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State Rescinds Certification of Portola Valley's Housing Element The Town of Portola Valley, an upscale enclave on the San Francisco Peninsula, has lost its housing element certification from the state due to its failure to approve changes allowing denser housing and more multifamily development, deeming it ineligible for state grants for housing and transportation until it adopts a compliant blueprint. Under state mandate, Portola Valley must accommodate 253 units, with 152 being affordable, yet it's been slow to adjust, despite pressure from state officials. The town's reluctance to vote on denser housing raised concerns from the Department of Housing and Community Development about its commitment to housing affordability, especially as it hosts prominent tech figures and faces challenges in rezoning amidst staff turnover. The Portola Valley Town Council has pushed the vote on allowing denser housing a number of times, citing short staff and an inability to rezone at this time. (See related CP&DR coverage .) OPR Survey Details Pace of General Plan Updates The Governor's Office of Planning and Research released its 2023 Annual Planning Survey results, with 327 of 529 cities and counties in California responding, representing 68 percent of California's population and responding to questions on general plan updates to air quality and emission reduction. The average update to jurisdictions' conservation, open space and noise elements was approximately 14 years each. Their land use elements on average were last updated 11.6 years ago. The most steadily updated elements were housing at an average of 3.2 years and environmental justice every 5.3 years, although environmental justice elements became a requirement in 2018 under SB 1000. Conversely, jurisdictions reported they plan to update their conservation, open space and noise elements in 4.9, 4.8 and 3.4 years on average, respectively, and land use in the next 3.8 years. Church Claims San Diego Illegally Blocked Expansion All Peoples Church is taking legal action against the San Diego City Council's decision to reject permits for a new facility in Del Cerro, citing violations of federal protections for religious institutions. The church filed a complaint with the U.S. District Court, alleging infringements on its rights under the Religious Land Use And Institutionalized Persons Act and the First Amendment. Seeking to override the city's decision, the church is also pursuing financial damages. The dispute stems from the council's denial of permits for a 900-seat sanctuary and other facilities on a vacant 6-acre lot. Despite unanimous support from the Planning Commission, the project faced opposition from a community group and ultimately, a majority vote against it by the City Council. The complaint challenges the decision's legality and questions the motivations of Councilmember Raul Campillo, who represents Del Cerro and led the opposition against the project. Oakland Drafts Downtown Plan with Multifaceted Goals After nearly a decade of anticipation, the City of Oakland has unveiled a comprehensive plan to revitalize its downtown, aiming to boost density, vibrancy and address racial and economic disparities. Covering 1.45 square miles, the plan focuses on incentivizing private construction of housing, offices and cultural spaces over the next 20 years. It envisions new office and residential towers, revitalizing light industry and creating cultural zones to preserve Oakland's arts scene. The proposal aims to meet projected housing, cultural, employment and recreational needs while emphasizing racial and economic justice. However, questions linger about feasibility, especially amidst Oakland's budget deficit and the uncertainties brought by the pandemic. Despite adjustments, some critics argue the plan may not fully address post-pandemic realities or sufficiently tackle issues like affordable housing. (See related CP&DR coverage .) Suit Challenges Latest Ruling on Federal Clean Water Regulation A lawsuit has been filed challenging the federal government's interpretation of the U.S. Supreme Court's May 2023 ruling on waters of the United States (WOTUS), specifically targeting the "adjacent wetlands" provisions of an amended rule issued by the Environmental Protection Agency and the U.S. Army Corps of Engineers. The lawsuit, brought by the Pacific Legal Foundation on behalf of Robert White, argues that the agencies are unlawfully asserting jurisdiction over private land in disregard of the Supreme Court's decision, which set forth a narrower standard for wetlands regulation under the Clean Water Act, requiring wetlands to have a continuous surface connection to regulated navigable waters. (See related CP&DR coverage .) CP&DR Coverage: Legislature Considers New Crop of Housing Bills California's upzoning frenzy may be coming to an end . But that doesn't mean that the legislature is done promoting housing. This year's bills, though, exhibit pragmatic approaches. Rather than seek headlines (and draw ire of slow-growth advocates), this year's bills largely address nuances that, perhaps, only developers could love. At least, that's the hope of many legislators. Many planners, however, probably hope that the power goes out in Sacramento when this year's crop of land use bills are being voted on. Quick Hits & Updates The City of Los Angeles is launching an initiative to support Legacy Businesses, defined as small businesses operational for at least 20 years, by offering benefits such as technical assistance and grants of up to $20,000. The program aims to preserve the cultural and historical significance of these businesses, with applications opening in fall 2024 and technical assistance beginning in January 2025, alongside four online information sessions in March to guide interested businesses. In a significant victory for the California Forever project in Solano County, a judge denied a motion by remaining landowners accused of conspiring to inflate property prices, citing evidence of a price-fixing conspiracy provided by messages among property owners. The "California Forever" project aims to create a new city from farmland near Fairfield, sparking debate over the role of the ultra-rich in city-building and the use of agricultural land for development. San Francisco is capitalizing on declining office values by negotiating discounted leases and potential purchases of office buildings in the Mid-Market neighborhood. By securing favorable terms, including concessions on rent and tenant improvements, the city aims to consolidate its office leases, revitalize the area and accommodate the space needs of several city departments. The California Department of Housing and Community Development (HCD) is updating California's fair housing plan, including the Analysis of Impediments (AI) to fair housing choice. As part of this effort, a Community Needs Assessment survey has been launched to identify housing, community development and supportive service needs in the state. The survey will help determine resource allocations and prioritize program activities and supportive services and it will be open for responses until May 1, 2024. An independent audit revealed financial mismanagement and misuse of taxpayer funds at HomeRise, a major housing provider for San Francisco's formerly homeless population, prompting the organization's CEO to pledge resolution of the identified issues. Despite efforts to address concerns, the report underscores the need for collaboration between HomeRise and city agencies to reform financial practices. Upgrades to Bay Area wastewater treatment facilities, totaling at least $11 billion, may be necessary to comply with anticipated stricter environmental regulations, particularly aimed at reducing nitrogen levels to prevent harmful algae blooms. The costs, averaging $4,000 per household, could be borne by consumers through increases in wastewater bills, with efforts underway to secure additional funding from federal and state sources to mitigate the impact on residents. Sunnyvale's 2023-31 Housing Element has been certified by the state Department of Housing and Community Development, outlining plans for accommodating nearly 12,000 new housing units and implementing various programs to address housing needs. Additionally, Sunnyvale will host an Earth Day Festival on April 20, coinciding with the grand opening of its new civic center, featuring sustainability-focused activities and information from local organizations. Sequoia and Kings Canyon National Parks, along with other California National Parks like Joshua Tree and Mojave, rank among the most polluted in America due to ozone pollution and wildfire smoke, according to a report from the National Parks Conservation Association. Wildfires have caused extensive damage to these parks, destroying sequoia groves and threatening wildlife. Pollution from population centers, agricultural and industrial operations and transportation facilities exacerbates the poor air quality in these parks, although there have been some improvements noted since 2019 attributed to the implementation of clean air regulations. The Orange County Transportation Authority is proposing additional measures, including constructing a half-mile-long retaining wall and adding more boulders along San Clemente's coastline, to protect the train tracks from landslides and ocean waves. The plan, estimated at $200 million, aims to address immediate vulnerabilities along the coastline, although concerns have been raised about the efficacy of armoring the coastline versus utilizing sand as a buffer to protect the rail line. A new ranking from Architectural Digest highlights the emergence of upscale living in 115 U.S. cities, focusing on factors like activities, properties, dining, income, diversity and safety, with Irvine, Carlsbad and Chula Vista the top three rising luxury cities. These cities offer a blend of luxury properties, high-income households and diverse cultural amenities based on data from sources like Redfin, Yelp, the U.S. Census Bureau and the FBI's Uniform Crime Reporting Program.

AIDS Healthcare Seeks to Purchase, Operate Homeless Housing in Los Angeles The AIDS Healthcare Foundation (AHF) aims to purchase properties on Los Angeles' Skid Row, primarily old single-room occupancy hotels, owned by the financially troubled Skid Row Housing Trust, which is currently in receivership. Despite being the leading bidder with a proposed $53 million offer for the initial twelve buildings, state officials have raised objections regarding the foundation's track record as a landlord, citing issues highlighted in previous investigations. The foundation, which ventured into homeless housing management in 2017, has faced criticism for inadequate building maintenance and tenant safety issues, as detailed in investigative reports. A March 20 letter from the Department of Housing and Community Development claims AHF “would not be a suitable owner and operator considering widely known and well documented shortcomings in the Foundation's ability to provide safe and well-maintained buildings." Concerns also revolve around the foundation's ability to provide supportive services, as it does not offer such services in most of its current buildings. Despite these reservations, final decisions on the sale of the properties rest with the court overseeing the receivership. AHF has sponsored several failed ballot measures related to housing, including a statewide rent control measure and a slow-growth measure in Los Angeles. (See related CP&DR coverage .) S.F. Supervisors Overturn Mayor's Veto of Slow-Growth Ordinances San Francisco's Board of Supervisors overturned Mayor London Breed's veto of legislation imposing housing development restrictions in three historic neighborhoods, the first successful override of Breed's veto by the Board. The legislation, spearheaded by Board President Aaron Peskin, marks a point of contention in his anticipated mayoral run against Breed, highlighting their differing approaches to addressing the housing crisis. The law aims to limit the height and scale of developments in areas such as the northeast waterfront and Jackson Square, a response to proposed projects exploiting recent development rule changes. Peskin argues that the legislation ensures responsible planning and protects the historical integrity of these districts, refuting claims that it hampers housing development. However, Breed views the veto override as a setback in the city's efforts to address its housing shortage, emphasizing the need to prioritize housing initiatives. The legislation's implications on San Francisco's ability to meet its state-mandated housing goals and its impact on future housing development remain key concerns amidst escalating tensions over housing policy, expected to intensify with the upcoming mayoral race. Major Property Insurer to Cut Back on California Policies State Farm intends to terminate roughly 30,000 property insurance policies and 42,000 commercial apartment policies in California, citing the imperative for "long-term viability." This move follows the cessation of issuing new homeowners policies last year and subsequent rate hikes averaging 20% for existing clients. The non-renewals, encompassing approximately 2% of all California policies, encompass various types of property insurance, including homeowners and rental coverage. Affected customers will receive notifications starting July 3 for property insurance and August 20 for commercial apartment insurance. While State Farm refrained from announcing non-renewals in other states, the decision reflects financial hurdles attributed to inflation, exposure to catastrophes and reinsurance expenses. State Farm expressed its commitment to collaborating with California's Department of Insurance and Governor Gavin Newsom on reforms aimed at insurance regulation. The Department of Insurance voiced apprehension regarding State Farm's financial position and underscored its dedication to safeguarding consumers and ensuring oversight. Research Questions Efficacy of CalEnviroScreen New research indicates that California's environmental screening tool, CalEnviroScreen, may be flawed and subjective, potentially causing communities to miss out on billions in funding. The study, led by researchers from Stanford University, highlights concerns about the tool's reliance on a limited set of health indicators, which could bias community designations. It suggests that altering the screening model could significantly impact rankings, affecting funding distribution. CalEnviroScreen, used to identify "disadvantaged" communities eligible for funding, is under review, with recommendations from the study being considered. Proposed solutions include using multiple models and establishing external advisory committees to address concerns about equity and funding allocation. Key Light Rail Link Approved in San Jose The Santa Clara Valley Transportation Authority (VTA) board unanimously approved a $437 million construction contract for the Eastridge to BART Regional Connector project, which will extend light rail services by 2.4 miles from East San Jose to Milpitas BART Station, addressing a critical infrastructure need in the largely Latino community. The connector will like the Eastridge Transit Center with the Alum Rock Transit Center, which connects to the Milpitas BART station. Despite coming in over budget, the joint bid from MCM Construction Inc. and RailWorks Corporation was approved, with funding drawn from VTA reserves, marking a historic investment in transportation equity for East San Jose. With construction set to begin in April and completion expected by 2028, local leaders and advocates welcome the long-awaited project as a transformative opportunity for the underserved area. The connector has been discussed since the early 2000s. CP&DR Coverage: Court Permits Referendum on Livermore Development to Proceed Opponents of an affordable housing project in downtown Livermore have won the latest legal skirmish, with an appellate court ruling that the city must allow a referendum on the project to move forward. City officials had argued that their approvals of the project were quasi-judicial in nature and therefore not subject to the initiative and referendum process. But the First District Court of Appeal ruled that one aspect of the project approval was legislative and therefore the referendum must move forward. In a 31-page ruling that discussed various precedents at length, the three-judge panel concluded that while much of the development agreement might have been characterized as quasi-judicial, that portion of the agreement dealing with the park was legislative. Quick Hits & Updates The Newport Beach City Council voted to withdraw from the League of California Cities due to the organization's support for Proposition 1, which city officials fear could lead to an increase in group homes in the area. Concerns were raised about the potential impact of Prop 1 on the city's quality of life, particularly regarding the proliferation of poorly run group homes and the welfare of both residents and individuals receiving care. San Francisco's population has seen a slight increase to an estimated 808,988 residents as of July 2023, indicating a reversal of the pandemic-related exodus. Despite this growth, the city still remains below its pre-pandemic population levels, experiencing a decline of nearly 65,000 people or 7.4% compared to April 2020. UC Berkeley's Terner Center for Housing Innovation's study of housing and climate policy found that addressing climate change and housing policy necessitates a comprehensive strategy involving land use transformation, housing retrofitting and government capacity enhancement to respond to climate disasters. Recent progress in state planning reforms and significant climate legislation offers momentum toward promoting equitable and sustainable housing policies. San Francisco officials are introducing legislation to bring 1,000 new homes, public amenities and parks to Treasure Island, marking it as the single largest source of new housing in the city. This project, part of San Francisco's efforts to meet its state-mandated housing goals, is seen as crucial for the city's economic recovery and will contribute to the ongoing redevelopment of Treasure Island into a new neighborhood. (See related CP&DR coverage.) The City of Los Angeles is launching an initiative to support Legacy Businesses, defined as small businesses operational for at least 20 years, by offering benefits such as technical assistance and grants of up to $20,000. The program aims to preserve the cultural and historical significance of these businesses, with applications opening in fall 2024 and technical assistance beginning in January 2025, alongside four Zoom information sessions in March to guide interested businesses. Gov. Newsom plans to accelerate construction of a $2-billion mixed-use development project called Fourth & Central in downtown Los Angeles by expediting the judicial process for any potential litigation under state environmental laws. The project, spearheaded by Denver-based developers Continuum Partners, aims to revitalize Skid Row with 1,500 new homes, office space, retail, restaurants and a hotel, while also creating thousands of construction jobs, although concerns remain regarding potential gentrification and displacement in surrounding communities. The approval of $205 million in construction funding for the Sites Reservoir project in Colusa County, California marks a significant step toward creating the largest new reservoir in the state in the past 50 years. Planned to store water diverted from the Sacramento River, the project aims to address water storage needs for agriculture and urban areas, though it faces opposition from environmental groups concerned about its impact on ecosystems. The state is poised to certify Beverly Hills' Housing Element, marking the end of a three-year struggle to meet the state's housing demands. The latest version of the plan, aimed at creating capacity for 3,100 new housing units by 2029, has been deemed compliant by HCD. California Forever issued a statement accusing opponents of spreading misinformation about the signature gathering process for its proposed new city in Solano County. The company stated that its signature gatherers are professionals provided with a fact sheet outlining the initiative's goals and promises. Solano Together responded, labeling California Forever's promises as "empty" and emphasizing that voters will be deciding on a change to the General Plan, not the initiative's guarantees. The state has approved $5 million in grant funding to develop Community Resilience Centers across the state, aimed at addressing the impacts of climate change and providing emergency response facilities. The grants, approved by the California Strategic Growth Council, will assist 11 low-income, disadvantaged, rural, unincorporated and tribal communities in planning for the implementation of these centers, which will offer various services to communities throughout the year, focusing on energy independence, workforce development, food security, emergency response and tribal sovereignty. The Newport Beach City Council voted to withdraw from the League of California Cities due to the organization's support for Proposition 1, which city officials fear could lead to an increase in group homes in the area. Concerns were raised about the potential impact of Prop 1 on the city's quality of life, particularly regarding the proliferation of poorly run group homes and the welfare of both residents and individuals receiving care.

The CP&DR Vol. 39 No. 3 March 2024 Report

In the past few years, the California legislature has upzoned just about everything that could be upzoned in the name of housing: transit-oriented areas; jobs-rich areas; high-resource neighborhoods; malls and big box stores; college campuses; church parking lots; and, yes, your backyard. (Or, at least, many backyards — by way of ADU laws and the Senate Bill 9 “duplex law.”)

Concord Approves Latest Attempt to Redevelop Naval Weapons Station City officials in Concord have tentatively approved a billion-dollar plan for the redevelopment of the former Concord Naval Weapons Station, aiming to transform the 2,300-acre site into a mixed-use, transit-oriented community over the next 40 years. Brookfield Properties' proposal includes 6 million square feet of commercial space, 880 acres of greenspace and more than 12,200 homes, with 25% designated as affordable housing. The project, expected to cost approximately $6 billion, marks a pivotal moment after previous attempts by other developers faced setbacks due to labor disputes and disagreements over the past decade. With the recent approval of a non-binding term sheet, Brookfield now has up to 48 months to negotiate a property transfer agreement with the U.S. Navy and finalize plans for the project's environmental impact, legal clearances and permits before construction can commence. Despite challenges ahead, the community's support and comprehensive planning efforts signal an optimism for the project's success. (See related CP&DR coverage .) University to Lease Major San Francisco Redevelopment Continuing a trend in which educational institutions are moving into underutilized urban properties, UC San Francisco is in advanced negotiations to become the main tenant in the redevelopment of San Francisco's Potrero Power Station, aiming to establish a clinic, precision cancer center and health tech incubator on a 50,000-square-foot parcel within the project. The mixed-use expansion onto 21 acres of former industrial land includes plans for 2,600 housing units, 1.6 million square feet of commercial space and a 250-room hotel. If approved, UCSF's involvement could mirror its role in Mission Bay, with aims to kickstart a vibrant neighborhood and fostering innovation in healthcare and research. Local officials and community groups currently view the project positively as a strategic opportunity for growth and development. (See related CP&DR coverage .) State Loses Ground on Greenhouse Gas Goals A new analysis reveals that California must significantly accelerate its efforts to combat climate change to meet its emissions reduction targets according to this year's edition of the Green Innovation Index, released by nonprofit Next10. Despite previous progress, emissions rebounded by 3.4% in 2021, setting the state further behind its mandated goal of emitting 40% less by 2030 than in 1990. Meeting this goal requires annual cuts of 4.4%, a pace the state has only achieved during recessions. Key challenges include reducing emissions from electricity generation, transportation and cement production, with the latter accounting for 2% of the state's emissions. While California has made strides in some areas, urgent action is needed to achieve ambitious climate targets and avoid falling short. Costs of State High Speed Rail Continue to Mount California's high-speed rail project, despite recent progress and excitement over its renderings, faces significant financial challenges as described by the High Speed Rail Authority in a recent hearing in Sacramento. With a $7 billion shortfall for the initial Merced to Bakersfield segment and an estimated $100 billion needed for the complete San Francisco to Los Angeles route, state leaders must soon decide whether to commit to the entire project or abandon it. The latest cost projections were shared during legislative hearings, with plans to begin electrified high-speed rail service in the Central Valley between 2030 and 2033. While efforts are underway to secure federal funding and complete environmental studies, uncertainties remain about the project's future funding and completion. Additionally, the project has faced rising costs, delays and litigation, prompting calls for stable and adequate funding to ensure its success. CP&DR Coverage: Local Ballot Measure Roundup March 4 local ballots included only a handful of local ballot measures, but a few of them were big. Voters in the City of Los Angeles approved a sweeping measure to make the city's streets safer and to facilitate active transportation through pedestian upgrades and a host of other improvements. In San Francisco, voters predictably approved a bond measure to finance affordable housing. Less predictably, they gave businesses relief through the curtailment of transfer taxes on commercial properties; the measure is designed to help the city's beleaguered downtown. A contentious slow-growth measure in Santa Cruz failed by a wide margin, and 91% of residents of the future City of Mountain House voted for incorporation. Quick Hits & Updates The Sacramento City Council finalized its general plan update, aimed at building housing near transit, reducing car dependency, and slashing carbon emissions to combat climate change. The plan includes restrictions on new gas stations and drive-thrus, an end to parking mandates for new developments and incentives for electric-powered construction. UC Berkeley's Terner Center for Housing Innovation is launching a new focus area to address the intersection of climate change and housing policy, aiming to provide evidence-based research to navigate the complexities of aligning housing and climate policies while advancing equity and affordability goals. The Fifth Appellate District court ruled that Kern County's local ordinance for fast-tracking oil and gas projects violates California environmental law for the second time. The ruling prohibits the county from issuing permits for such projects due to deficiencies in the environmental review process, a victory applauded by farming companies and community organizations concerned about the potential impact on farmland and residents' health. The Supreme Court of California is set to hear oral arguments April 3 in a case crucial to UC Berkeley's student housing project at People's Park. The lawsuit filed by Make UC a Good Neighbor argues that the university failed to consider alternative sites for the project and raises concerns about potential noise impacts on the Southside neighborhood. SPUR has compiled a comprehensive database of local land use ballot measures in California that affect housing production. These measures, enacted since the 1970s, range from urban growth boundaries to open space preservation ordinances. While many aim to curb urban sprawl and protect open space, they may inadvertently limit housing supply if not accompanied by incentives for infill development in urban areas. Additionally, measures such as zoning restrictions and voter approval requirements within city boundaries can hinder infill housing production, potentially worsening housing affordability and exacerbating racial segregation over time. The Superior Court has ruled in favor of moving forward with California's Bay-Delta Plan, despite opposition from water agencies and other groups. The plan aims to protect the state's major rivers and creeks by setting limits on water withdrawals by cities and farms, with the goal of addressing the decline of the Sacramento-San Joaquin River Delta and supporting wildlife habitats. Although the decision is expected to be appealed, the court's ruling validates the State Water Resources Control Board's authority to implement measures to safeguard fish and wildlife while balancing economic interests. The Chula Vista City Council unanimously rejected the option to implement Senate Bill 10, citing concerns over potential impacts on community character, local control, parking challenges and school overcrowding. Despite initial interest in exploring SB 10's benefits, the council opted not to pursue it, emphasizing the need for public discussion and a citizenry vote for significant development decisions. (See related CP&DR coverage .) Homeowners in Santa Cruz County are embroiled in a dispute with the county and the Coastal Commission over public access to a coastal walkway, which the homeowners have fenced off but authorities argue should remain open. The conflict, fueled by concerns over property rights and accessibility to the coast, has led to legal battles and tensions between residents and advocates for public access, highlighting broader debates over coastal access in California. A recent analysis by The Pew Charitable Trusts demonstrates a strong connection between rent prices and homelessness in American cities. The research compared homelessness and rent data from 2017 and 2022, showing that areas experiencing sharp increases in homelessness also saw faster-than-average rent growth, while areas with declining homelessness had slower rent growth.

The Biden Administration has proposed $20 billion in federal grant funds to state and local governments to expand housing supply focusing on such efforts as:

California Forever Releases Renderings, Master Plan Map The California Forever project in Solano County released aerial views and renderings of the proposed New Urbanist-influenced city, showcasing tens of thousands of homes, open spaces and renewable energy sources. Renderings reveal medium-density, mixed-use neighborhoods; the map depicts a community including mixed-use districts, districts for "making and manufacturing" and "industry and technology," and a buffer zone between the development and Travis Air Force Base, to the west. The project, aimed at transforming farmland into affordable, walkable neighborhoods, faces opposition from environmental groups and locals concerned about traffic and housing on agricultural land. Initial plans call for a community of about 50,000 residents, with long-term build-out at 400,000. The renderings and map cite neither an architecture firm nor a planning firm. California Forever seeks to gather 13,000 signatures for a ballot initiative to amend zoning codes, enabling the project to move forward. If successful, the initiative could bring 15,000 new jobs and $500 million for community benefits. Recent " guarantees " issued by the company include commitments to smart growth and promises to invest $400 million into affordable housing countywide and $500 million into economic revitalization of downtowns in the county's existing towns. (See related CP&DR coverage .) State Program Seeks to Mitigate Damage Done by Urban Highways California is launching a pilot program called Reconnecting Communities: Highways to Boulevards to mend historical divisions caused by highways in underserved areas. Governor Gavin Newsom announced the initiative, aimed at reconnecting neighborhoods in Arcata, South San Francisco and southeast San Diego/National City, emphasizing equity and community-driven solutions. The program, part of the Climate Action Plan for Transportation Infrastructure, aims to convert highways into vibrant public spaces and multimodal corridors, with Caltrans assisting communities in developing and implementing their vision. The Reconnecting Arcata Project aims to address transportation challenges caused by state highways through community-driven planning, with a proposed transit center and active transportation enhancements. The Reconnecting Southeastern San Diego and National City Project aims to improve transportation options in historically divided communities, partnering with local organizations to fulfill community objectives. The Connect4SSF Project in South San Francisco aims to improve connections between neighborhoods by addressing infrastructure barriers and enhancing access along priority corridors. California Receives $235 Million in Federal Funding for Equitable Transportation Projects The U.S. Department of Transportation's Reconnecting Communities and Neighborhoods (RCN) Grant Program allocated $3.3 billion across 132 communities to support transportation projects enhancing access to essential services, promoting equitable development, removing or mitigating barriers caused by transportation infrastructure and prioritizing disadvantaged communities, totaling in approximately $235.4 million across 17 projects in California. The three largest projects in California include, in order of cost, "Removing Barriers and Creating Legacy - A multimodal Approach for Los Angeles County" ($139 million), "The East Bay Greenway Multimodal Project: Lake Merritt to Bayfair" with the Alameda County Transportation Commission ($30 million), and "SACOG Green Means Go: Green Zone Access and Equity Regional Planning Project" with the Sacramento Area Council of Governments ($22 million). "Removing Barriers and Creating Legacy" project by the Los Angeles County Metropolitan Transportation Authority aims to reconnect communities and improve mobility ahead of the 2028 Los Angeles Olympic and Paralympic Games. Major Disneyland Expansion Clears Hurdle Disneyland's ambitious theme park expansion plan, known as DisneylandForward , has cleared a significant hurdle with approval from the Anaheim Planning Commission. The project, valued at over $1.9 billion, aims to revitalize the Anaheim resort over the next decade with new attractions, shops and dining options. Despite concerns raised by some residents about traffic, noise and Disney's treatment of its workers, the project received praise from city officials and Disney representatives for its potential economic benefits. However, critics have questioned the adequacy of Disney's contributions to affordable housing compared to projects elsewhere, urging the company to do more for the local community. The proposal now awaits final approval from the City Council, with the potential to reshape Anaheim's landscape and economy in the coming years. CP&DR Legal Coverage: Clovis Housing Settlement; Coastal Commission Ruling on Central Coast Almost a year after losing an important appellate court ruling in a housing element lawsuit, the City of Clovis has agreed to a wide-ranging settlement agreement that includes rezoning to accommodate 1,300 affordable units and a host of other efforts to promote affordable housing. The agreement ends several years of litigation between Clovis and Central California Legal Services over the city's housing element and in particular the “Regional Housing Needs” zoning overlay district that allowed but did not require affordable housing. It's the second settlement agreement in recent weeks dealing with a housing element dispute. Recently the City of Davis settled a builder's remedy lawsuit, agreeing to move a mixed-income project forward with the voter approval typically required in the city. A San Luis Obispo County can't go forward with the second phase of a seven-lot subdivision - even though the first phase is already built. In an unpublished ruling, the Second District Court of Appeal has agreed with the California Coastal Commission that the three lots are located in a “sensitive coastal resource area” and do not have access to water and wastewater, even though they have the same water meters, sewer mains, and sewer laterals as the four lots included in the first phase of the project. San Luis Obispo County approved the project but the Coastal Commission overturned the county after bringing it up on appeal to itself. Quick Hits & Updates The UCLA Luskin School of Public Affairs will launch a new Master of Real Estate Development (MRED) program in fall 2025, aiming to train a diverse generation of professionals to address urban challenges like affordable housing and sustainability. The curriculum plans to integrate expertise from UCLA's Urban Planning, Anderson School of Management and Law, with a focus on urban governance, equity and sustainability. The Planning Commission unanimously approved Beverly Hills' Housing Element, aiming to address state-mandated housing unit goals by 2029, with the plan advancing to the City Council for adoption. Key revisions include adding city-owned sites for low-income housing, facilitating Accessory Dwelling Units and reducing barriers to construct new housing, reflecting a collaborative effort with state authorities to ensure compliance and address housing challenges. The City of Napa received certification of its Housing Element by the Department of Housing and Community Development, marking a pivotal step in addressing the community's housing needs. This milestone underscores the city's proactive approach to housing planning, ensuring alignment with the 2040 General Plan and emphasizing strategies to encourage diverse housing, protect existing units, identify suitable sites and remove obstacles to development while fostering transparency and community engagement. The San Jose BART extension project is facing a cost increase of $600 million, bringing the total estimated cost to $12.75 billion, with a delay pushing the completion date to May 2037. The Federal Transit Administration attributes the increase to rising labor and material costs, as well as a shortage of contractors. Despite efforts to control costs, concerns persist, with some critics calling for a reassessment of the project's scope and expenses. A federal judge in Los Angeles is seeking an independent audit of homelessness programs, including Mayor Karen Bass' Inside Safe initiative, amid concerns over the allocation of public funds and program effectiveness. The judge's request follows allegations by the L.A. Alliance for Human Rights of the city's failure to meet terms of a settlement agreement regarding homeless shelter beds and encampment clearances, with potential monetary sanctions of $6.4 million pending and plans for an audit led by the city controller underway. The first round of funding through the Extreme Heat and Community Resilience Program is available! Part of the Integrated Climate Adaptation & Resiliency Program, the Extreme Heat and Community Resilience Program will fund planning and implementation projects that build resilience to extreme heat. Program staff and technical assistance providers are hosting a series of Application Workshops throughout the application period to help applicants navigate the Final Guidelines. On the Extreme Heat and Resilience Grant webpage , navigate to the “timeline” portion of the program webpage to register for a workshop. The Los Angeles City Council approved a five-year, $10 million contract with Bike DBA Tranzito to design and operate Integrated Mobility Hubs, offering transportation options like bike- and car-sharing services in downtown Los Angeles, Hollywood and Long Beach. The hubs, funded partly by $3.5 million for capital costs and $6.7 million for operational costs, will provide first/last-mile connections with 13 locations near Metro rail stations, with additional Satellite Hubs and bike-share kiosks planned, catering to various user groups with varying pricing fees. Accessory dwelling units (ADUs) have seen a surge in production, with the number permitted annually in the Los Angeles metro area increasing from around 2,000 in 2017 to over 13,000 in 2022, offering potential relief for the housing shortage, but ensuring affordability for low-income tenants remains a challenge. A new policy brief from SPUR studies San Jose's urban village plan, which aims to create livable, affordable neighborhoods near transit, aligning with the concept of "15-minute neighborhoods" where essential services are within walking or biking distance. The brief found that, despite its potential, many urban villages have not been approved, with most residential development occurring outside of these planned areas. SPUR suggests implementing six strategies to leverage the 15-minute framework for creating more inclusive and connected communities, following extensive consultations and research. A proposal to build a new landfill and recycling center in East Otay Mesa in San Diego County, previously approved by voters in 2010, is now being contested by environmentalists, elected officials and community leaders who argue that it's unnecessary due to projections indicating existing landfills will last through 2053. Los Angeles Metro's Link Union Station overhaul is undergoing modifications, reducing the number of new platforms and tracks due to budget constraints. The number of new platforms with access to run-through tracks--rather than those that dead-end at the station--will decrease from seven to four. The initial construction phase will focus on modifying Platform 3, with ongoing utility relocations and expectations for environmental clearances in fall 2024. The Bay Area's Regional Network Management Council revealed design prototypes for standardized transit signs, aiming to enhance connectivity and customer focus across the region's transportation network. Featuring a three-color palette and simplified icons, the signage aims to establish a common identity for all Bay Area transit services and improve accessibility through a new mobile-friendly website. California's Extreme Heat and Community Resilience Program received $20 million in funding and aims to enhance community safety from the escalating impacts of extreme heat through both planning efforts and implementation projects.

Some of the hot takes following last Tuesday's election insisted that San Francisco—home of the Beats, hippies, Harvey Milk, and Byzantine development processes—no longer deserves to call itself "progressive." These proclamations stem in large part from voters' sentiments on two land use measures (among five other, unrelated measures on the city ballot): Prop. A, a bond measure to pay for low-income and assisted living housing, and Prop. C, a measure to exempt certain commercial transactions from paying a transfer tax.

Fresno County General Plan Update Could Exacerbate Sprawl Fresno County supervisors adopted a contentious update to the general plan, paving the way for significant development along the Kings and San Joaquin Rivers, despite concerns about worsening air quality, agricultural loss and exceeding carbon emissions targets. Critics, including the City of Fresno and the local Sierra Club, argue that the plan could worsen air quality, accelerate farmland loss and potentially exceed the county's state-mandated climate emissions budget by 300%. The project includes a large industrial park, suburban expansion northeast of Fresno and a 7,000-acre residential development along the Kings River. The decision, described as one of the county's most important in the 21st century, signals a shift in priorities towards revenue-generating projects, drawing criticism from environmental advocates and highlighting the tension between development goals and community needs. New Online Tool Illustrates Mobility Disparities Statewide Caltrans introduced its Transportation Equity Index (EQI) tool to address disparities in mobility across California. Developed with three key data indicators focusing on household income, traffic exposure and access to destinations, the EQI aims to identify communities most negatively affected by issues like traffic, crashes and air pollution. It assists in prioritizing projects and policy decisions aligned with state environmental and equity goals, aiming to improve access and quality of life for all Californians. Caltrans intends to integrate equity considerations into project planning, development and design phases, with the tool's first application enhancing the analytical capabilities of the Caltrans System Investment Strategy (CSIS). Additional applications of the EQI are anticipated to follow, marking a significant step in ensuring equitable transportation outcomes across the state. High Seed Rail Authority Releases Station Renderings The California High-Speed Rail Authority released renderings of the proposed high-speed rail stations in the Central Valley, revealing their large scale, featuring wide platforms, concourses and spacious outdoor areas. The stations --in Merced, Fresno, Bakersfield and outside of Hanford--will be characterized by large, perforated metal canopies shielding passengers from the region's intense heat. All of the stations will feature large parking lots, indicating many riders will have to drive to the stations. Riders will board the trains from elevated platforms with limited access to ticketed passengers, while amenities such as parking lots and airport-like seating will cater to Central Valley commuters. Construction of these stations is slated to commence in 2027, with passenger service expected to begin between 2030 and 2033. Clovis Settles Suit over Housing Policies The City of Clovis and housing advocate Desiree Martinez reached a settlement in the Desiree Martinez v. City of Clovis lawsuit, marking the end of years of litigation over the city's land use and planning policies. The lawsuit, filed in 2019, alleged that Clovis was not complying with California's Housing Element Law, hindering affordable housing development. Key points of the settlement include the establishment of a Local Housing Trust Fund, rezoning for multifamily dwelling units and the requirement for up to 10% of units in new housing developments to be affordable for low-income families. The agreement, facilitated by Central California Legal Services, the Public Interest Law Project and the Law Office of Patience Milrod, aims to create over 3,000 additional affordable housing opportunities in Clovis. CP&DR Coverage: Los Angeles Safe-Streets Ballot Measure Draws Fire Between 2013 and 2022, Los Angeles County averaged around 54,000 fatal or injury crashes annually (the vast majority being injury-only crashes). One city in Los Angeles County is attempting to do something about car accidents and, especially, the hazards they pose for pedestrians. On March 5, voters in the City of Los Angeles will consider Measure HLA, an initiative that would force the city to implement its Mobility Plan 2035, which was adopted in 2015. Backers of Measure HLA say that the city has implemented as little as 5% of the plan. Meanwhile, some 300 deaths take place annually on the city's streets. That's why it's odd that the major opponent was none other than the Los Angeles firefighters union. But, it's more than odd. It's a major impediment to good urbanism. Quick Hits & Updates A new report "Foot Traffic Ahead 2023" by Smart Growth America and Places Platform ranks the top 35 metro areas in the U.S. by their walkable urbanism, highlighting the demand for such real estate surpassing supply. San Francisco and Los Angeles ranked 6th and 8th, respectively; on the other end of the spectrum, Sacramento ranked 24th and San Diego 28th. The developer behind the proposed redevelopment of the former California Pacific Medical Center campus addressed concerns of Presidio Heights residents regarding planned changes to a housing project in San Francisco, emphasizing that the project won't exceed current height limits. The proposed redevelopment includes additional senior living units and a modified residential component, aiming to provide much-needed housing while adhering to community feedback. An Orange County judge ruled that Anaheim violated housing laws by denying a permit for Grandma's House of Hope to open transitional housing for women in the Anaheim Colony Historic District. Governor Gavin Newsom hailed the ruling as a victory for addressing homelessness, while the city argued that it needed to balance neighborhood integrity with housing needs and is reviewing the ruling. A property owner in Del Mar is suing the city over the Seaside Ridge for repeatedly denying the project application, citing the builder's remedy provision of the Housing Accountability Act. The lawsuit claims the city's refusal to move forward obstructs affordable housing construction and violates state law, despite Del Mar's recent agreement with the Fairgrounds for affordable housing negotiations. Developer Seaside Ridge argues the project's necessity to meet housing mandates, contrasting its readiness with the delayed fairgrounds units, potentially extending beyond the mandated closure date. The 40 Acre Conservation League, California's first Black-led land conservancy, has acquired 650 acres of Sierra Nevada land in the Emigrant Gap area of Placer County. Supported by a $3 million grant from the Wildlife Conservation Board and Sierra Nevada Conservancy, the league aims to conserve over 25,000 acres of land by 2030, signaling its commitment to environmental stewardship and community empowerment. UC Berkeley spent approximately $7.8 million to secure and wall off People's Park to prepare for the construction of a new housing complex. The cost includes expenses for police presence, construction and relocating homeless individuals to a hotel. Activists criticized the university's spending, while officials defended the operation as necessary for safety and construction readiness. According to an analysis of the National Association of Home Builders' tally of housing permits, California experienced a slight dip in new housing permits in 2023, with builders filing 111,221 permits, marking a 6% decrease from 2022, though still outperforming the national average. Single-family permits totaled 57,959, down 8%, while multifamily permits reached 53,262, down 3%. Southern California metro areas saw a combined 6% increase in permits, while northern metros experienced a 10% decline. The federal government is allocating over $1 billion for cleanup projects at more than 100 Superfund sites across the country, via the Bipartisan Infrastructure Law. At the Sulphur Bank Mercury Mine Superfund site in Lake County, funds will be used to manage mining waste, safeguard residential areas and create a safe environment for the limited recreational activities of Elem Indian Colony residents, including hunting, fishing, foraging and transit to nearby lands. Former Anaheim mayor Harry Sidhu's plea agreement revealed unethical conduct during stadium deal negotiations, but a court cleared the city of violating open government laws, largely upholding compliance with the Brown Act despite criticism of transparency. The appellate court's ruling acknowledged the need for public comment via telephone during the pandemic while affirming the city's overall adherence to the Brown Act.

All this litigation and pressure from the state and advocacy groups on the question of housing production is leading to something . The question is whether it will lead to more housing.

Revised Vallco Mall Redevelopment Wills Approval in Cupertino The City of Cupertino approved a revised plan for a long-awaited mixed use development called The Rise, set to replace the former Vallco Shopping Mall. The project was one of the first SB 35 controversies in the state. (See prior CP&DR coverage .) The project, which has been in the words for at least six years and heavily litigated, will feature housing, commercial spaces and offices, with a focus on increasing residential units while reducing overall building square footage and height. The revised project will include 2,669 residential units, up from 2,402, and about two-thirds as much retail and entertainment space. Sand Hill Properties, the real estate firm behind The Rise, cites market forces as driving the need for flexibility and creativity in the project's design. Despite challenges in securing construction financing due to high interest rates and inflation, the project moves forward with approval from the city, aiming to blend urban and natural environments while meeting Cupertino's housing needs. The approved plan would fulfill more than half of Cupertino's housing obligations for the next planning cycle. Port of San Diego Adopts Master Plan, 11 Years in the Making The Port of San Diego certified the final environmental impact report for its master plan update , designating specific areas of San Diego Bay and the waterfront for various uses including maritime, recreational, and commercial activities. The Port Master Plan Update, governing the 30-mile waterfront of San Diego Bay -- encompassing 2,400 acres of land and 3,500 acres of water -- reflects extensive community engagement over 11 years, aiming to fulfill promises made to voters since the port's establishment in 1962 by enhancing public access, preserving natural resources and balancing development needs while providing economic opportunities. The plan calls for extensive upgrades to open spaces, including pedestrian access and parks. It also includes over 3,000 new hotel rooms. The update represents the first comprehensive revision since the plan's approval in 1981. With unanimous approval from the Board of Port Commissioners, the plan now awaits certification from the California Coastal Commission, expected by late 2024. HCD Solicits Comments for Draft Surplus Land Act Guidelines The Housing and Community Development department released draft Updated Surplus Land Act Guidelines for public comment until March 25, 2024, inviting specific feedback on proposed changes and their rationale, particularly regarding surplus land identification, notification procedures and disposal terms. These guidelines aim to address legislative changes and identified areas requiring updates or clarity since the initial adoption in April 2021, emphasizing the need for additional clarity and changes in light of evolving laws and challenges. HCD is facilitating public engagement through a webinar on March 6, 2024, to discuss the draft guidelines and receive input from stakeholders. The Surplus Land Act connects developers interested in building affordable homes with surplus local public land, requiring local agencies to notify relevant entities and HCD before disposing of surplus property, with all inquiries and documentation submitted through the Surplus Land Portal. California Lawmakers Introduce Federal Housing Bill California Congressmembers Rep. Ted Lieu and Senator Alex Padilla introduced the Housing for All Act, a bipartisan legislative package aimed at addressing homelessness and affordable housing issues. The legislation hopes to provide federal funding for both existing and innovative housing solutions. The bill would invest in already-established programs while supporting locally developed initiatives to combat homelessness. Key components include investments in affordable housing programs, homelessness prevention and support for vulnerable populations. The proposed legislation has garnered support from various stakeholders, recognizing the urgent need to address the housing crisis nationwide. Commercial Property Owners Consider Adaptive Reuse The Winter 2024 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey indicates a potential rise in adaptive reuse of office buildings, with 21% of property owners planning redevelopment for multifamily, industrial and retail purposes over the next three years. The office sector recovery is expected to extend until the end of 2026, with decreased new development and complex leasing processes observed. Retail market optimism is growing, with 80% of respondents expecting demand to outpace supply, while the industrial sector anticipates continued strong leasing activity but foresees supply eventually exceeding demand. Multifamily development faces macroeconomic pressures, particularly in Northern California, with 68% of respondents reporting no plans for new development due to high interest rates and construction costs. (See related CP&DR coverage .) CP&DR Legal Coverage: Berkeley Loses CEQA Case in Court; Davis Settles Builder's Remedy Case The City of Berkeley has already gotten hammered in court over denying an affordable housing project that would be built on a parking lot over the remnants of a Native American shellmound. But now Berkeley's going to have to pay as well. Invoking a previously little-used clause in the Housing Accountability Act, Alameda County Superior Court Judge Frank Roesch has fined the City of Berkeley $2.6 million - in addition to ordering the city to pay attorneys' fees of $1.4 million. The money will be deposited into an affordable housing fund. The notoriously slow-growth City of Davis has reached a legal settlement over the controversial Palomino Place project, agreeing to process the project as a builder's remedy project instead of taking it to a vote, which would be required under the city's Measure J voter requirement. The Palomino Place proposal originally consisted of 165 housing units on property currently designated by the general plan for agricultural use. The settlement agreement would not quite treat the project as a purely builder's remedy application. Rather, according to the settlement agreement, the developer will increase its commitment for affordable housing to 25% of the project (45 units), while the city promises to process the project quickly, produce an environmental impact report, and act on the project by the end of 2024. Quick Hits & Updates $10.3 million has been given to the Land Conservancy of San Luis Obispo County to purchase a conservation easement for Camatta Ranch, protecting a wildlife corridor for threatened and endangered species on California's Central Coast. This acquisition adds to the protected lands, covering 27,512 acres and safeguarding native habitat for numerous animal and plant species, contributing to the state's goal of conserving 30% of its land and coastal waters by 2030. HUD has awarded nearly $4 million to support research aimed at accelerating innovative housing practices. Two California universities received the second- and third-largest grants, respectively. The University of California, Los Angeles, received $458,340 to analyze the effects of ADU legalization on rents, prices, and land values in California. The University of California, Irvine, will research the impact of state-level reforms on ADU development, particularly in relation to fair housing initiatives, with a $343,244 grant. Development company Eldridge Renewal has submitted a formal application for the redevelopment of the Sonoma Developmental Center campus, proposing a mix of housing, retail, office space, green spaces and a hotel. The developer and the county are in disagreement over the interpretation of housing regulations, with Permit Sonoma -- the county's planning agency -- advocating for more affordable units and expressing concerns about fire risk and the layout of the development. Of the 930 units the developer intends to build, the developer contends that 124 must be deed-restricted units while the county is insisting on 232.(See related CP&DR coverage .) Yreka adopted an updated general plan aimed at guiding the city's development over the next 20 years, incorporating input from over 450 residents gathered through public engagement events. The plan emphasizes fostering business growth, expanding housing options, improving healthcare access, promoting community gardens and addressing concerns such as housing affordability and healthcare availability. After five years of effort to bring high-speed transit to San Diego's international airport, a final route and mode of travel won't be selected for at least three more years, frustrating local leaders who worry about funding opportunities expiring. Despite SANDAG staff's insistence that the new timeline doesn't represent a delay but rather a different approach, board members expressed dissatisfaction, emphasizing the need to expedite the process to provide efficient transit options to the airport. The Nevada County Board of Supervisors unanimously rejected a gold mining proposal in Grass Valley, emphasizing the community's desire for environmental protection. Rise Gold's application to reopen the Idaho Maryland Mine, inactive since the 1950s, faced significant local opposition due to concerns over environmental impact and groundwater contamination. Rise Gold has threatened legal action against the county, claiming a constitutional violation and seeking compensation for the estimated $400 million in gold that it claims could be extracted. A $7.2 million "catchment wall" will be constructed in northern San Clemente to address a landslide area and restore passenger train service through to San Diego, funded by the California Transportation Commission. The wall, similar to one built previously near Casa Romantica, aims to prevent hillside slippage, with discussions ongoing about the damaged Mariposa pedestrian bridge as a result of the landslide. California voters approved the No Place Like Home ballot measure in 2018, aiming to address the state's homelessness crisis by funding permanent supportive housing. However, more than five years later, only a fraction of the promised housing units have been completed , highlighting challenges like NIMBYism, funding complexities and legal obstacles, according to an analysis by the San Francisco Chronicle. The Concord City Council approved rent control in a 4-1 vote, with a proposed citywide vote due to concerns about including single-family homes, although this motion could not proceed. The ordinance expands the Rent Registry and implements a Rent Stabilization Program for multi-family rental complexes built before Feb. 1, 1995, aiming to address tenant rights and landlord concerns in the community. The California State University Board of Trustees approved a master plan for the Sacramento State Placer Center, a satellite campus set to accommodate 12,000 students in Placer County's Placer One development. Collaborative efforts with partners like Sierra College aim to facilitate dual enrollment programs, while discussions for a potential Forensic Sciences Laboratory highlight ongoing collaboration for educational expansion. A study from UCLA's Lewis Center for Regional Policy Studies examined the relationship between housing affordability and commute distance in Los Angeles-Orange MSA and the Riverside-San Bernardino MSA, concluding the importance of protecting and increasing the supply of affordable housing in job-rich neighborhoods located in more expensive, urban and coastal cities (Los Angeles-Orange MSA).

CP&DR Vol. 39 No. 2 February 2024 Report