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In November, if election patterns hold steady, around 250,000 voters in Solano County will decide whether to welcome as many as 400,000 new neighbors. It is likely to be a serious test of “yes in my backyard” sentiment in California — or, in the case of Solano County — yes in my pasture, field, or rangeland. The vote would mark a preliminary step in the development of the project, which was being promoted by corporate parent Flannery Associates and known as “California Forever,” but was recently rebranded the “East Solano Plan.” The developers submitted over 20,000 signatures in late April, which the county is now verifying; 13,000 valid signatures are needed for it to qualify for the November ballot. Currently titled, “East Solano Homes, Jobs, and Clean Energy Initiative,” the measure would set the terms for a general plan amendment and development agreement between the company and the county. “It will be contentious and emotional,” said John Carli, mayor of Vacaville, in central Solano County. “Whichever way it goes, it’s going to create further divisions. The sides are becoming entrenched.” The project has gained infamy for its magnitude, nearly doubling the county’s population, and its origins: a consortium of backers from the technology industry who have espoused progressive views about urbanism while surreptitiously acquiring roughly 60,000 acres of rural land well beyond the existing urban fringe. (In early April, the company successfully defended a lawsuit filed by a group of ranchers who accused the company of price-fixing.) Most of the development would take place between Travis Air Force Base and the City of Rio Vista, with a “security zone” to separate development from the base. California Forever cannot simply start pouring and framing whenever it wants to, in part because of the county’s strict Orderly Growth Ordinance, which is designed to preserve open space and direct growth to the county’s half-dozen existing small cities. Overriding the ordinance to rezoning the 17,500 acres of land that the company wants to develop from agricultural to mid-density urban requires either assent of the county’s Board of Supervisors or a popular vote. Flannery Associates has chosen the latter route. It is a major gamble, given the fact that – according to CP&DR ’s long history of ballot measure coverage – developer-initiated ballot measures designed to end-run elected officials rarely succeed.

Revised Budget Cuts Funds for Transit, Active Transportation Governor Newsom's "May revise" of his 2024-25 budget includes significant cuts to one-time and ongoing spending by over $33 billion through 2025-26, affecting key programs aimed at increasing affordable housing. Earlier cuts to housing programs announced in January were followed by deeper reductions in May, including the elimination of funds for the Multi-Family Housing Program, Adaptive Reuse Program and Foreclosure Intervention Housing Preservation Program. The budget also proposes shifting $3.6 billion from the General Fund to the Greenhouse Gas Reduction Fund, impacting transit, clean energy and zero-emission vehicle programs. Additionally, reductions and shifts affect transit funding, active transportation programs, ZEV fueling infrastructure and broadband investments, indicating broader implications for land use and transportation development. State Commission Recommends Upgrades and Reforms to CEQA Process The Little Hoover Commission, in a recent report titled "CEQA: Targeted Reforms for California's Core Environmental Law," suggests six reforms to the California Environmental Quality Act (CEQA), including raising the standing requirement for filing a CEQA lawsuit and restricting late submission of public comments. The report also recommends a broad exemption for infill housing under CEQA and proposes in-depth study of several related issues, including funding to train judges and clearer guidelines for significance thresholds and mitigation. The report recommends studying the following potential reforms and updates: creation of specialized CEQA courts, bonding for CEQA plaintiffs, effect of vehicle miles traveled analysis, and consistency in analytical modes. The Commission's recommendations aim to reinforce CEQA's original purpose while streamlining its processes, ensuring that it continues to effectively protect California's natural resources. Major Mall Redevelopment in San Francisco Makes Progress The San Francisco Planning Commission unanimously approved a development plan for the Stonestown Galleria, an underperforming mall in the city's southwest corner, paving the way for full approval by the Board of Supervisors. Developer Brookfield will transform the mall -- which, with parking lots, covers several city blocks -- into a new neighborhood with 3,500 housing units and a green, walkable town center. While some residents expressed concerns about potential traffic congestion, the commissioners praised the plan as a model for infill development to meet the state's housing goals. The project includes amenities like parks, child care centers and a new main street of retailers and restaurants. It aims to generate jobs and contribute to the city's economic recovery while addressing housing needs and enhancing public spaces. The development will include six acres of parks and 150,000 square feet of retail space. The development agreement requires 20% of units to be affordable; the developer cay pay in-lieu fees. Report Unpacks Housing Affordability in California UC Berkeley's Terner Center for Housing Innovation's new new measure of housing affordability -- presented in their "Affordability for Whom? tool" -- reveals that many counties in California are becoming exclusive to wealthier households, leaving insufficient housing options for others. The tool, which can be used to study the affordabilities for different counties and cities statewide, found a fourth of all Los Angeles County residents "find it difficult to get by," followed by San Francisco at 22%. The new tool highlights the importance of aligning affordability metrics with policy goals and refining methodologies like California's RHNA process to drive affordable housing supply where it's most needed. Additionally, the paper stresses efforts to increase homeownership affordability, such as facilitating the construction of smaller, lower-cost units and reforms to construction laws, are crucial for addressing broader goals like racial equity and economic growth. CP&DR Coverage: Fulton on Housing Production vs. Population Growth In 2023, according to the Department of Finance, California's population grew by 67,000 people - the first increase since the pandemic began and the state's population began declining. But the amount of housing grew by double that amount - 120,000 units or so. CP&DR looked at DOF's estimates of change in population versus change in housing units since the 2020 Census - almost four years, during most of which California's population declined. And the bottom line is that during that time, the supply of housing increased by 3% and the population declined by 1%. the current housing crisis isn't entirely the result, strictly speaking, of fewer housing units being built. It's also the result of rapidly changing social and demographic trends bumping up against housing trends - both in new construction and the market supply of older homes - that change much more slowly. Quick Hits & Updates The federal government has committed $3.38 billion to connect Caltrain and high-speed rail to the Salesforce Transit Center in San Francisco, marking significant progress in a longstanding initiative. This funding will support extending the Caltrain commuter rail line, constructing underground tunnels and facilitating seamless transit connections, with over two-thirds of the project's estimated cost now covered by various funding sources. Campo, an unincorporated community near San Diego, has been put up for sale for $6.6 million, encompassing 28 buildings including former Army barracks and commercial properties. The town, frozen in time with buildings from the 1940s, has seen increased rents and is considered a potential redevelopment opportunity despite challenges such as its distance from major job centers and the scorching summer heat. The Pittsburg City Council adopted the "Envision Pittsburg" 2040 general plan, marking a milestone in the city's development strategy for the next two decades, focusing on infrastructure, sustainability and community input. The plan, the result of extensive public outreach and collaboration, aims to accommodate future growth while reflecting the community's values, although some concerns were raised during public comments regarding specific designations and land use decisions. BART faces projected deficits surpassing $300 million annually by fiscal 2027 and officials are banking on a 2026 tax measure for survival, as federal and state aid dwindles post-pandemic. Without voter approval, service cuts loom, potentially triggering a transit death spiral, while rising costs and remote work trends exacerbate the agency's financial woes. A recent poll conducted in Los Angeles found that the high cost of housing is driving many residents, especially young adults and renters, to consider leaving the city. Nearly three-quarters of renters and those under 35 have contemplated moving out of the city due to housing costs, highlighting widespread dissatisfaction and concerns about affordability. San Francisco's Muni transit system faces a significant financial shortfall, prompting residents to propose a grassroots ballot measure to tax ride-hailing companies and support Muni. Organizers aim to generate up to $30 million annually for Muni by taxing companies like Uber and Lyft between 1% and 4.5% on revenue earned in the city. While the proposal seeks to address Muni's funding challenges, some officials express concerns about potential conflicts with existing efforts, highlighting the city's ongoing struggle to sustain transportation services. A federal judge dismissed a climate lawsuit filed by 18 California youth against the U.S. Environmental Protection Agency, citing lack of legal standing, but granted permission for the plaintiffs to amend their complaint by May 20. The lawsuit alleges that the EPA violated the children's constitutional rights by permitting pollution from fossil fuels and the plaintiffs plan to resubmit their allegations in an amended complaint to address concerns about legal standing. The Wilton Rancheria tribe recently regained control of a 77-acre parcel outside Sacramento, marking a historic victory for the Indigenous LandBack movement and fulfilling a long-held desire for self-determination. After decades of struggle, the tribe signed the land into a federal trust, symbolizing a return to ancestral territory and providing hope for other tribes seeking to reclaim lost lands and heal from generational traumas. A proposal by Los Angeles-based researchers suggests that providing monthly payments of $750 to $1,000 to homeless individuals would enable them to secure informal housing arrangements like boarding homes or shared apartments. By leveraging the existing informal rental market and providing direct financial assistance, the plan aims to address homelessness caused by economic setbacks, potentially saving on public services costs while ensuring subsidized housing remains available for those with more complex needs. San Francisco may consider a business tax overhaul in November to make the city more competitive and support struggling small businesses amidst remote work fallout. The proposed measure aims to cut taxes for small companies, shift the main business tax from payroll to sales and garner support from various sectors despite potential tax increases for some industries. 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. The Los Angeles International Airport's Automated People Mover project will receive an additional $200 million, bringing its total budget to $2.9 billion, after approval by the Board of Airport Commissioners. The project, initially expected to open in 2024, has faced delays due to disputes between the contractor and the airport, with completion now expected by late 2025, impacting the airport's plans for the 2026 World Cup and the 2028 Summer Olympics. A recent audit of San Francisco's homelessness department revealed significant shortcomings, including failure to adequately track spending and performance metrics, as well as leaving hundreds of supportive housing units vacant. Despite increased spending, homelessness in the city has risen, prompting concerns about the effectiveness of current strategies. The audit highlighted the need for improved oversight, standardized performance monitoring and better utilization of resources to address the ongoing homelessness crisis. The Redwood City City Council unanimously voted to permanently close Broadway to vehicles, following a successful temporary closure pilot program during the COVID-19 pandemic. Despite concerns over parking loss, the decision was made to create a pedestrian mall from Jefferson Avenue to Main Street, funded by a projected budget of $670,000 sourced from public parking revenue, the general fund and a local nonprofit. HCD will collaborate with the University of California, Davis to conduct a comprehensive Farmworker Housing Study, mandated by Assembly Bill 1654, aiming to understand and address the housing needs of farmworkers in the state, with a focus on gathering community input, conducting interviews and analyzing data to inform state policy recommendations by 2027. A statewide audit of the Local Streets and Roads Program -- initiated in 2017 and originally aimed to alleviate the degradation of streets and roads in California by allocating funding to cities and counties -- found state agencies effectively administer program processes while many cities struggle to improve road conditions despite appropriate fund usage, with the State Controller lacking adequate resources to ensure compliance with spending requirements.

To whom did you send you your first email? What was the first app you installed? What was the first movie you streamed? Where did you go the first time a robot drove you? For nearly as long as I've followed planning and transportation, the running joke, recited in conference sessions and at happy hours, has been that self-driving cars are at least five years away -- and always will be. But, no. A few days ago, I boarded an otherwise empty Jaguar I-Pace , festooned with sensors, and driven according to a dataset aggregating the wisdom gained from tens of millions of miles of driving. Nine minutes later, I arrived at the Country Mart, a shopping center that looks like a 1900s farm. The future is now. None of this is news to many engineers, alpha testers, and tech evangelists. But, given that 99.9% of the population has yet to witness this fact, I feel obligated to confirm that autonomy is not five years away. It's here, now. (Los Angeles was one of Waymo's three beta-test cities, along with Phoenix and San Francisco. In March, it received permission from the Public Utilities Commission to operate in 22 cities on the San Francisco Peninsula.) According to the axioms of computing, the technology is as bad now as it will ever be. How bad is autonomous driving? Not. It is not bad at all. At every turn, the car was cautious to a fault. It accelerated gradually and never went an iota over speed limits. It came to complete stops and took curves gently. It used turn signals fastidiously and stopped for pedestrians. It was like the DMV Driver's Handbook incarnate. Bedazzled in sensors, a Waymo Jaguar I-Pace stops for a pedestrian. I'm reasonably confident that robots are safer for occupants, fellow vehicles, and all other users of streets and sidewalks than are the millions of bozos (myself included) who text, talk, sing, dance, daydream, make out, smoke out, and do god-knows-what-else behind the wheels of our sundry suicide machines. My only complaint: I wanted more zip. I don't want my robots to be in a hurry, but I don't want to feel like I'm in a horse-drawn carriage either. Eventually, there may be a case to be made for higher speed limits for robots. At whatever speed, autonomous taxis aren't going to take over Los Angeles, or anyplace else in the state, overnight. There's still a chance that AV's will go the way of the Segway. Or, it could be the next iPhone. Planners, start your engines. For cities, AV's present a few appealing best-case scenarios: they demand less parking (since they'll always be on the move), create efficient carpool situations, reduce emissions (as long as they're electric and, ideally, charged by green energy), and, yes, might reduce crashes. The more planners can accommodate AV's, the more of these benefits cities will reap. Most obviously, planners, in collaboration with developers, need to figure out how to trade parking spaces for safe, easy pickup/dropoff areas. Case in point: my Waymo picked me up in a red zone on a fairly congested two-lane street. To drop me off, it unnecessarily snaked through a parking lot when it easily could have pulled into a curbside space. Cue the public works folks and private-sector architects to design driveways, cut-outs, and portes cochère to their hearts' content. And yet, Jevon's Paradox tell us that the more efficient something is, the more heavily it gets consumed. What does that mean for safe, affordable, carbon-lite transportation? Author and robot (l.) out for a Sunday drive. Jevon will get jump-started when, inevitably, some developer in Hemet, Poway, Camarillo, or Pleasanton -- God bless all of them -- builds huge houses on huge tracts of land and give away free Waymo memberships with each one of them. The discomfort of the hour or so it would take to reach downtown San Diego, Los Angeles, or San Francisco from the exurbs will give way to the pleasantries of reading, watching movies, getting foot massages, or whatever. Super-commuting could become robo-commuting, and we're going to have a huge traffic problem on our hands, along with no small measure of suburban ennui. I don't know if AV's are going to be good for the soul. I suppose they're not going to be any worse than regular cars are. But, I do know what is better than regular cars: an attractive, lively, diverse city. As humanity surrenders itself to yet another technological revolution, good planning in center cities becomes increasingly urgent. That ping you hear from the Waymo app: it's a call to arms. Planners, along with developers and everyone else who collaborates to create urban form and culture, must create appealing, functional urban places. We need places that make walking short distances more attractive than kicking back while R2D2 navigates us through traffic. We need places that promote human interaction and aesthetic delight. We need places that are fun, affordable, and full of opportunity. We need places that obviate the need for driving entirely.We always need those things, of course. Now, though, AV's heighten the urgency. Luring people out of their robot cars, once they take hold, is going to be even harder than luring them out of their regular cars. If people fall in love with their robots, they're going to miss out all the more on the flaneuristic joys of walking, biking, and existing as a real, live human in the urban realm. Likewise, public transit agencies need to collaborate with AV services to promote trips to and from mass-transit stations. The robot that can drive you all the way to the office could just as easily drive you to the light rail station -- and then immediately pick up someone who's doing the opposite commute. Unless and until AV fleets grow, this is the ideal way for AV companies to magnify their presence and usefulness. They're especially useful if the robot can calculate exactly where and when to drop a passenger off to meet the train or the bus, or, perhaps, to avoid traffic jams during, say, morning rush hour. The public sector has some leverage here, at least for the time being. AV's are still experimental and aren't yet broadly permitted to operate. And they're too conspicuous to follow the "don't ask for permission; ask for forgiveness" strategy of rideshare apps. They need state sanction, which means that the state can attach conditions. Those conditions can, and should, include earnest efforts to support and collaborate with public transit. They should also include contributions to a fund to help retrain and place TNC drivers who are going to be displaced. (Every developer who has ever participated in inclusionary housing, paid an in-lieu fee, or paid a utility hookup charge knows how this works.) Much of the regulatory lobbying thus far has focused on safety and been motivated by labor interests, such as the Teamsters, who surely would like AV's to drive themselves into the ocean. Meanwhile, SB 915, introduced in January, would give local jurisdictions significant regulatory powers; currently, the Department of Motor Vehicles and Public Utilities Commission have the final say over vehicle-related regulations. As appealing as this bill may be for individual cities, it portends chaos whenever an AV crosses a city limit. At this point in my life, I've sent and received probably 200,000 emails. And I've taken many thousands of car trips. I expect that my ride to the Country Mart is the first of many autonomous rides to come. But, like receiving a handwritten letter, they still will won't beat a walk down a lively city street. Image credit: Waymo .  This blog came to you courtesy of California Planning & Development Report, the authoritative source for land-use planning news in California. Check out our subscription packages here . Still need AICP CM LAw credit as the May 31 deadline approaches? Take Bill Fulton’s one-hour course on RHNA and the Housing Element in California. To learn more, just click here .

Wonderful Co. Envisions Warehouse Complex in Kern County The Wonderful Co., the prominent Central Valley agriculture company owned by Lynda and Stewart Resnick, is proposing a significant expansion of industrial warehousing near the Kern County town of Shafter, aiming to capitalize on the rise of online shopping. The plan involves converting 1,800 acres of almond groves into additional warehousing space, alongside costly infrastructure projects to mitigate the expansion's impacts. This initiative seeks to position Kern County as a hub for industrial-scale warehousing, distinct from the sprawling distribution centers seen in other regions, potentially creating thousands of jobs. While residents welcome the prospect of employment diversification, concerns persist regarding increased truck and train travel's environmental and health impacts in an already polluted corridor. Despite potential job losses due to automation, Wonderful emphasizes training programs for higher-skilled positions, aiming to offset the shift towards mechanization. Developer Scuttles Major Hollywood High Rise Development Millennium Partners has officially withdrawn its ambitious Hollywood Center development plan, valued at over $1 billion, which aimed to erect high-rise residential and office towers around the Capitol Records Building and Pantages Theatre. In the works for 18 years, the proposed development has long been a lightening rod for debates over development in Hollywood and for objections to updates to the Hollywood Community Plan. The decision comes after years of efforts to preserve the historic Capitol Records Building, including a seismic upgrade. Although the project would have introduced the tallest buildings in Hollywood, accommodating over 1,000 residential units and commercial spaces in three towers of up to 46 stories, Millennium Partners has opted not to proceed with its vision for now. This retreat follows a previous attempt, Millennium Hollywood, which faced legal challenges due to environmental concerns and seismic considerations. Despite this setback, Millennium Partners secured approval for a 15-story office tower nearby on Sunset Boulevard. (See related CP&DR coverage.) State Releases Map to Track Fair Housing and Neighborhood Change The release of California's final Neighborhood Change Map by the Department of Housing & Community Development marks a significant step in advancing affirmatively furthering fair housing (AFFH) objectives statewide. This map identifies low- and moderate-income communities of color experiencing significant racial/ethnic and economic changes, aiming to address AFFH challenges and promote integration. After soliciting public feedback and collaborating with research partners, HCD made several modifications to the map, including reorganizing pathways to meet neighborhood change definitions and introducing new measures to capture ongoing changes. By prioritizing affordable housing investments in evolving neighborhoods, HCD seeks to stabilize communities and advance a broader range of AFFH objectives. Moving forward, HCD plans to utilize the Neighborhood Change Map to inform statewide policies and funding allocations for affordable housing initiatives, furthering its commitment to addressing residential segregation and promoting equitable housing opportunities. Court Ruling Nixes Agreement for Redevelopment of Sonoma Development Center A judge's ruling delivered a significant blow to a major project in Sonoma County, overturning approval for the redevelopment of Sonoma Developmental Center, potentially halting plans for a residential and commercial community. The decision followed a lawsuit by Sonoma Valley citizens groups, alleging violations of the California Environmental Quality Act. The ruling criticized the county's failure to address housing unit numbers, cumulative impacts, community concerns, and wildfire evacuation in its environmental impact report. Community activists, long advocating for a scaled-down project, welcomed the ruling, signaling a reset in the conversation and hope for a more thorough environmental review. Despite the setback, the local development team views the ruling as providing guidance for their proposal's environmental review process. The court's decision reflects a contentious debate over the site's future, with community voices pushing for historic preservation and scaled-down development alternatives. (See related CP&DR coverage.) CP&DR Coverage: Big Cities Try to Speed Up Entitlements Under the duress of legislative action or the Regional Housing Needs Allocation program, California cities have added millions of units to their zoned capacity in recent years. All of those potential units mean little, though, if developers can't put shovels in the ground. Now the state's four largest cities - Los Angeles, San Francisco, San Diego, and San Jose - are pursuing some of the most aggressive policies. In almost every case, streamlining measures have been drafted and promoted by mayors, often using executive powers that circumvent the need for city councils and planning commissions to deliberate and approve ordinances. Quick Hits & Updates The former Nordstrom valet parking lot at 469 Stevenson St. in San Francisco, which was intended for housing development, will remain a parking lot for at least the next five years, despite earlier plans for construction on a 27-story tower. The decision, reluctantly approved by the Planning Commission, has drawn criticism from commissioners who felt pressured to approve the project with the expectation of immediate development, highlighting ongoing debates over affordable housing and development challenges in the city. (See related CP&DR coverage.) The California Supreme Court will decide on the constitutionality of a November ballot measure aiming to revoke the "mansion tax" Measure ULA in Los Angeles, with a ruling expected by June. The measure seeks to change the voting threshold for proposed special taxes and could impact dozens of recently enacted taxes, including Measure ULA, which imposed taxes on property sales above certain thresholds. (See related CP&DR coverage.) Little Tokyo in Los Angeles, a neighborhood rooted in history and culture, faces threats of displacement and gentrification, prompting its designation as one of America's 11 most endangered historic places by the National Trust for Historic Preservation. Efforts by the Sustainable Little Tokyo coalition aim to preserve its identity and advocate for policies supporting affordable housing and cultural heritage preservation amidst ongoing challenges posed by development pressures. Fresno will sell the derelict Berkeley Building at 887 Fulton St. to the Fresno Area Hispanic Foundation for $1, with plans to restore it into ground-floor retail shops and offices. The foundation aims to revitalize downtown Fresno, hoping to fund the renovation costs through a federal grant, although additional funding will be required for the project, which aligns with the city's broader efforts to rejuvenate the downtown area. Santa Ana is poised to surpass its state-mandated housing goals ahead of schedule, having issued 74% of required building permits within three years of the eight-year planning period. Through a blend of market-rate and affordable units, the city aims to cater to diverse income levels and foster generational wealth. Five major employers in San Francisco, including Gap and Visa, have formed a volunteer coalition aimed at revitalizing downtown by cleaning up streets and parks. The initiative aims to combat negative perceptions of the city amidst store closures and high office vacancy rates. The U.S. Supreme Court declined to review an appeal by a Fremont woman who was ordered by the city to remove a Buddhist temple she built on her property without a permit. The woman accused the city of discrimination, but federal courts ruled against her, stating she had failed to demonstrate discriminatory intent and affirmed the city's right to enforce building regulations. Fremont officials welcomed the decision and stated their intention to continue enforcing the removal of the illegally constructed structures. In an analysis by the Public Policy Institute of California, the federal government's 2023 Annual Homelessness Assessment Report (AHAR) highlights California's struggle to meet the growing need for homeless housing programs despite promising growth in permanent housing capacity. While federal support during the pandemic bolstered permanent housing, recent declines in rapid re-housing capacity indicate challenges ahead. The state also faces a shortage of shelter beds, with only 71,131 beds available for an estimated 181,399 homeless individuals, prompting calls for increased transparency and strategic use of funding to address homelessness. Andrea Vidaurre, a 29-year-old activist, recently received the Goldman Environmental Prize for her efforts to advocate for cleaner air in California's Inland Empire, where the fast-growing warehouse and logistics industry contributes to significant air pollution. Despite facing environmental racism and health hazards, Vidaurre persuaded California regulators to pass landmark truck and rail emissions standards, addressing the disproportionate impact of pollution on low-income communities and communities of color. A recent report from Strava highlights the top 10 U.S. cities for bicycle commuting, with San Francisco ranking 6th and tying with New York City for commuter rates and Los Angeles ranking 9th with an average of 9.5 miles per commute, contributing to the city's sustainability efforts. Monterey County's progress report in meeting state housing requirements reveals both successes and shortcomings, with housing costs soaring and affordable housing units being slow to develop. Efforts are underway to address these challenges through public-private partnerships, but delays in submitting the housing element to the state and the lack of multifamily construction pose significant hurdles.

The Department of Housing & Communty Development has signed off on Beverly Hills’ housing element, possibly ending one of the most contentious housing element disputes in the state.

California’s population has begun growing again – ever so slightly. But will the housing supply ever catch up? The cost of housing in California increased sharply during the early part of the COVID pandemic – as it did in many places. Now, even though housing growth has been sluggish, cost has levelled off. There are probably several reasons for this, not the least of which is the rapid rise in interest rates. But there may be another factor: The supply of housing, sluggish though it may be, is growing faster than the population. In 2023, according to the Department of Finance, California’s population grew by 67,000 people – the first increase since the pandemic began and the state’s population began declining. But the amount of housing grew by double that amount – 120,000 units or so. That’s a far cry from the half-million or more that Gov. Gavin Newsom said was needed was he first ran for office in 2018, but it’s still an increase. To take a longer view, CP&DR looked at DOF’s estimates of change in population versus change in housing units since the 2020 Census – almost four years, during most of which California’s population declined. And the bottom line is that during that time, the supply of housing increased by 3% and the population declined by 1%. In 2020, there were 39,538,000 people in California and 14,392,000 housing units – in other words, one housing unit for every 2.75 Californians. Four years later, there were 39,128,000 people – a drop of 400,000, or about 1%. And there were 14,824,000 housing units – an increase of 450,000 units, or about 3%. And the ratio had changed to one housing unit for every 2.64 Californians. Between 2020 and 2024, the differential was most noticeable in California’s two huge metropolitan areas – coastal Southern California (Los Angeles/Orange/Ventura Counties) and the Bay Area. Coastal Southern California lost almost a quarter-million people – but gained 136,000 housing units. The Bay Area’s performance was proportionally almost identical – a loss of 176,000 people and a gain of 84,000 housing units. Unsurprisingly, the inland areas showed steadier population levels and higher housing growth. The Inland Empire added 0.5% to its population and 3.5% to its housing supply. (The population growth was all in Riverside County – San Bernardino County actually lost population.) The Central Valley added 0.8% in population and 3.9% in housing units while Sacramento added 0.3% in population but 3.9% in housing units – the highest total anywhere in the state. An interesting outlier was San Diego County, which showed a very minor population loss but still added 3.1% to its supply of housing units – a bigger increase than either the Bay area or the L.A. area. The increase in housing may be partly the result of the City of San Diego’s aggressive pro-housing policies, but the fact that the population held steady may account for the region’s persistently high housing prices. A longer-term perspective shows how the components of needed housing supply have changed over the past few decades. It’s an article of faith among housing advocate that California has underproduced housing since around 1990, when a big recession and the first big group of local growth control ordinances first kicked in. But the ratio of population to housing really hasn’t changed much. In 1990, California had about 29.8 million people and 11.2 million housing units – about 2.66 people per housing unit, or almost exactly the same as today. In fact, between 1990 and 2024, the state added 9.4 million people and 3.6 million housing units, or about 2.57 people per housing unit. The perceived shortage – and the increase in prices – are the result of a wide variety of factors. New houses are bigger and more expensive and new apartments are more amenity-driven and almost more expensive. Empty-nesters tend to sit on their houses these days, especially if they have low Proposition 13 taxes and low Trump-era interest rates. And household formation is different than in past generations: lower fertility rates, smaller household sizes, established empty-nesters living longer. So the bottom line is that the current housing crisis isn’t entirely the result, strictly speaking, of fewer housing units being built. It’s also the result of rapidly changing social and demographic trends bumping up against housing trends – both in new construction and the market supply of older homes – that change much more slowly. This blog came to you courtesy of California Planning & Development Report, the authoritative source for land-use planning news in California. Check out our subscription packages  here . The AICP CM credit deadline is coming up! Get AICP CM credit for Bill Fulton’s one-hour course on RHNA and the Housing Element in California,.For more, just click  here .

Proposed City in Solano County Submits Signatures for Ballot Initiative California Forever has submitted enough signatures to place an initiative on the November ballot that would permit the company to develop a city of up to 400,000 people on roughly 17,500 acres of land the company has purchased in Solano County. The project submitted upwards of 20,000 voter signatures to the Solano County Registrar of Voters, approximately 60% more than required to get it on the ballot. The project targets several thousand acres currently zoned for agriculture, proposing medium-density urban development to address high housing costs and job scarcity. Plans for the development include a mix of homes, green spaces, a downtown area and job opportunities, starting with 50,000 residents within a decade. The initiative awaits verification of signatures. A poll conducted in March found that 70% of residents said they “would vote no if the election were held today.” (See related CP&DR coverage .) Two National Monuments to Gain Significant Acreage President Biden will expand the San Gabriel Mountains National Monument and the Berryessa Snow Mountain National Monument, earning praise from Indigenous leaders, politicians and conservationists. The additions, including the 13,696-acre ridge known as Molok Luyuk, aim to bolster federal protections and enhance access to open spaces for underserved communities. Notably, the San Gabriel Mountains National Monument's expansion of over 105,000 acres on the southeast edge of the existing monument extends towards densely populated areas including Pasadena and the San Fernando Valley, addressing historical disparities in green space access. Meanwhile, the inclusion of Molok Luyuk into the Bereyessa Snow National Monument, encompassing over 300,000 hilly acres northwest of Sacramento, honors Indigenous heritage and promotes co-stewardship for biodiversity preservation. Overall, these moves align with broader conservation goals, aiming to protect 30% of lands and coastal waters by 2030, as advocated by international scientists and adopted by California. State Population Rises for First Time in Four Years California gained population for the first time since 2020, rising by 0.17% or over 67,000 people between January 1, 2023, and January 1, 2024, totaling 39,128,162 individuals. Factors contributing to this growth include a decline in deaths post-pandemic peak, eased immigration policies under President Biden and shifts in domestic migration patterns. While lost residents to other states during the pandemic, this trend reversed in 2023, resulting in a net gain of approximately 116,000 residents. The state lost 505,000 people to other states last year, down from 692,000 in 2021. Meanwhile, 414,000 people moved to California from other states, up from 337,000 in 2021. Last year, the state had a net gain of 114,000 international immigrants, close to pre-pandemic numbers. Although Los Angeles and Orange counties experienced modest growth last year, projections suggest slower, steady population growth compared to previous decades. (See related CP&DR coverage .) EV's Linked to Drop in Bay Area Carbon Emissions New research from UC Berkeley shows a steady decline in carbon dioxide emissions in the Bay Area between 2018 and 2022, attributed to the adoption of cleaner transportation options like hybrid and electric cars alongside improved fuel-efficiency standards. The lead researcher noted that while the 1.8% average annual decrease may seem modest, sustained over 20 years, it could significantly contribute to meeting the state's carbon neutrality goals by 2045. The study, published in Environmental Science and Technology, highlights transportation as the largest local source of carbon dioxide in the Bay Area, emphasizing the importance of clean transportation policies. This study is unique in its focus on the broader region and its direct linkage between electric vehicles and reduced emissions, showing a stronger correlation than previously anticipated. California Cities Rate Poorly in Access to Nature A Washington Post analysis highlights disparities in access to nature among U.S. cities, describing a shortage of green space in many California cities. Utilizing the NatureScore tool developed by NatureQuant, the analysis examines various environmental factors to assess nature access and its impact on health. In California, San Francisco receives an average NatureScore of 52.3, outperforming Los Angeles and Carson but falling short of cities like Boston and Washington, D.C. Conversely, Southern California, including Los Angeles and Carson, exhibits some of the lowest NatureScores in the country, reflecting inadequate green infrastructure. The analysis reveals a correlation between population density and NatureScore, with denser cities generally having lower scores. Additionally, socioeconomic disparities are evident, as areas with higher poverty rates and lower levels of education and diversity tend to have limited nature exposure. CP&DR Coverage: Berkeley Reverses Course on Zoning, Density The city of Berkeley has historically been a laboratory for the rest of the state and the nation. Its liberal citizenry trailblazed issues like banning indoor smoking or encouraging the legalization of marijuana, and its students have famously led political movements and made all manner of academic discoveries. In the planning world, Berkeley is also known for being the birthplace of single-family zoning, in 1916. But, over 100 years later, that type of zoning has come under attack for being exclusionary—and deeply conservative. Critics say it prevents apartments and multi-family dwellings from being built in many neighborhoods and undermines social justice. While the state of California has also adopted similar laws to increase housing construction such as SB 9 and SB 330, Berkeley's City Council may soon go even further by considering a plan to rezone the entire city. Quick Hits & Updates In the first quarter of 2024, California's construction plans for multifamily housing hit a 10-year low, driven by a 22% decline in permits compared to the previous year. This slowdown, attributed to rising interest rates and economic uncertainty, contrasts sharply with the robust construction seen in previous years, contributing to a rental market where vacancies are on the rise despite rents flattening after significant increases during the pandemic. A pro-housing group, Californians for Homeownership, is challenging the City of Orange's state-approved housing plan, claiming it fails to demonstrate how over 3,000 needed homes can be built on land with current deed restrictions. The lawsuit alleges that the city's housing element relies on non-vacant sites with restrictions preventing development, and seeks a court order for the city to revise its plan. This comes amidst a surge in "builder's remedy" applications seeking to bypass the city's zoning rules for housing developments. The Adaptation Planning Grant Program, part of the Integrated Climate Adaptation and Resiliency Program, has extended its application deadline, with Pre-Application Interest Forms now due by May 20 and the Main Application Form due by June 3. This initiative aims to support vulnerable communities in developing climate resilience through funding for climate adaptation planning efforts. Governor Newsom and Attorney General Bonta brokered an agreement with the City of Malibu to ensure compliance with the state's Housing Element Law by September, aiming to expedite the approval of a housing plan that would accommodate 79 units, 47 of which must be affordable to low- and very low-income households. State wildlife commissioners voted to list the Southern California steelhead trout as endangered, expanding protections for the fish under the state's Endangered Species Act due to declining numbers and threats like habitat loss. Despite opposition from water agencies concerned about project delays and water supply limitations, the decision aims to address environmental challenges and enhance conservation efforts. The San Diego Sports Arena (currently the Pechanga Arena), slated for demolition and redevelopment, has been designated a historic resource by the city's Historical Resources Board, recognizing its role in the Midway District's development, its association with a local sports legend, and its New Formalism architectural style. While the designation does not prevent demolition, it prompts an evaluation process to consider alternatives that could reduce impacts to the historic resource, amid plans for redevelopment in the area. The California Tahoe Conservancy, along with state agencies and preservation nonprofits, is acquiring a 31-acre site in South Lake Tahoe, including a 1970s-era Motel 6 and a vacant restaurant, for $15.4 million to protect the lake and its surrounding wetlands. The acquisition aims to restore the site to its natural conditions, including marsh and meadowlands, to enhance water quality and provide habitat for local wildlife. The University of California, Santa Barbara (UCSB), settled lawsuits with both the City of Goleta and the Santa Barbara County Board of Supervisors regarding student housing, requiring UCSB to construct an additional 3,500 student beds by 2029, adhere to the 2010 Long Range Development Plan and provide funding for community-serving projects in Isla Vista. The National Low Income Housing Coalition reveals its annual report, "The Gap: A Shortage of Affordable Homes," a shortage of 7.3 million affordable rental homes for extremely low-income families in the US, resulting in nearly three-quarters of such renters being severely cost-burdened, spending over half their income on rent. The study found there are 1,282,835 extremely low income renter households in California, the highest in the country. Developers of a proposed gondola from Union Station to Dodger Stadium face legal and political challenges as they aim to complete the project before the 2028 Olympics. Stockton's City Council approved the South Pointe Village housing project, a significant step towards downtown and waterfront redevelopment, with at least 520 housing units planned. The project aims to revitalize the area with market-rate housing and amenities, potentially catalyzing further development in the downtown core. The Pacific Fishery Management Council is considering protecting deep-sea corals in several areas off Monterey Bay, including Sur Ridge, Año Nuevo Canyon or Ascension Canyon, due to their habitat importance. These restoration efforts come after the 2016 incident where a dry dock damaged coral in Pioneer Canyon, aiming to compensate for the loss and enhance coral habitats in essential fish habitat conservation areas while minimizing impacts on fishing activities. Environmentalists and community activists have sued the Los Angeles Metropolitan Transportation Authority over the approval of an environmental review, while the Los Angeles City Council has approved a traffic study to potentially delay the project, prompting concerns about the impact on the historic Los Angeles State Historic Park and surrounding community.

Under the duress of legislative action or the Regional Housing Needs Allocation program, California cities have added millions of units to their zoned capacity in recent years. All of those potential units mean little, though, if developers can’t put shovels in the ground.

Los Angeles to Ask Wealthy Residents to Donate to Affordable Housing Los Angeles Mayor Karen Bass's newest housing initiative, LA4LA, urges wealthy residents to make private donations and loans to help finance the purchase of apartments for the city's unhoused population, which exceeds 46,000 individuals. LA4LA is a partnership involving government, philanthropy and the private sector, with the goal of expanding affordable housing options in Los Angeles quickly and at scale. Bass hopes the initiative can help address homelessness challenges by simplifying funding processes, encouraging collaboration among public service organizations, and mobilizing expertise to achieve the mayor's housing objectives operating under the California Community Foundation. While some view this effort optimistically, others express skepticism about its potential impact given the immense scale of the problem. The program is modeled on a program in Atlanta that has raised over $150 million for affordable housing. State Commits Funds to Housing Enforcement, Homelessness Services The state is allocating nearly $200 million in new funds to assist in transitioning homeless individuals from encampments to housing across California. These initiatives aim to monitor the utilization of taxpayer dollars and enforce compliance with grant terms, reflecting Gov. Newsom's aim to efficient funding allocation and effective homelessness solutions. Concurrently, he introduced measures to enhance oversight of state homelessness funding to ensure accountability by local jurisdictions. These measures include expanding the Department of Housing and Community Development's Housing Enforcement Unit to encompass homelessness, proposing statutory changes to bolster the unit's capacity and monitoring the usage of state homeless funds by cities and counties to ensure compliance with grant terms. Additionally, Newsom aims to enforce existing housing laws related to combating homelessness, such as Housing First and Fair Housing Act regulations and plans to include homelessness in the Regional Housing Needs Allocation process to address the needs of homeless populations. National Monument of Over 600,000 Acres Proposed for Mojave Desert California members of Congress introduced a bill to establish Chuckwalla National Monument, covering 627,855 acres in the Mojave Desert and expanding Joshua Tree National Park by 17,915 acres. Championed by Sens. Alex Padlilla and Laphonza Butler and Rep. Raul Ruiz, The proposed monument would extend from the eastern Coachella Valley to the Colorado River and aim to protect diverse ecosystems and cultural values while accommodating renewable energy development, receiving endorsements from both conservation and energy industry groups. It also aims to protect the homelands of several Indigenous tribes. In a separate initiative, President Biden plans to expand the boundaries of San Gabriel Mountains National Monument and Berryessa Snow Mountain National Monument, enhancing conservation efforts and increasing access to nature for underserved communities. Multifamily Housing Funds Allocated to Build Over 4,000 Units The California Department of Housing and Community Development announced the second round of awards from California's Multifamily Finance Super NOFA (MFSN), aimed at expediting housing development by minimizing bureaucratic hurdles. This year's awards, totaling nearly $523.8 million, support 51 projects that will include 4,018 homes and infrastructure improvements needed to support infill development. Through the MFSN program, developers can access multiple funding programs via a single application, facilitating time and cost savings. These programs offer loans for multifamily development construction and rehabilitation, as well as infrastructure grants to support infill development. The initiative seeks to address California's housing needs across income levels, promoting efficiency and inclusivity in housing projects, with a focus on serving diverse populations and meeting various state objectives. CP&DR Coverage: Fulton on Supreme Court's Decision Striking Down Exactions With a unanimous vote, the U.S. Supreme Court has ended California's practice of allowing looser standards for exactions and impact fees when they are imposed as part of a general plan. In practical terms, the ruling in Sheetz v. El Dorado County may have the same effect as previous exactions rulings dating back to Nollan v. Coastal Commission almost 40 years ago: more sophisticated and expensive nexus studies - this time at the general plan level - to justify the imposition of fees and other exactions. now the question becomes whether the way California jurisdictions actually calculate those program-level fees is specific enough to meet the “rough proportionality” rule - and that question will be determined by California courts. Some have said this will inevitably lead to lower impact fees. Given the history of impact and mitigation in California, however, it seems more likely that it will simply lead to the use of a more sophisticated methodology in nexus studies that justify the fees. Cities and counties in California aren't likely to give up impact fee revenue that easily, writes CP&DR Publisher Bill Fulton. Quick Hits & Updates The California Fish and Game Commission has officially designated the Mojave desert tortoise as endangered, acknowledging its dwindling population and the threats it faces. Efforts to protect the species include habitat preservation and recovery measures, but challenges such as urban development, vehicle strikes, wildfires, and climate change continue to endanger its survival. The Palo Alto City Council voted to revise its housing plan for a second time, aiming to ensure minority and low-income residents have access to housing. The revisions, endorsed by the Planning and Transportation Commission, include identifying land suitable for housing development and addressing equity concerns, with a focus on affirmatively furthering fair housing. A private developer has submitted a preliminary application for a major affordable housing development in unincorporated Sonoma County, near the Charles M. Schulz-Sonoma County Airport. The proposal, invoking the builder's remedy provision, seeks to avert local zoning restriction. The proposal includes 1,400 units across 20 four-story buildings with various amenities, including a recreation space and a market building. The project, if approved, would be the largest project to invoke the builder's remedy. The owners of Television City, previously CBS Television City, are revising their plans to modernize and expand the Los Angeles studio following feedback from residents, stakeholders and city officials. The $1.25 billion project aims to create additional office and production space. Following approvals, the project's planned completion date is 2028. Animal rights activists in Sonoma County are pushing for an ordinance to end large concentrated animal farming operations (CAFOs), citing concerns about animal welfare and environmental pollution, while farm interests argue that the initiative could jeopardize family farms and the local agricultural industry. The proposed ordinance aims to phase out medium- and large-sized CAFOs, imposing restrictions on animal numbers and waste management, prompting debate over the balance between animal welfare and economic interests in the region. A new report estimates that Los Angeles County must invest billions of dollars through 2040 to protect residents from worsening climate hazards, including extreme heat, increasing rainfall, worsening wildfires, rising sea levels and climate-induced public health threats. The report identifies 14 different climate adaptation measures that would cost taxpayers at least $12.5 billion over the next 15 years, with the majority of costs incurred by local municipal governments, including stormwater drainage improvements, cool pavement investments and urban canopy expansion. Laguna Beach is forming a local housing trust fund, allocating up to $2.5 million to support efforts for affordable housing, with potential additional funding from the city's parking fund pending a state matching grant. This move aims to address the housing needs of qualifying artists, seniors and local workers while leveraging state grants for housing creation and preservation. According to a new survey from UCLA, nearly 4 in 10 renters in Los Angeles County have expressed concerns about losing their homes and facing homelessness, while a similar proportion worry about going hungry due to the high cost of food. The survey, part of the 2024 Quality of Life Index, indicates that renters in the county are experiencing significant strain from housing costs and inflation, with satisfaction levels dropping to record lows, especially regarding the cost of living and economic outlook. The Bay Area Housing Finance Authority (BAHFA) is considering a $10-20 billion housing bond for the November 2024 ballot, aiming to build over 52,000 new affordable homes near transit. Analysis by TransForm, using data from the Metropolitan Transportation Commission (MTC), suggests that this initiative could significantly reduce greenhouse gas emissions by generating more transit trips and decreasing car usage, contributing to a more sustainable and equitable future. TransForm urges BAHFA to proceed with the measure, emphasizing the potential benefits for housing, transportation and the environment in the Bay Area. Los Angeles Metro released its final environmental documents for the new Southeast Gateway Line, which will extend 19 miles from Artesia to downtown Los Angeles Union Station, serving multiple cities. The initial lower section, covering 15 miles from the Slauson A Line Station to Artesia, is estimated to cost $7.1 billion, with funding mainly from sales tax revenue, requiring additional federal funds. Despite minor changes in the final environmental documents, concerns have been raised about trade-offs affecting rail mobility versus increased costs, including adjustments to station accessibility and sound and visual shielding measures. The Town of Belvedere's second attempt at an eight-year housing plan has been rejected by the state, necessitating a third revision, as officials raise concerns about the feasibility of the proposed sites for development, particularly the utilization of accessory dwelling units, churches, a school and small parcels to meet the regional mandate. Despite expectations of rejection, city officials and consultants had hoped for progress toward compliance, but the California Department of Housing and Community Development's review letter outlined 18 compliance issues, including the city's failure to address fair-housing challenges, evaluate the previous housing element's effectiveness and create programs to encourage development. The San Jose City Council unanimously adopted a new "tenant preference" policy aimed at retaining low-income residents vulnerable to displacement, allocating 20% of affordable apartments in new city-funded properties to lower-income applicants from "high-displacement" areas and 15% within the same City Council district. Proposed in 2017 and recently passed into law in 2022, the policy addresses the urgent need to prioritize local families in the face of soaring housing costs, with Councilmembers emphasizing its significance in preserving the city's identity and culture.

by CP&DR Staff Vol. 39 No. 4 April 2024 Report

Anaheim Approves $1.9 Billion Disneyland Expansion, within Existing Footprint The Anaheim City Council unanimously approved Disneyland's dollar expansion plan, allowing the theme park to add new attractions, shops and restaurants within its current properties, with millions allocated for local projects. The council's decision came after presentations and public comments from over 200 individuals, including residents, Disney employees and union groups. Mayor Ashleigh Aitken, previously critical of such projects, expressed surprise at the benefits outlined in thousands of pages of documents, emphasizing the potential for affordable housing, park improvements and infrastructure investment. The plan, known as DisneylandForward, aims to create a more immersive experience within the current 100-acre footprint in Anaheim, with amendments to zoning rules allowing for new attractions, hotels and stores. It's expected to cost between $1.9 and $2.5 billion. Despite concerns about traffic and housing costs, supporters anticipate job creation and economic boosts, while skeptics worry about Disney's influence and impact on the city. Ten Jurisdictions Qualify for Prohousing Designation Nine cities and one county in California have earned the Prohousing Designation for their efforts in promoting housing development across all income levels, bringing the total number of designated communities to 47. These jurisdictions include Crescent City, South Lake Tahoe, Fairfield, Pinole, Richmond, Berkeley, Los Angeles County, Rancho Cucamonga, West Hollywood and Brea. This designation provides funding incentives and additional resources to expedite housing production, crucial for meeting the state's goal of constructing 2.5 million new homes by 2030. The program rewards communities that streamline processes, reduce costs and adopt growth-oriented housing policies. Designated communities gain access to grants and additional points in scoring for various state funding programs, including the Prohousing Incentive Program (PIP). The Prohousing communities, according to the HCD, demonstrate proactive measures to minimize obstacles, accelerate housing construction, increase affordable housing availability and combat homelessness. Each community's application highlights specific policies and initiatives aimed at promoting housing development, such as zoning code revisions, fee reductions, trust fund establishment and streamlined permitting processes. (See related CP&DR coverage .) State Assesses Effectiveness of Regional Housing Allocation The Department of Housing and Community Development published California's Housing Future 2040: The Next Regional Housing Needs Allocation . In this report, HCD recommends to legislators the changes to the RHNA process necessary to effectively plan for the homes that will be needed across the state by 2040. Informed by extensive stakeholder engagement, the report suggests that the RHNA process is fundamentally sound but needs to be modified to fully unlock its intended outcomes and sufficiently plan for homes now through the end of the 7th cycle in 2040. The report identifies a mix of recommendations that would require statutory changes, as well as adjustments to processes already under HCD's administrative authority, to lay the groundwork for creating future homes. SCAG Launches "Dashboard" to Visualize Sustainable Communities Investments The Southern California Association of Governments (SCAG) published its Local Investments Dashboard to display information about SCAG-funded efforts included in the Connect SoCal Regional Transportation Plan/Sustainable Communities Strategy. The Sustainable Communities Program (SCP) administered by SCAG provides technical assistance and financial resources to local agencies for land use and transportation decisions, supporting implementation of regional planning policies. Through SCP, SCAG aligns funding categories with Connect SoCal goals to promote regional planning objectives and meet local community needs, aiming to improve mobility, promote racial equity, enhance air quality and prioritize vulnerable populations while increasing competitiveness for state and federal funds. The total amount awarded currently sits at over $234 million with the largest amount allocated towards housing projects (27.2%). The second and third largest projects by type include Active Transportation at 17.4% and utilities at 15.6%. California Metros Include Extensive "Rental Deserts" Due to restrictive land use policies and opposition driven by "not in my backyard" sentiments, rental housing is scarce or nonexistent in almost one-third of neighborhoods across the United States. Research out of Harvard University's Joint Center for Housing Studies found these "rental deserts" in a number of California metropolitan areas, including Sacramento-Roseville-Folsom, San Francisco-Oakland-Berkeley and Oxnard-Thousand Oaks-Ventura with 15-30% of the share of rental deserts. Riverside-San Bernardino-Ontario had a share of 30-36%. The research also found the racial discrimination between renters and owners most divergent around the Los Angeles metropolitan area and second most divergent inland in Southern California. The research included recommended zoning reform as the first step to expand geographic options for renters. Santa Clara Short $624 Million for Infrastructure Santa Clara faces a daunting challenge with its deteriorating infrastructure, including parks and fire stations, according to reporting by the Mercury News. City Manager Jovan Grogan reveals a staggering $624 million shortfall in infrastructure funding, exemplified by the closure of the George F. Haines International Swim Center. This issue extends beyond Santa Clara, with neighboring cities like San Jose and Berkeley also struggling with significant maintenance backlogs. Proposals for funding solutions, such as bond measures and revenue from local developments, are being considered, but the problem remains complex and multifaceted. Longtime residents like Adam Thompson express frustration over city leadership's handling of finances, underscoring the need for effective solutions to address the city's infrastructure crisis. CP&DR Coverage: Bill Would Revise Builder's Remedy The housing element/builder's remedy battles continue around the state, as the Department of Housing and Community Development has revoked the housing element certification of the wealthy peninsula town of Portola Valley. HCD said Portola Valley was not making sufficient progress toward the upzoning called for in the housing element. Meanwhile, a new bill from Assemblymember Buffy Wicks would put significant guardrails on builder's remedy projects in the future, bringing more clarity to the “wild west” builder's remedy situation and linking it more closely to standards in other state laws. No one expects AB 1893, the Wicks bill, to pass as it currently standards, but it could form the basis for a reform that provides both cities and developers with changes they want. Quick Hits & Updates The Anaheim Ducks' owners are adjusting plans for the OC Vibe project, a $4-billion mixed-use complex near the Honda Center and ARTIC. Changes include swapping proposed office space for additional housing units, with infrastructure work underway and the first phase expected to open in 2026. (See related CP&DR coverage .) The City of Norwalk is advancing the Heart of Norwalk initiative to rejuvenate its historic downtown area with new zoning regulations and public space enhancements, covering approximately 615 acres. The plan includes redevelopment zones in three key areas, proposes street reconfigurations and greenway development along the Norwalk Railway Corridor and aims to increase housing capacity by rezoning commercial boulevards, potentially accommodating over 3,000 residential units and significant commercial space over a 30-year period. Belvedere's second attempt at an eight-year housing plan has been rejected by the state, necessitating a third revision, as officials raise concerns about the feasibility of the proposed sites for development, particularly the utilization of accessory dwelling units, churches, a school and small parcels to meet the regional mandate. Despite expectations of rejection, city officials and consultants had hoped for progress toward compliance, but the California Department of Housing and Community Development's review letter outlined 18 compliance issues, including the city's failure to address fair-housing challenges, evaluate the previous housing element's effectiveness and create programs to encourage development. The future of San Diego's proposed new sports arena is uncertain following a report recommending the historic designation of the current San Diego Sports Arena, which could significantly impact demolition plans. Despite suggestions that including historical elements in the new arena could mitigate concerns, the looming historical designation poses another challenge for the Midway Rising project, which aims to develop affordable housing alongside the arena, amidst existing obstacles such as rising water tables and investor changes. However, city officials clarify that the historic designation doesn't necessarily halt redevelopment but initiates a process to evaluate alternatives. The San Bernardino Development Co., comprising Renaissance Downtowns USA and ICO Real Estate Group, is suing the city for breach of contract regarding the Carousel Mall redevelopment project. The lawsuit alleges that the city terminated the agreement without warning, causing millions of dollars in damages and accuses city officials of misconduct and bad faith negotiations. Despite the legal troubles and termination, the city maintains that redevelopment of the mall remains a priority, although no formal plans for redevelopment have been announced. A statewide audit of the Local Streets and Roads Program -- initiated in 2017 and originally aimed to alleviate the degradation of streets and roads in California by allocating funding to cities and counties -- found state agencies effectively administer program processes while many cities struggle to improve road conditions despite appropriate fund usage, with the State Controller lacking adequate resources to ensure compliance with spending requirements. The Great Redwood Trail Agency recently released draft of its master plan aims to transform an old railroad line into a 300-mile hiking, biking and equestrian trail from Humboldt to Marin County. The plan includes designs for amenities along the trail, prioritizes certain sections for development, and envisions the potential economic benefits, with public comments on the draft open until June 3rd and an upcoming open house for further discussion. An environmental group filed suit against the U.S. Energy Department over its decision to award over $1 billion to keep California's last nuclear power plant, Diablo Canyon, running beyond its planned closure in 2025, citing concerns over outdated safety assessments and inadequate public disclosure. The move adds to the ongoing debate over the plant's future amid disputes about safety, costs and the necessity of nuclear energy in a transitioning energy landscape focused on renewables and climate change mitigation. Sunnyvale's 2023-31 Housing Element has been certified by the state Department of Housing and Community Development, outlining plans for accommodating nearly 12,000 new housing units and implementing various programs to address housing needs. Additionally, Sunnyvale will host an Earth Day Festival on April 20, coinciding with the grand opening of its new civic center, featuring sustainability-focused activities and information from local organizations. In a significant victory for the California Forever project in Solano County, a judge denied a motion by remaining landowners accused of conspiring to inflate property prices, citing evidence of a price-fixing conspiracy provided by messages among property owners. The "California Forever" project aims to create a new city from farmland near Fairfield, sparking debate over the role of the ultra-rich in city-building and the use of agricultural land for development. A California State Auditor audit of cannabis-permitting processes in six local jurisdictions found deficiencies in ensuring fairness, preventing conflicts of interest and following established procedures. Recommendations include implementing blind scoring, creating an appeals process, requiring impartiality statements from reviewers and improving documentation and transparency in the permitting process. The audit highlights the importance of adherence to best practices to increase public confidence and mitigate corruption risks in cannabis permitting. Permit Sonoma, the planning agency for Sonoma County, has issued a 25-page "completeness review letter" to Eldridge Renewal, the development team for the Sonoma Developmental Center campus redevelopment, seeking clarifications and additional information on various aspects of the project. The county is particularly concerned about issues such as bicycle access, sewage disposal, historic preservation and housing diversity, emphasizing the need for smaller, more affordable living spaces and better connectivity within the development. (See related CP&DR coverage .) Dreamstar Lines, a California company, has entered into an agreement with Union Pacific Railroad to negotiate terms for an overnight passenger train service between San Francisco and Los Angeles, aiming for a summer 2025 launch with deluxe amenities and competitive fares. Despite being a preliminary agreement, the MOU signifies progress toward finalizing track access and operations agreements, with plans to secure remaining funds and complete preparations for the anticipated service launch.

The city of Berkeley has historically been a laboratory for the rest of the state and the nation. Its liberal citizenry trailblazed issues like banning indoor smoking or encouraging the legalization of marijuana, and its students have famously led political movements and made all manner of academic discoveries.