Search Results

Budget Restores REAP 2.0 Funding The budget deal agreed upon by Gov. Gavin Newsom and Legislative leaders restored virtually all funding for the second round of the Regional Early Action Planning grants (REAP 2.0) -- but the funds must be obligated by September. Meanwhile, affordable housing got whacked by over $1 billion. Newsom had proposed that $300 million of the grants -- designed to encourage more planning and construction of driving-efficient developments -- be withheld because of the budget deficit. But almost all of it was restored. The vast majority of the $500 million in funds will go to the state's Metropolitan Planning Organizations, while $30 million will be reserved for competitive grants. A summary of the budget deal can be found & here . (Previous CP&DR coverage of the REAP 2.0 budget can be found here. ) Seaside Faces Lawsuits over General Plan & The Center for Biological Diversity and LandWatch Monterey County filed a lawsuit against Seaside, alleging that the city's approved general plan update lacks sufficient consideration of environmental impacts, violating CEQA. The plan includes development on sensitive wildlife habitat at the former Fort Ord military base, potentially impacting endangered species like the California tiger salamander and California red-legged frog. Despite objections and evidence suggesting alternatives, the city proceeded with the plan, failing to adequately assess greenhouse gas emissions and environmental consequences associated with the proposed development through 2040. The lawsuit also alleges the city did not adequately analyze the greenhouse gas emissions associated with this development or study any alternatives as mandated by state law. Report Quantifies Burden of Impact Fees Statewide A new report by the California YIMBY Education Fund and UCLA Luskin School of Public Affairs illustrates the wide variety in housing impact fees across California. The report, titled The Impact of Fees: Rethinking Local Revenues for More Multifamily Housing, reveals that the average impact fees for both multifamily and single-family houses, $21,703 and $37,471, respectively, are triple those nationwide. It is not uncommon for total development fees - including impact fees, services fees, in-lieu fees, and others - to reach $150,000 per unit. Some of the stiffest fees are in Bay Area cities: Livermore, Fremont, and Palo Alto. The report contends that fees on new homes are designed to pay for infrastructure that is used by all residents; said Nolan Gray, research director for California YIMBY, “it's essentially a form of wealth transfer from new residents of multi-family housing, who tend to be lower-income, to existing residents of single-family homes - who tend to be wealthier.” To reverse the trend and instead incentivize multifamily housing developments, the report presents a variety of recommendations including transparent fee calculations, capping fees per square foot, and alternative revenue sources like bonds. Supreme Court Kicks Tax Measure off November Ballot The California Supreme Court has blocked a ballot measure that aimed to require voter approval for tax increases, ruling it would constitute a revision of the state constitution rather than an amendment. The measure, called the Taxpayer Protection and Government Accountability Act and supported by over 1 million petition signers, would have required voter approval for all legislative tax increases, and it would have raised the threshold for approval of local tax increases from a simple majority to two-thirds. The court's decision was unanimous; the decision read, in part, that the measure “would substantially alter our basic plan of government” by limiting governments' taxation powers. The measure also sought to increase voting thresholds for local tax hikes and retroactively reverse tax increases since January 2022. Democratic leaders, including Governor Gavin Newsom, opposed the measure, arguing it would undermine government operations and progressive policies. Business groups supporting the measure criticized the court's decision as partisan, claiming it denies voters a voice in fiscal policy. Had it passed, the measure would have applied retroactively and nullified , among other local measure, Los Angeles's controversial Measure ULA, which imposes a surtax on real estate transactions of $5 million and above (see related CP&DR coverage). Racetrack Closure Presents Redevelopment Opportunities in East Bay Golden Gate Fields, a historic horse racing venue in Albany and Berkeley, is closing permanently, prompting local officials to consider its future use. Mayor Jesse Arreguin of Berkeley views this as a significant opportunity to reimagine the property, which spans 140 acres across both cities. The current plan dates back to 1986 and includes outdated uses like a composting facility, deemed unsuitable for such prime real estate today. Proposals for redevelopment include options like housing, commercial spaces and even a hospital, with both cities collaborating on a joint plan. However, challenges such as rezoning, regulatory approvals and ownership present significant hurdles to these ambitious redevelopment plans. (See related CP&DR coverage .) Federal Government Seeks to Restore Wetlands Nationwide In the continuing evolution of the Clean Water Act, and the related Waters of the United States ruling, the Biden administration set a goal to protect and restore 8 million acres of wetlands over the next six years to counter development pressures and recent regulatory setbacks. This initiative, called America the Beautiful Freshwater Challenge, aims to reverse the loss of wetlands, crucial for filtering pollutants and preventing floods, especially after the recent Sackett v. EPA & S Supreme Court ruling weakened federal protections. Alongside wetlands, the administration plans to reconnect and safeguard 100,000 miles of rivers and streams nationwide by 2030, removing barriers like dams and stabilizing eroded banks. Several states, tribes, cities, NGOs and private companies have pledged to participate in the America the Beautiful Freshwater Challenge, committing to work towards freshwater restoration targets. CP&DR Legal Coverage: Berkeley People's Park Case The California Supreme Court has reminded everybody that the California Environmental Quality Act is just a law - one that can be changed by the legislature at any time. On Thursday, June 6, the court finally ruled in the long-awaited “People's Park” case - the one where an appellate court ruled last year that noisy students can be a “significant impact” under CEQA, possibly triggering the need for an environmental impact report and mitigation. But the Supreme Court went the other way, overturning the lower court decision and clearing the way for construction of student residences in People's Park. The final ruling, which was very different in tone, backed off of the displacement/homeless issue but concluded that noise from student parties in Berkeley is a significant environmental impact that UC must analyze in its environmental impact report. Quick Hits & Updates Air taxi company Archer Aviation & unveiled plans for a network of flying taxis in the Bay Area. Their goals include hubs in South Bay, East Bay, Wine Country, and the Peninsula, aiming for 10-to-20-minute flights. Partnering with Kilroy Realty Corporation, Archer will use Oyster Point in South San Francisco as a central hub and is exploring a "sea portal" for water-based operations with electric VTOL aircraft and ferries. The annexation of a contentious 606-acre property near Pittsburg into city limits was & approved by Contra Costa LAFCO, making way for developer Discovery Builders to build 1,500 new homes around the Los Medanos Ridgeline. The project faced much opposition from environmental groups like Save Mount Diablo, which advocated for more adequate green buffers and environmental review processes. Five years after California's official apology to its Native American peoples for the state's historical wrongdoings, Governor Newsom has & initiated the return of 2,800 acres of ancestral lands to the Shasta Indian Nation in Siskiyou County, marking the largest land return in the state's history. A measure titled the Affordable Housing, Homelessness Solutions and Prevention Now has qualified for the November ballot in Los Angeles County. It seeks to replace the current Measure H sales tax with a permanent half-cent tax to enhance funding for homeless services and affordable housing, emphasizing prevention and accountability measures, despite concerns about its timeline and permanence from critics like the Los Angeles County Business Federation. Residents in Riverside are & opposing a proposed warehouse development near March Air Reserve Base, concerned about potential impacts like truck traffic and soil contamination from past military activities. Despite developer assurances of thorough testing and plans for mixed-use including a community park, the project has been indefinitely postponed by the March Joint Powers Authority following public outcry at a recent meeting. State Sen. Dave Cortese withdrew his bill, SB 915, seeking to allow cities to regulate autonomous vehicles, citing concerns over amendments that diluted its provisions for local control. The Autonomous Vehicle Industry Association, representing companies like Waymo and Cruise, opposed the bill, arguing it would hinder safety and accessibility advancements for Californians. (See related CP&DR coverage .) The U.S. Environmental Protection Agency has & allocated $3 million in federal grants to five Southern California communities to rehabilitate polluted brownfield sites for safe development. Projects include assessing and cleaning up contaminated areas in Orange County, particularly focusing on culturally diverse neighborhoods with shortages of affordable housing and healthcare, aiming to transform idle land into thriving community assets while addressing pollution concerns. Fashion Valley in San Diego will undergo a transformation as JCPenney is converted into 850 luxury residences, marking the first residential development within the mall. The project aims to integrate high-end housing with luxury boutiques, promising upscale amenities and finishes, but questions remain about affordability and potential traffic impacts. Researchers at the Urban Institute created a “conversion disposition index” to identify cities most ripe for office-to-residential adaptive reuse. The index compares levels of office-space distress with housing demand. Ranked among 75 markets, San Mateo County (1), San Francisco (5), Oakland (8), and Los Angeles (11) all have great potential for office-to-housing conversions, according to the report. The Santa Clara County Board of Supervisors have authorized the use of pre-approved plans for building accessory dwelling units in unincorporated areas, offering residents either a 800-square-foot or 1200-square-foot option. This initiative aims to expedite and alleviate housing shortages across the region while increasing property tax revenue to reduce a large budget deficit. The Concord City Council rejected a developer's proposal to build 183 mostly affordable apartments in the downtown area by using up to $90 million in state financing. They cited concerns over concentrating low-income housing in one area, but state housing regulators criticized the decision with claims that the city might be violating fair housing laws and ignoring the city's obligations to approve affordable housing. A proposed Planned Parenthood clinic and new zoning laws are at odds in the Inland Empire where Fontana's city council recently adopted an urgency ordinance banning “service based, non-entertainment uses” in the area where the clinic was due to open. According to the city council members, this was done in an effort to establish a downtown commercial entertainment district composed only of businesses that would help the area thrive.

State Promotes Regulations to Compel Insurers to Cover High-Fire Areas The Department of Insurance has drafted regulations that would allow insurance companies to use predictive catastrophe models if, and only if, they increase writing of policies in wildfire distressed areas. The regulations, which would amend Prop. 103, are intended to stem the exodus of insurance companies from the state and, in particular, provide coverage in areas that face high fire danger. ZIP codes designated as high or very high fire-risk and those with substantial reliance on the FAIR Plan, would be subject to coverage mandates. Insurance companies using catastrophe models, which, critics say, have dissuaded them from covering high-fire areas, will be required to insure those areas at rates proportional to their coverage statewide. To complement the regulations, the Department released a statewide map that it developed showing areas where wildfire risk and FAIR Plan policies are concentrated. With this map, insurance companies will have direct knowledge of where they need to write more policies in the state in order to utilize catastrophe modeling in their rates that are subject to Department approval. San Benito County to Consider Anti-Growth Measure A ballot measure in San Benito County that aims to restrict new development on farming and ranching land unless approved by voters, driven by concerns over increased traffic and urban sprawl from Silicon Valley residents seeking cheaper housing has qualified for the November county ballot. Estimates are that the citizen group promoting the measure submitted over 2,800 valid signatures; nearly 1,000 more than were needed. The measure, tentatively titled Empower Voters to Make Land Use Decisions, reflects tensions between preserving rural landscapes and accommodating growth, as seen in debates over impacts on schools, infrastructure and local quality of life. Supporters argue for safeguarding the county's rural character and controlling development impacts, while opponents, including agricultural and business interests, warn of economic constraints and property rights issues. The Board of Supervisors now can choose to adopt the measure as an ordinance or allow the vote to move forward. This year's measure is a successor to 2022's Measure Q, which failed. Previous slow-growth measures in the county have succeeded. Huge Swath of Eastern Mojave Desert Designated for Conservation The federal government has designated a 3.5-million-acre region in the Mojave Desert as a "sentinel landscape," aimed at safeguarding wildlife like the Mojave desert tortoise. The initiative, led by federal agencies, promotes sustainable land-use practices near military installations. While the designation doesn't alter land ownership or management, it prioritizes funding for conservation efforts, including desert tortoise protection and habitat rehabilitation. Collaborative efforts involving federal agencies, NGOs and private partners aim to address various threats to desert wildlife, such as habitat fragmentation and climate change. Demand for Rental Housing in Fresno, Inland Empire among Most Intense Nationwide Forbes Advisor's analysis of rental markets in the 75 most populous metro areas found Fresno ranks 9th among the top 10 most competitive rental markets, characterized by low vacancy rates, high rental prices and significant decreases in vacancy rates from 2022 to 2023. Per every 100,000 households, there are 256.6 rentals available in Fresno while the prospective renter population is 35.6%. Of the cities studied, the Riverside-San Bernardino-Ontario metropolitan area ranks 15 on the list of most competitive rental markets, followed by the Sacramento-Roseville-Arden-Arcade metro area at 19th, San Francisco-Oakland-Hayward at 20th, San Jose-Sunnyvale-Santa Clara at 22nd and Los Angeles-Long Beach-Anaheim at 24th. The study indicates that renters in California, particularly in cities like Fresno, face tough competition and limited options in their search for affordable housing. CP&DR Coverage: Los Angeles Slow-Growth Group Goes 0-2 in Court Fix The City, a limited-growth group active in Los Angeles, has lost an attempt to retroactively challenge the city's Transit Oriented Communities guidelines. However, an appellate court did say in an unpublished ruling that Los Angeles must re-do its seismic analysis on a proposed apartment building in West Los Angeles. In ruling for the city, the appellate court quoted the California Supreme Court ruling in Travis v. County of Santa Cruz & (2004) 33 Cal.4th 757, a case in which a property owner similarly challenged a county ordinance at the time it was applied to his property, not at the time the ordinance was adopted. &Had the case been published, it would have set a precedent that extended & Travis &to third parties such as Fix The City. However, the appellate court chose not to publish the case. Fix The City & lost a second appellate court case against the City of Los Angeles because of filing a lawsuit at the wrong time. The ruling would seem to put an end to Fix The City's challenge to the city's Expo Line Plan. And in an unpublished portion of the case, the Second District Court of Appeal in Los Angeles ruled that L.A.'s general plan encourages the construction of adequate infrastructure prior to the approval of new development but does not mandate it. Quick Hits & Updates The East Solano Plan, also known as California Forever, cleared a significant hurdle as Solano County certified their petition for a November vote. Backers submitted well more than the 14,369 signatures needed. (See related CP&DR coverage .) Google is exploring an affordable housing project at the former Orchard Supply Hardware site as part of its Downtown West development in San Jose, which aims to reshape a significant portion of downtown near the Diridon train station. Despite reassessing timelines earlier in 2023, Google remains committed to the ambitious mixed-use neighborhood, which includes offices, housing, shops and cultural amenities. (See related CP&DR coverage .) The proposed amendment ACA-16, known as the green amendment, aimed to establish environmental rights including clean air and water in California's constitution but has been delayed for at least a year due to insufficient legislative support. Assemblymember Isaac G. Bryan postponed the measure to refine its language and garner broader backing, aiming now for a potential 2026 enactment, citing the need for more comprehensive and inspired wording to ensure its passage. According to an analysis by RentCafe, adaptive reuse projects are gaining momentum across California, reflecting national trends, with 14,000 commercial properties converted to residence spaces this past year. Nationwide, 31% of those projects retrofitted office buildings into apartments, followed by hotel-to-residential at 21%, healthcare-to-residential at 17%, and retail-to-residential conversions at 11%. Los Angeles is set to become a national leader in converting commercial buildings to residential space due to an expanded adaptive reuse ordinance. Among 20 cities ranked for future conversions, Los Angeles ranks first, with over 5,800 units in the pipeline, with 1,700 converted from offices. & A study of accessory dwelling units in San Jose found that there are approximately three to four informal units for every formal unit across the area, of which 78.2% were unpermitted ADUs from 2016-2020. Further, the study's results show higher concentration of informal ADUs in neighborhoods with lower property values, higher density, greater overcrowding, and a lower proportion of White households, suggesting that socioeconomic and regulatory factors determine their development and frequency. & The Santa Clara County Board of Supervisors have authorized the use of pre-approved plans for building accessory dwelling units in unincorporated areas, offering residents either a 800-square-foot or 1200-square-foot option. This initiative aims to expedite and alleviate housing shortages across the region while increasing property tax revenue to reduce a large budget deficit. & A state audit of the Santa Clara Valley Transportation Authority (VTA) emphasizes the county's need to improve its planning and oversight of capital projects in regards to transit systems and infrastructure through better communication about cost changes, hiring practices, and fiscal practices. & The suburban city of San Dimas, in eastern Los Angeles County, adopted a new Downtown Specific Plan around its forthcoming stop on the A Line light rail line. The plan calls forsix districts with diverse development goals and standards, aiming to accommodate mixed-use spaces, historic preservation, and up to 3,687 new homes over a 20-year period. The California High-Speed Rail Authority published the final environmental review for a critical 38-mile leg from Palmdale to Burbank. The board is expected to decide in late June on whether to approve the document, considering various route options and community concerns. The preferred route includes underground tunnels to minimize impacts on communities and environmental resources. If approved, this section would feature some of the longest train tunnels in the Western Hemisphere. Housing construction in the Bay Area declined in 2023 due to increased costs, with permits dropping by 10% to 16,535. San Jose and San Francisco led in new housing permits, while smaller cities lagged behind their housing goals. The region is behind in achieving its housing goals, with only 5% of needed permits issued. Alameda County led in home construction, mostly targeting above-moderate income households. The slowdown in construction is primarily driven by a decrease in multifamily construction, while building low-income housing in the Bay Area costs an average of $817,000 per unit. California's Fifth Climate Change Assessment team is pleased to announce the second round of tribal grant funding through the California Energy Commission's Tribal Research Grant Program . Funding through the Tribal Research Grant Program is available to support projects focused on climate research, Indigenous Knowledges, and similar projects California tribes prioritize. Applications are due July 31. State auditors will investigate California's process for reviewing and approving cities' housing plans, focusing on housing elements submitted every six years, amid growing contention, especially in the Bay Area where a third of cities and counties are still non-compliant with state law. The audit aims to ensure consistent and clear standards, particularly as cities face stricter consequences for non-compliance, such as fines and loss of state funding, while the Department of Housing and Community Development welcomes the review to highlight its efforts to strengthen housing planning since 2017. San Diego's Development Services Department approved a fee increase aimed at generating an additional $15.6 million annually, prompting concerns from developers and the business community about increased housing costs amid the affordability crisis, while the city council emphasizes the need for fees to reflect the full cost of services provided, especially as recent innovations and increased workload have necessitated more workers and resources within the department. The Los Angeles Metro board approved the alignment for the extension of the C Line light rail through the South Bay despite resident opposition, advancing the project for further environmental analysis. The extension proposal, running along a BNSF freight corridor, aims to connect Redondo Beach and Lawndale to the transit network, sparking emotionally charged debates over the project's route and impacts on communities.

Court Rules Sites Reservoir Does Not Violate CEQA The Sites Reservoir project, the state's largest water storage venture in nearly five decades, overcame environmental challenges in court, with the Yolo County Superior Court ruling favor of the project. Environmental groups said the project violates the California Environmental Quality Act by failing to protect threatened species. The ruling was hastened by the 2023 streamlining law SB 149, which requires courts to rule on certain CEQA challenges within 270 days of filing. Gov. Newsom praised the ruling, emphasizing the urgency for increased water storage amid climate uncertainties. The $4.5 billion project will inundate 22 square miles of ranch lands and open space in Glenn and Colusa counties to store up to 1.5 million acre-feet of water diverted from the Sacramento River, albeit facing criticism over potential habitat threats. Plaintiff groups can appeal within five days, after which the project is expected to advance through acquiring permits and anticipates construction to commence by late 2026. Group Pushes for La Jolla to Secede from San Diego A group called the Association for the City of La Jolla has launched a campaign to sever the upscale enclave of La Jolla, encompassing about 13 square miles, from the City of San Diego. Succession would require approval first from a majority of voters in La Jolla and then from a majority of voters across the entire city of San Diego as well as LAFCO. The Association for the City of La Jolla is working to obtain 25% of registered La Jolla voters' signatures--about 6,000--over the next six months to qualify for the ballot in La Jolla. The association is also funding a financial feasibility report on behalf of LAFCO. This is the latest in a string of attempts to enable La Jolla to secede since the 1940s. UC Berkeley to Raze People's Park A ruling by the California Supreme Court will allow UC Berkeley to proceed with its plan to build high-rise student housing on the People's Park site, overturning an appellate court ruling and dismissing opponents' lawsuit. UC Berkeley officials welcomed the decision, emphasizing the urgent need for housing while preserving 60% of the site as open park space. Despite dismay from park supporters, the ruling marks a potential final chapter in the decades-long saga of the park's contested history and its recent decline into disrepair. The decision reflects a shift in Berkeley's stance towards housing construction amid a severe housing crisis, supported by a recent law facilitating university housing projects. Despite the decision, opposition remains strong, with activists vowing to continue their fight to preserve People's Park. (See related CP&DR coverage .) Report Blasts Fresno Area for Promoting Sprawl since 1970 A report from the Urban Institute delves into the historical and present housing development trends in Fresno and the broader Central San Joaquin Valley. The region's urbanized land has expanded by 226 percent since 1970 whereas its population has grown only 153 percent, pointing to an overall reduction in density. The region's sprawling development has led to the displacement of agricultural land, environmental degradation and challenges in providing public transportation. Less than 30 percent of the region's development has been infill. The rest has been greenfield development on the urban fringes, often displacing agricultural land. The report notes that, had Fresno promoted infill development in line with that of many other western counties from 1990 to 2019, it could have accommodated all of its growth in infill areas. The authors conclude that this approach would have reduced the ecological impacts, greenhouse gas emissions, and racial segregation of the status quo. Legislative Update: Legislature Pulls Bills to Fund Transportation, Reduce Barries to Affordable Housing Lawmakers withdrew a measure from the November ballot aimed at repealing Article 34, a 75-year-old provision requiring local voter approval for public housing projects, citing a crowded ballot and unfavorable conditions for success. Despite longstanding criticism of Article 34's hindrance to low-income housing construction, challenges persist, prompting strategic withdrawal with plans for future advocacy. Bay Area lawmakers decided to postpone placing a tax measure for funding BART and other transit agencies on the 2026 ballot, aiming to reintroduce similar legislation in 2025 after addressing concerns and differences. Despite facing significant obstacles, the legislation aimed to raise up to $1.5 billion annually for transit operations, but ran into opposition from some transit agencies and politicians due to its consolidation study requirement and potential impact on local sales taxes. Bay Area Sens. Senators Scott Wiener and Aisha Wahab, in consultation with bill sponsor Metropolitan Transportation Commission, withdrew SB 1031, "Connect Bay Area", aimed to authorize a regional transportation funding measure. The decision to pause the bill until 2025 was influenced by opposition from various quarters, including concerns from Santa Clara County officials regarding funding allocations and interference with existing sales taxes. Despite this setback, advocates emphasize the importance of a well-funded and integrated transit system for the Bay Area's future. CP&DR Coverage: "California Forever" Makes Pitch to Voters In November, if election patterns hold steady, around 250,000 voters in Solano County will decide whether to welcome as many as 400,000 new neighbors. &The vote would mark a preliminary step in the development of the project, which was being promoted by corporate parent Flannery Associates and known as “California Forever,” but was recently rebranded the “East Solano Plan.” The developers submitted over 20,000 signatures in late April, which the county is now verifying; 13,000 valid signatures are needed for it to qualify for the November ballot. The county's strict Orderly Growth Ordinance is designed to preserve open space and direct growth to the county's half-dozen existing small cities. Overriding the ordinance to rezoning the 17,500 acres of land that the company wants to develop from agricultural to mid-density urban requires either assent of the county's Board of Supervisors or a popular vote. Flannery Associates has chosen the latter route. It is a major gamble, given the fact that - according to & CP&DR 's long history of ballot measure & coverage - developer-initiated ballot measures designed to end-run elected officials rarely succeed. Quick Hits & Updates SpaceX & aims to boost rocket launches from Vandenberg Space Force Base in Santa Barbara County to 90 annually by 2026, prompting environmental concerns and regulatory discussions. The U.S. Space Force supports the increased launches for military purposes, while the California Coastal Commission debates permit regulations and national security implications amidst SpaceX's absence from meetings. San Diego City Council adopted a significant increase in developer fees for the Development Services Department, aiming to boost annual revenue by $15.6 million to cover additional city workers and new technology. While the council argues that the fee hikes are necessary to cover the costs of recent innovations and improved services, the business community raises concerns about increased housing costs during an affordability crisis and questions the validity of the consultant's analysis, which relied on limited data due to the pandemic. Opponents of the Dana Reserve housing development in Nipomo have filed a lawsuit against the San Luis Obispo County and the developer citing violations of the California Environmental Quality Act. The lawsuit alleges that the project's environmental impact report lacks sufficient analysis of water supply, wildfire safety, emergency evacuations, financial burdens on the Homeowners Association and alternative project plans, potentially further delaying the already contentious project. A renewable energy company plans to clear thousands of protected Joshua trees near Boron for a solar project to power 180,000 homes, sparking backlash from residents concerned about construction dust and habitat destruction. Despite opposition, the Kern County Board of Supervisors approved the project, highlighting the tensions between clean energy expansion and environmental conservation in California's rural communities. The San Diego Planning Commission approved aggressive growth blueprints for Hillcrest and University City, aiming to double their populations within 30 years, despite opposition from residents concerned about issues like parks, gentrification and congestion. The proposals now move to the City Council's housing committee and then to the full council for final approval in July. The plans include adding housing units, increasing job opportunities and making significant street changes, but critics worry about insufficient park space, infrastructure and the potential displacement of affordable housing and local businesses. The California Department of Housing and Community Development & announced the allocation of federal funds to create 1,284 new affordable rental homes for extremely low-income Californians across 18 projects in the state. Administered through the National Housing Trust Fund (NHTF) Program, these funds aim to address the housing affordability crisis by emphasizing the construction or rehabilitation of safe, affordable housing for those experiencing homelessness or at risk. Monaco-based billionaire Patrice Pastor has & agreed to comply with the California Coastal Commission's requests regarding the Rocky Point property in Big Sur that he purchased for $8 million in 2021. He will put up “coastal access” signs, build a public restroom, improve trails and guarantee public parking spaces in order to comply with local regulations. & The San Diego Association of Governments has identified three potential alignments for a train tunnel in Del Mar, necessitated by eroding seaside bluffs where the current tracks run. If the project is approved, pending environmental review and other approvals, it could be completed as early as 2035. The three alignments, of roughly 1.7 miles each, were narrowed down from an original list of 20. & The California Transportation Commission is being sued by five different organizations in connection to a highway expansion project, the I-80 Yolo Causeway, in Northern California. The lawsuit alleges that Caltrans's environmental impact report for their proposed upgrades is deceptive as it overestimates congestion reduction while undercounting vehicle miles traveled, traffic impacts, greenhouse gas emissions, air quality impacts, energy use impacts, and wildlife impacts. A new proposal by N17 Development would & build the tallest building in Silicon Valley, standing at 431 feet tall and consisting of condominium units averaging 1,460 square feet each and a 130-key hotel. Located in Menlo Park, the tower would be part of a larger mixed-use neighborhood plan named Willow Park which will create hundreds of homes, office space, hotel rooms, retail, a school, and public parks.

Gov. Gavin Newsom and legislative leaders are at odds over the 2024-2025 budget, with some housing and planning programs hanging in the balance.

Transbay Transit Center Receives $3.4 Billion from Feds San Francisco's ambitious plan to transform the Transbay Transit Center, located at the Salesforce Tower, into the "Grand Central Station of the West" has garnered substantial federal support, with a pledged $3.4 billion toward the downtown rail extension project. The extension aims to connect California's High-Speed Rail and the Peninsula's Caltrain commuter rail to the heart of downtown, revitalizing the dormant transit hub. Despite the project's expected completion in 2032 and projected costs of up to $8.25 billion, securing matching funds remains a challenge for local leaders. The federal funding commitment covers approximately 41% of the projected cost, but additional funding sources are needed to move forward with construction, slated to begin in 2025. The envisioned project includes new tunneling and an underground concourse linking commuters to BART's Embarcadero Station, contingent on securing necessary funding. State Updates Income Thresholds for Affordable Housing The Department of Housing and Community Development released its 2024 State Income Limits for California, reflecting updated median income levels across the state's counties to determine eligibility and calculate affordable housing costs for various assistance programs. Marin County has the highest median income in the state at $186,600, with $109,700 a year income for one household member qualifying as “low income.” Los Angeles County's median income sits at $98,200 and $77,700 constituing low income for one household member. San Diego County, the second most populous county in the state, has an area median income of $119,500, with $84,900 considered low income. The methodology behind these income limits involves adjustments based on federal guidelines from HUD and California's statutory provisions, including the 2013 Hold Harmless Policy. The state's Hold Harmless Policy, implemented in 2013, prevents any decrease in income limits or median family income published by HUD from being applied to California's State Income Limits. This policy ensures that income limits established by HUD, which may fluctuate due to various factors, do not lead to a decrease in affordability for Californians seeking housing assistance. Report: 95% of California Residential Land Zoned for Single-Family A new report from the Othering and Belonging Institute at UC Berkeley analyzes the state of single-family zoning in California, covering racial and demographic impacts, economic characteristics, statistical relationships, and zoning reform. Their findings show that 95.80% of California's residential land and 30% of all land is single-family-only zoning. Further, excluding unincorporated areas, 82% of residential land is zoned as single-family-only, averaging 77.82% across 519 jurisdictions with a median of 83.93%. They also found a direct correlation between increased single-family zoning restrictions and the percentage of white residents as well as with median household income and the percentage of single-family-only zoning by jurisdiction. To conclude, the report presents a list of target cities for zoning reform using categories such as proximity to central business districts and poor performance in meeting RHNA targets for affordable housing. San Francisco Tops List of "Urban Mobility Readiness" A report conducted by the Oliver Wyman Forum and UC Berkeley situates cities across the world within an Urban Mobility Readiness Index, evaluating their approaches to public transit systems, electric vehicle use, and general mobility in terms of social impact, infrastructure, market attractiveness, system efficiency, and innovation. On their recent list, San Francisco took first place, while Los Angeles ranked seventeenth, both displaying a well-rounded approach to urban mobility. Analysts praised San Francisco for its incentives for purchasing electric vehicles and its Slow Streets program, which sections off roads for pedestrian, bicyclist, and other vehicle-free uses. Researchers found that the city could improve its public transit policies, citing public transit as pivotal for urban vitality. Potentially Destructive Desert Solar Plant to Break Ground A controversial 2,300-acre solar project in eastern Kern County will break ground this month. It faced much community pushback as residents worry about the removal of 3,500 Joshua trees and habitat destruction for endangered animals, including the desert tortoise. While the project, located near the Mojave Desert towns of Boron and Desert Lake, will provide much-needed sustainable energy for 18,000 coastal California homes, neighboring residents claim that their backyards are being destroyed and they aren't benefiting from it. The Kern County Board of Supervisors unanimously approved the project, in 2021. In response to environmental concerns, the county emphasized that Avantus, the project developer, has put $1.4 million into a fund that works to protect Joshua trees in other areas of the state. CP&DR Coverage: Court Rules Huntington Beach Must Adopt Housing Element & A trial judge has ruled that Huntington Beach - perhaps the most resistant city in California to state housing law - must adopt a housing element. Attorney General Rob Bonta said the judge is requiring the city to adopt the housing element within 120 days - which would be mid-September - though the judge's order didn't seem to include that specification. In the ruling on May 15, Judge Katherine Bacal rejected all of Huntington Beach's arguments for not adopting its housing element. Perhaps most significantly, she rejected the city's argument that passage of the housing element required analysis under the California Environmental Quality Act, noting that the legislature had specifically exempted housing element passage from CEQA. Quick Hits & Updates Lathrop, a suburban city about 10 miles south of Stockton, has become the fifth-fastest growing city of at least 20,000 people in the United States. Its population doubled, from 19,000 in 20213 to 40,000 in 2023. As Bay Area residents move to the Central Valley in search of more affordable housing, Lathrop will prioritize development, housing, and business to keep up with the increased growth. & San Diego County's unhoused population increased only by 3% from Jan. 2022-2023, a stark contrast and improvement to the previous tally which showed a 22% jump. With both the city of San Diego and the state legislature facing millions of dollars in deficits, there is much concern surrounding the future of programs and resources that assist in decreasing the unhoused population statewide and citywide. & Two San Francisco mayoral candidates have presented plans to bring a satellite university campus downtown into vacant spaces in an effort to revitalize the area post-pandemic. Mayor London Breed announced a proposal offering city grants to develop a satellite campus of an (unnamed) historically Black college , while District 11 Supervisor Ahsha Safai suggested legislation to create a fund for public universities to purchase distressed properties for educational use. (See related CP&DR coverage.) The San Francisco 49ers and the City of Santa Clara have restructured terms in the original Levi's Stadium agreement after years of legal litigation and lawsuits. The new settlement establishes a new threshold of $360,000 per game for policing, covered by the 49ers and reduces the Stadium Authority's reimbursement obligations. U.S. Rep. Doris Matsui has requested $5 million in federal funding to support the Downtown Sacramento Partnership's plan for a park connecting downtown and the Sacramento River, with hopes of revitalizing the latter area and providing green space. The Sacramento Stitch Park Riverfront Reconnection Project aims to connect these two areas currently divided by Interstate 5 in order to host both special community events and passive recreation. & In an affluent neighborhood of northwest Fresno, the Planning Commission unanimously & rejected an 82-unit housing development proposal, citing concerns about traffic and community impact. Despite recommendations from city staff to approve the project, commissioners voted against it after facing overwhelming opposition from residents during a well-attended hearing. & The Cupertino City Council adopted its 2023-2031 Housing Element on May 14, fulfilling state requirements to update housing needs and policies. With an allocation of 4,588 new housing units, the city is now proceeding with the rezoning process, expected to be completed in July, before final submission to HCD for certification. Two San Francisco nonprofits, Artists Hub on Market and Mercy Housing of California, are proposing to build around 100 affordable housing units for artists at 1687 Market St., funded by a $100 million donation from an anonymous donor. The project aims to include apartments, community spaces, studios, rehearsal rooms, a theater and a ground-level cafe, with all units designated for artists and individuals in arts administration earning at or below 80% of the San Francisco Area Median Income. In an analysis by the Public Policy Institute of California, the federal government's 2023 Annual Homelessness Assessment Report (AHAR) highlights California's struggle to meet the growing need for homeless housing programs despite promising growth in permanent housing capacity. While federal support during the pandemic bolstered permanent housing, recent declines in rapid re-housing capacity indicate challenges ahead. The state also faces a shortage of shelter beds, with only 71,131 beds available for an estimated 181,399 homeless individuals, prompting calls for increased transparency and careful use of funding to address homelessness. Environmentalists are concerned about a proposed housing project including 1,500 homes in the hills southwest of Pittsburg overlooking Thurgood Marshall Regional Park. Save Mount Diablo and other environmental groups are urging for a buffer zone between the development and open space to mitigate environmental impacts, while the developer maintains that the project satisfies all environmental regulations and that the delays are primarily caused by misunderstandings. The Contra Costa Local Agency Formation Commission has postponed the decision on annexation, citing concerns raised by Save Mount Diablo and other environmental advocates. The Sacramento City Council approved a plan to develop Innovation Park on the former site of the Sacramento Kings' arena, aiming to create a vibrant area with businesses, housing and a teaching hospital. The project, expected to generate billions for the city and create thousands of jobs, will be funded through an enhanced infrastructure financing district, with a portion allocated for affordable housing and a requirement for local workers. The estimated cost of building a water tunnel beneath the Sacramento-San Joaquin River Delta has risen to $20.1 billion, according to the California Department of Water Resources. The department's analysis concluded that the benefits of the proposed Delta Conveyance Project, including improved water supply reliability in the face of climate change and sea level rise, would outweigh the costs, although opponents argue it is a costly project that would harm the delta's ecosystem.

CP&DR Vol. 39 No. 5 May 2024 Report

In what has become a nearly annual ritual, the legislative session has claimed its first major land-use victim, and its a familiar one: tax-increment financing. Assembly Bill 2945, the Reconnecting Communities Redevelopment Act, would have funded infrastructure projects from tax increments collected from immediate surrounding communities and administered by state-approved local agencies. It was but the latest version of redevelopment proposed in California; its recent demise in the Assembly Appropriations Committee ignominiously adds to the number of times the policy has died.

Oakland to Sell its Share of Coliseum Site to Developers The City of Oakland has reached a tentative deal to sell its share of the Coliseum site to the African American Sports & Entertainment Group for at least $105 million. The sale marks the end of an era following the departures of the Warriors, Raiders and Athletics from the Oakland Coliseum and Oakland Arena. Plans for redevelopment include retail, hotels, housing and potential attractions for sports teams. A complication is that, even though the A's are leaving the site for Las Vegas, they are in the process, pending a court decision, of purchasing the other 50% of the site from Alameda County; that transaction has been underway since 2019. The team previously rejected an offer from AASEG for $115 million. Oakland's sale of its Coliseum share aims to revitalize the underutilized site, potentially accommodating various developments to rejuvenate the area and attract new businesses and activities. (See related CP&DR coverage .) San Mateo Faces Lawsuit over Unrealistic Housing Element Housing advocacy group the Housing Action Coalition is suing the City of San Mateo to force it to comply with housing element law. The suit claims the city has presented housing opportunities and developments required for the current eight-year RHNA cycle without any real intention of following through. The city plans to build 7,015 houses, with a quarter of those units priced affordably for low-income households, between January 2023-2031, but has made no effort to change its zoning code. The coalition cites several properties that currently have many long-term leases with restaurants, retailers, and residents that run past 2031. City representatives claim that high demand for housing will provide ample incentive to redevelop properties that are currently thriving. State Seeks to Reduce Carbon Emissions through Land Conservation California is establishing 81 targets to utilize millions of acres of land in combating the climate crisis, marking a significant step for the state's environmental efforts. These targets, part of Governor Gavin Newsom's California Climate Commitment, aim to leverage nature-based solutions to achieve carbon neutrality by 2045. The plan includes managing millions of acres for various purposes such as reducing wildfire risk, conserving forests and enhancing soil health. The decision to set these targets comes after an analysis revealed that California's lands currently emit more greenhouse gases than they absorb, largely due to historical land use practices and the impacts of climate change. By implementing these targets, Newsom hopes to mitigate carbon emissions and move towards a more sustainable future. Nation's 20 Least-Affordable Cities all in California An analysis of California's housing affordability crisis illustrates the state's struggle with soaring home prices. California dominates the list of the nation's most unaffordable cities, with 20 out of the 20 least-affordable. These cities exhibit cost ratios far exceeding the national average, with home prices significantly outpacing household incomes. The pressure points are evident in California's major urban centers, where the cost of living is exorbitant compared to national standards. Newport Beach leads the pack with a cost ratio of 25.4 times the median income, followed closely by Palo Alto and Glendale. Even comparatively "affordable" cities in California still present significant challenges for prospective homebuyers. Visalia, the state's most affordable city on the list, still boasts a cost ratio of 4.6 times the median income. The report underscores the disproportionate growth of home prices relative to household incomes since 2000, underscoring the urgent need for solutions to address housing affordability statewide. CP&DR Coverage: Builder's Remedy, We Hardly Knew Ye The Department of Housing & Community Development has signed off on Beverly Hills' housing element, possibly ending one of the most contentious housing element disputes in the state. HCD has also signed off on the housing element for the Town of Los Gatos but is still negotiating with Claremont over its housing element, meaning - as in Beverly Hills - builder's remedy projects could hang in the balance. Although many builder's remedy projects may yet be built, the whole builder's remedy issue may turn out to be a temporary window that allowed some projects to slip through while housing elements were pending in various cities. It seems likely that the window on builder's remedy applications is closing in many cities as HCD signs off on more housing elements. Quick Hits & Updates Despite initial reluctance and criticism from commissioners, Half Moon Bay's planning commission eventually approved a 40-unit senior farmworker housing project after a five-hour deliberation, paving the way for the development to move forward. The project, aimed at addressing the urgent need for housing among farmworkers, faced scrutiny over its design, programming and scale, with commissioners suggesting various modifications before granting approval. The developer of a proposed 50-story skyscraper in San Francisco's Ocean Beach neighborhood has withdrawn their application, making way for a new project by non-profit Housing America Partners, which will build a 100% affordable housing eight-story residential building. This project aligns itself with the city's upzoning of commercial corridors on the west side, a part of San Francisco's state-mandated housing element process to plan for 82,000 new units by 2031. The California High-Speed Rail Authority's board approved new recommendations for the Los Angeles to Anaheim rail segment, allowing for a crucial and final environmental review for phase one. The revised plan proposes four mainline tracks used by the bullet train, other passenger rail, and BNSF freight trains while removing a freight facility in Colton due to community pushback. & The San Diego City Council adopted a land use plan known as De Anza Natural, aiming to restore 143 acres of tidal wetlands in Mission Bay Park, addressing water quality and sea level rise while enhancing habitat for endangered species. Despite debates over recreational activities, the plan represents a compromise among various stakeholders, with final approval pending from the California Coastal Commission and other oversight agencies. According to analysis out of UC Berkeley's Terner Center, California's housing affordability crisis has disproportionately affected middle-income renters, with a significant increase in cost-burdened households between 2010 and 2019. While targeted efforts have been made to address this issue, such as incentivizing middle-income housing development, the current policies may not be sufficient to meet the demand. Caltrans unveiled 10-Point Plan to Beautify Bakersfield, aimed at enhancing street safety, improving public spaces and supporting existing state programs. The plan includes measures such as increased litter collection, clearing roadway encampments and updating aging equipment to ensure the cleanliness and attractiveness of the area. After nearly four years of discussions and negotiations, the Sacramento Zoo will relocate from the Land Park neighborhood to the City of Elk Grove, increasing its acreage sevenfold subsequently allowing for larger and more animal exhibits. The city council's decision, valued at $302 million and passed by a 4-1 vote, has the potential to create 2,000 jobs and yield $249 million in benefits over the next five years. Erewhon, the upscale supermarket chain, has filed an environmental lawsuit against the city of Los Angeles to halt the demolition of the Sportsmen's Lodge hotel in Studio City for a new apartment complex. Despite previous opposition efforts, including appeals rejected by the City Council, Erewhon's parent company claims the city violated environmental laws by not conducting a thorough Environmental Impact Report. The planned development, aimed at bringing housing to Studio City, has faced criticism from opponents concerned about the loss of the historic hotel and potential environmental impacts. Billionaire venture capitalist Vinod Kholsa was dealt another setback in his effort to block public access to his coastal property near Half Moon Bay. A California judge tentatively denied his request to dismiss a lawsuit against the Coastal Commission. The commission's claim of public access rights to the beach has been deemed sufficiently supported by the court, moving the case forward despite Khosla's long-standing contention over property ownership rights. A proposed $20 billion housing bond slated for the November ballot in the Bay Area could pave the way for the creation of nearly 41,000 affordable housing units across the region, according to a report from Enterprise Community Partners and the Bay Area Housing Financing Authority. With projects awaiting funding, the bond aims to address the pressing need for affordable housing, leveraging every dollar with additional state and federal funds to potentially create or preserve 72,000 homes. The City of Elk Grove is partnering with a real estate company for Project Elevate, a $170 million mixed-use development spanning 20 acres near Elk Grove Boulevard. The project aims to create an urban oasis featuring a hotel, office space, retail stores, urban apartments and a village park, with 15% of the apartments designated for affordable housing. CenterCal Properties plans to build vertically, with the possibility of expanding the site in the future, aiming to bring Elk Grove a unique and vibrant urban district by early 2026. A recent study by the San Diego Housing Federation and California Housing Partnership reveals that San Diegans need an hourly wage of nearly $48 to afford the average rent of $2,479 in the county. With a shortfall of 134,500 affordable homes for lower-income renters, the study underscores the urgent need for increased investment in affordable housing, particularly for vulnerable groups like seniors facing the risk of homelessness.

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

Revised Budget Cuts Funds for Transit, Active Transportation Governor Newsom's "May revise" of his 2024-25 budget includes significant cuts to one-time and ongoing spending by over $33 billion through 2025-26, affecting key programs aimed at increasing affordable housing. Earlier cuts to housing programs announced in January were followed by deeper reductions in May, including the elimination of funds for the Multi-Family Housing Program, Adaptive Reuse Program and Foreclosure Intervention Housing Preservation Program. The budget also proposes shifting $3.6 billion from the General Fund to the Greenhouse Gas Reduction Fund, impacting transit, clean energy and zero-emission vehicle programs. Additionally, reductions and shifts affect transit funding, active transportation programs, ZEV fueling infrastructure and broadband investments, indicating broader implications for land use and transportation development. State Commission Recommends Upgrades and Reforms to CEQA Process The Little Hoover Commission, in a recent report titled "CEQA: Targeted Reforms for California's Core Environmental Law," suggests six reforms to the California Environmental Quality Act (CEQA), including raising the standing requirement for filing a CEQA lawsuit and restricting late submission of public comments. The report also recommends a broad exemption for infill housing under CEQA and proposes in-depth study of several related issues, including funding to train judges and clearer guidelines for significance thresholds and mitigation. The report recommends studying the following potential reforms and updates: creation of specialized CEQA courts, bonding for CEQA plaintiffs, effect of vehicle miles traveled analysis, and consistency in analytical modes. The Commission's recommendations aim to reinforce CEQA's original purpose while streamlining its processes, ensuring that it continues to effectively protect California's natural resources. Major Mall Redevelopment in San Francisco Makes Progress The San Francisco Planning Commission unanimously approved a development plan for the Stonestown Galleria, an underperforming mall in the city's southwest corner, paving the way for full approval by the Board of Supervisors. Developer Brookfield will transform the mall -- which, with parking lots, covers several city blocks -- into a new neighborhood with 3,500 housing units and a green, walkable town center. While some residents expressed concerns about potential traffic congestion, the commissioners praised the plan as a model for infill development to meet the state's housing goals. The project includes amenities like parks, child care centers and a new main street of retailers and restaurants. It aims to generate jobs and contribute to the city's economic recovery while addressing housing needs and enhancing public spaces. The development will include six acres of parks and 150,000 square feet of retail space. The development agreement requires 20% of units to be affordable; the developer cay pay in-lieu fees. Report Unpacks Housing Affordability in California UC Berkeley's Terner Center for Housing Innovation's new new measure of housing affordability -- presented in their "Affordability for Whom? tool" -- reveals that many counties in California are becoming exclusive to wealthier households, leaving insufficient housing options for others. The tool, which can be used to study the affordabilities for different counties and cities statewide, found a fourth of all Los Angeles County residents "find it difficult to get by," followed by San Francisco at 22%. The new tool highlights the importance of aligning affordability metrics with policy goals and refining methodologies like California's RHNA process to drive affordable housing supply where it's most needed. Additionally, the paper stresses efforts to increase homeownership affordability, such as facilitating the construction of smaller, lower-cost units and reforms to construction laws, are crucial for addressing broader goals like racial equity and economic growth. CP&DR Coverage: Fulton on Housing Production vs. Population Growth In 2023, according to the Department of Finance, California's population grew by 67,000 people - the first increase since the pandemic began and the state's population began declining. But the amount of housing grew by double that amount - 120,000 units or so. CP&DR looked at DOF's estimates of change in population versus change in housing units since the 2020 Census - almost four years, during most of which California's population declined. And the bottom line is that during that time, the supply of housing increased by 3% and the population declined by 1%. the current housing crisis isn't entirely the result, strictly speaking, of fewer housing units being built. It's also the result of rapidly changing social and demographic trends bumping up against housing trends - both in new construction and the market supply of older homes - that change much more slowly. Quick Hits & Updates The federal government has committed $3.38 billion to connect Caltrain and high-speed rail to the Salesforce Transit Center in San Francisco, marking significant progress in a longstanding initiative. This funding will support extending the Caltrain commuter rail line, constructing underground tunnels and facilitating seamless transit connections, with over two-thirds of the project's estimated cost now covered by various funding sources. Campo, an unincorporated community near San Diego, has been put up for sale for $6.6 million, encompassing 28 buildings including former Army barracks and commercial properties. The town, frozen in time with buildings from the 1940s, has seen increased rents and is considered a potential redevelopment opportunity despite challenges such as its distance from major job centers and the scorching summer heat. The Pittsburg City Council adopted the "Envision Pittsburg" 2040 general plan, marking a milestone in the city's development strategy for the next two decades, focusing on infrastructure, sustainability and community input. The plan, the result of extensive public outreach and collaboration, aims to accommodate future growth while reflecting the community's values, although some concerns were raised during public comments regarding specific designations and land use decisions. BART faces projected deficits surpassing $300 million annually by fiscal 2027 and officials are banking on a 2026 tax measure for survival, as federal and state aid dwindles post-pandemic. Without voter approval, service cuts loom, potentially triggering a transit death spiral, while rising costs and remote work trends exacerbate the agency's financial woes. A recent poll conducted in Los Angeles found that the high cost of housing is driving many residents, especially young adults and renters, to consider leaving the city. Nearly three-quarters of renters and those under 35 have contemplated moving out of the city due to housing costs, highlighting widespread dissatisfaction and concerns about affordability. San Francisco's Muni transit system faces a significant financial shortfall, prompting residents to propose a grassroots ballot measure to tax ride-hailing companies and support Muni. Organizers aim to generate up to $30 million annually for Muni by taxing companies like Uber and Lyft between 1% and 4.5% on revenue earned in the city. While the proposal seeks to address Muni's funding challenges, some officials express concerns about potential conflicts with existing efforts, highlighting the city's ongoing struggle to sustain transportation services. A federal judge dismissed a climate lawsuit filed by 18 California youth against the U.S. Environmental Protection Agency, citing lack of legal standing, but granted permission for the plaintiffs to amend their complaint by May 20. The lawsuit alleges that the EPA violated the children's constitutional rights by permitting pollution from fossil fuels and the plaintiffs plan to resubmit their allegations in an amended complaint to address concerns about legal standing. The Wilton Rancheria tribe recently regained control of a 77-acre parcel outside Sacramento, marking a historic victory for the Indigenous LandBack movement and fulfilling a long-held desire for self-determination. After decades of struggle, the tribe signed the land into a federal trust, symbolizing a return to ancestral territory and providing hope for other tribes seeking to reclaim lost lands and heal from generational traumas. A proposal by Los Angeles-based researchers suggests that providing monthly payments of $750 to $1,000 to homeless individuals would enable them to secure informal housing arrangements like boarding homes or shared apartments. By leveraging the existing informal rental market and providing direct financial assistance, the plan aims to address homelessness caused by economic setbacks, potentially saving on public services costs while ensuring subsidized housing remains available for those with more complex needs. San Francisco may consider a business tax overhaul in November to make the city more competitive and support struggling small businesses amidst remote work fallout. The proposed measure aims to cut taxes for small companies, shift the main business tax from payroll to sales and garner support from various sectors despite potential tax increases for some industries. An analysis of eight Southern California municipalities responses to the state's 2018 law mandating affirmative action for fair housing in their General Plans' housing elements found that, despite creating numerous programs, most did not effectively advance fair housing goals, with affluent cities continuing to concentrate affordable housing sites in less affluent neighborhoods, highlighting implementation challenges of the affirmatively further fair housing mandate. The Los Angeles International Airport's Automated People Mover project will receive an additional $200 million, bringing its total budget to $2.9 billion, after approval by the Board of Airport Commissioners. The project, initially expected to open in 2024, has faced delays due to disputes between the contractor and the airport, with completion now expected by late 2025, impacting the airport's plans for the 2026 World Cup and the 2028 Summer Olympics. A recent audit of San Francisco's homelessness department revealed significant shortcomings, including failure to adequately track spending and performance metrics, as well as leaving hundreds of supportive housing units vacant. Despite increased spending, homelessness in the city has risen, prompting concerns about the effectiveness of current strategies. The audit highlighted the need for improved oversight, standardized performance monitoring and better utilization of resources to address the ongoing homelessness crisis. The Redwood City City Council unanimously voted to permanently close Broadway to vehicles, following a successful temporary closure pilot program during the COVID-19 pandemic. Despite concerns over parking loss, the decision was made to create a pedestrian mall from Jefferson Avenue to Main Street, funded by a projected budget of $670,000 sourced from public parking revenue, the general fund and a local nonprofit. HCD will collaborate with the University of California, Davis to conduct a comprehensive Farmworker Housing Study, mandated by Assembly Bill 1654, aiming to understand and address the housing needs of farmworkers in the state, with a focus on gathering community input, conducting interviews and analyzing data to inform state policy recommendations by 2027. A statewide audit of the Local Streets and Roads Program -- initiated in 2017 and originally aimed to alleviate the degradation of streets and roads in California by allocating funding to cities and counties -- found state agencies effectively administer program processes while many cities struggle to improve road conditions despite appropriate fund usage, with the State Controller lacking adequate resources to ensure compliance with spending requirements.

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

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