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

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

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

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

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

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

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

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

Gov. Gavin Newsom has signed all but one of the 40-odd planning and development bills the Legislature passed, including – at the last minute – the controversial bill regulating warehouses.

California Planning & Development Report CP&DR CP&DR Bay Area Considers $110 Billion Plan to Address Sea-Level Rise The Bay Area introduced its first plan to address the challenges of sea-level rise, which could lead to severe flooding and infrastructure damage. Estimated at $110 billion, the plan includes constructing seawalls, levees and marshes to protect the region's 400 miles of shoreline, which, if ignored, could result in $230 billion in damages. The Bay Conservation and Development Commission (BCDC) has released a draft Regional Shoreline Adaptation Plan to standardize responses across local governments, although some officials worry it may be too ambitious given current resources. With predictions of significant sea-level rise over the coming decades, the plan aims to unify adaptation efforts and establish regional priorities, including the management of contaminated sites. Public feedback on the draft is open until October 18, with finalization expected by the end of the year, while BCDC seeks to support localities in developing their own plans through grants. (See related CP&DR coverage .) Los Angeles Envisions "Car-Free" Olympic Games in 2028 The Los Angeles Metropolitan Transportation Authority outlined a draft public transit strategy for the upcoming 2028 Olympic Games in a recently released a presentation titled “Metro 2028 Games Mobility Concept Plan”. Key elements include a “Car-Free, Transit-First Games” approach with no parking at venues and the establishment of a “Games Route Network” featuring priority lanes, although not universally applied. The plan anticipates an 80-day operations period, with a supplemental bus system running during the Olympic and Paralympic competitions and highlights the need for extensive infrastructure like 25 park-and-ride sites and 2,700 buses supported by 6,000 drivers. Areas projected to attract the most spectators include USC, Inglewood and Carson, with peak-day ridership expected to reach 1.2 million, surpassing current weekday averages. Despite some federal funding secured, significant financial gaps remain, raising questions about Metro's capacity to effectively implement the plan and manage the anticipated challenges. (See related CP&DR coverage .) AIDS Healthcare Settles Class-Action Suit over Skid Row Properties The AIDS Healthcare Foundation (AHF) reached a settlement of $575,000 in a class-action lawsuit by current and former tenants of a Skid Row apartment building suing over unsafe living conditions. The agreement, announced before opening statements, also includes AHF refunding tenants 25% of rent since 2017, hiring elevator consultants and pest control experts and committing to general improvements. The settlement comes during AHF's campaign for Proposition 33, the latest of three statewide rent-control initiatives that it has sponsored, drawing criticism for prioritizing campaign funding over building maintenance. AHF's president stated the organization invested significant resources in improving the building in addition to stressing the need for broader affordable housing solutions. Sacramento Finalizes Effort to Undo Single-Family Zoning Culminating a high-profile effort to increase density citywide, the Sacramento City Council adopted the Missing Middle Housing Interim Ordinance, making it the first city in California to permit multi-unit housing in single-family neighborhoods. This new policy replaces density limits with maximum floor area rules, allowing buildings up to 2.5 stories based on lot size and proximity to public transit. Housing types such as four-plexes and cottage courts will be introduced, aiming to blend with existing neighborhoods while providing affordable options for middle-income families. Key features include standards for neighborhood compatibility, outdoor space and initiatives to maintain affordable housing for vulnerable residents. The ordinance will take effect on October 17, with plans to evaluate its impact before considering it for permanent adoption. (See related CP&DR coverage .) Huntington Beach Approves Large Development on Former Industrial Site in Coastal Zone Traditionally resistant to new housing, Huntington Beach City Council approved a controversial mixed-use development project including 200 homes, a 50-unit affordable housing complex, a 215 room hotel and 19,000 square feet of retail space on 29 acres that previously housed three large oil tanks. The project, in planning stages since 2016, will break ground in mid-2025 since receiving the necessary approvals from local and state agencies, including the Coastal Commission. However, some community and environmental groups oppose the project, citing concerns about flooding, proximity to a landfill and the site's location on an earthquake fault. The investment firm behind the project disputes the claims, asserting the site is properly monitored and elevation improvements will mitigate flood risks. Concurrently, Huntington Beach faces legal issues regarding state housing requirements as it continues to struggle with mandates to increase housing. (See related CP&DR coverage .) AIDS Healthcare Settles Class-Action Suit over Skid Row Properties The AIDS Healthcare Foundation (AHF) reached a settlement of $575,000 in a class-action lawsuit by current and former tenants of a Skid Row apartment building suing over unsafe living conditions. The agreement, announced before opening statements, also includes AHF refunding tenants 25% of rent since 2017, hiring elevator consultants and pest control experts and committing to general improvements. The settlement comes during AHF's campaign for Proposition 33, the latest of three statewide rent-control initiatives that it has sponsored, drawing criticism for prioritizing campaign funding over building maintenance. AHF's president stated the organization invested significant resources in improving the building in addition to stressing the need for broader affordable housing solutions. CP&DR Coverage: Elk Grove Loses Big in Housing Cases A controversial supportive housing project has been relocated out of Old Town Elk Grove - but the city will now be subject to increased scrutiny by the state Department of Housing and Community Development. That's the end result of the settlement of two lawsuits brought against Elk Grove - one by the developer and one by the state - after the city denied the project by claiming that a ground-floor retail requirement in Old Town, while an “objective standard” under SB 35, was “unwaivable” under state Density Bonus Law. On September 4, in a high-profile press conference attended by both Gov. Gavin Newsom and Attorney General Rob Bonta, the state announced its own settlement - which was clearly intended as a warning to other cities that run afoul of state housing law. Quick Hits & Updates A $1.5 billion initiative to expand the Los Vaqueros Reservoir in Contra Costa County has fallen apar t after years of planning and investment, representing a significant setback for water storage expansion in Northern California amid worsening droughts. The project faced rising costs and regulatory challenges, particularly regarding environmental protections for the endangered Delta smelt, which complicated the financial agreements among the eight partnering water agencies. A judge ruled against Silicon Valley billionaire Vinod Khosla in his yearslong legal battle over public access to Martins Beach, allowing a lawsuit from state agencies to proceed to trial. The California Coastal Commission and State Lands Commission argue that Khosla has been illegally restricting access to the beach since 2010, when he purchased the property and locked the gate. The trial is scheduled for April and could result in Khosla being required to remove no trespassing signs and the gate blocking access. This case has drawn significant attention, highlighting tensions between private property rights and public access to California's beaches. The Federal Transit Administration has awarded an $893.3 million grant to the Los Angeles County Metropolitan Transportation Authority for a new light rail line in the East San Fernando Valley, which will span 6.7 miles and include 11 stations serving communities like Van Nuys and Pacoima. Expected to open in 2031, this project aims to restore train service to the area for the first time in 70 years, with a focus on community engagement and local hiring, while promoting sustainability through a solar power system to meet maintenance facility energy needs. The Berkeley City Council approved an agreement with BART to develop hundreds of apartments, including over a third designated as affordable, at the Ashby BART station. The deal allows BART to utilize the west parking lot for construction while Berkeley will lease a smaller lot for development, although concerns were raised about the limited affordable housing and the potential displacement of Black residents in South Berkeley. The Port San Luis Harbor District is studying the potential for an offshore wind operations and maintenance port in San Luis Obispo Bay in collaboration with Clean Energy Terminals, with a feasibility study expected to take six to 18 months. While some community members support the project for its economic benefits and renewable energy goals, others express concerns about environmental impacts and disruptions to the character of Avila Beach. Long Beach has launched the "Backyard Builders Program" to encourage homeowners to build Accessory Dwelling Units (ADUs) on their properties, offering low- to zero-interest loans of up to $250,000, provided the units are rented to low-income individuals for at least five years. While this initiative aims to increase affordable housing, concerns have been raised about the potential eviction of tenants after the rental period and the need for more tenant protections, prompting advocacy groups to call for additional support for displaced renters. Edwards Air Force Base has broken ground on the Air Force's first commercial apartment complex. This initiative aims to address longstanding housing challenges for service members, particularly the difficulties of commuting from off-base residences and will be managed by the Secretary, which has experience with privatized housing on military installations. San Diego Airport's Terminal 1 project has received an additional $26.3 million federal grant, bringing the total federal funding for the nearly $4 billion redevelopment to $192.1 million. The grant will support the construction of new aprons and a taxiway, as well as noise mitigation measures, with the first phase of the new terminal set to open by late summer next year and the entire project, including 22 new gates, expected to complete by early 2028.

by CP&DR Staff on September 26, 2024

State Issues Moratorium on Property Insurance Cancellations California Insurance Commissioner Ricardo Lara has implemented a one-year moratorium on insurance cancellations and non-renewals for about 750,000 homeowners impacted by recent wildfires in Southern California. This protective measure, covering areas affected by the Airport, Bridge and Line fires, aims to provide relief to residents as they recover from the disasters. Lara's actions are supported by a law he authored in 2018, designed to safeguard policyholders in wildfire zones. Additionally, the California Department of Insurance is developing the nation's first public wildfire loss prediction model to ensure fair insurance practices, addressing concerns about the accuracy of private models. This initiative, along with ongoing reforms, seeks to enhance insurance options and support communities facing increasing climate-related risks. (See related CP&DR coverage .) San Diego County Aims for Net Zero Emissions by 2045 The San Diego County Board of Supervisors has adopted a comprehensive 2024 Climate Action Plan (CAP) aimed at achieving net-zero greenhouse gas emissions by 2045. This plan, developed through extensive community engagement, outlines 70 actionable strategies across five key sectors—energy, transportation, solid waste, water and agriculture—focused on reducing emissions while enhancing public health and quality of life. The plan's land use strategies include updating 15 community plans and reducing VMT through a variety of transportation demand management strategies. Unlike previous iterations, the CAP prioritizes equity, committing at least 20% of investments to underserved communities significantly affected by climate change. The implementation will be managed by nine county departments and is projected to cost around $650 million over five years, mainly through existing programs. Supporters see this plan as a crucial step towards environmental accountability and sustainable development, particularly in light of increasing climate-related challenges. Los Angeles Estimates Cost of Eliminating Homelessness at $20 Billion According to a draft analysis from city housing officials obtained by the Los Angeles Times, Los Angeles needs to invest more than $20 billion over the next decade to end homelessness, significantly more than current spending. That draft plan would include 36,000 permanent housing units for chronically homeless individuals and another 25,000 units for low-income families. These numbers, the report indicates, would enable the city to effectively eliminate homelessness by 2032. The city's annual operating budget is around $12 billion. Concurrently, CalMatters has filed a lawsuit against the Los Angeles Housing Services Authority (LAHSA) for denying them access to shelter incident reports, citing concerns over safety and conditions in existing facilities. The lawsuit underscores a larger issue of Los Angeles's spending — over $24 billion in recent years — often without tracing outcomes. CalMatters emphasizes improving shelter conditions is crucial for people to use services. Study: Public Comments Skew Older, Whiter at Planning Commission Meetings in S.F. A recent study from the University of North Carolina finds that public comments at San Francisco Planning Commission meetings are predominantly from older, white, politically engaged homeowners, which may influence the commission's decisions. The analysis of 42,500 comments from 1998 to 2021 indicates a significant demographic gap between commenters and the general population. Critics argue that the study's methodology, which estimates demographics from names, may not be accurate and that legal constraints and pre-existing opinions also affect commission decisions. Some officials acknowledge the demographic skew but emphasize efforts to engage a broader community for major projects. The study highlights the need for exploring alternative methods to ensure diverse and representative public input. CP&DR Coverage: CEQA and Streetscapes Streetscape plans are exempt from the California Environmental Quality Act, an appellate court has ruled. In striking down a challenge to Los Angeles's wide-ranging Westside Mobility Plan - which charges fees on new development to pay for largely non-automobile improvements - the Second District Court of Appeal ruled the Mobility Plan's streetscape component properly falls within the statutory exemption contained within CEQA Guidelines 15301 , which allows an exemption for minor repairs and operational changes to roadways. The Westside neighbors group tried to argue that the affordable housing discount would lead to additional growth that had not been dealt with in the growth-inducing impact portion of the EIR, but the appellate court didn't buy that argument, saying discounted fees wouldn't necessarily lead to additional development. Quick Hits & Updates Environmental groups, including Earthjustice and the Sierra Club, have filed a lawsuit against the Port of Stockton over its approval of a hydrogen production project using fossil methane, arguing that it will increase climate and air pollution. The lawsuit claims the port failed to conduct a thorough environmental review, highlighting the project's potential harms to health and the environment in a community already burdened by pollution and calls for a reconsideration of cleaner alternatives to hydrogen production. The U.S. Department of Housing and Urban Development (HUD) is allocating $6.5 million in Choice Neighborhoods Planning Grants, including two California recipients: Oxnard and Woodland. Each community will receive a $500,000 grant to develop a comprehensive "Transformation Plan" aimed at modernizing public housing, improving resident outcomes and revitalizing high-poverty neighborhoods, all while supporting the Biden Administration's goals of equitable economic opportunities and affordable housing access. The Department of Housing and Community Development (HCD) issued a Notice of Violation to Norwalk after the city adopted an ordinance banning new homeless shelters and supportive housing, threatening legal action if the policy isn't reversed. Governor Gavin Newsom criticized the moratorium as counterproductive and immoral, emphasizing the need for communities to provide shelter and services amid the ongoing homelessness crisis, while HCD noted that Norwalk has failed to meet its housing goals, issuing only 175 permits of the required 5,034. A study published in Science Advances shows that Californians are breathing 65% less vehicle-related pollution since 2000, reflecting the effectiveness of state emissions reduction policies. However, it highlights that disparities are increasing, with Hispanic and Black communities still facing higher exposure to harmful pollutants due to their locations near highways, emphasizing the need for targeted interventions in these areas. San Jose is abandoning a controversial plan to sell a tiny home site for a jail diversion program after significant community backlash, including thousands of petition signatures and safety concerns voiced at public meetings. City officials acknowledged the need for more transparency and will explore alternative options with Santa Clara County, as the proposal faced strong opposition from residents who felt uninformed about the county's intended use of the site. A California appeals court overturned a San Francisco ordinance that extended the eviction notice period for renters from three days to ten days, stating that local laws cannot contradict state regulations. The court's ruling reinforces the existing state timeline and emphasizes that while cities can regulate the grounds for eviction, they cannot alter the procedural timelines set by state law. The state Supreme Court upheld a lower court's decision allowing UC San Francisco to proceed with its 15-story hospital project, rejecting neighborhood groups' claims that the construction violated height and zoning restrictions. The project, which aims to address a shortage of hospital beds, is scheduled for completion in 2030 and is exempt from local regulations as a government activity. (See related CP&DR coverage .) 56 California airports will receive a total of $219.5 million in grants from the Federal Aviation Administration to enhance airport infrastructure through the Airport Improvement Program. The funding will support various upgrades, including runway reconstruction, noise mitigation and zero-emission equipment, aimed at improving safety and efficiency while reducing environmental impacts. Lendlease, the Australian developer behind the stalled Hayes Point project in San Francisco, has reached an agreement with city officials to remove the 25% on-site affordable housing requirement, allowing all 333 planned condos to be market-rate units. This change is intended to enhance the project's viability amid post-pandemic economic challenges and follows a broader city effort to adjust development regulations and fees to stimulate stalled projects. The U.S. Department of Housing and Urban Development awarded $6.5 million in Choice Neighborhoods Planning Grants to 13 communities in 11 states to develop comprehensive plans for redeveloping distressed HUD-assisted housing and improving neighborhood conditions. Each community, including the first-ever Tribal Nation recipient, will receive $500,000 to create a "Transformation Plan" aimed at modernizing housing, enhancing resident outcomes and stimulating long-term economic development. The San Bernardino County Transportation Authority's new ZEMU passenger train, North America's first self-powered zero-emission train using hybrid hydrogen and battery technology, has been recognized for its innovation and environmental benefits. The train, which is set to begin service later this year along the Arrow Corridor, received nearly $52 million in support from the California State Transportation Agency and has been praised for advancing clean transportation technology.