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CP&DR Vol. 38 No. 7 July 2023

Bay Area Racetrack to Close; Development Potential Uncertain The owners of Golden Gate Fields , which straddles the border between Albany and Berkeley, announced that the horse racing track will close at the end of this season in December. The closure potentially prompts a struggle between open space advocates and developers hoping to take over the 140-acre waterfront property. The track opened in 1941. Some developers have eyed the area for a potential commercial center, while parks advocates hope to see the space incorporated into neighboring McLaughlin Eastshore State Park. Zoning rules for the site bordering both Berkeley and Albany currently prohibit new housing on the property, only including zoning permissions for commercial uses such as restaurants. Both cities would need to update their master plans before changing zoning laws. Berkeley's master plan dates back to 1986. Albany, on the other hand, requires any changes to the park be approved by voters. (See related CP&DR coverage .) Coastal Commission Clashes with City of Santa Cruz over Housing Project A seven-story, 175-unit housing project proposal in Santa Cruz could set a precedent on the Coastal Commission's decision-making between state requirements for housing and coastal standards for development. The project sits along the San Lorenzo River, prompting Coastal Commission review and a standoff between the city's planning department and the Coastal Commission who has the final vote on the project. The project currently includes only 15 affordable units, prompting the California Coastal Commission Central Coast district supervisor to say that few number of affordable units does not warrant potential project impacts to coastal characteristics like the view and community character. City staff have responded that there will not be any impact to local character in the area. The Coastal Commission will meet with city staff in the coming weeks and the developer to let them know their recommendation. Los Angeles to Explore "Park Blocks" Los Angeles City Council voted to move forward with a "Park Block" pilot program, based on Barcelona's transformation of street surface area into public space. The vote directs the Los Angeles Department of Transportation to locate a site for the first "Park Block" of allocated portions of the street for expanded open space. The proposal would, in part, attempt to eliminate "cut through" traffic on local streets, thereby reducing vehicular traffic and freeing up street space for other uses through methods of tactical urbanism. The Department of Transportation will also develop public outreach and a community application process for future sites with priority given to neighborhoods with higher rates of vehicle collusions and less access to outdoor space. They will also located funding and potential staffing necessary for a citywide program. According to a city report, " can create instant public open space with substantial shade, outdoor recreation, greening and storm water capture in communities desperate for parks." Conservation Group Makes Major Acquisition on S.F. Peninsula One of the Bay Area's largest private conservation properties will become a public space after the Midpeninsula Regional Open Space District gained permission to purchase the coastal Cloverdale Ranch. Moving forward, 6,300 acres of San Mateo County's rolling hills are set to become a park. In the 1990s, the conservation group purchased part of the property to prevent housing developments on the green space. Now, the $16 million purchase, over half of which was funded by grants, marks one of the largest transfers of private-to-public property. As well as providing an open space for residents to enjoy, the regional district plans to improve wildlife protection and has contributed to the state and federal goal of conserving 30% of land and waters by 2030. CP&DR Coverage: Midseason Legislative Update Despite cries of "legislation fatigue" from some municipal planning departments, the state legislature is moving forward with dozens of bills related to land use, including a bevy of housing bills. Essentially every housing bill that was introduced at the beginning of the session has advanced out of its house of origin. Bills must pass the legislature by Sept. 14. and be signed by Oct. 14. Quick Hits & Updates Last-minute amendments to a bill in San Francisco allowing single-family homes to convert to smaller-scale apartments postponed the Board of Supervisors' Land Use and Transportation Committee's recommendation of the bill. Neighborhood groups from affluent areas pushed back against the bill in a public hearing, causing an additional barrier for the bill's passage. Fresno City Council unanimously approved the Capital Projects Department, a new department under Mayor Jerry Dyer's new budget designed to speed up engineering and oversee large infrastructure and construction projects. The department will be funded by $50 million in state budget allocation for downtown infrastructure and $250 million over the next three years, as well as $6.3 billion moved from the Public Works and Public Utilities departments. A new study by the Metropolitan Transportation Commission, the Association of Bay Area Governments and the Bay Conservation and Development Commission found the cost of protecting San Francisco's shoreline from sea level rise will be approximately $110 billion by 2050. The study found the money presently available for the type of projects to protect the homes, businesses, airports and infrastructure on the shoreline is only $5 billion. The Coastal Commission delayed discussion of a zoning amendment for the controversial Magnolia Tank Farm, a mixed-use project located in Huntington Beach including 250 residential units, a hotel with affordable rooms and a new park and recreation. The City Council approved the zoning amendment in 2021 to change the land from public use to infrastructure, residential, commercial and open-use despite a risk of increased flooding, according to the Coastal Commission. In new poll findings, Sacramento residents cited the region's top priorities are increasing housing affordability and reducing traffic congestion. 49% of respondents find their own neighborhood unaffordable, with another 79% respondents thinking first-time homeowners will have a difficult time buying a home in five years. The California Transportation Commission approved funding for three large proposed projects with SB 1, or gas tax, funding. The projects are billed as applicable to California's Climate Action Plan for Transportation Investment calling for projects to decrease vehicle miles (VMT) travelled even as two of the three projects involve highway expansion. Critics claim these projects will increase VMT statewide. The proposed reopening of the largest gold mine in California met with an overcrowded public hearing including a discussion of environmental impacts of the city in Nevada City. The company behind the project seeks to reopen the mine closed in 1956, stating no environmental concerns despite many community members stating the project will disrupt life and health in the area. Seven downtown business filed a claim against the city of San Diego for $2.5 million in damages due to the ongoing homelessness crisis in the downtown area, asking the city to remove encampments or face court. The claim follows the city's new controversial ban on homeless encampments in parks, riverbeds and waterways, and transportation areas within two blocks of shelters. A group of tenants filed suit against the owner of their 712-unit rent-controlled West Los Angeles apartment building, accusing the company of misusing the Ellis Act, a state law enabling landlords to exit the rental market, initially to convert apartments into condominiums. The owners of the building originally posted notices of evictions to all residents for the addition of fire sprinklers and safety upgrades. The state's first settlement under the Tenant Protection Act (AB 1482) prompted a San Jose-based landlord to agree to lower rent for several tenants and pay hundreds of thousands of dollars in fines and penalties for raising rent more than 150% on average for 20 tenants and evicting six tenants during the pandemic. AB 1482 prohibits a rent increase of more than 5% plus the percentage change in the consumer price index, or 10% overall -- whichever is lower. The law also protects tenants from unjust eviction. Only 74 San Francisco property owners -- or 2.6% of eligible properties -- have paid the city's retail vacancy tax since it went into effect last year. In addition to exempt properties, thousands of landlords and tenants did not submit filings for their parcels. The tax created $667,847 in revenue in 2022 for a small business assistance fund, a much smaller revenue than previously projected. (See related CP&DR coverage .) A Santa Clara County Superior Court judge found the Santa Clara Valley Water District incorrectly claimed they were exempt from the California Environmental Quality Act, putting the second phase of their new dam project for Pacheco Reservoir on hold. According to a new survey by the Public Policy Institute of California, as of February 2023, seven in ten Californians say housing affordability is a large issue in their local housing landscape. This marks the highest percentage of respondents to say housing affordability is a major problem since 2017. 72% of both Democrats and Republicans and 75% of independents also state housing affordability is an issue. Six in ten Californias are very concerned, with another 27% somewhat concerned, that the cost of housing will prevent younger generations from buying a local home. That is an eight point increase since 2004. The Supreme Court allowed a number of California county and city cases against oil companies to continue, rejecting five additional appeals by oil companies in five other states. The original cases filed by local governments in the state seek damages from over 30 companies profiting off oil. A Chicago-based developer formally withdrew its application for one of the biggest life sciences developments in Emeryville. The project was slated to be one of the first mixed-use buildings including housing units and medicine and healthcare real estate, including 30 affordable units. An audit of San Francisco's affordable housing agency found the organization is not spending money as fast as it accrues funds. The study found that it is taking the city between $800,000 and $1 million per unit and five years to build affordable housing. The report cited delays due to the city's project approvals process.

Budget Deal Promotes Infrastructure, Reduces Protections for Endangered Species Governor Newsom signed a package of bills into law, taking effect immediately, to hasten lawsuits for solar farms and reservoirs while loosening protections for three-dozen wildlife species in order to facilitate development of infrastructure. The most controversial bill includes a new authority for the Department of Fish and Wildlife to issue permits allowing "fully protected" species to be harmed or even killed by certain infrastructure projects including water aqueducts and wind and power installations if the harm can be "fully mitigated," according to a Senator from Oakland. Those 37 species include the golden eagle and sandhill crane. Another bill unanimously voted in allocates a time limit for lawsuits for transportation, water and energy projects under the California Environmental Quality Act (CEQA). The bill package initially met with pushback from environmentalist and business owners who now call the package a good compromise. Californians Pay Highest Rents in Nation The National Low Income Housing Coalition released a new study on the affordable housing crisis in the country, finding nationally between 2001 and 2021, median rents increased 17.9% while household income only increased 3.2%. The study found the hourly wage needed to rent a two-bedroom home (housing wage) in California is $42.25, the highest in the country. Earning minimum wage, one would have to work 109 hours per week -- or 2.7 full-time jobs at minimum wage -- to afford the average two-bedroom apartment without spending more than 30% of their income on housing. To afford the average one-bedroom home, someone working minimum wage would have to work 88 hours per week -- or 2.2 full-time jobs -- to reach affordability. The housing wage is loftiest in Santa Cruz-Watsonville areas at $63.33 an hour. San Francisco trails behind with a housing wage of $61.31 an hour. There are presently no counties in the state where someone could work minimum wage and afford to rent a two-bedroom home. Homelessness Surges Statewide; Largest Populations in L.A., S.F. The California Budget and Policy Center's issue brief on Homelessness in California found in that, in February 2022, there were 437 unhoused California residents per every 10,000 residents statewide. Los Angeles and South Coast regions as well as San Francisco had the highest shares of unhoused people in the state, 49.9% and 22.2% respectively. The Sacramento Region and Central Valley follow with 7.2% and 7.1% of the share. The study also found dense populations, high cost of living and insufficient affordable housing are the main drivers of homeless regardless of geographic location in the state. Per capita, the state's Far North Region has the highest number of people experiencing homelessness per capita. The study concluded, regardless of geographic region, state and local governments must continue to build capacity and resources to meet the needs of a struggling population. California Short 1 Million Homes for Low-Income Residents According to affordable housing advocacy group California Housing Partnership's yearly report, California lacks almost one million homes needed for low-income residents. 79% of extremely low-income renter households pay more than half of their income on rent, even as state and federal funding for affordable housing increased from $3.2 billion in the 2020-2021 fiscal year to $6 billion in the 2021-2022 fiscal year. The author of the study found these discrepancies occur due to exponentially high costs of construction. Additionally, the study found median rent in the state increased 38% since 2000 while median household income has only raised 7% with an adjustment for inflation. The study suggests policy solutions included a larger investment in the 2023-2024 housing and homelessness budget, placing an affordable housing bond on the 2024 ballot, creating an on-going revenue stream to the scale of need for the next ten years and reducing the costs of affordable housing development. CP&DR Legal Coverage: Belated Impact Fees; Short-Term Rentals In a potentially important case, an appellate court ruled that the City of Oakland has the power to impose additional impact fees on a developer many years after the city and developer signed an agreement laying out the amount and schedule of fees on the project. The court concluded that the city cannot “contract away” its power to impose fees later. The case deals with an Oakland-specific 2005 agreement titled “Agreement for Payment of City Fees and Reimbursement of Specialized Consultant and Employee Services,” which was signed by both parties as part of the Conditions of Approval for the project's approval. But it could have broader implications - specifically for the state's 40-year-old development agreement law, which undergirds hundreds of developments in the state but has always been viewed as potentially legally vulnerable because of the “contracting away” risk. Short-term vacation rental owners in South Lake Tahoe didn't make a good enough case to get a trial on the question of whether they vested right to operate, an appellate court has ruled. In an opinion that involved a Cook's tour through 50 years of vesting litigation, the court wrote: “The ministerial nature of plaintiff's members' permits did not entitle the members to renewal. Any vested rights the members may have had in their permits were limited by their permits' terms and conditions, including the one-year expiration date .” Quick Hits & Updates A Bay Area design review board sent a letter to Marin supervisors voicing concern over the supervisors' decision not to interview a sitting planning commissioner for a reappointment, claiming a bias against the commissioner for her pushback against Marin County's proposed housing element plan. The letter stated she was penalized for pushing back against giving more power to the state in the housing element. The President of the Board of Supervisors acknowledged the letter and state she will look into the concerns. The California Building Standards Commission voted to adopt changes to the state's building code to increase the flexibility of developers for adaptive reuse of retail and office structures. In Los Angeles alone, 2,300 commercial properties available for adaptive reuse could produce 72,000 to 113,000 new housing units. The firm behind the controversial 50-story residential tower in San Francisco's Sunset District submitted detailed plans and renderings to the city. Low-rise buildings and single-family homes currently define the Sunset District, and the proposed project is several times taller than current regulations allow in the neighborhood. Los Angeles City Council voted to move forward on a feasibility study for a city-owned public bank focused on supporting projects based on public interest, aiming to serve Black and Latino communities in the city as well as small businesses, green energy initiatives and affordable housing projects. The vote marks the council's first monetary investment in a public bank. Fort Bragg will go forward with a pilot project to desalt ocean water using floating, raft-like units containing equipment to draw in ocean water, desalinate it and send it to shore for the Mendocino community. The potential site for the raft has yet to be determined and permits must also be acquired to determine the quality of water meets California requirements. A new report published by the California YIMBY Education Fund found a number of ways Los Angeles's approvals process for multi-family housing proposals could lead to political corruption and interference with housing production. The report recommended reform to the city's discretionary review, including amendments to site plan review requirements, increasing allowable density, standardizing the city's entitlement process, enforcing deadlines, dissolving some of the City Council's decision-making authority and eliminating the City Council's ability to overrule the Planning Commission. A development group filed site plans with the city of Jan Jose for a large housing project potentially eligible for the builder's remedy, or a fast-tracking of the project due to a designated 20% lower-income units. The plan for an empty office and research building includes 143 townhomes across 24 buildings. In a new report from the National Low Income Housing Coalition, Santa Cruz County outpaces San Francisco as the most expensive rental market . The report found the estimated hourly wage needed to afford renting a two-bedroom home statewide is $42.25. According to new census data, the median age in all nine Bay Area counties surpasses the rest of the U.S., with Marin County's median age of 48.2 outpacing the U.S. average by nearly double. Experts blame the aging population on the housing crisis and cost of living in the Bay Area. Some Orange County lawmakers propose to move parts of the coastal train route connecting Los Angeles to San Diego and San Luis Obispo inland due to eroding cliffs and beaches in and near San Clemente. Planners say moving tracks inland would cost upward of $5 billion.

It’s an understatement to say that housing bills have been popular in Sacramento over the past few years, with dozens passed and chaptered by eager lawmakers and governors. Not a few exhausted municipal planners have hoped that the pace would slow down. But that’s not happening yet.

State Awards $352 Million in REAP 2.0 Grants The California Business, Consumer Services and Housing Agency announced more than $352 million in the first round of funding from the Regional Early Action Planning grants program, a flexible grants program providing planning and implementation dollars to create sustainable, resilient, and equitable communities that are inclusive and take strong strides toward reducing vehicle miles traveled. Most of the funds will go towards statewide local planning organizations and associations including Monterey Bay, Madera County, Sacramento, San Diego, Shasta, Southern California. A $30 million allocation of "Higher Impact Transformative" grants will go to Oakland, Rancho Cordova, Tahoe, Palm City and BART. The local agencies and governments will then suballocate funds further within local entities. Southern California Association of Governments (SCAG), which will receive the largest REAP 2.0 award to date, with $237.41 million supporting a wide range of projects. in a distant second, the San Diego Association of Governments will receive $38 million. (See related CP&DR coverage.) Rep. Waters Proposes $260 Billion for Housing and Homelessness United States Representative Maxine Waters (Los Angeles) proposed three housing-related bills in Congress to help narrow the racial wealth gap in the nation, including $100 billion in assistance to first-time homebuyers, $150 billion in fair and affordable housing and expansion of the federal housing voucher program Section 8. The same bill to expand Section 8 woud also allocate $10 billion for housing for those experiencing homelessness and permanently instill the U.S. Interagency Council on Homelessness, the agency presently set to end enforcement in 2028. Another bill would allocate $150 billion towards affordable housing investments, improving public housing stock and providing rental assistance. Joshua Trees Get Protection in State Budget Deal As part of the state's budget agreement, California lawmakers passed a bill to protect the western Joshua tree, the first bill of its kind specifically tailored to protect a climate-threatened species. Since 2015, environmentalists have tried to list the Joshua tree under the federal Endangered Species Act but faced pushback politically and from local farmers. In 2020, the tree obtained interim protection as a candidate species and remains federally protected. The state law now requires new permits for housing and renewable energy development within range of the trees and also requires the California Department of Fish and Wildlife to develop a plan for protection by 2024. Studies indicate that, without protection, climate change will severely imperil the plant's natural habitat, which covers the high desert between Joshua Tree National Park and the San Bernardino and San Gabriel mountains, by 2070. Attorney General Scrutinizes Plans for Business Park at San Bernardino Airport In a letter to the group of elected officials overseeing the development of land around the San Bernardino International Airport, California Attorney General Rob Bonta's office explains the city's plan to build a large industrial business park violates three state laws. According to the letter, the Airport Gateway Specific Plan would displace about 2,600 primarily-Hispanic and Black residents. Attorney General Bonta continued in the public letter that community and environmental groups have "raised significant concerns" over the 9.2 million square feet of warehouses bringing in almost 9,000 heavy-duty diesel trucks per day. The letter states the plan violates the California Fair Employment and Housing Act, the Housing Crisis Act of 2019 (SB 330) and the California Environmental Quality Act. At the beginning of this year, upwards of 60 organizations asked Governor Gavin Newsom to declare a public health emergency in the Inland empire due to "unchecked escalation of warehouse growth." Governor Newsom has yet to issue the declaration. Desert Ghost Town of Eagle Mountain Purchased for $22.5 Million An unnamed buyer from Cerritos purchased the land and mining claims of a ghost town outside of Joshua Tree National Park. Ecology Mountain Holdings has no public information aside from a business address, but recently purchased Eagle Mountain for approximately $22.5 million from Eagle Mountain Acquisition LLC, the last Kaiser subsidiary to own the town over the last 40 years. Prior to that, Eagle Mountain operated as a company town for Kaiser Steel, with a peak population of 4,000. Most residents between the end of the 1940s until 1981 were employed by Kaiser Steel. The town then housed a correctional center until the early 2000s. Desert Center -- a town neighboring Eagle Mountain -- was purchased two years ago by a trucking mogul hoping to transport the abandoned town into a truck stop, gas center and hotel, offering insight into the potential future of Eagle Mountain. CP&DR Coverage: Transit Ridership and Future of TOD Most aspects of life in California have recovered from the COVID pandemic -- except for public transit. Ridership on major transit agencies across the state has yet to return to pre-pandemic levels, and agencies are relying in part on a multibillion-dollar state bailout to maintain their levels of service. In the most extreme case, BART's ridership is at roughly half. And yet, much of the state's housing and climate strategies revolve around transit and, presumably, robust transit ridership. Despite the transit downturn, planners and developers say that the future of TOD remains bright -- or, at least, it does not necessarily depend on transit. Quick Hits & Updates The Office of Planning and Research announced $8 million in project awards through the first round of Adaptation Planning Grants. The first round of grants will go towards 14 local governments, community-based organizations, and Indigenous tribes in assessing local hazards, conducting robust engagement, and creating equitable and community-driven strategies to minimize climate change impacts. Nine of the projects are located within Justice40 communities and will advance the Biden Administration's goal to invest in communities burdened by legacy pollution. Of the nine projects, three are led or co-led by California Native American tribes. The U.S. Environmental Protection Agency announced $52 million in funding for 24 projects in the San Francisco Bay to restore marshlands, clean up pollutants, remove homeless encampments in San Jose and assist wildlife restoration. The number of people experiencing homelessness in Los Angeles County increased 23% over the last year despite efforts that got more than 14,000 homeless people in permanent housing. Homelessness in the city of Los Angeles also increased 20%. Only one in four of the people counted were "sheltered" in temporary housing. Using pre-pandemic data from California, a new study from the Journal of Transit Geography studied the influence of ride-hailing services on vehicle miles traveled and public transit usage, where ride-hailing services have existed longer than elsewhere in the nation. San Francisco's largest population exodus between April 2020 and June 2022 came from residents in their late 20s and early 30s, with a 21% decrease from 94,000 to 74,000. The second largest decline by age was 30-year-olds to 34-year-olds with a 16% decrease in population. The Los Angeles City Planning Commission is proposing potential citywide expansion of an adaptive reuse ordinance. Originally, the ordinance was adopted in 1999 for the Downtown area and converted 12,000 residential homes from offices. The Planning Commission aims to expand the ordinance as part of the citywide housing incentive program to meet a state mandate of 255,000 additional homes by 2024. Sacramento Mayor Darrell Steinberg announced plans for a new 28-story hotel skyscraper in Downtown Sacramento, connecting to the nearby Convention Center and providing accommodations for the city's new tourism and convention industry. The project will be partly funded by future hotel tax revenue. The San Diego Housing Commission launched its pilot program offering eligible Black, Indigenous and People of Color homebuyers a grant of up to $20,000 for closing costs and an additional $20,000 deferred down-payment loan. Eligibility include BIPOC buyers who have not owned a home in the last three years and make 80% to 150% of the county's median income. With some modifications, the California Coastal Commission approved San Diego City Council's community plan for the Barrio Logan neighborhood. The city council must now vote on those amendments before the plan aimed at improving public health and decreasing the impacts of the local shipping industry in Barrio Logan can go into effect. The California Rangeland Trust purchased a 4,500-acre conservation easement for the Sans Topo Ranch in San Benito County, protecting the land indefinitely. The Sans family has owned the land since 1926.

HCD Updates SB 35 Exemption List, with Only 42 Jurisdictions The Department of Housing and Community Development released a list of 42 cities and counties that have met their Regional Housing Needs Assessment (RHNA) for affordable housing and no longer subject to the state's streamlined ministerial approval process under SB 35. Mendocino, Santa Clara, Sonoma and San Bernardino Counties are the only counties to make the list. Also included in the list are the 251 statewide cities and counties which have not met their Above Moderate Income and Lower Income RHNAs and/or have not submitted their 2021 Housing Element Annual Progress Report, and are subject to streamlined approval processes for proposed projects with at least 10% affordability. Another 246 jurisdictions have made insufficient progress towards their Lower Income RHNA and are eligible for streamlined approval process for developments with at least 50% affordability. If they also do not have sufficient progress towards their Above Moderate income RHNA, they are subject to streamlining for projects with at least 10% affordability as well. San Francisco Supervisors Rejects Townhouse Development over Environmental Concerns San Francisco's Board of Supervisors overturned , on a 7-4 vote, the city Planning Commission's decision a proposed redevelopment of a single-family Nob Hill home did not need an environmental review under state law following community members' objections to the development. Neighbors said the redevelopment of the property -- which would include 10 townhomes on the single plot -- will cast a shadow over a local public recreation center primarily used by low-income and older residents as their only green space. Opponents of the project also stated the redevelopment site has contaminated socials that could negatively impact the health of the surrounding community The vote returns the question of the project's environmental impact back to the city Planning Commission for further study. The vote is another in a series of rejections of redevelopments that would increase density in the housing-starved city. (See related CP&DR coverage.) San Mateo Grand Jury Questions Cities' Inclusion of ADUs in Housing Elements A San Mateo County Civil Grand Jury reports multiple wealthy cities in the area are resisting higher density affordable apartments by listing accessory dwelling units (ADUs) in their state housing plans. The report recommended the county and cities should stop listing ADUs to meet state mandated housing of very low-, low- and moderate-income housing until confirming how those ADUs will be used and utilizing a monitoring system every two years. The Grand Jury report stressed the possibility of unregulated use, like renting the ADUs to friends and families, exacerbating patterns of segregation and housing needs not meeting those of larger families. The report claims the cities are misusing a recent change to state housing law that ADUs can count towards Regional Housing Needs. Only two cities in San Mateo County have state-approved housing elements at the time of the report. Study Links Homelessness with Housing Shortage A new study out of UC San Francisco confirms California's housing shortage is the core issue of its homelessness crisis, and homelessness often leads to or worsens alcohol and drug dependencies, mental health issues and violence. The study used both surveys and in-depth interviews, the first large-scale study to do so and the largest study of homelessness since the mid-1990s. The study draws a portrait of homelessness otherwise unavailable, finding nine out of ten people experiencing homelessness in the state lost their last housing within the state, and 75% of participants live in the same county as where they last had proper housing. Participants overwhelmingly experienced previous stress and trauma, with almost 72% of participants experiencing physical violence and 24% experiencing sexual violence over the course of their lives. Most people studied lost their homes due to low income and high housing costs. Those who had leases reported a median of 10 days notice that they were going to lose housing, and non-leaseholders reported a median of one day notice. The study included six policy recommendations, including access to extremely low-income housing, expanding homelessness prevention methods, behavioral needs support, increase of income through employment support, increase of outreach services and utilizing a racial equality approach in all methods from prevention to treatment. CP&DR Legal Coverage: EIR Decertification; Wildfire Mitigation; Cannabis Retail A deeply divided Huntington Beach city council voted 4-3 to explore decertifying a specific plan's 2010 environmental impact report - a move that no city has ever undertaken and for which there is no process under state law. Community Development Director Ursula Luna Reynosa said she had not found a process for decertification in the CEQA guidelines and further stated that until the level of development exceeds the amount analyzed in the EIR, it is probably not “obsolete”. When UC Berkeley decided to undertake a plan to reduce wildfire risks, it got sued by two different local groups. They wanted opposite outcomes - one wanted more clearing of non-native trees and the other less - but they both challenged the university's environmental impact report on similar grounds. A First District Court of Appeal panel has overruled an Alameda County Superior Court judge and concluded that the EIR was fine. Among other things, the appellate court said UC did not have to state precisely how many trees would be removed as part of its plan of “variable density thinning”. The City of Pomona decided that cannabis-related businesses were not materially different in their land use and environmental impacts than other similar businesses - and that's okay with the Court of Appeal. Quick Hits & Updates Ridership of the Sonoma-Marin Area Rail Transit (SMART), the light rail connecting Marin and Sonoma counties, reported ridership levels 102% of May 2019 rates while Bay Area Rapid Transit reported 41% of May 2019 ridership. SMART leadership attributes their financial success with cutting fare and parking fees while creating more lines and added trains. The National Low Income Housing Coalition released their annual study on the discrepancies between earned income and the price of housing in every state, county, metropolitan area and combined non-metropolitan areas in the US. California is ranked number one for the highest housing wage, with individuals having to earn $42.05 an hour to afford a two-bedroom rental, and someone must work 109 hours per week while earning minimum wage to afford a two-bedroom rental home. With a looming "fiscal cliff" for Bay Area transit agencies, a group of state lawmakers proposed a $1.50 increase to tolls on seven state-owned bridges in the area, with the increased funds going directly to transit systems. The bill has already garnered opposition from commuters and lawmakers, claiming the increase would financially burden drivers. The current mayor and four former mayors of San Jose wrote a letter to Major League Baseball Commissioner Rob Manfred asking the league to suspend the San Francisco Giants' territorial rights to the area to create an avenue for a baseball team in San Jose. Since 1990, the San Francisco Giants' have had territorial rights to Santa Clara County and previously blocked the Oakland A's potential move to San Jose. Following Westfield mall's announcement they will shutter their Downtown San Francisco location, Mayor London Breed proposed various new uses for the property including a soccer stadium, laboratory and office. She indicated the city will push Westfield's owner to consider new avenues for the property. A new poll from a number of prevalent nonprofits and organizations found more than 40% of California residents are considering moving out of the state, with half of that number of residents expressing they are considering it "very seriously." Another almost half of people polled report they struggle to save money or pay for unexpected expenses. The study also found about 70% of people say they are happy living here, citing diversity, job opportunities and nice seasons. The Oceanside City Council denied two separate appeals filed by a Covina nonprofit claiming the approved apartment building and research and development facility did not adequately address impacts on wildlife and residents, including the use of formaldehyde in building products. The two projects were both separately approved earlier this week and were recommended for approval by the city's Planning department. An independent performance audit of San Diego City's infrastructure project approval process found the city often approves projects prematurely and without vetting and two-thirds of those projects experience some sort of delay and budget increase. A new plan , approved unanimously by the Long Beach Planning Commission and awaiting approval by state officials, would add more pedestrian access, bike ramps, parking, bike parking and dock access to the popular shopping and tourist destination Shoreline Village. Construction would begin November 2024 and end two years before the 2028 Olympics, with the hopes the area will be a visitor destination.

Google to Develop Major Mixed-Use Project in Mountain View The Mountain View City Council unanimously approved Google's 30-year plan for 7,000 new homes, 3 million square feet of office space and upwards of 26 acres of parks and open space in the city's North Bayshore area. Some council members are concerned over the number of affordable homes included in the plan. The plan originally included 1,400 of thee 7,000 planned homes to be affordable, but in a March 2023 master plan, the number of affordable homes diminished by 350. Google cited financial reasoning behind the decision. The project is the largest development ever approved in the area. Presently, aside from a mobile home park in the area, North Bayshore has remained a suburban office park. The project aims to create a complete neighborhood, with a zoning amendment in 2017 to accommodate. Newsom Proposes $4.68 Billion for Mental Health Treatment, Homeless Housing Governor Newsom proposed a legislation package including a $4.68 billion bond and modernization of the 2004 Mental Health Services Act (MHSA) for voter approval on the March 2024 ballot, dedicated to building 10,000 new beds in new treatment campuses and facilities. The plan is designed in part to alleviate the state's homelessness crisis, and it calls for housing and behavioral health treatment in unlocked, community-based settings . Prior to the March 2024 ballot vote, two-thirds of lawmakers would need to approve the two bills. MHSA taxes 1% on income more than $1 million for mental health services with a proposed change to allow counties to spend 30% of funding from housing taxes for additional mental health and addiction resources. The act would also, in addition to bond funding, would revise the name to the Behavioral Health Services Act. California Cities Get Mixed Reviews in Walkability Ranking Smart Growth America's Foot Traffic Ahead (FTA) report found most metropolitan cities grew in walkable urban areas, ranking San Francisco as fifth in the country for walkable areas and Los Angeles as eighth of the 35 major cities studied. The study identifies changes in walkability in these 35 cities since 2019. The report used Los Angeles as a case study, highlighting the discrepancies in race and income, as well as income-segregated neighborhoods, ranking the city last on its Social Equity Index despite its wide range of walkable areas. The study found that 19.1% of the total U.S. real gross domestic product and 6.8% of the U.S. population are located in walkable urban places that represent just 1.2% of total landmass of the top 35 U.S. cities. The report seeks to present information on walkability publicly for advocates, community members, policymakers and researchers. The report ranks Sacramento 24th and San Diego 28th. The top spot went to New York City; the bottom spot went to Las Vegas. Study Identifies Publicly Owned Sites for Homeless Housing in Los Angeles The Committee for Greater L.A., a group of civic, business and philanthropy leaders, commissioned a study of 126 publicly-owned sites for shelter and permanent housing across the city, keeping pressure on Mayor Karen Bass and her pledge to build 1,000 beds in her first year of office. The nonprofit Center for Pacific Urbanism conducted the study to create the committee's new public, online database identifies sufficient parcels owned by a City of Los Angeles public agency or other public agencies. The 126 parcels were identified out of over 2,800 publicly owned parcels citywide. The suitability of sites was evaluated using a mixed methods approach that combines GIS spatial analysis tools, qualitative data from stakeholder interviews, a literature review of best practices, precedent studies, and architectural feasibility reviews on an individual site-by-site basis. The study proposes a timeline of six months to produce over 1,000 beds. Mayor Bass responded she has her own timeline and database of over 3,300 land parcels, with 500 interim beds submitted to Governor Newsom with a completion goal of July 2024. Some of the proposed sites in the study, like the site of the former Oso Elementary in the West Valley, have already faced public outcry over potential homeless housing. CP&DR Coverage: Summary of Pending Builder's Remedy Cases Statewide Santa Monica may have settled its builder's remedy cases . Redondo Beach and Huntington Beach may be resisting the whole idea of a builder's remedy. But in several other jurisdictions around the state, developers are trying to use the builder's remedy to move their projects forward. In many cases, the applications are being made by developers who have been trying to obtain approval for many years. In some cases, they are adding multifamily affordable units to a single-family proposal in order to qualify. By one count, more than two dozen builder's remedy cases are pending around the state. But more are popping up each week, mostly in expensive and traditionally slow-growth cities such as Palo Alto, Santa Barbara, Fairfax and Claremont. Quick Hits & Updates The Office of Planning & Research published final guidelines and application materials for the Regional Resilience Grant's first round of funding. Applicants must submit their complete applications on August 29, 2023. OPR staff are hosting eight application workshops to support applicants with navigating the Final Guidelines and completing the RRGP application. The California Department of Housing and Community Development (HCD) issued a warning and June 22 deadline to respond to the city of La Cañada Flintridge after the city council once again denied a builder's remedy application. The city claims they are not eligible for builder's remedy projects since the adoption of their Housing Element, although unapproved by HCD. The Santa Clara County Local Agency Formation Commission postponed its decision on Gilroy's potential annexation of 55 acres of land for the third time this year, slotted for 307 residential units. In a letter to the commissioners at the Santa Clara County Local Agency Formation Commission, the Executive Director strongly recommend the commissioners vote against the annexation. A new poll of Sacramento, El Dorado, Placer, Sutter, Yolo and Yuba counties found housing affordability a large concern of residents, as almost half of the poll do not describe their neighborhood as affordable. 64% responded there has been an "increased cost of housing." The poll also found reliance on personal vehicles in the area remains high, with a vast majority of respondents stating they mainly use a personal vehicle. A preliminary proposal in San Jose could result in an added 1,000 residential units at the site of a former casino, closed restaurant and a number of other businesses. The 10.3-acre site would be bulldozed for the project, and would include 13,000 square feet of ground-floor commercial space. Nevada Governor Joe Lombardo signed a bill granting $380 of public money to the Oakland A's for the construction of a new ballpark, the day after the Nevada legislature approved the deal. The deal solidifies the A's departure from Oakland. The receivership appointed two months ago to manage the largest nonprofit Skid Row housing provider is at risk of insolvency . The receivership oversees 1,500 tenants across 29 properties requested emergency action and support from a Los Angeles County Superior Judge in obtaining funds to cover $1.7 million in unpaid bills. An Apple co-founder will sell his 14,100-acre ranch in Carmel Valley to the Wildlands Conservancy for $35 million. The Wildlands Conservancy plans to open the ranch to the public for free, creating an open preserve the size of the city of San Francisco. Amid mounting opposition, the San Diego Planning Commission voted unanimously to delay implementing state Senate Bill 10, pushing the continuation to August. The bill could allow up to ten units on one parcel of land within a half-mile of a major transit stop, but would be permanent once implemented and not allow the commission to reduce the density. (See related CP&DR coverage .) Irvine City leaders indicated they will look into creating a new housing agency dedicated to affordable housing following concerns the Irvine Community Land Trust is not keeping up with affordable housing needs. In the last development cycle, Irvine built 20,000 more new units than any other city in Orange County, while the land trust has only created 475 affordable units since 2006. Huntington Beach secured a $25 million reimbursement from the Department of Finance following a 2018 lawsuit alleging the state did not reimburse the city for projects falling under the state's former redevelopment program . The court ruled the state owed the city for a $22.4 million loan issued in 1988 plus interest. City officials see the reimbursement as "a win" against the state as ongoing legal battles persist over state housing policy. The state's Department of Finance announced they will not appeal the ruling.

Short-term vacation rental owners in South Lake Tahoe didn’t make a good enough case to get a trial on the question of whether they vested right to operate, an appellate court has ruled. In an opinion that involved a Cook’s tour through 50 years of vesting litigation, the court wrote: “The ministerial nature of plaintiff’s members’ permits did not entitle the members to renewal. Any vested rights the members may have had in their permits were limited by their permits’ terms and conditions, including the one-year expiration date .”

The City of San Diego should have conducted an environmental analysis prior to placing an initiative on the ballot that eliminated the longstanding 30-foot height limit in the Midway district, the Fourth District Court of Appeal has ruled.

In a potentially important case, an appellate court has ruled that the City of Oakland has the power to impose additional impact fees on a developer many years after the city and developer signed an agreement laying out the amount and schedule of fees on the project. The court concluded that the city cannot “contract away” its power to impose fees later. “Even interpretation of the Agreement were correct, any provisions in the Agreement that bar the City from imposing its new impact fees on the Project are untenable and cannot be enforced,” the First District Court of Appeal wrote. “That is because any such provisions would be an invalid infringement on the City’s police power.” The case deals with an Oakland-specific 2005 agreement titled “Agreement for Payment of City Fees and Reimbursement of Specialized Consultant and Employee Services,” which was signed by both parties as part of the Conditions of Approval for the project’s approval. But it could have broader implications – specifically for the state’s 40-year-old development agreement law, which undergirds hundreds of developments in the state but has always been viewed as potentially legally vulnerable because of the “contracting away” risk.

Based on two recent reports coming from different quarters, it’s a little difficult to figure out what’s going on with litigation under the California Environmental Quality Act these days. But the bottom line appears to be that where you stand depends on where you sit. One study was published by the environmentally oriented Rose Foundation and the other by the Chapman University’s law review. Both are followups to previous reports by the same folks, and not surprisingly they reach different conclusions about the impact of CEQA litigation. The Rose Foundation report, which can be found here , finds that “CEQA moves California forward in its efforts to advance environmental justice, combat climate change, and protect its most precious natural areas and monuments.” The Chapman University article, which can be found here , finds that “CEQA today is about protecting the status quo by stopping housing, and ‘those people,’ and all the infrastructure ‘they’ need.” Which, if you think about it, are not mutually exclusive conclusions, but there is little room in either study to accommodate that idea. The authors of the two reports – each expert in their discipline – could not be more different. The Smith-Heimers are real estate economists with long experience conducting quantitative analysis. (Janet Smith-Heimer was the found of the firm now known as BAE.) Jennifer Hernandez is a highly respect – if very aggressive – Bay Area developers’ lawyer with the law firm of Holland & Knight. Indeed, the formats were very different as well, with the Smith-Heimer report looking like a conventional economics report and the Hernandez study published as a law review article (though it was based in part on previous Holland & Knight studies that were more quantitative). So, not surprisingly, the Smith-Heimers use more quantitative analysis and Hernandez uses more individual case studies. The Smith-Heimers criticize Hernandez for relying too much on “anecdote.” But they too draw broad qualitative conclusions using case studies, for example providing individual examples to back up their assertion that CEQA often leads to safer and more environmentally friendly housing projects. On one basic fact, the Smith-Heimers and Hernandez agree, which is how many CEQA lawsuits are filed each year. The answer is somewhere between 170 and 200 on average. The Smith-Heimer report did a long view on the frequency of lawsuits and found that the number has not fluctuated much over the past 20 years. (They also compared the number of lawsuits to the state’s population, though the chart in their report somewhat disingenuously alters the axis scale for population but not for the number of lawsuits.) Between 2019 and 2021, the two reports agree, slightly more than 500 lawsuits were filed, or about 170 per year. The Smith-Heimers count 508, while Hernandez counts 512.

Historically, transit-oriented development has always posed a chicken-or-egg problem, at least at its onset. Should development follow transit infrastructure, or vice-versa?