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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.

This article is provided to you for free by the paying subscribers to;California Planning & Development Report.;To learn how you too can subscribe to;CP&DR;and support our work, just click;here. Gov. Gavin Newsom signed 21 bills related to planning and development on Thursday ; the vast majority of them dealing with increasing housing production. About 15 planning and development bills remains on his desk and he has until the end of September to sign them. Taken together, the bills don’t include any extremely aggressive moves by the state to box in local governments. Indeed, in a few cases ; such as a new bill on the builders remedy ; the new legislation actually does the opposite and boxes in developers a bit. But some ; such as an ADU law ; are aggressive in their own way. There’s also definitely a trend toward transparency ; posting more information on the internet about fees especially. Here are the bills Newsom signed Thursday. ADUs SB 1211: Increases the number of allowable accessory dwelling units on a parcel from 2 to 8, depending on the situation. Builders Remedy AB 1893: Boxes in the builders remedy, among other things limiting the amount of additional density a developer can obtain. Previous CP&DR coverage is available here. CEQA AB 2117: Ensures that permits don’t expire when a project is subject to a CEQA challenge. SB 393: Puts the burden of proof on the plaintiff when seeking a bond from a CEQA defendant. A response to the $500,000 bond placed on the citizen group Save Downtown Livermore in litigation over Eden’s affordable housing project in Livermore. Previous CP&DR coverage of that case can be found here. AB 2199: Extends infill exemption from 2025 to 2032. Density Bonus Law AB 2694: Extends Density Bonus Law to residential care facilities for the elderly. A dense eldercare facility was recently an issue in a court case from Los Angeles (previous CP&DRcoverage here), though the DBL was not at issue in that case. Fees AB 2430: Prohibits imposition of monitoring fees to monitor affordable housing requirements if the project is 100% affordable. AB 2663: Requires cities and counties to post housing in-lieu fees on the internet and explain how they were spent. AB 937: Allows delay of impact fee payment on residential projects Housing Elements AB 1886 and AB 2023: Clarifies that a Housing Element is compliant with state law if a court says so and there’s a “rebuttal presumption” in court that a Housing Element is in or out of compliance of the Department of Housing and Community Development says so. The question of whether a local government can independently certify Housing Element compliance has been a huge legal issue, as evidenced by CP&DR’s coverage here.) AB 2667: Requires HCD to create standardized Affirmatively Furthering Fair Housing reporting, which local governments must use in Housing Elements starting with the 7th RHNA cycle. AB 3093: Adds two new categories to Housing Element income categories to account for homelessness. (Detailed CP&DR coverage of the HCD report that recommended these changes can be found here.) Other Housing AB 1413: Expands definition of “disapproval” under the Housing Accountability Act and also expands notification requirements in those situations. AB 2243: Extends AB 2011, which permits residential development in commercially zoned areas, to high-rise districts not in commercial corridors as well as near freeways and clarifies that affordability requirements apply to base units in Density Bonus Law, not bonus units. SB 450: Tightens SB 9 so that it's harder to deny lot splits, among other provisions. (For more background on how cities are ; or are not ; implementing SB 9, check out CP&DR’s previous coverage here.) SB 7: Specifies that cities and counties can’t object to Regional Housing Needs Determination. SB 312: Further clarifies CEQA streamlining for student housing contained in SB 886, which was passed after the so-called “People’s Park” decision. (For more background on the case and SB 886, see CP&DR’s previous analysis here.) AB 2488: Allows tax-increment financing for office-to-residential conversion in Downtown San Francisco. Transit-Oriented Development AB 2553: Redefines a “major transit stop” under state law as a transit stop with 20-minute headways instead of 15-minute headways. This is important because much TOD streamlining is geared toward “major transit stops” and post-COVID transit agencies have been cutting back service. AB 2712: Specifies that TOD projects with lower parking requirements in Los Angeles. must be excluded from residential permit parking.

Perhaps the most significant thing about state and local ballots in California this fall is what’s not on them.

Plan for San Francisco's Candlestick Point Megaproject Moves Forward The redevelopment plan for Candlestick Point, a 280-acre site on San Francisco's waterfront, recently received initial approval from the city's Office of Community Investment and Infrastructure (OCII). This updated plan features taller buildings, the transfer of commercial space from the adjacent Hunters Point Shipyard and a focus on creating an “innovation district” to attract tech firms. However, significant changes include extending deadlines for public financing and construction due to previous delays. Community groups have raised concerns about the affordability of the new housing, arguing that it may exclude lower-income residents displaced by the redevelopment. The proposal now moves to further reviews, including the OCII Oversight Board and the Planning Commission, with ongoing debate about its impact on local communities and affordability. Oakland Port Seeks New Proposed for A's Stadium Site at Howard Terminal With the Oakland A's having abandoned their plans for a $1 billion waterfront stadium and surrounding development at Howard Terminal, the Port of Oakland is now seeking new proposals for the site. Initially, the A's envisioned a mixed-use project featuring a 35,000-seat ballpark, residential units, commercial space and public amenities. With the team's plans to relocate to Las Vegas and the exclusive negotiating agreement with the port expiring, the port aims to explore alternative uses for the disused 50-acre property. The port is open to proposals that include maritime, industrial, commercial, recreational and water-oriented developments. This shift represents a significant opportunity for the port to drive economic growth and job creation in the region. Building Permits Fall across Southern California Southern California's homebuilding activity has slowed due to high lending rates impacting developers. In the three months ending in July, permits for new housing units dropped by 13% year-over-year but were still 7% higher than the five-year average. The decline was consistent across the region, with permits down in Los Angeles, Orange, Inland Empire and San Diego counties. Multifamily permits fell sharply as apartment builders scaled back, while single-family permits also decreased, reflecting cautious homebuilders and rate-sensitive buyers. Despite the recent slowdown, permit numbers remain above the long-term average in some areas, suggesting mixed impacts on housing availability and affordability. Goleta Housing Development Entagled in Dispute over Builder's Remedy, Measure G A Goleta property owner is suing the City of Goleta over the right to utilize California's builder's remedy to construct 56 single-family homes, including 13 affordable units, on 12 acres called the "Shelby property." The application was an updated version of a development approved in a 2011 tract map. The City of Goleta rejected Glynne Couvillion's application in 2023, leading to litigation where the judge will review issues related to the Housing Accountability Act and builder's remedy. The Shelby property, with a complex zoning history and recent changes, faces opposition from conservationists and local groups, while legal debates continue over the application of 2012's Measure G--which requires voter approval of changes to certain agricultural properties--and the project's adherence to current regulations. The outcome will impact Goleta's housing landscape, addressing the city's urgent need for affordable housing amidst ongoing planning and environmental concerns. CP&DR Coverage: Protections for Threatened Bumblebee Could Impede Development As California grapples with a deepening housing underproduction crisis, developers might be facing an unexpected challenger: Crotch's bumblebee. And it could be just the beginning of a new era of endangered species protection, as more insects become eligible for protection - and the methodology for understanding listing and protection might be very different for insects. The bumblebee (scientific name: Bombus crotchii ) has an extremely wide range within California, including the Mediterranean region, Pacific Coast, western Mojave desert, Central Valley, and foothills, and has also been observed in southwest Nevada near the California border. If the bumblebee were to be listed, it could pose significant challenges to developers all across the state. They would have to adhere to new regulations, including undergoing extensive survey processes and implementing unclear conservation practices, potentially delaying previously established timelines. Quick Hits & Updates Los Angeles' Measure ULA, a tax on high-value property sales aimed at funding housing initiatives, has generated $375 million since its implementation, falling well short of the expected $600 million to $1.1 billion annually. Despite facing legal challenges and opposition, the tax is moving forward, with plans to allocate $160 million next year for programs like social housing, eviction defense and support for low-income first-time homebuyers. (See related CP&DR coverage .) The Afterthought Mine in Shasta County has been designated a Superfund site by the EPA due to its severe pollution, with acidic drainage 1,200 times above allowable limits contaminating Little Cow Creek and its tributary, the Sacramento River. The cleanup will involve extensive study and possibly passive treatment methods, but the site will require ongoing treatment for potentially hundreds of years, with costs fronted by taxpayers. Though the Brightline West high speed rail line will run between California and Nevada, Senate Majority Leader Chuck Schumer is advocating for Siemens Mobility to manufacture its trainsets in Upstate New York's Southern Tier, which could generate hundreds of jobs. Siemens was chosen to build the American Pioneer 220 trainsets for the Brightline. Schumer highlighted the Southern Tier's strong manufacturing base and skilled workforce as key advantages. (See related CP&DR coverage .) California's homelessness crisis continues to grow , with nearly 186,000 individuals affected, though the rate of increase has slowed compared to previous years, with the largest increase statewide occurring in San Joaquin County. While some counties have reported progress through increased funding and new shelters, discrepancies in counting methods and data accuracy challenge efforts to fully understand and address the crisis. A Los Angeles County Superior Court judge has struck down a city law aimed at phasing out oil production within city limits, ruling that state jurisdiction supersedes local control over drilling operations. The law, backed by the L.A. City Council and environmental activists, sought to halt new oil and gas extraction and end existing operations within 20 years; however, the ruling may be overturned if a pending state bill allowing local governments more control over oil operations is signed by Governor Newsom. Under the Green and Resilient Retrofit Program, HUD has awarded $3.6 million in Surplus Cash Loans to Pleasant View Apartments in Fresno to support energy efficiency and climate resilience improvements. This funding is part of a larger initiative to enhance nearly 2,000 homes across the country, focusing on reducing carbon emissions and increasing sustainability in housing. Recent tests at a former rocket testing site in Canoga Park revealed high levels of toxic chemicals, including TCE and PCE, in nearby homes and businesses, prompting calls for further investigation. The report recommends additional testing at residential and commercial sites to the north and east of the former Rocketdyne location, as groundwater may be transporting the detected toxic chemicals in those directions. A University of California, Davis study found that over 50% of ride-hailing trips in California replaced more sustainable transportation options like public transit and cycling, or resulted in new vehicle miles, highlighting the environmental impact of these services. The research, conducted to inform the Clean Miles Standard, also revealed that ride-hailing disproportionately affects those without personal vehicles or from racial and ethnic minority groups and suggests improvements such as better integration with public transit and increased vehicle efficiency to enhance sustainability. A recent U.S. Geological Survey study revealed a tenfold increase in post-fire erosion in Northern California from the late 1980s to the 2010s, exacerbated by larger and more intense wildfires, which poses significant risks to water resources and ecosystems. This erosion, which is expected to worsen with climate change, threatens to reduce reservoir capacities, harm aquatic life and increase flood risks, underscoring the need for improved land and forest management practices to mitigate these effects. San Jose has become the priciest city in the U.S. for both buying and renting homes, with average home prices at around $1.5 million and median rents exceeding $3,300 monthly. Experts suggest renting may be more financially advantageous in Silicon Valley due to the high cost disparity between buying and renting. The Revitalizing Downtowns and Main Streets Act federal legislation proposes a 20% tax credit for converting underutilized commercial properties into residential units, with additional incentives for affordable housing and rural areas. The bill aims to address high office vacancy rates and the affordable housing crisis exacerbated by the Covid-19 pandemic and is supported by multiple trade groups with a companion bill in the Senate.

Federal Government Awards $900 Million to Los Angeles for Transportation Los Angeles will receive nearly $900 million in funding from the federal government to enhance its infrastructure and transportation system in preparation for the 2028 Olympic and Paralympic Games. The monies will come from a spending package signed into law by President Biden and grants secured through the U.S. Department of Transportation's New Starts and Expedited Project Delivery Pilot Programs. The bulk of this funding, approximately $709.9 million, will be allocated to LA Metro projects including the East San Fernando Valley Light Rail and the D Line subway extension. Additionally, $160 million will be used for street and transit improvements, traffic safety and better neighborhood connectivity. Key initiatives include expanding mobility hubs, improving pedestrian and bike infrastructure and supporting community planning for open spaces. This investment aims to address current infrastructure needs while ensuring long-term benefits for the city's residents and visitors. State Allocates $343 Million for Public Transit California has allocated an additional $343 million in funding to support public transit; it is the second wave of funding from the transit recovery package in the 2023-24 state budget, building on the $1.9 billion announced last month. Governor Gavin Newsom emphasized the state's dedication to improving public transportation as part of his infrastructure enhancement agenda. This new funding is part of Senate Bill 125, which allocates a total of $5.1 billion over several years to regional transportation agencies for both operational and capital improvements. Specific uses of the funds include maintaining service levels, investing in zero-emission vehicles and constructing transit hubs. The funding aims to enhance mobility, support sustainable transit systems and align with the needs of a diverse range of California communities. Research Seeks to Standardize VMT Analysis New research published in the Journal of the American Planning Association calls for the implementation of consistent methods to estimate vehicle miles traveled (VMT) for individual properties. California adopted VMT metrics for environmental analysis in 2013 via SB 743. Currently, there is no nationally standardized method, leading to significant variation in VMT estimates depending on the method used. The researchers evaluated 12 different methods for estimating site-generated VMT across eight office sites in California and Utah and found considerable discrepancies, particularly in trip generation estimates. The study suggests planning policies should mandate consistent estimation methods for comparability as well as industry-wide standards or alternative performance metrics. (See related CP&DR coverage .) Proposed Federal Program Would Support Housing, Sustainable Transportation The federal Advisory Council on Historic Preservation (ACHP) has circulated a draft Program Comment to streamline historic preservation reviews for federal investments in housing, climate-smart buildings and climate-friendly transportation. This initiative aims to accelerate the renovation and reuse of historic buildings for affordable and climate-resilient housing by simplifying review processes for interior renovations, sitework and façade projects. For climate-smart buildings, the proposal would facilitate the installation of solar panels, upgrades to energy-efficient systems and other improvements without extensive reviews. In transportation, the comment seeks to expedite pedestrian, bicycle and public transit infrastructure projects to enhance accessibility and safety. The draft comment is currently open for consultation with various stakeholders to refine its provisions before final approval. CP&DR Coverage: Santee Council Improperly Sidestepped Referendum on Fanita Ranch Environmentalists have won the latest round one of California's longest-running development battles, the attempt by HomeFed to build a 3,000-home Fanita Ranch development in an apparently high-wildfire-risk area of Santee east of San Diego. San Diego County Superior Court Judge Katherine Bacal ruled in August that the Santee City Council erred in 2022 when rescinded all of the 2020 Fanita Ranch approvals, thus allowing the council to remove the referendum from the ballot, and then approved the same project anew under an urgenc ordinance not subject to referendum. The approval took place after the city recirculated some sections of the project's environmental impact report in response to Judge Bacal's ruling in March of 2022. An appeal is expected. Quick Hits & Updates The "Downtown Sacramento Livability Strategy" by the Downtown Sacramento Partnership outlines critical needs and urgent priorities for enhancing downtown's livability, emphasizing the production of affordable housing and the creation of desirable amenities. The 40-page document serves as a strategic guide, challenging local leaders to address both housing supply and demand issues and transform downtown Sacramento into a vibrant, sustainable urban neighborhood. A study out of RAND finds mandatory Project Labor Agreements (PLA) attached to Los Angeles Proposition HHH - or publicly funded supportive housing aimed at addressing homelessness - significantly increased project costs by about 22%, more than double previous estimates and resulted in longer completion times without achieving economies of scale. This increase in costs suggests that using a PLA could reduce housing output by approximately 20%, necessitating an additional $1.2 billion to produce the same number of units. Oakland completed the sale of its 50% share of the Coliseum to Ray Bobbitt's African American Sports and Entertainment Group (AASEG) for $125 million, with plans to transform the site into a dynamic complex featuring sports venues, dining and housing. The sale is expected to provide immediate financial relief to the city and will see the Coliseum hosting the Oakland Roots SC soccer team while AASEG finalizes the purchase of the remaining ownership share from the A's. San Francisco's Bus Rapid Transit (BRT) project on Van Ness Avenue has been awarded a Silver designation by the Institute for Transportation and Development Policy, marking it as one of the top three BRT projects in the U.S. This recognition reflects significant improvements in transit speed, safety and reliability, with bus travel 36% faster, injury collisions down 54% and transit reliability up 45%. A new report by the RAND Corp. about the impact of a Project Labor Agreement (PLA) attached to Proposition HHH in Los Angeles reveals that the PLA increased total development costs by 21%, more than double previous estimates. The study also found that PLA projects took 8 months longer to complete on average compared to non-PLA projects. Allstate has received approval for the largest home insurance rate increase in California in three years, with an average hike of 34.1% for its 350,000 customers. The increase, effective at the first renewal date after November 7, ranges from decreases of 57% to increases of nearly 650%, depending on the location. This rate adjustment follows a broader trend of rising insurance costs in California, driven by increased claims and repair costs. (See related CP&DR coverage .) An independent analysis estimates that evacuations from the Lake Tahoe area could take nine to 14 hours due to road congestion and closures, significantly longer than previous estimates of under four hours. The study, conducted using artificial intelligence, highlights the urgent need for updated emergency planning and better coordination among local agencies to address the challenges of evacuation during major wildfires. The Federal Transit Administration approved environmental review documents for the first segment of the Southeast Gateway Line, making it eligible for major federal funding crucial to the $7.1 billion project. The 14.5-mile segment will begin utility work by the end of this year and, when completed, will connect 1.4 million residents from Union Station in Downtown LA to Artesia. Plans are underway to develop the former Pleasant Hills Golf Course in San Jose into a 113-acre residential community with 1,716 housing units, including both market-rate homes and affordable rentals. The project aims to meet local housing needs and features up to 50,000 square feet of retail space and a public plaza, with approvals anticipated from both county and city officials by late 2024 and 2025, respectively.

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.

Housing issues again dominated the Legislature’s action on planning and development issues this year. About 30 bills were sent to Gov. Gavin Newsom after the end of the legislative session on August 31. Newsome has already signed two bills and has until the end of September to decide whether to sign the rest. CP&DR will update its legislative coverage once Newsom acts on all the bills, but he’s unlikely to veto many.

Gov. Gavin Newsom has weighed in on a Beverly Hills housing dispute , saying that the city’s denial of a 165-unit apartment building proposed by developer Leo Pustilnikov in a builders remedy application is a violation of state law. Apparently Beverly Hills thought it was in the clear because the denial came the day after the Department of Housing & Community Development approved the city’s housing element.

State Releases $789 Million for AHSC Projects The state will allocate nearly $789.8 million in cap-and-trade funds to support 24 projects across 20 communities, aiming to build 2,483 new affordable homes and enhance infrastructure. This investment, part of the Affordable Housing and Sustainable Communities (AHSC) program, will also fund sustainable transportation initiatives such as zero-emission transit vehicles, new bus shelters and extensive bikeways and sidewalks. The AHSC program aims to integrate housing and transportation improvements to reduce greenhouse gas emissions and meet climate targets. This latest round of funding is the eighth and largest under the AHSC program, which has collectively invested $3.8 billion to date. The initiative also aligns with Governor Newsom's broader efforts to address homelessness and promote affordable housing, including recent executive orders and reforms. These projects are expected to significantly contribute to both affordable housing availability and environmental sustainability in California. Davis, Berkeley Lead Among California’s Bicycle Ratings In the 2024 PeopleForBike’s annual City Ratings , California cities performed well, particularly among medium and large cities. Davis and Berkley were highlighted as top medium-sized cities for bicycling with scores of 78 and 71, respectively. In the large cities category, San Francisco achieved a score of 64, making it one of the top-performing large cities in the U.S. for cycling. Among the state’s other large cities, Los Angeles ranked in the 54th percentile, San Diego in the 68th, San Jose in the 70th, Sacramento in the 71st, and Fresno in the 38th. The City Ratings program evaluates cities using the SPRINT criteria, which accounts for safe speeds, protected bike lanes, reallocated space for biking and walking, intersection treatments, network connections, and trusted data. Report Cites California’s Extreme Disparity between Wages, Housing Costs The National Low Income Housing Coalition released its newest Out of Reach report, detailing the disparity between wages and the cost of rental housing in the U.S. In 2024, the National Housing Wage — an estimate of the hourly wage a full-time worker must earn to afford a modest rental home without spending more than 30% of their income — is $32.11 for a two-bedroom rental $26.74 for a one-bedroom rental, which is significantly higher than federal or state minimum and median wages for most occupations. California has the highest housing wage average at $47.38, and is home to the eight of the ten most expensive jurisdictions, where the two-bedroom rentals range between $51.62 in Napa County and $77.96 in Santa Cruz County. This means that to afford a Two-Bedroom Fair Market Rent in California, a worker earning minimum wage would need to work 3.0 full time jobs and renters earning the estimated hourly mean renter wage of $30.93 would require working 1.5 full-time jobs. Congress Considers Bill to Limit Corporate Homeownership A new Senate bill, introduced by Minnesota Senator Amy Klobuchar and Ohio Senator Sherrod Brown along with eight other Senate Democrats, would require institutional investors buying homes in bulk to report these purchases to federal regulators. An estimated 2% of single-family homes statewide are owned by institutional investors. The Housing Acquisitions Review and Transparency (HART) Act would amend the Clayton Antitrust Act to include residential real estate, addressing concerns over market consolidation by large corporate landlords, such as Blackstone Inc., along with other private equity firms and real estate investment trusts. The bill seeks to enhance transparency and protect consumers by giving the Federal Trade Commission and the Justice Department the ability to review and block large transactions that could drive up housing prices. Despite lacking Republican support, the bill could address concerns over the influence of institutional investors in the housing market, especially in the Sun Belt. Neither California senator is a cosponsor. Two similar state bills, AB 1333 and AB 2584, are being considered by the Legislature. CP&DR Coverage: California's Lesson for Las Vegas Nevada Gov. Joe Lombardo has called for the Biden administration to open 50,000 acres of desert to development around Las Vegas so Nevada can add as many as 335,000 homes. The situation Las Vegas faces today , writes CP&DR's Josh Stephens, is a version of the one that most of California's major urban areas faced decades ago: constraints to growth. San Francisco has been hemmed in since the Victorian Era, and Oakland has always been squished between mountains and bay. In Los Angeles, "sprawl hit the wall" in the 1980s. Even the Inland Empire cannot gallop as it once did. In each case, mountains, coastlines, other cities, and, yes, protected open spaces have forced cities to grow through density rather than expansion. Las Vegas could be more dense. It could be more efficient. It could be both inexpensive and attractive. It could take a cue from all the ersatz historicism that it's famous for, accept the gift of artificial constraints, and consider a new approach to urbanism. In short, with a little imagination--real imagination, not just spectacle--southern Nevada could learn from the lessons that California so vividly teaches. Quick Hits & Updates A Canadian real estate firm Onni is  suing Nexstar Media Group for $30 million, claiming it is owed its deposit following a failed $95 million deal for the 222 West 2nd Street property in Downtown Los Angeles. Onni alleges that material misrepresentations and a significant change in the property's planned use—now designated for homeless housing—invalidated their interest, compounded by undisclosed additional requirements for coordinating with Metro’s future plans. Tribal leaders from the Yocha Dehe Wintun Nation and the Kletsel Dehe Wintun Nation are urging the Department of Interior to reject the Scotts Valley Casino proposal, arguing that it threatens their ancestral lands, cultural sites and sovereignty, and raises environmental and transparency issues. The Scotts Valley Band of Pomo Indians, who propose the casino project, argue it is crucial for their economic development and self-sufficiency, but face opposition due to concerns about environmental impact and inadequate tribal consultation. Costa Mesa has adopted new affordable housing requirements for apartment developments of 50 units or more, mandating that 4% to 10% of units be set aside as affordable based on the development's density and affordability level, with an alternative option for developers to pay an in-lieu fee. This policy aims to balance the need for affordable housing with encouraging new construction, while other Orange County cities like Irvine and Newport Beach have similar requirements. San Diego County  launched an interactive website and map to help residents find affordable housing developments funded by the county, featuring details on income limits, eligible populations, unit sizes and links to developers. This tool, part of the County’s Housing Blueprint, consolidates information on existing and under-construction properties, including direct links to application processes and waiting lists, in response to the regional housing crisis. The Bureau of Land Management imposed a 50-year ban on new mining activities in over 2,800 acres of California's San Bernardino National Forest, safeguarding habitats for four endangered plant species. These plants, including Cushenbury buckwheat and Parish’s daisy, are exclusive to the national forest due to the rich calcium carbonate found in the soil, the same material mined for construction and agriculture. Workers have breached the final dams on the Klamath River, marking a significant milestone in the largest dam removal project in U.S. history and restoring salmon access to their historic spawning grounds for the first time in over a century. The project, costing around $500 million, aims to revive the river's ecosystem, though it may take time for salmon to fully return and the river to recover from a century of disruption. State Superintendent of Public Instruction Tony Thurmond launched a statewide effort to accelerate housing development by utilizing the significant amount of developable land owned by California’s local education agencies (LEAs). Combined, California LEAs own 75,000 acres of developable landExternal link opens in new window or tab, providing the potential to create an estimated 2.3 million new housing units throughout the state. The Anaheim City Council is  considering establishing a new housing trust fund to address poverty and rent spikes, with details still being developed by city staff. The fund could receive contributions from various sources and may support initiatives beyond affordable housing, hoping to alleviate housing affordability challenges in the city. California Attorney General Rob Bonta is continuing to pursue legal action against Elk Grove despite the city's settlement with an affordable housing developer, indicating that the city may have violated housing laws. The Santa Clara Valley Water District is considering a seawater desalination plant to address water needs in Silicon Valley, having approved a $1.7 million feasibility study for the project. The proposed plant could process between 20 to 80 million gallons of seawater daily, providing between 10 million and 40 million gallons of freshwater, enough for between 100,000 and 500,000 households yearly. The plan, which faces potential environmental opposition and high costs, aims to explore the viability of desalination as a new water course for the region, amidst concerns about its expense and environmental impact. The Pacific Forest Trust has acquired 11,000 acres at the headwaters of the Trinity River for $15.5 million to safeguard the course of the Trinity Reservoir, a crucial part of California’s water supply. The land, purchased from a timber company and transferred to the Watershed Research and Training Center, will be managed under a conservation easement to maintain its natural and productive state. The purchase was funded by the California Wildlife Conservation Board, the U.S. Department of Housing and Urban Development, and the Sierra Nevada Conservancy. The California High-Speed Rail Authority appointed Ian Choudri as its new CEO, succeeding Brian Kelly, who is retiring after six years. Choudri, currently a Senior VP at HNTB Corporation, brings over 30 years of experience in transportation and has worked on high-speed rail projects in France and Spain.

CP&DR Vol. 39 No. 8 August 2024

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

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