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LAFCO Authorizes Incorporation of Mountain House, Pending Vote Mountain House, a new master-planned community west of Tracy in San Joaquin County, will become the county's incorporated eighth city if voters approve in March 2024. The San Joaquin County Local Agency Formation Commission unanimously approved a resolution authorizing incorporation in September. The community added 624 housing units in 2021, achieving a 9.2% growth rate and a population of 28,044 as of January 1, 2022, with roughly 10,000 registered voters. A $70,000 study approved by the San Joaquin County Board of Supervisors will assess Mountain House's financial ability to stand alone as a city. The community generates approximately $900 per capita for municipal services due to a special tax that assesses all square footage. Incorporation would make it California's 483rd city. Incorporation is feasible partly because of the financial structure already in place in Mountain House, including the existing Community Services District and special taxes. (See related CP&DR coverage .) Massive Google Project in San Jose Loses Partner, Will Still Proceed Google and real estate partner Lendlease terminated their partnership to develop four large Bay Area projects, including a transit-oriented neighborhood in downtown San Jose. Despite the split, all four projects will continue. The decision to end the agreements came after a comprehensive review of Google's real estate investments and mutual determination that current market conditions didn't favor the existing agreements. Many tech companies have scaled back their office space needs due to the pandemic, prompting Google to optimize its Bay Area real estate investments. Despite the change, downtown San Jose's economy is recovering, and Google states they remain committed to the Downtown West project, which includes housing commitments and mixed-use development. (See related CP&DR coverage .) San Francisco Punts on Ordinance to Bring Housing Element into Compliance San Francisco supervisors once again delayed a vote on legislation to bring the city's housing element into compliance with state housing laws. The Constraints Reduction Ordinance, sponsored by Mayor London Breed, was introduced as one of 28 actions that San Francisco must take to comply with state law, giving them 30 days to pass the bill. The ordinance streamlines the Planning Code by cutting many forms of discretionary review of housing projects. The Land Use and Transportation Committee has been reviewing the ordinance, and lawmakers have been adding and debating amendments. The city's Department of Housing and Community Development issued a letter last week, warning the committee members to pass the ordinance as originally written, and lawmakers now have to wait for the city attorney's office to review the amendments before proceeding. Terner Center Identifies Homelessness Trends A new report out of UC Berkeley's Turner Center for Housing Innovation summarized five recent trends in California homelessness, utilizing the 2022 Point in Time Count. The report found the state's homeless crisis reached a greater magnitude than that of any other state, continuing to deteriorate throughout the pandemic; racial and ethnic disparities in homelessness rates have continued to expand; homelessness without shelter remains more prevalent in California than in any other state; some of the most significant increases in homelessness in recent years have occurred in regions that previously had low levels of homelessness, such as suburban and rural areas. On any given night in 2022, 30 percent of people experiencing homelessness nationwide were in California. The study found the rate of homelessness among Black individuals was the most pronounced, with approximately 205 people per 10,000 experiencing homelessness; this rate is nearly five times greater than the state's general homelessness rate. The majority of individuals facing homelessness in California, accounting for two-thirds of the 2022 homelessness count, are unsheltered, residing in tents, vehicles or other locations not designed for human habitation. Rates of homelessness were highest in Humboldt County, followed by San Francisco, Mendocino, Santa Cruz and Los Angeles counties. The study suggests, despite proactive interim housing prioritized by the state, funding to address homelessness must increase, programs must be culturally competent and address racial disparities and the housing crisis must be addressed. CP&DR Legal Coverage: Courts Fault Beverly Hills Housing Element, Exempt San Diego Parking Ordinance from CEQA A Los Angeles judge ruled that the Beverly Hills housing element is “deficient” in a variety of ways, including the city's calculations of potential housing development based on its current density standards. The city has announced plans to appeal the ruling, but if ity loses on appeal that could open the door for several builder's remedy projects that have been proposed by a single developer. Californians For Homeownership, the nonprofit legal arm of the California Association of Realtors, sued the city over the adequacy of its housing element, just as it did with La Cañada Flintridge. In an unpublished appellate ruling, a unanimous three-judge panel ruled that the San Diego's ordinance reducing parking standards for multifamily developments near transit stops is not subject to the California Environmental Quality Act. The city was sued by CREED-21, a group typically represented by frequent CEQA litigator Cory Briggs. The appellate court made short work of CREED-21's “circling for parking” argument, partly because of SB 743, which switched the CEQA analysis for traffic from level of service to vehicle miles traveled. Quick Hits & Updates The California Transportation Commission approved CEQA review for the 2.2-mile extension of "The Portal," San Francisco's Downtown Rail Extension. This extension will connect the 4th Street Train Station to the Salesforce Transit Center, accommodating Caltrain and future high-speed rail. The project involves a new underground station at Fourth and Townsend, connecting to the Transbay Transit Center underground station, with completion expected around 2032. The Los Angeles City Council reached an agreement with the Unite Here Local 11 hotel workers' union to remove a measure from the March election ballot that would have mandated hotels to participate in a program placing homeless individuals in vacant hotel rooms. In exchange, the union's proposal for placing homeless residents in vacant hotel rooms would be explicitly listed as voluntary, a move that would cause it to resemble Inside Safe, the program created by Mayor Karen Bass to combat homelessness. The California High-Speed Rail Authority is considering a "shared passenger track alternative" for its Los Angeles to Anaheim segment, which would add a fourth track for freight, Metrolink and high-speed rail operations. The plan is part of efforts to accommodate both passenger and freight services and address community opposition to a proposed freight facility in Colton. A dispute between city and county officials over sewer capacity has caused delays in the approval of 600 homes in Visalia. County representatives blocked three projects proposed for annexation into the city, leading to a standstill in new development, with each side claiming capacity issues or lack of communication as the root cause. Ventura County has the largest housing shortage in the United States, with home construction in the region falling 12.5% short of local needs, resulting in an underproduction of 36,161 homes, according to a study by Up for Growth. California accounts for 11 of the 25 metropolitan areas with the most significant housing shortages, contributing to the state's shortfall of 873,730 homes, or 6.5% of the total statewide. An athletics training center in Oakland once used by various professional sports teams, including the Raiders, has remained vacant for months, with no buyers coming forward, causing concern as city officials expected it to generate millions of dollars. The property, which includes a training facility and sports fields, sits on 16 acres, and a summer auction resulted in no bidders. The property is currently zoned for commercial manufacturing, but experts suggest that exploring residential development may be a more viable option given the lack of interest in commercial use.

State Report Excoriates San Francisco for Permitting Delays A yearlong investigation by state housing officials reveals that San Francisco's housing approval process is excessively long and violates housing laws. The report by the California Department of Housing and Community Development found that it takes 10 months longer in San Francisco compared to any other city in the state to approve housing projects. After approval, the city takes even longer to issue building permits. This situation has hindered the city's ability to address its affordability crisis and meet housing goals set by the state. Failure to reform the process could lead to the revocation of the city's state-approved housing plan, resulting in potential funding loss and the builder's remedy. The report lists numerous actions the city must take to streamline the process - including amending their panning review and reforming CEQA practices - to achieve compliance with state law. Mayor London Breed stated that many of these changes are already underway through her "housing for all" initiative, but there is criticism that the state should invest more in affordable housing. (See related CP&DR commentary .) Court Upholds Los Angeles Transfer Tax; Appeal Likely A group challenging Los Angeles' new transfer tax on property sales, known as the "mansion tax," is preparing to appeal after a judge ruled against them. A Los Angeles County Superior Court Judge ruled that the plaintiffs, led by the Howard Jarvis Taxpayers Association, failed to present sufficient evidence to support their claims against the city of Los Angeles. The transfer tax was implemented to fund affordable housing and combat homelessness, with a 4% tax on property sales or transfers above $5 million and a 5.5% tax on properties above $10 million. The lawsuit's outcome will impact the funds collected from the transfer tax, with the city currently only spending the first $150 million collected, which will be refunded to taxpayers if the lawsuit fails. This legal battle is being closely watched nationally as other cities consider similar mechanisms for increasing revenue. Another challenge to Measure ULA is the Taxpayer Protection and Government Accountability Act, which is scheduled for a statewide vote in November 2024 and could potentially end the transfer tax if passed. (See related CP&DR commentary .) LAO Analyzes State's $3.3 Billion Spend on Housing & Homelessness The Legislative Analyst's Office released a breakdown of the 2023-24 statewide budget for funding housing and homelessness programs, totaling $3.3 billion. The budget also includes $672.5 million in spending solutions, which involve spending delays, reductions and trigger restoration. These measures primarily will affect one-time and temporary spending from previous budgets. New discretionary spending of $600 million is introduced, including a $500 million one-time expansion of State Low-Income Housing Tax Credits and a $100 million one-time augmentation for the Multifamily Housing Program. Discretionary funding for housing and homelessness is limited beyond 2023-24, but some funds have multiyear expenditure authority. Budget-related legislation enhances oversight and accountability for these programs and updates the California Dream for All program to better target loans for first-time homebuyers. Additional legislation transfers the administration of programs and separates entities within the state's housing and homelessness framework. HCD Solicits Feedback Feedback on New Neighborhood Change Map . The Department of Housing & Community Development released a new map measuring neighborhood change in California. The map is intended to inform statewide policy for funding affordable housing. The draft Neighborhood Change Map was developed in response to initial stakeholder feedback received through the Opportunity Framework project. The goal of the Opportunity Framework project is to assess and refine the State's approach to Affirmatively Furthering Fair Housing (AFFH) across different types of neighborhoods and multiple policy areas. Over the last year, HCD and its research partners conducted a review of the literature on the relationship between neighborhood change and AFFH objectives. HCD concluded that prioritizing affordable housing investments in changing neighborhoods could help stabilize communities and further a wider range of AFFH objectives. HCD has created a draft Neighborhood Change Map that identifies census tracts (excluding rural tracts) that have experienced both substantial racial/ethnic change and economic change, and exhibit markers of disproportionate housing need. The deadline for providing feedback to HCD is Nov. 17. Study of Housing Underproduction Scolds Coastal Metros, Praises Central Valley The California YIMBY Education Fund commissioned a study to analyze housing underproduction rates across the state, focusing on the impact of land-use regulations. The study used a "conversion rate" to compare historical housing permitting rates to potential market-feasible development opportunities in each city and county, assuming no zoning limitations. Key findings found, in the absence of regulatory barriers, roughly 30% of the eight million addressable parcels in California could accommodate additional market-feasible units. However, various factors, including labor shortages, material supply chains, willing sellers and zoning regulations, resulted in a statewide annual conversion rate of less than 1% between 2018 and 2021. The study identified significant variations in conversion rates among cities and counties, with some suburbs across the Bay Area and Southern California having low rates despite high housing demand. On the other hand, parts of the Central Valley and Inland Empire are converting market-feasible development opportunities into housing permits at relatively high rates. Examples of areas with high conversion rates include cities like Merced, Visalia, Stockton, and Bakersfield, as well as counties like Kern, Merced and Placer. CP&DR Coverage: Fulton on HCD's New Aggressiveness The state Department of Housing and Community Development has completed its review of San Francisco's housing entitlement practices - and put the city on a very strict schedule to implement those reforms. It's an unprecedented step for the state, intervening so directly - and with such stiff consequences - in a city's entitlement process. The state has told San Francisco that reforms must begin as early as Thanksgiving and if deadlines are not met, HCD will revoke San Francisco's housing element compliance. Revocation would open up the use of builder's remedy among other things. HCD has never undertaken this kind of review before. In so doing, it relied on legal authority granted to it under Government Code Section 11180 et. seq., which allows state departments to “investigate and prosecute actions concerning all matters relating to the business activities and subjects under their jurisdiction.” And there would appear to be nothing preventing the department from undertaking additional reviews in the future for other cities. Quick Hits & Updates A legal dispute among investors involved in the redevelopment of Treasure Island and Yerba Buena Island continues as a court ruled against dismissing claims filed by Kenwood Investments against Stockbridge Capital Group and Wilson Meany. The ongoing litigation may potentially impact the extensive redevelopment project, which includes thousands of homes, retail space, hotels and open areas. (See related CP&DR coverage .) San Jose's BART extension project, which has experienced ballooning costs and significant delays, will now be overseen by an independent committee following a recent announcement. The project's cost has surged from an initial estimate of $4.7 billion to $12.2 billion, and it is now projected to open in 2036, prompting calls for greater transparency and oversight. California State Parks and the Shingle Springs Band of Miwok Indians have signed a five-year agreement to collaborate on preserving and protecting parks located on ancestral Miwok homelands. The pact outlines joint efforts to integrate traditional ecological knowledge into conservation practices, engage in art projects and safeguard cultural resources, promoting the revitalization of sacred practices and the preservation of ancestral lands. The Puente Hills Landfill, which closed in 2013 after decades of receiving waste from over 60 cities in Los Angeles County, is being transformed into a new regional park by the L.A. County Department of Parks and Recreation (DPR). This initiative will create the first regional park in the county in over 35 years, providing recreational and educational opportunities while addressing the severe shortage of parkland in the region. New plans have been submitted for a suburban-style development in San Jose, utilizing the builder's remedy to streamline approval and increase residential capacity to 41 homes. The project covers 18.62 acres and includes eight affordable homes for low-income households in a suburban neighborhood near Alamitos Creek and the historic New Almaden mining town. A recent report highlights the consequences of climate change for Lake Tahoe, revealing that the snow season could be reduced by at least a month, if not three, by the end of the century. Rising temperatures, projected to increase by up to 9 degrees Fahrenheit by 2100, are expected to make the traditional ski season too warm for snowfall at the lake's beginning and end. This decline in snowfall could have a severe impact on Lake Tahoe's ecosystem and the communities that rely on winter tourism. The city of Martinez is embarking on a waterfront redevelopment project, aiming to revitalize its marina and make the area a regional attraction. The plans include redesigning the seawall, expanding the regional trail network, enhancing maritime recreation opportunities, creating an educational and events center and adding various amenities like restaurants, cafes and kayak launches to the waterfront, all designed with sea-level rise in mind.

CP&DR Vol. 38 No. 10 October 2023 Report

UC Berkeley to Redevelop Moffett Field UC Berkeley is partnering with NASA and real estate developer SKS Partners to develop a 36-acre research park in the Mountain View area. This research park will serve as a collaborative space for scientists, students and tech companies to work on projects related to aviation, space exploration, climate change and social sciences. UC Berkeley Chancellor Carol Christ highlighted the unique opportunity for academic and physical expansion, emphasizing the potential to translate research findings into practical inventions and technologies. The park will be located on the decommissioned Moffett Federal Airfield, with NASA leasing the land to UC Berkeley for 99 years at no cost. The proposed $2 billion master plan envisions a modern tech campus with offices, labs, classrooms and outdoor work areas. Construction is set to begin within three years, with plans for residential structures and accommodations, pending environmental review. While specific projects for the Berkeley Space Center are yet to be finalized, a focus on electric automated urban aviation is expected. This aligns with United Airlines' plans to offer electric air taxi service to and from San Francisco International Airport by 2026. The collaboration also offers opportunities for space research and drone testing, making it a crucial venture for advancing research and innovation. REAP Funding Disbursed to Tribes, Rural Communities The state will provide over $54 million in funding to boost climate-resilient infrastructure and affordable housing. A substantial portion, around $29 million, is earmarked to aid twelve Tribal and Rural communities in addressing their specific planning challenges. The grants acknowledge the unique infrastructure and housing needs of these regions, allowing for greater local control to address their priorities and promote climate-friendly housing and economic development. Administered by the California Department of Housing and Community Development, the Regional Early Action Planning Grants of 2021 (REAP 2.0) program aligns with the state's goal to create 2.5 million new homes by 2030, with one million designated for low-income residents. The program hopes to empower local initiatives related to infill housing, infrastructure and community investments, aimed at expanding housing options, reducing vehicle emissions and advancing housing equity. (See related CP&DR coverage .) California Cities Lead Increase in Bicycling since 2019 A recent report by StreetLight Data highlights a notable surge in cycling across the United States since the onset of the pandemic, with San Diego seeing the second-largest growth in cycling at 71% increase from 2019 to 2022. San Diego also saw an increase to high bicycle sales during the pandemic and the installation of new bike lanes. Bakersfield claims the third spot for highest growth at 70.8% in spite of original low levels of cycling activity prior to 2019. San Francisco and Los Angeles metropolitan areas saw a 55.7% and 54.1% increases respectively. The report notes that cities experiencing significant growth generally possess better cycling infrastructure and more favorable weather conditions. Conversely, Fresno posted the highest negative numbers in terms of cycling growth at -10%. On a national scale, there was a 37% increase in the annual average daily bicycle trips between 2019 and 2022. Notably, 2020 and 2021 saw substantial gains, while 2022 marked a plateau. The report emphasizes the importance of sustained investment in safety-focused active transportation infrastructure to revive and sustain the growth in cycling. The data is derived from StreetLight's Active Transportation Monitor, which collects bicycle and pedestrian metrics primarily from smartphone location data. Biden Administration to Assist Cities with Climate Resilience The Biden administration introduced the "National Climate Resilience Framework," a comprehensive plan aimed at enhancing climate resilience nationwide. The framework identifies six overarching goals and proposes specific actions to achieve them, emphasizing locally tailored, community-driven solutions. The plan acknowledges the increasing frequency and severity of extreme weather events due to climate change. The six goals include embedding climate resilience into planning and management, increasing resilience of the built environment, mobilizing capital for climate resilience at scale, providing communities with resources to assess climate risks, sustainably managing lands and waters and ensuring communities are safer, healthier, equitable and economically strong. The administration unveiled the framework alongside a White House climate resilience summit and a commitment of $500 million in climate resilience funding across different agencies. The plan aligns with the federal government's strategy to guide and align climate resilience investments and activities. CP&DR Coverage: Newsom Signs Most Housing Bills Gov. Gavin Newsom signed virtually all remaining housing and land use bills, including the high-profile SB 4 and SB 423. Having vetoed the social housing bill previously, he did not veto any of the additional bills CP&DR has been tracking. Of all the high-profile bills, SB 423 is potentially the most transformative, especially in the Coastal Zone. The bill extends SB 35 until 2036 and applies it in the Coastal Zone for the first time. The bill will subject the Coastal Commission and local coastal programs (LCPs) to objective design standards for the first time - which could be a difficult transition, as coastal development permits to the classic subjective (and often non-specific) standards that SB 35 and the Housing Accountability Act have sought to eliminate. See full coverage of this year's legislative season. Quick Hits & Updates The Local Agency Formation Commission of Monterey County approved the annexation of nearly 49 acres to the City of Gonzales, allowing for the development of a 313,800-square-foot agricultural cooler processing facility, which is set to open in the spring of 2025. The facility will create over 430 jobs and is expected to contribute around $75,000 in tax revenue, processing agricultural crops from nearby fields, providing cold storage, processing lines, administrative offices and mechanical and storage rooms. The San Francisco Board of Supervisors unanimously adopted the Empty Homes Tax, which targets vacant apartments in buildings with three or more units left unoccupied for over 182 days in a tax year. This tax is expected to activate nearly 5,000 units over the first two years, generating over $20 million annually to support affordable housing initiatives in the city. (See related CP&DR coverage.) The industrial city of Vernon, south of Downtown LA, is undergoing a significant transformation with a new zoning ordinance that will add up to 874 apartments, more than quadrupling its population. This change is in contrast to the city's history, where limited housing and city-owned properties allowed for political control through electoral manipulation. The new ordinance, which encourages housing and small-scale commercial uses, aims to make Vernon a more residential and community-oriented city, easing housing challenges for workers in the area. President Biden announced California is one of seven recipients of a $7 billion federal hydrogen hub grant program aimed at advancing clean energy efforts and climate goals. California will receive up to $1.2 billion to develop hydrogen projects for public transportation, port operations and transport, focusing on reducing greenhouse gas emissions. While critics express concerns about hydrogen's energy-intensive production and potential environmental risks, California aims to create a hydrogen hub exclusively using renewable energy and biomass, contributing to clean energy and the reduction of carbon emissions in various sectors. Conservationists purchased a 394-acre property along the Russian River in Sonoma County, which includes the Clar Tree, a 2,000-year-old redwood believed to be the tallest tree in the county. The Clar Tree was threatened by a timber harvest plan, which led to a legal battle and ultimately the land purchase. Save the Redwoods League raised $6.5 million to secure the property. The organization plans to transfer the land to Sonoma County for ongoing stewardship and restoration, improving wildfire resilience and nurturing the forest toward old-growth status, with a potential for public access in the future. Preserve Calavera has reached a settlement in its lawsuit concerning the Tierra Norte project, which aimed to build up to 400 homes in Oceanside on land historically used for agriculture. The agreement calls for all-electric housing, a comprehensive transportation demand management program to reduce single-occupant vehicle trips, new height limits near existing homes, improved landscaping and noise reduction measures. La Cañada Flintridge argues a statewide law to desegregated historically discriminatory communities, known as "affirmatively furthering fair housing" is unconstitutional based on the recent precedent of the U.S. Supreme Court's decision on affirmative action in an effort to push back against approving the area's first multifamily housing project in more than a decade. Analysis released by the Environment California Research & Policy Center suggests Los Angeles, Ventura and San Diego counties could potentially generate renewable energy equivalent to powering over 270,000 homes annually by installing solar infrastructure along their highways. The report indicates these counties possess more than 4,800 acres of suitable space for solar development alongside highways, with the potential to accommodate up to 960 megawatts of renewable energy capacity. A federal appeals court panel has suspended an upcoming gold mining venture in the eastern Sierra Nevada, scheduled to start this week by Kore Mining Ltd. near Mammoth Lakes, where they intended to drill 12 600-foot holes on roughly 1,900 acres. This action follows a lawsuit filed by environmental organizations against Kore Mining and the U.S. Forest Service in October 2021, asserting that the drilling would harm groundwater feeding into the Owens River and disturb the bi-state sage grouse's habitat.

After years of fighting, the City of Coronado has reached a legal settlement promising to adopt a compliant housing element by April 2024.

Insurance Plan Seeks to Maintain, Expand Coverage in Wildfire Zones California's insurance commissioner announced a regulatory plan, supported by the industry, allowing insurers to incorporate future climate risks into their pricing models and mandating increased coverage in fire-prone areas. This follows decisions by major insurers, including State Farm General Insurance and Allstate, to stop issuing new homeowner policies or renewing existing ones in the wildfire-affected state. Insurers argued that California's current rules limiting predictive models and rate increases made coverage too expensive. The new plan, yet to be formally proposed, would enable insurers to use forward-looking climate data, pending commissioner approval, potentially leading to higher premiums statewide. As part of the agreement, insurers committed to covering at least 85% of their statewide market share in high-risk areas. The shrinking insurance market has left many California homeowners without property insurance or resorting to the state-mandated insurer of last resort. The proposal, aiming to address the insurance crisis, will undergo a rule-making process and workshops, with a targeted completion by December 2024. Consumer advocates express concerns about potential premium increases. Fresno Property Tax Exemption Could Affect 12,000 Future Units The Fresno City Council granted a key developer exemption for his planned 71-home development from a community facilities district. The tax aimed to cover a shortfall in police and fire services for new developments, attributed to the expiration of a property tax-sharing agreement with Fresno County in 2020. The developer argued against double-taxation without added benefits for residents. The council, in a 4-3 vote, approved measures exempting the developer's project and potentially impacting 10,000 future single-family homes and 2,000 multi-family units. The decision leaves the city facing a potential annual shortfall of $1.8 million in property taxes, with concerns raised about subsidization by homeowners throughout the city. Despite differing opinions on the financial impact, the council members emphasized the need for negotiations with Fresno County for a more equitable tax-sharing agreement. Los Angeles Controller Calls for Aggressive Climate Action Los Angeles City Controller Kenneth Mejia is calling for an update to the city's "Green New Deal," expressing concerns that the 2019 climate plan lacks transparency and measurable outcomes. In a recent report, Mejia criticized the plan for its vague goals and insufficient metrics in the most recent progress report . The report emphasizes the need for clear, measurable outcomes and calls for bolder targets in renewable energy, housing, and reducing car usage. Mejia's analysis aims to work with city departments and the public to enhance the plan, acknowledging the urgency to address climate change within the next seven to ten years. While some goals, like sourcing 70% of the city's water locally by 2035, are well-constructed, others lack specificity. Mejia's team recommends a continued focus on transit-oriented development and real-time tracking for achieving renewable energy goals, emphasizing Los Angeles as a potential model for other cities in addressing climate change. San Francisco Launches Program to Revive Downtown Storefronts San Francisco's Vacant to Vibrant program, addressing a worrying number of vacant storefronts and other street-level commercial spaces post-pandemic, officially launched with the first cohort featuring 17 businesses. Among these are Devil's Teeth Baking Co. and Green Apple Books, housed in a previously deserted 500-square-foot space at One Embarcadero Center. The program aims to revive downtown areas impacted by a 34.7% office vacancy rate and supports small businesses with grants up to $8,000 for three months, while property owners receive $5,000. The temporary nature of the pop-ups allows property owners the option for longer-term arrangements, fostering potential permanent relationships. City leaders anticipate the program will add variety and interest to the downtown experience, encouraging the revitalization of the area. (See related CP&DR coverage .) CP&DR Coverage: Supreme Court Takes on Exactions The U.S. Supreme Court has agreed to take a development fee case from El Dorado County that the California Supreme Court declined to hear. It's the most important Supreme Court land use case to come out of California since the court decided both the Nollan and First English cases in 1987. The case will test the question of whether the “rational nexus” and “rough proportionality” tests of the so-called Nollan/Dolan line of cases can be overridden by state legislation - and could narrow the ability of local governments in California to impose impact fees on developers. It's even possible that the ruling could eliminate inclusionary zoning for housing. Quick Hits & Updates Oakland experienced the largest decline in one-bedroom rental prices among the top 100 U.S. cities, with a 7.2% drop in September year-over-year, reaching a median of $1,430—the lowest since at least 2017. San Francisco's metropolitan area saw a 4.1% decrease in rents, falling from $1,960 to $1,880, and the national rental market is showing a similar trend with a 1.2% decline. The Midway Rising project, selected to redevelop the 48-acre Sports Arena site in the Midway District of San Diego, will no longer include 250 planned residential units for middle-income housing and a 200-room hotel. The changes were revealed during a San Diego City Council meeting, with the development group citing financial infeasibility for the middle-income housing due to the unavailability of certain economic incentives and the current high-interest rates, while the hotel plans were affected by the discovery of an 8-foot sewage line requiring a setback, leading to the reconfiguration of the project. City officials and residents in Costa Mesa oppose the state's plan to repurpose part of the Fairview Developmental Center into a regional emergency operations center, arguing that the property is crucial for much-needed housing. The proposed Southern Region Emergency Operations Center faces resistance as residents voice concerns about its impact on housing development, while state officials consider alternatives, and the public comment period for the project's draft Environmental Impact Report remains open until October 20. San Francisco officials are suing Chinatown property owners, alleging inhumane living conditions and years of ignoring tenant complaints and code violation notices. The lawsuit targets three hotels, accusing owners and their LLCs of creating a public nuisance, endangering health and safety and violating state housing law. The landlords face potential penalties and legal fees if the city prevails in court. The California Natural Resources Agency is accepting proposals for the Urban Greening Grant through November 20, 2023 via the System for Online Application Review (SOAR) . The San Diego City Council's Land Use and Housing Committee discussed a response to a Grand Jury report revealing a regional housing shortage, with the city noting it has implemented most recommendations but rejecting the suggestion to support legislation for a county agency dedicated to raising housing revenue. The proposed response, pending full city council approval, must be submitted to the San Diego County Superior Court by Nov. 6. The California Air Resources Board's plan to achieve carbon neutrality and reduce greenhouse gas emissions by 85% below 1990 levels by 2045 emphasizes the need to address transportation, the largest source of emissions. However, an analysis by the Natural Resources Defense Council reveals a disconnect between the state's transportation spending and climate goals, with less than one-fifth of the budget allocated to projects reducing vehicle miles traveled, highlighting the urgency for aligning investments with decarbonization priorities. A sizeable majority of residents continue to avoid the Bay Area's major urban centers, including San Francisco, Oakland and San Jose, due to concerns about crime, homelessness and a lack of clear identity and attractions. A poll sponsored by the Bay Area News Group and Joint Venture Silicon Valley reveals that 83% of respondents rarely or never visited downtown Oakland, 79% avoided downtown San Jose, and 70% stayed away from downtown San Francisco in the past year. The findings indicate serious challenges for the region's economic future and highlight residents' growing dissatisfaction and pessimism about the direction of their cities. The Beverly Hills City Council unanimously approved an ordinance to comply with Senate Bill 9, allowing homeowners to subdivide and build new units. The city voted to limit the total size of new dwellings to 800 square feet, including basements and additional rules on accessory dwelling units will be considered by the Planning Commission in December. The Los Angeles City Council voted 8-6 to halt a contentious hotel project in Benedict Canyon due to concerns about environmental impact and public safety, citing potential ethics violations, environmental threats and community opposition. Metrolink is taking steps to improve its train services and frequency by investing in strategic upgrades throughout its 500-mile system. Additionally, they are planning to construct new infill stations near LA General Medical Center and the Pico Rivera community, enhancing accessibility for the San Bernardino and Orange County Lines.

Gov. Gavin Newsom signed virtually all remaining housing and land use bills on Wednesday, including the high-profile SB 4 and SB 423. Having vetoed the social housing bill previously, he did not veto any of the additional bills CP&DR has been tracking.

Gov. Gavin Newsom has vetoed AB 309, the so-called “social housing” legislation – which was watered down in last-minute Senate amendments – because it would have given cities and counties some power over the design of state-created housing projects.

State Again Seeks to Restore Sacramento Bay-Delta The State Water Resources Control Board released a nearly 6,000-page draft to update the Bay-Delta Water Quality Control Plan, addressing the ecological crisis in the Bay-Delta watershed, focusing on boosting water flows and limiting pumping in the Sacramento River basin and the delta. The draft evaluates various strategies, including setting minimum water levels in rivers and streams, potentially requiring water users to cut back on diversions for urban and agricultural needs. The report also delves into a controversial pact reached by Governor Gavin Newsom with major water suppliers, criticized by environmentalists and tribes. The next steps involve public workshops, hearings,and comments to shape regulations, with the State Water Resources Control Board likely making decisions in about a year. However, the full implementation of the updated Bay-Delta plan might take several years. HCD Refuses to Certify Davis Housing Element; Developer Sues City The City of Davis is in violation of state housing law as it has not adopted an acceptable plan for housing development, being over two years overdue in creating a compliant "housing element," according to the California Department of Housing and Community Development (HCD). In an Aug. 31 letter, the state agency warned Davis of potential legal action, fines, and the risk of losing state funding if an acceptable housing element is not approved. Despite receiving $610,000 in state funding for housing element development, Davis officials are accused of not planning for enough housing, especially after the removal of over 260 units from the University Commons project. Developer David Taormino has sued Davis for not approving his 163-unit Palomino Place development, emphasizing the need for housing for local workers and families. Davis officials, in response, claim they have not formally denied the project and are working with HCD to address concerns and bring an updated plan to the City Council by year-end. (See related CP&DR coverage .) Cost of San Jose BART Extension Balloons to $12.2 Billion The extension of the Bay Area Rapid Transit (BART) system to downtown San Jose faces an 80% cost increase since 2020, with estimates now at $12.2 billion and completion expected by 2036. The Santa Clara Valley Transportation Authority (VTA), overseeing the project, attributes the rise to inflation, construction, and labor costs. The extension, covering 6.1 miles, will connect the Berryessa/North San Jose Station to new stations at 28th Street/Little Portugal, Downtown San Jose, Diridon and Santa Clara, forming a rail ring around the San Francisco Bay. The project, one of the nation's costliest, is backed by local taxpayers through approved tax measures. The VTA anticipates federal funding covering about half the cost, with construction slated to begin in 2024, featuring the nation's largest single-bore transit tunnel, aimed at minimizing surface impact in downtown San Jose. Despite challenges, VTA's CEO remains committed to delivering the project without seeking additional local funding. San Diego to Participate in Pro Bono Program to Track Property Data San Diego, along with 10 other cities, is participating in a pro-bono pilot program led by a software company and a national nonprofit to leverage big data and shared expertise in addressing housing access and affordability challenges. The initiative aims to uses a data software tool, BuildingBlocks, to analyze property and ownership data, aiding cities in making informed decisions on land use, affordability and neighborhood revitalization. The collaboration learning among the participating cities, including Albuquerque, Austin, Birmingham, Chicago, Dayton, Lansing, Kansas City, Philadelphia, Tampa and Tucson, is expected to expedite the development of effective solutions. The tool allows for detailed analyses, such as examining the overlap of different urban layers and scrutinizing how institutional investors maintain properties. Ultimately, the program's goal is to visualize complex data, facilitating informed policy shifts to address housing challenges and boost economic stability. CP&DR Coverage: How "New City" in Solano County Upstages Conventional Planning California Forever offers more of a lesson in public relations than in planning. The developer, Flannery Associates LLC, had been operating in stealth mode for five years until the Chronicle uncovered what was going on. Flannery's most exquisite move was to immediately post a website -- so fully-formed that it must have been designed and written ahead of time, like an aging celebrity's obituary, long before the news leaked. Flannery is thus both an enormity and a mystery at the same time. What this approach lacks is a vision -- a sense of enthusiasm or shared purpose. It's almost impossible to envision better cities in California because the new elements -- say, a well designed mixed-use building, or street furniture that might make a place walkable -- has to mingle with whatever outdated, Prop. 13-enabled ugliness is still hanging around. So, we can forgive anyone who gets excited about California Forever. Quick Hits & Updates The Los Angeles City Planning Commission approved the District NoHo development, a Metro joint project planned by two development companies that has been in various stages of development for over a decade. The 16-acre development near North Hollywood Station will include housing, retail, office space and public amenities, with construction potentially commencing in 2025 or 2026 and spanning up to 15 years. A study by SPUR provided 16 recommendations of methods to accelerate Bay Area public transit. The study emphasized the need for policy changes and funding programs to alleviate transit challenges, enhance bus speed and address traffic congestion. Collaborative efforts between transit agencies and local jurisdictions are crucial, with dedicated resources urged to support the adoption of transit priority projects, improving service, affordability and competitiveness against private automobiles. The Long Beach City Council approved an $800,000 allocation from the Long Beach Recovery Act of 2021 to Social and Environmental Entrepreneurs (SEE), a fiscal sponsor for nonprofit Long Beach Residents Empowered (LiBRE). The funds will facilitate the launch of a pilot Community Land Trust program, led by LiBRE, aiming to identify and acquire properties for affordable housing in an effort to address homelessness and housing crises in the city. A California transportation official and former Caltrans deputy director, Jeanie Ward-Waller, claims she was demoted for objecting to highway expansions that increase driving. She alleges that road construction projects in the Sacramento area, which circumvent environmental rules, wrongly use state funds for widening roads instead of maintenance, prompting her reassignment and subsequent whistleblower complaint. In August 2023, the Los Angeles County Metropolitan Transportation Authority (Metro) experienced a notable 13% year-over-year increase in total system ridership, totaling over 25 million boardings and marking the ninth consecutive month of growth. The recovery in ridership, now at 79% of pre-pandemic levels, is particularly pronounced on weekends, with the newly reconfigured A and E Lines contributing to a significant rise, and special event services, like those for concerts and festivals, playing a role in boosting ridership. A Los Angeles County Superior Court judge ordered Beverly Hills to create a new plan to comply with California's housing law, which requires offering housing for moderate- and low-income residents. The city failed to meet the regional plan's target of 3,104 housing units, over half of which should be affordable to low- and very low-income households, by 2029. The City of San Diego filed a petition with the California Supreme Court, seeking clarification on whether Measure C, a hotel tax hike initiative to finance a convention center expansion, is a citizens' initiative or a government-sponsored measure requiring a supermajority vote. The legal ambiguity surrounding Measure C has impeded the city's ability to fund the convention center expansion, prompting both the city and the initiative's proponents to request a speedy resolution from the Supreme Court, with a decision expected by mid-December. The Center for Biological Diversity has filed a lawsuit against Long Beach, California, alleging that the city violated the California Environmental Quality Act by failing to conduct an environmental review of oil and gas drilling operations. The lawsuit aims to block the city's authorization of such drilling for the next five years. Long Beach's plan permits 100 drilling activities between 2023 and 2028, projecting the extraction of over 26.2 million barrels of oil and 12 billion cubic feet of natural gas production, an increase over the last five years. Vista Hermosa Natural Park in Los Angeles, designed by landscape architecture firm Studio-MLA, has received the ASLA 2023 Landmark Award. Completed in 2008, the park was the first public park built in downtown Los Angeles in over a century, transforming an oil field into a green space. The award recognizes projects completed between 15 and 50 years ago that have retained their original design integrity and continue to provide significant benefits to the community.

Recently, the Terner Center for Housing Innovation at UC Berkeley hosted a conference about recent housing legislation that featured four legislators active in the area: Sen. Scott Wiener of San Francisco, Assemblymember Buffy Wicks from the East Bay, Assemblymember David Alvarez of San Diego, and Senator Catherine Blakespear, who until recently has to grapple with intense no-growth politics as mayor of Encinitas. All but Wicks are former local government officials. The resulting conversation brought an interesting set of obervations from the four legislators. Here' s an edited version of the conversation, culled by CP&DR ’s Josh Stephens.

Hold on to your seat belts. Attorney General Rob Bonta says he intends to keep pushing hard against cities that are “brazen violators” of state housing law – pursuing high-profile cases that he says have broad impact by influencing the actions of other cities.

In a stunning move, the U.S. Supreme Court has agreed to take a development fee case from El Dorado County that the California Supreme Court declined to hear. It’s the most important Supreme Court land use case to come out of California since the court decided both the Nollan and First English cases in 1987.