern San Joaquin Valley, and the Central Coast in the north, and the Inland Empire in the south. Remote work rates accelerated these patterns, primarily among affluent residents in these major metropolitan areas, where remote work was among the most common nationally. As a result, the Bay Area has experienced drastic net outmigration, totaling at 4.1 to 9.3 per thousand since 2018-19, while Los Angeles has also experienced a slight net loss going from 4.3 to 3.5 per thousand since the beginning of the pandemic. Waymo, the autonomous driving technology company, has gained approval from the California Public Utilities Commission to expand its operations onto the Peninsula, despite opposition from local authorities. This decision marks the end of the ongoing conflict between local California governments and AV companies regarding regulatory dynamics and concerns over safety, community impact, and emerging technologies in the public sphere. (See related CP&DR coverage .) The Los Angeles City Council voted to complete a long-awaited $1.4-billion expansion of the Los Angeles Convention Center before the 2028 Summer Olympics. The updated facility is expected to bring in more than $165 million in visitor spending each year and will create 7,445 temporary construction jobs and 2,147 permanent jobs.

For decades, housing advocates, and some policymakers, have stressed the dire need to develop new housing in infill areas and — for a host of reasons — leave open space alone. These advocates now have an ally, albeit it an unwelcome one, in the form of the insurance industry.

San Francisco Misses Housing Goal, Triggers SB 423 Streamlining The Department of Housing and Community Development has determined that the City and County of San Francisco missed its housing permitting goals in 2023 and will be subject to state-imposed streamlining. The city permitted only 3,039 units in 2023; its targets fro the current eight-year RHNA cycle is over 82,000. The determination makes San Francisco subject to Senate Bill 423, the 2023 extension of SB 35. The law requires most projects to be approved within six months without the need for Planning Commission review or appeals to the Board of Supervisors. Although it excludes large or non-compliant developments, SB 423 marks a shift towards faster, less contentious housing construction in San Francisco. Currently, projects take an average of 26 months to be approved. Beverly Hills Rejects Builder's Remedy Project, Draws Lawsuit A developer's bid to circumvent Beverly Hills' zoning laws and erect a 165-unit, 19-story apartment building faced a significant setback when the City Council decisively turned down the project. The council's unanimous decision dismissed developer Leo Pustilnikov's appeal challenging a prior ruling that deemed his plans for 125-129 South Linden Drive incomplete. This ruling seems to flouts the builder's remedy rule, &which provides streamlined approvals to build larger projects that exceed local zoning regulations. Pustilnokv has invoked the builder's rememdy in several proposals in Los Angeles-area cities. Californians for Homeownership, a group sponsored by the California Association of Realtors, has filed suit on behalf of Pustilnikov. The group recently prevailed in a different lawsuit challenging the city's housing element. (See related CP&DR coverage, and a copy of the complaint .) Robotic Air Taxis to Debut in Bay Area Air taxi companies Archer Aviation and Joby Aviation have received FAA certification to operate commuter and on-demand drone flights, aiming to launch commercial services by 2025. Archer plans to collaborate with Kilroy Realty to build a “vertiport” in South San Francisco, featuring a water hub powered by renewable energy. The company initially seeks to connect five locations across the San Francisco Bay Area: South San Francisco, Napa, San Jose, Oakland, and Livermore. Both Joby Aviation and Archer Aviation have received their Part 135 from the FAA, a certification that will enable them to offer air rides directly to passengers. Both services are expected to be available via Uber-style ride-hailing apps. Court Tosses Out Moreno Valley General Plan Update Moreno Valley has revoked approvals for developments tied to its 2021 General Plan, called "MoVal 2040," and its environmental impact report following a legal challenge by the Sierra Club, which criticized the plan's environmental study as flawed and warned of excessive air pollution in residential neighborhoods. A Riverside Superior Court judge ruled in favor of the Sierra Club, ordering the city to rectify deficiencies in its environmental review process. This decision led the Moreno Valley City Council to unanimously repeal project approvals associated with the General Plan update, acknowledging the need for transparency and proper assessment of environmental impacts. The city now faces the task of reevaluating projects under older guidelines while considering a revised General Plan compliant with state environmental laws. Report Excoriates San Francisco for Mismanagement of Capital Projects A new report by the San Francisco Civil Grand Jury found that San Francisco Public Works's capital projects, valued at over $18.9 billion, are plagued by cost overruns, delays and deficiencies. The Grand Jury found several instances where projects did not follow original development plans leading to extra costs, unsafe design, and unusable infrastructure. For example, the fire department's new fireboat station went over budget by $13 million, doesn't address rising sea levels, consistently experiences equipment failure, and can't legally house fire trucks. Public Works responded to the report stating that they have a legacy of award-winning facilities, but they will review the grand jury's recommendation in an effort to improve their department and projects. CP&DR Coverage: Builder's Remedy Bill Advances, with Changes The builder's remedy reform bill is moving forward in the Legislature - though the YIMBY movement is divided over the bill and significant amendments have been made in the Senate that would decrease allowable densities and affordability requirements. AB 1893, carried by Assemblymember Buffy Wicks, sailed through the Assembly. But at a Senate Housing Committee hearing on June 18, the bill ran into opposition from YIMBY Law and several amendments were made. The bill will now go to the Senate Local Government Committee. &There are two major changes: 1) &Currently, the builder's remedy is allowed for projects that dedicate & either & 20% of the units for low-income housing & or 100% for moderate-income housing; the original Wicks bill cut the 20% to 10%; the Senate version increases the 10% up to 13%; 2) A change in the permitted density; the original Wicks bill called for limiting density to double what's required to achieve housing element goals or triple what the local density calls for; the new bill limits the number to 50% of what's required for housing element goals. Meanwhile, at least one city - West Hollywood - is seeking legislation that would exempt it from the builder's remedy. Quick Hits & Updates Six conservation groups have petitioned the California Fish and Game Commission to classify five western burrowing owl populations as threatened or endangered under state law, potentially impacting development in various California regions. The Commission has extended the California Department of Fish and Wildlife's evaluation period to July 16, 2024, with a decision expected at its August 2024 meeting. A lawsuit filed by Save The American River Association Inc. challenges the approval process for four high-rise apartment towers along Sacramento's American River. The lawsuit alleges that the city and LPA Design Studios did not comply with California Environmental Quality Act requirements when approving the project. The proposed development aims to build 826 market-rate apartment units and was expedited due to its proximity to light rail stops, which exempted it from certain environmental reviews. The lawsuit seeks to invalidate the city's approval and halt construction until further environmental studies are conducted. Mountain House, California's newest city in San Joaquin County was officially incorporated on July 1 with nearly 30,000 residents, marking the county's eighth city and the state's 483rd. The Huntington Beach City Council voted to place a city charter amendment on the November 5 general election ballot, requiring voter approval for City-initiated general plan amendments or zoning changes that are deemed to have significant and unavoidable negative environmental impacts. The proposal reflects ongoing tensions between the council majority and the State of California regarding housing mandates, particularly the Regional Housing Developments Assessment, which could potentially require zoning for thousands of new residences in Huntington Beach. The Santa Ana City Council has implemented a moratorium on new, expanded or relocated industrial activities in areas surrounding the Logan, Lacy and Downtown neighborhoods. This decision, part of an environmental justice initiative under the city's new General Plan, aims to address historical disparities in environmental burdens faced by these predominantly Latino and historically disadvantaged neighborhoods. A grand jury report criticizes San Luis Obispo County's plan to reduce homelessness by 50%, citing obstacles like NIMBYism, organizational challenges, zoning laws, and funding gaps. The report highlights that only 130 of the 300 beds planned for the first three years are in progress, recommending the county to improve staff succession planning, and implement a public awareness campaign on homelessness issues. California Attorney General Rob Bonta filed an appeal to reverse a Los Angeles County Superior Court judgment preventing the enforcement of Senate Bill 9 (SB 9) against five charter cities, arguing it violates their state constitutional authority. SB 9 mandates a streamlined approval process for homeowners to build duplexes or subdivide lots zoned for single-family homes. The University of California turned down an invitation by San Francisco's Mayor London Breed to open a campus in the city's downtown, citing budget issues. Mayor Breed hopes to keep pursuing the opportunity to open a satellite campus for an HBCU in the area. Rhode Island-based Gilbane Development will continue with its plans to build an 18-story apartment building atop the former California Theater in Berkeley, while persevering its facade and marquee thanks to the city's Landmarks Preservation Commission. The project proposal, which was exempt from CEQA, will host a live performance space twice the size of the original 11,000-square-food cinema and will have 211 residential units, comprising studios, two-bedroom, and four-bedroom apartments, with eleven units designated for very-low-income residents. According to an analysis of first-quarter economic measurements by Attom, California is home to six of the ten counties across the U.S. with the highest risk of home-price declines due to affordability issues, high rates of underwater mortgages, foreclosures, and unemployment. Most of California's high-risk counties are less-populated regions to the north such as San Joaquin (1), Merced (2), and Madera (4). On the other hand, some of the state's largest housing markets, like Santa Clara (363) and San Diego (267), show lower risk despite higher home prices.

At a time when many retailers are cutting back – or going out of business entirely -- Costco has the opposite problem. I've been to Costcos on weekend afternoons when they were so busy, you'd think they were giving away their inventories. Even getting a frozen yoghurt took 15 minutes. Costco membership inspires feeling of pride on par with sports teams. That translated into $176 billion in revenue last year in the United States. So it's no wonder that Costco wants to build more stores, which already number over 800 nationwide (compare that with over 4,100 Walmarts). The trouble is, fervor alone cannot shoehorn a warehouse of 150,000 square feet into urban Los Angeles. Even where there's space, the zoning is often unkind. That's why Costco is getting into the urban infill housing business. Everything about housing development is antithetical to Costco's business model. Costco is in the business of building the same big-box store – with the same gigantic parking lot – pretty much anywhere. Urban infill housing is costly, complicated, and customized. But some people will do anything for an entitlement. That’s why Costco’s proposal to develop a roughly 800-unit apartment complex in South Los Angeles is a Trojan Horse that will also not-so-secretly facilitate the development of the chain's 17th Los Angeles County store. It will be built on the site of a shuttered medical center a few miles west of the USC campus, near a stop on L.A. Metro's Expo Line. Rather than wade through the tedious, costly, and uncertain process that would it need to gain approval for a traditional standalone store, Costco and its development partner Thrive Living taking advantage of AB 2011, which exempts multifamily housing projects on commercially zoned property from CEQA review, plus density bonuses provided by Los Angeles’s Transit Oriented Communities program (TOC). Home sweet Costco. The density bonuses, which require 184 of the residential units to be affordable, raise the allowable number of units on the site from 593 to 918. It’s an elegant alignment of interests for both parties: Thrive gets a deep-pocketed partner with whom to build housing, and Costco gets to open its doors, stock its shelves, and begin generating revenue without suffering through environmental review and inevitable lawsuits. That’s no small matter when the average Costco store takes in $252 million per year. (The project was proposed over a year ago, and underwent site plan review in February, but recently gained attention thanks to an X/Twitter post by L.A.-area housing advocate Joe Cohen.) Even if it loses money on the housing (which isn't likely, especially if it's paying for the land anyway), Costco will surely make up for it in the pallets of protein powder and cases of canola oil that it's going to sell. The poison pill in AB 2011, which has rendered the law nearly useless, is that it requires developers to pay construction workers “prevailing wage” for onsite labor -- which generally equates with high-cost unionized workers. But Costco and Thrive have a solution for that: modular construction. By using mass-produced elements, Costco will minimize the use of on-site labor. It's savvy move for a company that knows how to buy in bulk. The end result may be the type of mixed-use development that, while achingly pragmatic, would give even the most sanguine New Urbanist a heart attack. From the renderings, it will not be a human-scale, finely detailed series of storefronts and front doors. It will, rather, be an enormous box hemmed in by slightly smaller boxes (Cohen likened the design to that of a prison – apparently coining the term “Costco Prison” – but he walked back that assessment in the face of a Tweetstorm of flack). And, in a rarity for Costco, much of the parking will be underground. In fact, parking is where this project gets really interesting. Based on TOC guidelines, the project is required to provide at least 1,141 parking spaces, for residential and commercial combined. But, based on AB 2097 – which prevents the city from imposing any parking requirement within a half-mile of a transit stop – that requirement drops to exactly zero . In fact, the developers are choosing to provide 1,515 spaces. This seemingly sensible investment contradicts the worst fears of pro-parking folks: zero parking minimums does not necessarily mean zero parking. Developers may be frugal, but they’re not insane. (Ponder, for a moment, what zero parking would look like at a Costco.) Frankensteinian as its form may be, it’ll be an apt representation of the regulatory tangle that, for better or worse, provided the necessary lightning bolt. Housing advocates probably won't worry about the aesthetics anyway. Eight hundred units is a lot, even in Los Angeles. And it will include 184 units of sorely needed affordable housing. Even so, it'll be a stark contrast to its neighbor, which happens to be Village Green, an Ebenezer Howard-style development from the 1940s that's on the National Historic Register. With laws, trees, and graciously spaced-out apartment blocks, Village Green represents high-density, affordable housing of a vastly different era. The Village Green trend didn't last. But, it's likely that the Costco Living trend is just starting. Big boxes aren't just stores. They are, by definition, real estate plays. Between the demand for housing, the urbanist antipathy for wasted space, new state laws friendly to mixed-use and adaptive reuse, and other local regulations akin to Los Angeles’s TOC (e.g. the Bay Area’s own TOC program), more such developments seem inevitable -- it would be financially irresponsible of the Costcos, Targets, and Walmarts of the world not to pursue them. The South L.A. Costco is just the prototype. On the one hand, I’m sure few urban planners want big box stores to dominate American retail even more thoroughly than they already have. On the other hand, it's possible that we've already lost the war against big boxes. And, their incursion into urban areas is only going to accelerate; greenfield sites on the urban fringe are simply too far from population centers to be feasible. If we can get some housing as part of the peace treaty, so much the better. Now, it's true that residents of those 800 apartments -- some of which will be small studios and one-bedrooms -- probably aren't Costco's target customers. Then again, once they try the frozen yogurt, they might be hooked. Resources Los Angeles Dept. of City Planning CUP Site Plan Review, February 2, 2024 (PDF download) Rendering by AO Architects.  This article is brought to you free of charge by paying subscribers to California Planning & Development Report . You can subscribe here .