This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . San Francisco Mayor Proposes Suite of Land Use Reforms San Francisco Mayor Daniel Lurie announced six new legislative reforms, which he described as "common sense". Introduced to the Board of Supervisors last week, the reforms are part of the mayor's PermitSF initiative to simplify the city's permitting process. The changes include eliminating the screen or fence requirement for driveways to allow people to park in their own driveways, loosening restrictions on historic building usage to keep spaces occupied and avoid disinvestment, and making it easier to install commemorative plaques. Permitting fees for projects over $100 million would be reduced and fee timing made more predictable, and ADU rules would be aligned with state laws to make it easier to add such units. Finally, the changes would remove a requirement for excavation permits to file a parking plan with SF Public Works. Mayor Lurie also announced Permit Center customer service changes, including a new process for rooftop solar and energy storage permits, and rolling out "over-the-counter" remodel permits to restaurants seating under 50. There are also new protocols for case escalation when the city asks an applicant for more than three revisions to their plans, and the requirement to meet with city staff before filing permit applications for larger projects has been removed. Housing Development Would Double Size of City of Gonzales The Gonzales City Council unanimously approved the Vista Lucia housing project, a 3,498-unit development that has been in discussion for over two decades, potentially almost doubling the size of the town. The plan covers 771 acres and will unfold over 30 years, featuring a mix of single-family homes, apartments, mixed-use units, and affordable housing built by nonprofit CHISPA. Community amenities include a donated site for an elementary school, nearly 80 acres of parks and open space and a network of trails, walkways and bikeways. While some advocates pushed for denser housing to ensure greater affordability, councilmembers and many residents favored the current plan, emphasizing opportunities for community growth. Final approval still depends on annexation by the Local Agency Formation Commission of Monterey County. California's Newest National Monument Opens Near Santa Cruz The Cotoni-Coast Dairies National Monument, north of Santa Cruz, is opening to the public after years of preparation and delays since its designation by President Obama in 2017. Spread across 5,800 acres, the site offers ocean-view terraces, redwood forests, canyons and wildlife habitat, with nine miles of multi-use trails ready and more planned. The designation endcaps a decades-long fight against development proposals like luxury housing, oil drilling and a power plant. Concerns about overcrowding, parking and habitat protection slowed the process, but federal agencies, conservation groups and Indigenous communities worked together on restoration, cultural surveys and trail-building. Starting last month, visitors can explore the monument daily, with improved access for hikers, cyclists and people using adaptive bikes. Report Faults Bureaucracies for Delays in Infrastructure Development A report released by Circulate San Diego highlights how transit agencies lack the authority to construct projects without navigating numerous third-party permits from governments, utilities and agencies. The report details case studies where permitting delays added costs to projects ranging from High-Speed Rail to small busways, while contrasting them with SANDAG's Mid-Coast Trolley, which benefited from unique statutory powers. Speakers emphasized the urgency of reform, linking permitting barriers to climate change, housing shortages and economic challenges. The report recommends empowering transit authorities with direct permitting authority, incentivizing streamlined processes at the local level, expanding CEQA exemptions for sustainable projects and strengthening Caltrans' role in transit leadership. CP&DR Coverage: Small Cities Support Ballot Measure to Limit State's Land Use Authority The proposed “Our Neighborhood Voices” (ONV) ballot measure would call for a constitutional amendment declaring that local authority overrides state authority in most land use matters. A version of it first arose in 2021 and was proposed for the 2024 ballot, but it faded for apparent lack of funding. Supporters are feeling newly emboldened as cities have struggled with the state over their Sixth Cycle RHNA obligations and various state overrides on housing. A handful of cities— including some pricey coastal cities in North County San Diego — are speaking out, lest the Seventh Cycle puts further burdens on them. With next year's statewide election in the offing, supporters are resuming their campaign. Quick Hits & Updates Santa Clara Valley Water District has officially canceled the long-debated Pacheco Reservoir project after costs ballooned from under $1 billion to more than $3 billion, with no partner agencies willing to share the financial burden. After spending $100 million on planning and studies, the district will now focus on alternatives such as expanding groundwater storage, water recycling and upgrading existing reservoirs, while critics and environmentalists welcomed the decision as both fiscally and environmentally sound. Developers have filed plans to redevelop Golden Gate University's downtown San Francisco campus with either a 700-foot office tower or a 650-foot mixed-use tower that would combine offices with 370 housing units. Lincoln Property and McCourt Partners, working with architecture firm SOM, say the project would provide financial support for the university while adding new commercial and residential space to the Financial District, though the school's long-term presence at the site remains uncertain. Horton Plaza, once a celebrated anchor of downtown San Diego, has fallen into foreclosure after developer Stockdale Capital Partners defaulted on a $360 million loan tied to its conversion from a mall into a tech-focused office campus. The property, valued at around $400 million, was returned to lender at auction and experts note the city missed a chance to acquire it for just $130 million, leaving its future redevelopment opportunities uncertain. (See related CP&DR coverage .) Santa Clara County Planning Commission is considering major changes to rural and agricultural zoning rules, restricting conversions of farmland to non-farming uses and establishing maximum building coverage limits for non-agricultural purposes. The new zoning would also simplify categories for agriculture-supportive uses and eliminating the Winery categorization in favor of individual use classifications. Local winery operators expressed significant concern about the effects this would have on their operations, saying the changes could force many wineries out of business. The Trump administration cancelled $427.6 million approved for offshore wind infrastructure in northern California. The funds were to help construct a marine terminal in Humboldt Bay for the assembly and deployment of floating turbines along the California and Oregon coasts. Project leaders said they would continue with the project, although a delay of several years beyond the projected 2029 opening date is likely with the revoked funding representing around half of the total project price. The project will continue to look for alternative funding, including through CA Proposition 4, a climate bond passed in November that included $475 million for offshore wind energy. Los Angeles City Council has approved a 51-story, 526-unit residential and ground-floor retail tower in South Park to a site currently used as a parking lot. While the project reflects strong demand for downtown housing, experts note that high interest rates, rising construction costs, tariffs and labor instability could delay or derail its groundbreaking despite the neighborhood's steady 90% occupancy and growing appeal as a residential hub. San Francisco will allow Waymo robotaxis and Uber and Lyft black cars to operate at designated points along Market Street's 10-block car-free stretch, as part of a limited trial aimed at revitalizing downtown. While Mayor Lurie and business groups say the move will boost theaters, restaurants and hotels, transit advocates, cyclists and taxi drivers argue it undermines hard-won car restrictions, risks congestion and favors higher-cost services over affordable options. Dust from the Salton Sea's expanding shore area accounts for less than one percent of total small particle pollution in the Coachella and Imperial Valleys, according to a report from the Pacific Institute. California has spent $49 million on dust supression around the Salton Sea, but some researchers are suggesting exposure control such as air quality alerts, distributing filters, and weatherizing homes, can be more successful and cost-effective due to the sheer number of pollution sources. The region is one of the most polluted in California, with communities experiencing asthma and health problems at extremely high rates. San Diego City staff released a new draft of the Clairemont Community Plan Update, proposing to allow higher density housing and taller construction around Blue Line trolley stations in the neighborhood's center and redeveloping parking lots into mixed-use spaces. The vast majority of the neighborhood would remain zoned for single homes, including areas such as Bay Park well within walking distance of trolley stations. Housing and climate advocates criticized the plan as a small fix that does position the city to meet their housing and emissions goals.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . High Speed Rail Accelerates Construction Timeline Despite Federal Pushback California's High Speed Rail Authority is accelerating the timeline for 2026 rail instillation, approving issuance of invitations for bids for high-speed rail components for the initial 119-mile Central Valley segment of the line. The Authority gave a total approved cost of $507 million with 6 to 12-month lead times for these contracts. Meanwhile, the Trump administration is set to cancel more a $175 million dollar federal grant for track, overcrossings, and a station in Madera, citing slow progress and cost overruns. The High-Speed Rail Authority accused the administration of politically motivated cuts, and said progress is being made, with 171 miles under design and construction in the Central Valley with 70 miles of guideway and 57 structures already complete. The original 2008 plan for 800 miles of high-speed rail spanning from LA to San Francisco was estimated to cost $33 billion. The HSRA's current focus of a Bakersfield - Merced line is now estimated to cost $35 billion, with entire project believed to total between $89 and $128 billion. Despite years of delays and cost overruns, support for the project remains strong among Californians. U.S. High Speed Rail, a nonprofit advocacy group co-chaired by former Republican congressman and USDOT secretary Ray LaHood, found that 62% of Californians support building the project. (See related CP&DR coverage .) Yucaipa Approves Controversial Warehouse Development The Yucaipa City Council narrowly approved an update to the Freeway Corridor Specific Plan, clearing the way for the Pacific Oaks Commerce Center, a two-million-square-foot warehouse and office project. The revision shifts some development reviews from public hearings to administrative approvals, increases business park space and reduces regional commercial capacity while adding limited new housing. Supporters emphasized the project's financial benefits, including $14 million in impact fees and $35 million in required infrastructure investments, framing it as a long-term economic opportunity after years of delays. Opponents, including Mayor Pro Tem Chris Venable and many residents, argued the plan reduces government transparency, exaggerates infrastructure benefits and will worsen pollution, traffic and the loss of open space. The ordinance requires a second council vote before final adoption, which would make the project one of Yucaipa's largest recent developments. (See related CP&DR coverage .) Cupertino Defies State on Application of Builders Remedy The City of Cupertino is embroiled in a legal clash with the Department of Housing and Community Development over how long developers have to fix incomplete housing applications. Via a letter recently sent to HCD, the city insists the Permit Streamlining Act allows just one 90-day correction period, after which a project expires, while the state says each new incompleteness ruling resets the 90-day clock indefinitely. The dispute has already triggered lawsuits from developers, backed by housing advocacy groups, who argue Cupertino wrongfully rejected projects and is violating state housing law. If courts side with developers, projects could bypass local zoning under the builder's remedy, a consequence tied to Cupertino's delayed housing plan compliance. As the state reviews Cupertino's response, advocates warn the city is risking further legal trouble while resisting pressure to deliver thousands of new homes, including affordable units, by 2031. (See related CP&DR coverage .) Oakland to Create City Office to Address Homelessness The City of Oakland will create the Office of Homelessness Solutions, funded by newly available Alameda County tax revenue from Measure W. The office will focus on building shelter capacity and rehousing individuals to prevent 2,500 people from becoming homeless per year. Currently around a third of Oakland's 5,500 homeless residents are sheltered. The city has not shared how many staff will be hired for the new office or whether any existing city employees from other departments will be reassigned. Oakland's chief housing policy director Sasha Hauswald will serve as the office's interim chief. The initiative comes as Oakland struggles to address homelessness amidst financial constraints, with multiple shelter bed vendors ceasing work with the city because of delayed payments. A portion of Measure W funding will also be used for permanent housing for previously homeless individuals. Report Details Population Trends for Los Angeles County The USC Lusk Center for Real Estate released its inaugural State of Los Angeles County Housing and Neighborhoods report, a comprehensive report on the housing and demographic landscape of the county. The report found that the immigration-driven growth of the 20th century has reversed, with the county's population falling by 5 percent since 2015. The share of households with children has fallen to below the national average, but housing demand has stayed strong thanks to an increase in total households. The center found that new housing is being built far too slowly for demand: total housing construction has fallen drastically since the 20th century, and the vast majority of new units are out of reach for lower-income families. Additionally, the permit to completion times of projects in LA are nearly triple the national average. The home ownership rate is at 45%, the lowest in over 50 years, with the steepest declines in home ownership since 2010 coming for middle-class families and Black families. The rental market remains one of the most expensive in the nation, with more than 90% of renters earning under $50,000 spending over 30% of their income on housing. Homelessness continues to grow, although the increase in housing options for homeless people reduced the unsheltered rate to a 10-year low of 65%. The vast majority of unhoused Angelenos lived in the city before becoming homeless, showing the link between housing affordability and homelessness. (See related CP&DR coverage .) CP&DR Coverage: A New World of Exactions A couple of weeks ago, the appellate court in Sacramento ruled on the merits of the famous Sheetz exactions case , which went to the U.S. Supreme Court last year. The case got kicked back down to the Third District Court of Appeal because SCOTUS, characteristically, did not rule on the merits of the case. Instead,SCOTUS ruled against the standard California practiceof giving cities and counties more leeway on exactions if they are imposed by a legislative act - such as a General Plan - rather than on a one-off project-level basis. Back in the Third District Court of Appeal, a three-judge panel said averaging was good enough. That's almost certainly not the end of the story . Sheetz is represented by the Pacific Legal Foundation, the public interest law firm that raises funds for pro-property rights cases and does not charge its clients. That means a certain trip back to the California Supreme Court - which may again decline to take the case - and to SCOTUS. Quick Hits & Updates U-Haul's Midyear Migration Trends report found that California residents moving out of the state are primarily moving to Texas, Colorado, and Tennessee, with the most popular metropolitan areas including Houston, Las Vegas, and Denver. For people moving into California, the top ten states of origin were Arizona, Nevada, Texas, Washington, Oregon, Colorado, Utah, Florida, Illinois, and New York. Riverside, San Francisco, San Jose, San Diego, Sacramento and Bakersfield drew the most new arrivals, a substantial percentage of which were California residents moving from a different part of the state, the report found. Unions and advocacy groups in Los Angeles are demanding a “New Deal” from the LA28 Olympic committee, calling for major housing investments, a ban on short-term rentals and protections for workers to prevent displacement during upcoming mega-events. While organizers argue these measures are essential to address the city's housing crisis, Olympic officials and Airbnb counter that the Games will generate jobs, revenue and necessary lodging for millions of visitors. A new study warns that downtown Los Angeles could lose nearly $70 billion in office value and $353 million in property tax revenue over the next decade unless underused towers are repurposed. To counter this, developers and city leaders are championing office-to-housing conversions like the L.A. Care tower project on 7th Street, which will transform a 1980s high-rise office building into new apartments. Monaco billionaire Patrice Pastor, who has spent over $100 million buying properties in Carmel-by-the-Sea, says he will pull back from the town after years of frustration with what he calls unreasonable delays and nitpicking over his development plans. Despite redesigning projects multiple times to fit Carmel's strict architectural rules, Pastor claims city leaders and residents have unfairly blocked his efforts, leading him to reconsider his investments in the city. Rancho Palos Verdes City Council will ban new construction in a landslide zone which has experienced dramatic and destructive landslides in the past two years. The 715-acre zone contains 430 homes and 130 vacant privately owned lots. The changes would allow repair, restoration, and even replacement of existing homes as long as they do not increase in square footage. Researchers have found that chronic groundwater overuse in the San Joaquin Valley has caused significant land subsidence, reducing home values by 2.4% to 5.4%, or $6,689 to $16,165 per property, across eight counties. The study highlights the lasting economic impacts of subsidence on homeowners and underscores the importance of California's Sustainable Groundwater Management Act to slow or prevent further damage. A new nationwide analysis of housing cost and rent data by the Pew Charitable Trusts found that increasing housing supply for all income levels levels slows cost increases the most for older, cheaper apartments. While most new apartments are expensive, even increasing supply for high-income residents quickly frees up housing in low-income areas by preventing and reversing displacement. A study published in the Science Advances journal confirmed that climate change is responsible for California's earlier wildfire seasons. Scientists found that hotter, drier conditions elevated fire risk and pushed the start of fire season earlier by a week to up to two months in different regions. Max Moritz, a co-author of the study, also stressed that increasingly unpredictable rainfall will lead to more extreme years, some with high rainfall decreasing fire activity, and some with extreme drought conditions increasing wildfires. A ballot initiative has been introduced to repeal Proposition 103, a 1988 law that regulates insurance rates. The measure would make the state insurance commissioner an appointed position instead of an elected one, update wildfire risk mapping every three years, and change processes for reinsurance costs and mitigation credits. Supporters say it would increase competition and bring insurers back to the state, while opponents say it would increase insurance costs and weaken consumer protections.

by CP&DR Staff Vol. 40 No. 8 August 28, 2025 Report

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Western Joshua Tree Receives Protection from State with Sweeping Conservation Plan The state has adopted its first-ever conservation blueprint to protect the western Joshua tree, hoping to safeguard the species from climate change and development pressures. The plan, ordered by a 2023 law, identifies areas where Joshua trees are most likely to endure in warmer climate and proposes measures like restricting growth, reducing fire risks and planting more resilient tree varieties. The plant is found in the high desert of the southeastern potion of the state, with heavy concentrations in Riverside and San Bernardino counties. Supporters hail it as groundbreaking because it protects a species before it becomes endangered, though critics argue the regulations add costly hurdles for housing and infrastructure projects in desert communities. Property owners now need permits and must pay fees to remove or disturb Joshua trees, sparking backlash from local governments, trade groups and residents who fear the rules will slow development and increase living costs. State officials say the plan will be refined over time, balancing ecological protection with community concerns, while periodic reviews will determine whether stronger protections under the Endangered Species Act are necessary. (See related CP&DR coverage .) Los Angeles City Council Opposes Transit-Oriented Development Bill Los Angeles City Council narrowly voted , 8-5, to oppose Senate Bill 79, a bill that would allow apartment buildings up to six stories tall near major transit stops by overriding local zoning rules. Supporters of the opposition, led by Councilmembers Traci Park and John Lee, argued that Sacramento is stripping cities of local control and placing development decisions in the hands of outside lawmakers and developers. Opponents of the council's stance, including Nithya Raman and Hugo Soto-Martinez, countered that Los Angeles is failing to meet its housing needs and that state action is necessary to address affordability and homelessness. (The city has a RHNA allocation of over 400,000 units.) Some councilmembers, like Ysabel Jurado, voiced concerns that the bill could accelerate the loss of rent-controlled units and displace vulnerable communities. Fresno County Judge Faces Ethics Complaint for Approval of Housing Development Fresno County Superior Court Judge Robert M. Whalen Jr. recently ordered the City of Fresno to approve an 82-unit market-rate apartment project in northwest Fresno, overturning the city council's split 2024 rejection of the proposal. The council and planning commission had blocked the development, citing traffic, safety and neighborhood concerns, but Whalen ruled that the city failed to show the project violated municipal codes or the general plan. His decision gives the council 60 days to set final approval conditions and determine whether the project qualifies for an environmental review exemption, while also allowing the developer, James Huelskamp of LandValue Management, to seek reimbursement of legal fees. The ruling comes amid an ethics complaint filed against Whalen with the Commission on Judicial Performance, alleging he did not disclose past campaign contributions from Huelskamp and should have recused himself due to their long-standing ties. (See related CP&DR coverage .) Los Angeles Moves Toward Allowing "Single-Stair" Apartment Buildings The Los Angeles City Council adopted a motion removing a Building Code requirement for apartment buildings to have multiple staircases. The legislation begins the process to update the city's building code to allow for multifamily residential buildings up to six stories to be built with a single stairwell, providing greater flexibility in housing construction across the City. The requirement was based on early-20th century fire concerns, which studies has been rendered unnecessary by advancements like sprinkler systems and fire-resistant materials. Councilmember Katy Yaroslovsky, who introduced the motion with Nithya Raman, said the change would help the construction of apartments with enough space for families by increasing construction flexibility. In the most recent Housing Element, 14% of rental units in Los Angeles have three or more bedrooms, compared to 70% of owner-occupied homes, resulting in overcrowding. Supporters of the motion emphasized its benefits for renting families. CP&DR Coverage: Judge Rejects EIR for Costco and Warehouse Complex in Fresno A judge has ordered the City of Fresno to redo the environmental impact report on one of the largest-ever Costco projects. Among other things, the court ruling shows that zoning ordinances are having a difficult time dealing with the increasingly blurry line between large retail stores and warehouses. The judge's ruling also builds on an appellate case from last year that struck down Fresno's program EIR, which was designed to expedite CEQA review for various projects. The 219,000-square-foot Costco in northwest Fresno would include a car wash, a 32-pump gas station, and a warehouse designed to make local deliveries of appliances and other large items customers cannot carry home from the store or have delivered by conventional delivery services. The warehouse was one of the things that tripped Fresno and Costco up. In August 2024, the appellate court struck down the Program EIR and the greenhouse gas reduction plan with it. Thus, Judge Skiles said, the city could not rely on the greenhouse gas reduction plan in certifying the EIR for the cost. Quick Hits & Updates Consultants warn that the City of Orange could face bankruptcy within three years unless it cuts spending and aggressively grows revenue, projecting a $46 million deficit by 2031. Their plan calls for a 12% reduction to the general fund, a 1% sales tax increase and fast-tracked economic development, including hotels, entertainment zones and mixed-use projects that could leverage the city's proximity to Disneyland and Chapman University. The Martinez City Council is set to review a proposal for a public-private partnership to revitalize the aging Martinez Marina, which has faced infrastructure decline and environmental challenges. A presentation by Tucker Sadler, an architectural firm, will outline a conceptual vision for redeveloping the marina, and the council may vote on entering exclusive negotiations to move forward with the project. San Francisco's property tax base saw its weakest growth in over a decade, rising just 1.8% this year due to falling commercial property values and a surge in appeals from owners seeking lower assessments. In contrast, counties less dependent on office and retail properties, like Solano and Sonoma, experienced stronger increases driven by new housing and fewer commercial challenges. Neighborhood and environmental groups are suing the city of Twentynine Palms to stop the approval of a proposed nature-themed resort half a mile from Joshua Tree National Park. The suit alleges that the city did not conduct a thorough review of the environmental impact, and that the 100-unit development would harm the habitats of many legally protected species. Sacramento State and Cal Expo are negotiating a partnership to redevelop Cal Expo's long-vacant horse racing grandstand into a 22,000-seat stadium, a project that would anchor both university athletics and large-scale regional events. If plans move forward, the redevelopment could break ground by 2027. (See related CP&DR coverage .)

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Catellus Joins Philips 66 to Redevelop 440-Acre Refinery in Los Angeles Philips 66 filed redevelopment plans for its refinery in the Wilmington area of Los Angeles, anticipating the plant's closure at the end of the year. The company hired Catellus Development Corporation and Deca Companies to transform the 440-acre property. The plan would use the vast majority of the land for eight industrial buildings 55 to 155 feet in height for a total of 6.1 million square feet of space. The smaller northern section would become a new town square with retail and recreation spaces as well as publicly accessible open space with room for community gatherings. This 77-acre area would include 270,000 square feet of retail space, 67,500 square feet of food and beverage, 5,000 square feet for community offices, 60,000-square-foot indoor sports facility, two outdoor soccer fields, and 2,741 parking spots. Construction will require the approval of a general plan amendment and zone change by LA City Council, as well as an environmental cleanup. Los Angeles County Draft Sustainability Plan Envisions 159 Actions LA County's Chief Sustainability Office released a draft update of the 2019 OurCounty Sustainability Plan, available for review and public comment until August 22. Encompassing a wide array of departments, policies, and programs, the plan contains 159 action items under 12 main goals, ranging from reducing car dependency and eliminating fossil fuels to equitable land use and transparent governance. The 2025 update increases the plan's emphasis on climate resilience in response to the increasing intensity and frequency of wildfires, extreme heat, storms, and droughts. The 2021 Climate Vulnerability Report and a countywide survey guided the update's priorities. Nearly half of the 159 actions in the report are on track or have been achieved, with 64 of the 78 priority goals achieved or on track for completion by the target date. Massive Recreation & Hospitality Development Proposed for Chula Vista Bayfront Chula Vista has unveiled early plans for “Pangaea,” a 124-acre destination district planned for the city's bayfront. The proposal features numerous attractions, including a 50,000-seat stadium, multiple hotels, golf courses, a tennis complex, a water polo academy, an IMAX theater and 30,000 square feet of retail space. City leaders emphasize that community input will play a key role in shaping the project's design and accessibility. The Port recently approved a six-month exclusive negotiation period with developer McGary Group to refine the plan. Pangaea represents the second phase of the bayfront redevelopment, following the recent opening of the Gaylord Pacific Hotel. CP&DR Coverage: Bizarre Saga of Hollister's General Plan In what may be the shortest-lived adoption of a general plan in state history, the Hollister City Council approved a general plan update, along with its environmental impact report (and Climate Action Plan), in late December. A mere three months later, the city council rescinded the plan and committed $431,000 to draft a new one. Shortly after the plan's adoption in December, Campaign to Protect San Benito, a slow-growth advocacy group, launched a voter referendum drive to reverse the council's December decision. The group submitted over 3,500 signatures on January 21. An apparently sympathetic city council obviated the need for a referendum by voting to rescind the plan in early March and start over again. In doing so, the city may have exposed itself to sanctions, or lawsuits. Quick Hits & Updates A new state audit estimates that allowing most California employees to work remotely three days a week could save $225 million annually by reducing office space, including major buildings in San Francisco, Oakland, Los Angeles and Sacramento. Governor Newsom's office rejected the findings as speculative, arguing that the assumptions were unrealistic and reiterating his plan to require state workers to return four days per week starting next year. Santa Ana city leaders are considering a 17.2-acre redevelopment of the aging South Coast Plaza Village, proposing up to 1,583 homes, 80,000 square feet of retail, 300,000 square feet of office space and nearly 14 acres of parks and open space. The multi-phase project, designed with residential, commercial and office buildings of up to 25 stories, is part of a larger effort to transform southern Santa Ana into high-density, walkable urban villages alongside the nearby Related Bristol development, and could take around 20 years to complete pending city approvals. California high-speed rail officials and the Trump administration reached an agreement preserving nearly $4 billion in federal grant money while litigation over the administrations revocation of the grants plays out. The contested money has been placed in a legal trust, preventing it from being redirected by the federal government until the HSR's case against the federal government is concluded. The Ross Valley Sanitary District , in Marin County, is searching for developers to transform the its decommissioned wastewater plant in Larkspur into new housing. The 10.7-acre property would be the city's largest housing development in decades, and its first since before the COVID pandemic. The city rezoned the land to allow for increased density and a Housing Priority Overlay designation which could streamline approval and avoid public objection. The Sanitary District stated a goal of 320 houses, while City Manager Dan Schwartz said constructing over 375 was possible. In a recent study by Urban magazine, metropolitan planning organizations, including the Southern California Association of Governments, have adopted district-based systems that give Los Angeles representation roughly proportional to its share of the regional population. By contrast, in the Bay Area, San Francisco holds far more board votes per resident than surrounding counties, highlighting how representation can vary widely even within the state. Developers have submitted formal permits for a 14-story, 202-foot mixed-use tower at 1 East 4th Avenue in downtown San Mateo. The tower would include 236 apartments (36 affordable), office space, retail and parking for cars and bicycles. Designed by Arc Tec and using state density bonus provisions, it would be the city's tallest building and feature amenities along with public sidewalk improvements. The Presbytery of San Gabriel returned a half-acre parcel of land back to the Gabrielino/Tongva San Gabriel Band of Mission Indians, marking the first land transfer from a church to a recognized Indigenous tribe in California history. Tribal and Church leaders praised the transfer as an important step for historical healing and justice. The land, once part of the site of a sacred Gabrielino/Tongva village, had been rented by the tribe from the church for the past forty years. The Southern California Association of Governments awarded a $5 million grant to Housing Trust Fund Ventura County, enabling the nonprofit to establish a long-term loan program for affordable housing developers. The organization currently supports affordable housing for residents by providing short-term one to five-year loans to low-cost developers. The grant is expected to cover three to five loans in the next five years. The Fresno City Council must approve Landalue Management's proposal for an 82-unit market rate apartment development in northwest Fresno, per a ruling by a Fresno County judge . Last year the city council voted 4-3 to uphold the city planning commission's rejection of the project. The judge found the city could not prove that the project did not meet its codes and general plan but did not agree with the allegation they rejected the proposal in bad faith. The court gave the city 60 days to vote on final conditions of approval. The state has awarded $14 million to jumpstart environmental studies for a proposed 10-mile protected bikeway connecting Santa Clara and East San Jose, aimed at creating a safer, east-west route for cyclists. While advocates praise the project's safety benefits and long-term potential, concerns remain about its high cost, possible business impacts along El Camino Real and VTA's ability to fund ongoing transit operations.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Los Angeles Ballot Measure Could Jeopardize Olympics Projects A Los Angeles hotel workers union has proposed a ballot measure requiring voter approval for major “event centers,” including sports facilities, concert halls and hotels, which city officials warn could delay or block several 2028 Olympic venues. The initiative would apply to both permanent projects and temporary structures exceeding 50,000 square feet or 1,000 seats, potentially prompting elections for sites like the Convention Center, Venice Beach and Sepulveda Basin Recreation Area. City leaders and Olympic organizers argue the measure could jeopardize essential projects, drive events to other cities and harm the local economy. Unite Here Local 11 says the proposal responds to business efforts to overturn the city's newly approved $30 minimum wage for hotel and airport workers, and argues large developments often overburden communities without delivering proportional benefits. The measure is still under review and, if it qualifies, would likely appear on the June 2026 ballot, intensifying political tensions ahead of the Olympic Games. (See related CP&DR commentary .) Oakland Presents Residents with Three Visions for Growth The City of Oakland is soliciting feedback in Phase 2 of the city's General Plan Update, with three "Options for How We Stabilize and Grow" as different plans for how and where Oakland invests and plans for new homes, jobs, and infrastructure in the next 20 years. It's an innovative approach to public outreach. The announcement described the options as "a tool to help the community consider tradeoffs and preferences for Oakland's future". The city released a survey open until Sept 24 for constituent feedback on the plans. The "City of Neighborhoods" plan emphasizes developing 18 walkable mixed-use neighborhood centers and community gathering centers. The "Connected Corridors and Gateways" option proposes "transit-oriented development", concentrating residential and commercial growth into higher-density areas along major transit corridors where redevelopment potential is highest. The "Midtown Waterfront District" option entails a wholesale transformation of old industrial land along the Central Estuary into a new neighborhood, redeveloping old commercial and industrial properties with an emphasis on environmental sustainability and public shoreline access. (See related CPRDR coverage .) State Attempts to Keep Benicia Refinery Open California officials are attempting to find a company to purchase and continue operating for Benicia petroleum refinery near Oakland before current owner Valero Energy's planned closure of the facility in April 2026. Valero also says operations at the rest of its California plants are under review. With California drivers already paying some of the highest fuel prices in the country, the rare move reflects an effort on the state's part to prevent prices from rising even further. As of the announcement on July 23, California gas prices averaged to $4.48 per gallon, compared to a $3.15 average nationwide. Studies from UC Davis and USC found that Valero closing its plants in California could increase gas prices to $6-8 dollars per gallon as the state would be more reliant on expensive fuel imports. Industry experts say finding a buyer before the April closure could be difficult, and will require an aggressive timeline. CP&DR Legal Coverage: Housing Dispute in Fresno; Palisades Tahoe Development The City of Fresno has been ordered to overturn its decision to deny a multifamily housing project and instead approve the 82-unit project. City staff had recommended approval of the project. But the Fresno Planning Commission voted to deny it, claiming it violated the city's General Plan, and the City Coucnil upheld the Planning Commission's decision. But Fresno County Superior Court Judge Robert Whelan said that the Fresno City Council violated the Housing Accountability Act because the alleged General Plan violation was not identified within 30 days. Whelan ruled that the developer's original application should have been deemed complete and that the minor deviation from the code was not required. He also gave the city 60 days to determine whether the project qualifies for an Article 32 exemption under the California Environmental Quality Act. After many years of litigation and controversy, environmentalists have reached a legal settlement with the owners of the Palisades Tahoe ski resort that will limit the size of the resort's expansion. The settlement ends 14 years of fighting in the courts and at the Placer County Board of Supervisors over the project. The first application was filed in 2011. Placer County originally approved the project and certified a related environmental impact report in 2016. Quick Hits & Updates Solano County has indefinitely postponed an Aug. 20 General Plan summit at the request of all seven city managers, who said they lacked time to prepare and wanted a more collaborative process. The delay comes amid tensions over Suisun City and Rio Vista's exploration of annexing land owned by California Forever, a move county officials have criticized as financially driven and potentially harmful to agriculture and infrastructure planning. (See related CP&DR coverage .) Spacex has proposed a plan to launch 95 rockets a year from Vandenberg Space Force Base amidst an ongoing lawsuit against the California Coastal Commission, which previously rejected a Space plan to launch 50 rockets per year in October 2024. The CCC raised concerns about the lack of environmental and wildlife impact monitoring, as well as the company operating as a federal contractor and bypassing the permit process despite 87% of launches involving no equipment or missions for U.S. agencies. The state Senate narrowly passed SB 79, which would allow four- to nine-story apartment buildings near high-frequency transit stops to boost housing supply and public transit use. Supporters say it addresses the state's housing shortage, while opponents warn it could fuel displacement, override local planning authority and give transit agencies too much control over land use. The State Senate also passed SB 92, 28-3, with bipartisan support changing the state's density bonus housing law to allow benefits only for residential housing uses and no other elements of mixed-use projects. SB 92 is designed to prevent developers from exploiting the law to build projects with little affordable housing. The bills now go to the Assembly. Los Angeles has unveiled updated designs for its $2-billion Convention Center expansion, which would add 190,000 square feet of exhibit space, a rooftop terrace and a three-level atrium connecting the South and West Halls over Pico Boulevard. While officials hope the project will boost the city's ability to host major events, its timeline is complicated by funding challenges and the 2028 Olympics, with construction potentially pausing during the Games and resuming for completion in 2029. The Pacific Legal Foundation is suing East Palo Alto over the city's Inclusionary Housing Ordinance. The ordinance requires residential projects with fewer than five units to designate one unit as affordable housing or pay a fee. The PLF is representing a family that wants to build an ADU on a lot neighboring their house, but would have to pay a $54,000 fee to do so without renting it out as affordable housing. A group of community members used a loophole in state laws to appeal against the proposed construction of an affordable housing complex for homeless people in San Francisco, despite lawmakers attempting to hasten construction. The complex, to be constructed by Mission Housing, would place 350 new homes and on-site social services above the 16th Street Mission BART Station. The neighbors' appeal letter raised concerns that the complex would excacerbate issues of homelessness, drug use, and safety in the area. A group of community members used a loophole in state laws to appeal against the proposed construction of an affordable housing complex for homeless people in San Francisco, despite lawmakers attempting to hasten construction. The complex, to be constructed by Mission Housing, would place 350 new homes and on-site social services above the 16th Street Mission BART Station. The neighbors' appeal letter raised concerns that the complex would excacerbate issues of homelessness, drug use, and safety in the area. A group of community members used a loophole in state laws to appeal against the proposed construction of an affordable housing complex for homeless people in San Francisco, despite lawmakers attempting to hasten construction. The complex, to be constructed by Mission Housing, would place 350 new homes and on-site social services above the 16th Street Mission BART Station. The neighbors' appeal letter raised concerns that the complex would excacerbate issues of homelessness, drug use, and safety in the area. A proposal for a train station at Camp Pendleton has resurfaced in SANDAG's 2025 regional transportation plan, aiming to extend Coaster service beyond Oceanside to serve tens of thousands of military personnel and civilians on base. While the idea received early Pentagon support and would improve access to the region's largest employer, the project has stalled for over a decade due to funding gaps, security concerns and the challenges of building on restricted federal land.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . State to Suspend SB 9 "Duplex Law" Provisions for L.A. County Fire Recovery Under pressure from Los Angeles-area elected officials, Gov. Newsom issued an executive order allowing Pacific Palisades and parts of Malibu and Altadena affected by wildfires to be exempt from development under CA Senate Bill 9. The 2021 law allows property owners to build up to four units on lots previously zoned for single-family homes. The order applies to areas that burned in the Palisades and Eaton fires which are designated as "very high fire hazard severity zones" by the CA Deptartment of Forestry and Fire Protection. The announcement follows concerns about increasing density beyond the capabilities of existing infrastructure and fire evacuation routes, with City Councilmember Traci Park and L.A. Mayor Karen Bass both calling for Newsom to suspend SB 9 in fire-affected areas. Jarvis Assoc. Pushes Ballot Initiative to Reinforce Prop 13, Limit Transfer Taxes The Howard Jarvis Taxpayers Association is proposing a ballot measure called the "Save Prop 13 Act of 2026" that would reinforce provisions of 1978's Prop 13, which limits property tax increases. It would also roll back real estate transfer taxes, like Los Angeles' Measure ULA. The move is partially a response to court rulings like the 2017 California Cannabis Coalition v. City of Upland decision, which opened the door for special interest groups to pass tax initiatives with only a simple majority, bypassing the original two-thirds threshold. Howard Jarvis proposed Save Prop. 13 Act hoping to re-instill voter-approved taxpayer protections. The proposed ballot initiative would also roll back real estate transfer taxes, unless re-approved by a 2/3 voter majority, and prevent charter cities from enacting similar levies. Save Prop. 13 supporters say it's a critical step to uphold the intent of Prop. 13 and stop what they call “equity theft” from California property owners, while critics say Measure ULA is still redeemable and actionable in Los Angeles. (See related CP&DR coverage .) Report Details Uses of $632 Million in Greenhouse Gas Funds A progress report from the Air Resources Board indicates that California's Community Air Protection Program is delivering cleaner air to over four million residents in the state's most polluted areas. Since 2017, the program has funded more than 9,000 local projects with $632 million from the state's Cap-and-Invest program, prioritizing disadvantaged communities. Projects range from replacing polluting equipment to reducing school-area dust and launching the country's first electric tugboat, collectively cutting emissions equivalent to millions of cars and trucks. A recent expansion, Blueprint 2.0, is bringing the program to 64 high-pollution communities with new grants, enforcement strategies and mobile air monitoring. Newsom is pushing to extend Cap-and-Invest, calling it essential to protecting public health and combating federal rollbacks on clean air. CP&DR Coverage: New Approaches to VMT Mitigation Ever since SB 743 switched CEQA's emphasis on traffic mitigation from level of service (congestion) to VMT (the overall amount of driving), lead agencies - including not just local governments but transportation agencies - have been vexed about exactly how to make this happen. AB 130 sets up a formal process allowing fees to pay for infill housing as mitigation for increased VMT. But a lot of questions still remain - and the Legislature's approach to this issue may create yet another CEQA quagmire, at least temporarily.Governor's Office of Land Use and Climate Innovation must release its initial guidance within one year and adopt its final guidance by 2028. In the meantime, there's likely to be a lot of confusion over how much infill housing is adequate mitigation for VMT (which lead agencies will have to calculate and prove on their own, at least for now), when and how contributions to the state's fund will be allowed, and whether other forms of VMT mitigation will also be required. Quick Hits & Updates The U.S. EPA has recognized Fresno's Saint Rest + Food to Share Hub as a successful brownfields redevelopment project. The EPA's Brownfields program provides technical assistance and supports cleanup and planning for communities repurposing properties contaminated with hazardous substances. The Share Hub was previously a 6,800 square foot unused industrial complex suffering from contamination and structural decline, but was repurposed as a community food hub. With San Francisco Mayor Daniel Lurie's Family Zoning Plan up for review by city lawmakers in the coming months, the pro-housing group GrowSF conducted a poll finding that of the 35% of respondents who had heard of the plan, 65%supported higher density housing, with just 23% in opposition. Lori Brooke, the co-founder of Neighborhoods United SF, a group strongly opposed to Lurie's plan, said the poll did not reflect resident's feelings about other possibilities, and said the Mayor's proposal would promote unaffordable luxury appartments and displace existing residents. The U.S. Senate Banking Committee has advanced the bipartisan "ROAD to Housing Act of 2025," a sweeping package that claims to tackle housing supply challenges by incentivizing local reforms, supporting ADU and manufactured housing construction and updating federal regulations to reduce development barriers. The Alameda County Board of Supervisors approved $750,000 in redress funds for former residents displaced from Russel City when it was seized by Alameda County and the City of Hayward and bulldozed in the early 1960s. The neighborhood of around 1,400 people was a cultural and residential center hub for Black and Latino families following WWII, and was seized by the city through eminent domain to create an industrial park. The City of Hayward pledged an additional $250,000 dollars to the reparations, bringing the total to be paid to $1 million. Public access plans were released for the Frank and Joan Randall Preserve, a 376-acre coastal area between Newport Beach and Costa Mesa. Formerly known as Banning Ranch and the site of an oil field, the land was purchased by conservation groups for nearly $100 million in 2022, and is going to be permanently protected. The plans for the preserve emphasize public access, resource management, coastal resilience and tribal access and engagement. The LA County Regional Park and Open Space District will issue $58 million in competitive grants, the largest in its history, to convert neglected spaces into parks, trails, and green infrastructure. At least 30% of the funds are reserved for communities designated as High or Very High Park Need, following the District's goal of providing every LA resident access to green spaces in their community. The program is intended for "shovel-ready, climate-smart, and community-rooted" projects. Sunset Magazine's former headquarters in Menlo Park has received 617 letters in support of, and 12 against, it's potential placement on the National Register of Historic Places, after a state commission voted 6-0 in May recommending the site be designated as historically significant. The designation would pose a roadblock to the development group N17, which has proposed to build 3 towers up to 31 stories tall, including 665 housing units with 133 set as affordable, 300,000 square feet of office space, a 130-room hotel, nearly 5 acres of parks, and other commericial spaces. California's population grew for the second year in a row in 2024, nearing its pre-pandemic peak thanks to gains in major cities like Bakersfield, San Diego and Los Angeles, despite continued net migration losses to other states. Growth was driven largely by natural increase and international immigration, while housing construction remained modest, with Accessory Dwelling Units (ADUs) playing an increasingly significant role. California's population grew for the second year in a row in 2024, nearing its pre-pandemic peak thanks to gains in major cities like Bakersfield, San Diego and Los Angeles, despite continued net migration losses to other states. Growth was driven largely by natural increase and international immigration, while housing construction remained modest, with Accessory Dwelling Units (ADUs) playing an increasingly significant role. Developer Hines has proposed a 1,225-foot skyscraper at 77 Beale Street that would become the tallest building on the West Coast, surpassing Salesforce Tower by over 150 feet. The project includes 1.6 million square feet of office space, retail, restaurants and a new public garden, along with the conversion of a smaller office building into 120 housing units. It also calls for the restoration of two historic buildings on the block and replaces a previous plan for an 808-unit residential tower. City officials have praised the project as a bold investment in San Francisco's recovery, though it arrives amid high office vacancy rates and broader efforts to encourage office-to-housing conversions.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Orange County Streetcar Faces Grand Jury Inquiry over Cost Overruns The Orange County Grand Jury is investigating why the Santa Ana Streetcar project budget increased to over $150 million per mile, running nearly $400 million over the original budget and six years behind schedule. The grand jury noted that no recent ridership studies and unclear community demand for the 4.1-mile route. Lawsuits from both the lead contractor and affected institutions, along with construction delays and poor planning, contributed significantly to the rising costs. Local businesses, particularly in downtown Santa Ana, suffered major financial losses due to prolonged street closures, with some ultimately forced to shut down. In response, the grand jury issued recommendations for improved public engagement, wider project benefits and support funds for impacted businesses, though the streetcar is still slated to open in late 2026. Alameda County OK's Sale of A's Half of Oakland Coliseum The Alameda County Board of Supervisors unanimously approved the former Oakland Athletics' sale of their share of the Oakland Coliseum to a private development group. The deal will make the African American Sports and Entertainment Group, an investment group focused on community development in Oakland, the sole owner of the the complex. The sale is slated to close on June 30, 2026. AASEG has not released specific details of its plans for the site, but has proposed a multibillion dollar revitalization project at the site with housing, restaurants, and other entertainment ventures. City ordinances dictate that at least a quarter of any new housing developments on the site will be affordable housing, and AASEG said it would not tear down the Coliseum. City officials hailed the development plan as a historic investment, emphasizing the economic opportunities it will create for Oakland. (See related CP&DR coverage .) Statewide Planning Guidelines to be Updated, with Stakeholder Input The Governor's Office of Land Use and Climate Innovation (LCI), with support from Raimi + Associates and a team of planning consultants, has launched an 18-month effort to update California's General Plan, Specific Plan and Tribal Consultation Guidelines. These revised LCI Planning Guidelines will reflect recent legal changes and incorporate new guidance on equity, climate resilience and innovative long-range planning strategies. Broad input from planners, advocates and stakeholders is being sought through launch workshops, email updates and participation in advisory groups. This initiative presents a key opportunity for professionals to help shape planning tools that support sustainable and inclusive development across California. San Diego Takes Legal Action against La Jolla Secession The City of San Diego has filed a lawsuit seeking to prevent an effort to give La Jolla cityhood from moving forward. The suit centers on the Association for the City of La Jolla's petition, and whether it obtained signatures from the 25% of registered voters, a number required to move the effort forward. The suit alleges that the Local Agency Formation Commission acted improperly when it reversed the San Diego County registrar of voters' initial determination that the petition did not obtain enough signatures. On April 29, LAFCO issued a certificate of sufficiency to the ACLJ and the petition, prompting the city of San Diego to file a lawsuit. CP&DR Coverage: Court Rejects Use of "Upstream" Greenhouse Gas Reductions In a new battle between the Tejon Ranch Company and environmentalists, an appellate court has ruled that Los Angeles County's environmental impact report for the Centennial community in Antelope Valley was misleading because it tried to count “upstream” reductions in greenhouse gas emissions resulting from the state's cap-and-trade program. In an unpublished portion of the opinion, the appellate court also found the EIR's treatment of evacuation planning inadequate. The Center for Biological Diversity and Climate Resolve sued L.A. County over the EIR. Climate Resolve eventually settled but continued in the lawsuit as an amicus curiae. The critical issue was whether the EIR treated greenhouse gas emissions reduction correctly. the court concluded, “ here is no analysis in the EIR that supports its determination that the extensive off-site project features . . . do not represent dangerous fire hazards, would not include land uses that would, by themselves, increase the risk of fire hazards, and do not require mitigation.” Quick Hits & Updates The California Supreme Court will review whether Kern River flows will be kept in the riverbed through Bakersfield. The 5th District Court of Appeals overturned a Kern County Superior Court ruling mandating that water be kept in the river for fish, and the ruling was also "published" to be used as legal precedent. The Supreme Court granted a review of the case, but did not depublish the ruling. PG&E submitted a plan to federal regulators to tear down two dams on the Eel river as part of demolishing the aging Potter Valley Project hydroelectric system, which would make the Eel the longest free-flowing river in California. The dams' largest use in recent years have been the water they supply to cities and vineyards in Marin and Sonoma counties. Under the plan water shipments would continue at a lower volume. Conservation groups, tribes and other communities on the Eel river praised the plan as a vital opportunity for river restoration and wild salmon recovery. The City of Monterey issued an apology to Indigenous families who were displaced from the Dutra Street communal village in 1959 for the construction of a fire and police station. The city akgnowledged it's use of eminent domain to acquire land which dispersed the once vibrant-community. Tribe members and advocates hailed the apology as a step in the right direction for the city. The cost to build the Sites Reservoir in Colusa County, the state's largest new reservoir in 50 years, has jumped from $4.5 billion to as much as $6.8 billion due to inflation, supply chain issues, and tariffs. Supporters say it's a vital project to store water during wet years for use during droughts, but environmental groups argue it will harm river ecosystems and question whether wealthy water agencies will continue backing the now more expensive project. Between 2018 and 2024, neither Coronado nor Imperial Beach permitted any affordable housing, despite their largely different political and economic profiles, one wealthy and resistant, the other willing but underfunded, according to findings from Voice of San Diego. While Imperial Beach has approved some projects that could bring affordable units, none have moved forward to actual construction, highlighting a larger local struggle to meet housing demand amid high costs and limited political will in wealthy areas. Citizens' group Petaluma Historic Advocates has filed a lawsuit challenging the legality of a zoning ordinance that would allow construction of a six-story hotel in downtown Petaluma, arguing it would cause lasting harm to the city. The suit follows failed negotiations over a proposed ballot referendum and seeks a court ruling to nullify the ordinance entirely, bypassing a public vote. City officials argue that the group's referendum only affects one part of the project's rules—related to building size—not the full zoning change that allows the hotel. A coalition of environmental groups has sued the city of Santee to halt the approval of the Fanita Ranch development, which proposes to build 3,000 homes in a very high fire hazard severity zone, the highest risk designation in California. The suit alleges that the city violated state laws by not conducting adequate fire risk analysis, and by substantially increasing the number of homes planned without voter approval. Courts have previously ruled against the project, most recently in 2024. (See related CP&DR coverage .) SB 549, which included language giving a new local authority the ability to rebuild and sell lots burned in the Pacific Palisades fire back to the original homeowners at a discount, has been put on hold amidst policy hurdles to passing it before the Legislature adjourns in September. Controversy surrounding the bill was fueled by misinformation and conspiracy theories holding that the government would become a major landowner in the palisades and re-zone burnt areas for high-density housing, policies which were not a part of the bill. The newly released annual Silicon Valley Pain Index shows widening income inequality in the region, with .1% of households holding 71% of the area's wealth and the wealthiest 9 households alone accounting for 15%. The Index also highlighted the increased difficulty most residents face meeting their basic needs, particularly housing. A report from Stanford's Institute for Economic Policy Research finds that California's homelessness crisis remains one of the worst in the country, citing insufficient shelter capacity, a shortage of housing, and weak incentives for drug treatment as key drivers of the state's high rate of homelessness, particularly unsheltered homelessness. The report emphasized that data collection and transparency has not kept up with massive new government investments, and need to be overhauled to understand the effectiveness of policies and investments. The California Statewide Study of People Experiencing Homelessness (CASPEH), conducted by the UCSF Benioff Homelessness and Housing Initiative, found that the median age of someone experiencing homelessness in the state is 47, and Black, Latino and Indigenous persons are overrepresented in the statewide population of homelessness. It also found that high housing costs and low income are significant factors leading to homelessness, with many participants experiencing mental health and substance use challenges before and during their homelessness.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . New Housing and Homelessness Agency to Launch July 2026 Gov. Newsom announced the creation of the California Housing and Homelessness Agency, consolidating multiple existing departments into a new body. State lawmakers approved the move earlier this month, and the agency is set to be operational by July 2026. The move heeds calls from some experts and advocates to centralize the state bureaucracy to better address homelessness and housing costs. Under Newsom, California has seen unprecedented investment to fight homelessness and bring down housing costs, but so far results have been mixed. Since 2019 the state has directed $27 billion to local homelessness efforts statewide, but homelessness increased around 24% to 187,000 people during that time. A state audit found that $24 billion in homelessness funding was not properly tracked. The state missed Newsom's goal of 3.5 million new homes by 2025, and the governor set a new goal of 2.5 million by 2030. However, in 2024 the state's homeless population increased by 3% compared to the 18% average nationawide, a figure experts have attributed to California's investments. Report Shows Progress toward 30 x 30 Conservation Goals California has advanced toward its goal of conserving 30% of its land and coastal waters by 2030, with current figures at 26.1% and 21.9%, respectively, according to a recent progress report from the Natural Resources Agency. The 30x30 Initiative, established by Governor Gavin Newsom in 2020, also focuses on supporting biodiversity, increasing public access to natural spaces and addressing climate-related challenges. Recent progress includes new national monument designations and marine protections, though ongoing federal policy shifts could affect these gains. Some environmental organizations have questioned whether certain newly protected areas, such as the Chumash Heritage National Marine Sanctuary, meet the standards needed to count toward the 30% target. State officials plan to continue expanding conservation efforts through the integration of nearby private lands into public park systems and emphasize the broader environmental benefits of the initiative. Bonta Joins Protest against Repeal of Federal Fair Housing Regulations California Attorney General Rob Bonta, along with 20 other attorneys general, sent a letter to the U.S. Department of Housing and Urban Development opposing a proposed repeal of regulations requiring fair marketing of affordable housing. These “affirmative marketing” rules, established under the Fair Housing Act in the 1970s, aim to ensure that federally assisted housing is promoted to all eligible groups, especially those historically excluded. The attorneys general argue that removing these rules could lead to discriminatory practices and undermine decades of efforts to combat housing segregation. Critics of the proposed repeal also say it lacks clear legal justification and could reduce equitable access to housing opportunities for marginalized communities. Union, Residents Object to Financing District for Sacramento Railyards Unite Here Local 49 and residents of Sacramento's Railyards district allege the city is delaying the verification of protest letters that challenge a proposed special tax financing district to develop a massive mixed-use complex, including a new soccer stadium. They argue that a majority of residents have submitted valid protests, which, under a 2019 state law, could halt the city's agreement with developers for up to a year. The union is now considering legal action, claiming the delay undermines efforts to secure stronger affordable housing commitments. City officials say they are working through a legally complex and untested process to confirm residency within the newly built apartment complexes. Supporters of the financing plan argue that public infrastructure funding is necessary to move forward with development. HCD 2024 Housing Progress Report Finds Growth in Affordable Development The Department of Housing and Community Development (HCD) released its 2024 Annual Progress Report, offering a statewide look at residential permitting and development. The report found growth in affordable development, with the lower income units accounting for 22.8% of permitted units and 20.7% of completed units in 2024, up from 9% and 7% respectively in 2018. Lower income unit production rose from 17,872 in 2023 to 20,514 in 2024. Multifamily housing production remained high with 343,236 units in the housing pipeline up from the previous five-year average of 296,432, and ADU production saw a record high of 30,600 in 2024 up from 28,666 in 2023. The report also emphasized faster development timelines, with the average time from application submission to planning approval decreasing from 145 days in 2018 to 58 days in 2024. The report credited the Housing Accountability Unit for much of the acceleration. The state also saw a moderate increase in deed-restricted affordable units from 49,000 in 2023 to 51,000 in 2024, including an increase of 7,000 units from the increased Density Bonus incentives for projects with affordable housing components passed in 2021. Palisades Tahoe Agrees to Scaled-Down Village Development Alterra Mountain Company, owners of Palisades Tahoe ski resort, reached a settlement with environmental groups Keep Tahoe Blue and Sierra Watch to reduce the scale of a planned development in Olympic Valley (formerly Squaw Valley). The agreement ends a fourteen-year dispute over plans for the development, which was originally proposed in 2011 and revised in 2014. In the settlement, Alterra agreed to reduce the total number of bedrooms from 1,493 to 896, reduce commercial space from 278,000 square feet to 222,000, eliminate plans for an indoor waterpark, create a conservation easement at the base of Shirley Canyon to preserve public land access in perpetuity, and prevent additional development within the boundaries for 25 years. (See related CP&DR coverage.) CP&DR Coverage: CEQA Legislation Roundup: AB 130, AB 131, SB 79 On July 1, the provisions of AB 130 and SB 131 - the two budget trailer bills that reformed the California Environmental Quality Act to streamline housing approvals - went into effect. In an unprecedented move, Newsom had basically held the budget hostage over CEQA reform, especially on infill housing. Because the trailer bills were tagged as “urgency” bills, they took effect July 1. The bills greatly expand exemptions for infill housing and also carve out exemptions for a variety of non-residential projects. Although the bills represented something less than comprehensive CEQA reform, they were probably the most significant legislative changes to CEQA in this century. And while the infill housing got the most publicity, a wide range of other provisions are also important. Meanwhile, SB 79, which is still pending, would effectively transfer land-use authority from local governments to transit agencies for land owned by transit agencies that is located near transit stations - and permit buildings of up to 100 feet high immediately adjacent to the busy stations. It would exempt many projects on such land from the California Environmental Quality Act because many would qualify for a CEQA exemption under Wiener's SB 423, his successor bill to SB 35. The League of California Cities is fiercely opposed to the bill. But so are environmental justice Democrats and anti-regulation Republicans. Quick Hits & Updates The first round of funding from Proposition 1's Homekey+ program has awarded nearly $103 million to create 315 units of permanent supportive housing for veterans and individuals with behavioral health challenges across five California counties. The initiative, part of a broader $6.38 billion bond approved by voters, aims to address homelessness by combining affordable housing with wrap-around services, with future awards continuing on a rolling basis as the state evaluates over $1 billion in pending applications. The Santa Monica City Council voted , 6-1, to prioritize transforming the 192-acre Santa Monica Airport site into a public park focused on open space and recreational facilities after its closure in 2028. The approved plan includes ecological restoration and adaptive reuse of existing buildings in line with a 2014 voter-approved measure requiring public approval for non-park uses, while the one dissenting councilmember called for exploring a mix of uses, including housing. The Los Angeles City Council is considering a proposal that would allow homeowners to sell ADUs separately from the main home, in a move seeking to increase the housing supply as LA's average household size shrinks. 41% of new housing permits issued last year in LA were for ADUs, and since 2023 california state law has a pathway for selling ADUs, but cities must adopt the changes locally. San Francisco District 5 Supervisor Bilal Mahmood has introduced a reform measure targeting language in the city's housing code limiting the number of unrelated people allowed to live together to five. Although the rule has largely fallen into obscurity, Mahmood says it often hamstrings co-op housing as bedrooms sit empty in compliance with the law, and changing the wording could help maximize available housing. State officials issued a statement harshly criticizing the Trump administration's termination of $4 billion in grants for the state's high speed rail program, claiming the termination was politically motivated and based on inaccurate analysis. The Rail Authority pointed to 59% construction completion on the initial 119-mile central valley route as progress compliant with funding conditions. San Francisco, Downtown Los Angeles and San Jose rank among the California cities with the highest office vacancy rates and greatest potential to convert empty office buildings into housing, with San Francisco alone capable of adding over 61,000 new apartments. These cities are also seeing some of the fastest year-over-year vacancy increases, highlighting both the urgency and opportunity to repurpose underused commercial space to help ease California's housing shortage. Twenty-four city-owned buildings in San Francisco are at risk of collapse in a major earthquake, and another 26 are at risk of severe damage, according to the city's Seismic Hazard Rating. The buildings at risk include the Hall of Justice and multiple fire stations, police stations and homeless shelters. Since 1990 the city has spent $20 billion on seismic retrofits, which are not required by state law and are funded by voter-authorized bond measures. The city of Elk Grove approved the sale of 20.5 acres of land to developer CenterCal for Project Elevate, a mixed-use development that may, but is not required to, include a housing component. The sale will not formally close until CenterCal secures entitlements and building permits, and the company expects to break ground in 2028. California's First Appellate District Court of Appeal upheld a ruling against the city of Oakland in favor of a development company over plans to build a coal export terminal in West Oakland. After the ruling, Oakland Bulk and Oversized Company can keep and extend its lease to city-owned waterfront land in order to restart work on the coal terminal.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Court Orders San Diego to Locate Affordable Housing More Equitably A federal judge approved a settlement requiring the City of San Diego to encourage distrubtion of future affordable housing projects more equitably, with at least 70% located in moderate- to high-resource neighborhoods instead of concentrating them in lower-income areas. The agreement comes after a six-year legal battle brought by residents of southeast San Diego who alleged the city's past policies violated fair housing laws by clustering poverty. Under the deal, the city must update community plans, annually report progress and take steps to promote integration, including financial incentives for grocery stores in underserved areas and support for first-time homebuyers. While San Diego denies any wrongdoing, officials say the settlement aligns with existing goals and helps avoid prolonged litigation. The court will retain oversight to ensure compliance with the terms. Fresno Adopts Policies in Hopes of Restoring Prohousing Status The City of Fresno is working to regain its Prohousing status, which allows access to millions in state housing grants, by passing several housing policy updates aimed at streamlining development. Recent council actions include recognizing tiny homes as primary residences, reducing mobile home park density requirements and eliminating certain parking mandates. A more controversial proposal to streamline housing approvals near transit and office zones was postponed due to opposition. A related rezoning plan in southwest Fresno was also delayed amid long-standing community resistance and criticism from a state senator. Meanwhile, the council approved funding for local community projects, including a senior center and LGBTQ-serving nonprofit. (See prior CP&DR coverage .) Final Draft of Plan Bay Area 2050+ Envisions $1.4 Trillion in Investments The Metropolitan Transportation Commission and the Association of Bay Area Governments released the Final Blueprint analysis of Plan Bay Area 2050+, roadmap for growth and investment in the Bay Area that plans for 900,000 new households and 1.3 million new jobs by 2050. The analysis precedes environmental review under CEQA, which is set to commence as early as July 17. Directing over $1.4 trillion in investments, the plan is the result of extensive public engagement over the past two years and focuses on transportation, housing, economic development, and environmental resilience. Key findings include the potential to double the share of people commuting by bike, foot, or transit through investment in transit and land use strategies to promote growth near transportation hubs. The plan proposed housing production and renter protections that could reduce percent of income spent on housing by 42% for low income families and 12% for all levels. Environmental resilience and retrofitting proposals could protect 95% of vulnerable homes from sea-level rise and reduce risk of wildfire damage by 50% according to the report. Los Angeles Allocates Funds from Controversial "Mansion Tax" The Los Angeles City Council approved a plan for spending $425 million raised from Measure ULA for homelessness and affordable housing programs. Since its approval by voters in 2022, the controversial measure, also known as the "mansion tax," has raised $702 million. The 2025 ULA spending plan is greater than all previous years combined. It allocates $100 million for homelessness prevention through at-risk tenant support and eviction defense, and $288 million for the production and preservation of affordable housing. Since its adoption the measure has received criticism from the real estate industry, and recently several reports found that by reducing property sales Measure ULA ultimately limited new development, including multifamily and affordable housing. Proponents of Measure ULA defended the tax as a valuable source of funding for affordable housing. Joe Donlin, the director of United to House LA, criticized the reports as "lies" and "hate from big money real estate". (See related CP&DR coverage .) Demise of Federal "Roadless Rule" Could Weaken Protection of 4.4 Million Acres in California The US Department of Agriculture will rescind the 2001 'Roadless Rule' protecting 58 million acres of national forestland from road construction and logging, around 30% of national forestland. USDA Secretary Brooke Rollins claimed the move overturns obstacles to management and wildfire prevention, while environmental groups blasted the decision as a liquidation of public lands that would open national forests to drilling, mining, and logging. Advocates also refuted the claim that the decision helps wildfire management and future sustainability, pointing to the effects of logging on the forest conditions that create wildfires, as well as research showing that roadbuilding and development can fragment ecosystems, increase erosion, and lead to more sediment pollution in drinking water. In California over 4.4 million acres of national forest are protected by the roadless rule, including the Angeles, Tahoe, Inyo, Shasta-Trinity and Los Padres National Forests. Nearly 500 Jurisdictions Subject to Streamlining for Affordable Housing The California Department of Housing and Community Development (HCD) updated its list of cities and counties subject to streamlined approvals under the Streamlined Ministerial Approval Process (SMAP). SMAP is a state program that fast-tracks approval for certain developments in jurisdictions that have not met housing targets. HCD also launched an online SMAP dashboard showing real-time Housing Element compliance data for jurisdictions. Jurisdictions are assigned exempt, 10%, or 50% affordability streamlining status. Localities which have a compliant Housing Element, have submitted their latest Housing Element Annual Progress Report (APR), and which have made sufficient progress on their Above Moderate Income, Lower Income, and Very Low Income Regional Housing Needs Allocations (RHNAs), are exempt from SMAP streamlining. Forty jurisdictions are exempt. Two-hundred-one jurisdictions with have streamlining for at least 50% affordability, and 298 have streamlining for at least 10% affordability. CP&DR Coverage: Fulton on Implications of Supreme Court Ruling for CEQA The U.S. Supreme Court's ruling involving the National Environmental Policy Act does not directly affect California's environmental review process. But the NEPA ruling is likely, some lawyers say, to expand the gulf between NEPA and the California Environmental Quality Act. And it is possible - though not likely. - that the case will affect CEQA reform discussions in Sacramento. The important point to note is that this separates NEPA from CEQA even more than was already the case. “Reasonably foreseeable” developments and “cumulative impact” are bedrocks of CEQA analysis. So they'll continue to be analyzed in, for example, transportation projects that involve both state and federal funds. But the anti-piecemealing argument that lies at the heart of “reasonably foreseeable” is so deeply embedded in CEQA that it's hard to see - both politically and practically - how to extract it. In the meantime, combined EIR/EIS documents for state/federal projects will continue to have to worry about what's reasonably foreseeable. Quick Hits & Updates A federal judge declined to place Los Angeles' homelessness programs under court control but found the city had failed to meet key requirements of a settlement agreement, including missing housing targets and providing unreliable data. Instead, the judge ordered the appointment of an independent monitor to oversee the city's progress, signaling serious concerns about transparency and accountability while stopping short of full receivership. Kern County supervisors are considering a proposed overhaul of the county's oil and gas zoning rules, which could streamline permits for nearly 2,700 new wells annually in unincorporated areas. The plan, reintroduced after past legal challenges, includes a new permitting system and CEQA updates, drawing both support from industry advocates citing economic need and criticism from environmental groups concerned about community health impacts. The Oceanside Planning Commission has endorsed a transformative mixed-use redevelopment of the Oceanside Transit Center, encompassing over 500 new apartments (with 15% designated as affordable), a boutique hotel, expanded retail and dining spaces and more than $100 million in transit and parking upgrades. The project, led by Toll Brothers Apartment Living under a 99‑year lease, now moves to the City Council and California Coastal Commission for final approval and has already sparked debate over proposed changes to bus circulation and pedestrian access. The Los Angeles Harbor Commission approved a 6,200-person lawn-style amphitheater as part of San Pedro's long-delayed West Harbor redevelopment, which also includes an expanded Ferris wheel and a major parking structure. This project, seen as a cultural revival for the area, is expected to take up to 16 months to build and aims to compete with Long Beach's planned 12,000-seat venue. A poll of registered California voters from the UC Irvine School of Social Ecology found that 70% think housing is a major funding priority. The poll also found that 33% of likely voters listed housing as their single biggest priority, more than double the second largest response of healthcare. The aging Benicia-Martinez Railroad Drawbridge is causing significant delays for Capitol Corridor trains due to frequent vertical lifts for maritime traffic. The bridge poses a major obstacle to the rail service's Link21 plan, which calls for faster and more frequent service between the Bay Area and Sacramento. Officials are considering two $10 billion-plus proposals to build a new, higher rail bridge. Two Los Angeles City Councilmembers introduced a motion to explore ending parking requirements for new developments citywide, aiming to reduce housing costs and boost affordability. While the policy is still in early stages, supporters say it could give renters more options and lower construction expenses, though critics worry it may worsen parking shortages in residential neighborhoods. The San Jose City Council unanimously rejected a proposed 17-story apartment and retail project in West San Jose, siding with residents who argued it was too large and not in line with the city's character. Despite support from housing advocates and offers from the developer to scale the project down, officials said the plan conflicted with the city's general goals for targeted growth and would be revisited during broader planning updates. The Irvine City Council is moving toward stricter regulations on sober living homes, including proposals for a 1,000-foot buffer between facilities and mandatory 24/7 on-site managers, following a violent incident at one such home. This local push reflects a broader trend across Orange County, where cities like Costa Mesa and Mission Viejo have enacted similar rules after legal victories affirmed their authority to regulate these group homes for safety and oversight. (See related CP&DR coverage .) Rise East, an urban revitalization plan for East Oakland, has secured $100 million in funding for the project. The community-led plan concentrates on the area home to the highest concentration of Black residents in East Oakland, and will support projects including affordable housing, youth workforce programs, cultural spaces, and revitalization of the MacArthur Blvd commercial corridor.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Berkeley Finalizes Citywide Multiunit Ordinance The Berkeley City Council unanimously adopted a landmark Middle Housing ordinance ending a century-old single-family zoning policy, allowing small apartment buildings across most of the city. The policy permits up to eight units on standard lots, aiming to increase housing options for middle-income residents, young families and people of color, while excluding the fire-prone hillside areas for now. The move follows years of advocacy for more inclusive housing and is rooted in Berkeley's historical role in establishing exclusionary zoning. Supporters say the ordinance addresses racial and economic inequality, while opponents argue it lacks affordability guarantees and could lead to displacement and speculation. A follow-up report will evaluate the ordinance's equity and effectiveness after it takes effect in November. (See related CP&DR coverage .) SACOG Releases Draft Regional Plan The Draft 2025 Blueprint from Sacramento Area Council of Governments (SACOG) outlines a long-range plan to guide land use and transportation investments across the Sacramento region through 2050. It aims to reduce greenhouse gas emissions and vehicle miles traveled by promoting compact, mixed-use development and expanding options for walking, biking and transit. The plan reflects input from over 6,000 community members and offers local governments tools and data to align development with regional goals and streamline environmental review. SACOG will continue monitoring implementation through monthly updates and provide technical assistance to ensure ongoing progress. (See related CP&DR coverage .) Senate to Consider 118,000-Acre Addition to Santa Monica Mountains National Recreation Area A U.S. Senate bill introduced by Sen. Adam Schiff calls for the addition of over 118,000 acres of the Rim of the Valley corridor to the Santa Monica Mountains National Recreation Area. The corridor is a non-contiguous “green belt” surrounding the San Fernando Valley and enclosing existing parks and historic sites such as Griffith Park and Olvera Street. Such an addition to the 154,000-acre Recreation Area would bring consolidated management and federal funding and expertise to the new areas. Efforts to protect the Rim of the Valley date back to the mid-1970s. The latest bill comes as the Trump administration is proposing cutting $1.2 billion dollars in funding for the National Park Service, around 30% of its operating budget. Activists say the funding cuts would leave the Santa Monica Mountains vulnerable to cession to state control. Rep. Laura Friedman is expected to introduce a version in the House. Proposal to Sell Federal Lands Removed from Budget Bill The Senate Parlimentarian ruled out the sale of more than 3,200 square miles of public land from the GOP's spending bill after determining the proposal violated Senate rules. The plan, proposed by Utah Senator Mike Lee, would have opened millions of acres in western states to sale to states or other entities for use building housing or infrastructure. The Parlimentarian also ruled against other GOP proposals such as changes to oil and gas lease permitting on federal lands and the construction of a new mining road in Alaska. Lee said he plans on submitting a revised plan which excludes the sale of U.S. Forest Service Land and only allows the sale of Bureau of Land Management land within five miles of population centers. CP&DR Coverage: How Hollywood Contributed to, and Suffers from, L.A.'s Housing Crisis Moviemaking in Los Angeles County is flickering out, with 31% fewer filming days in 2024 compared to 2020. This year is shaping up to be worse. One of the reasons production "ran away" in the first place is that the cost of labor in Southern California is exorbitant. It's cheaper to pay gaffers in Atlanta and extras in Vancouver than to pay them for the same work in Hollywood. Ideally, Hollywood should promote exactly the type of neighborhoods that it likes to shoot. Movies and TV shows disproportionately portray busy, walkable, attractive urban neighborhoods that are easy to create on a studio lot but almost impossible with conventional zoning, financing, and infrastructure.The entertainment industry needs to understand that a cheaper city will also be a more creative city, where artists can thrive without worrying so much about eviction or starvation. A more creative city means better (and maybe more profitable) shows, movies, music, and art. Quick Hits & Updates The Office of Land Use and Climate Innovation is kicking off a comprehensive update of the state's General Plan, Specific Plan, and Tribal Consultation Guidelines (collectively known as LCI's Planning Guidelines). This update process will engage diverse partners—planners, local staff and officials, and other community members involved in planning processes—to help shape guidance and resources that support local planning efforts and foster the growth of vibrant, resilient and inclusive cities and counties across California. Planners can attend the project launch workshop virtually, July 15, at 10 a.m. For questions email: planningupdate@lci.ca.gov. A federal judge ruled that LA officials failed to follow a settlement agreement to provide more housing for homeless people. The ruling found that the city breached its settlement agreement with L.A. Alliance for Human Rights by not providing a plan for creating a promised 13,000 new shelter beds by June 2027, missing milestones for those beds, and failing to provide accurate data about homelessness. Quarterly progress hearings have been ordered for the city and L.A. alliance. The judge characterized the ruling as progress, not punishment, saying he wanted the city to succeed. Six Flags, the parent company of California's Great America in Santa Clara, announced the amusement park's likely closure after the 2027 season. The company's lease on the park's land ends in 2028 with a 5-year renewal option, and no final decision has been made. In 2022, San Francisco real estate firm Prologis bought the park's land from then-owner Cedar Fair for $310 million, with Cedar Fair agreeing to lease back the land for 6-11 years, ending park operations afterwards. Developers behind a proposed eight-story building near the Santa Barbara Mission filed a legal petition against the city, arguing that its repeated rejection of their application violates Builder's Remedy provisions. The city has deemed the application incomplete multiple times, most recently citing inconsistent floor area details, prompting the developers to seek court intervention after a similar case was previously dismissed. Solano County officials are urging Suisun City to pause annexation plans tied to the California Forever project until the county completes a multi-year General Plan update, citing concerns about scale, land use and lack of coordination. Suisun City, which has already signed a reimbursement agreement with the developer, defends its actions as transparent and collaborative, while critics warn the move could undermine regional planning and bypass voter input. (See related CP&DR coverage .) The Department of the Interior under the Trump administration is supporting a controversial plan to utilize the Mojave Desert as a source of water for parts of Arizona, as strain on the Colorado River increases. The project is led by Cadiz Inc., a Los Angeles-based water company that has faced decades of opposition over environmental concerns and regulatory hurdles in California. The current rules governing water usage from the river expire in 2026, and Arizona has already committed to cutting over a quarter of it's river water use. Taking water from the Mojave desert has faced stiff opposition in California in the past. A report identifies 49 commercial properties in downtown San Francisco suited for housing conversion, with the potential to create 4,400 new homes and $15.5 million annually in tax revenue. New proposed legislation would designate an "Downtown Revitalization District" which would financially incentivize developers converting buildings to housing. Until now, developers have been discouraged by high conversion costs, despite historic office vacancy rates. The California Attorney General's Office warned Stanislaus County that its General Plan and Housing Plan fail to meet state requirements on environmental justice, climate adaptation, and identifying disadvantaged communities, specifically under SB 1000, a 2018 law requiring local governments to identify disadvantaged communities and include environmental justice in their land use planning. The California Legislative Analyst's Office recommends closing five more state prisons due to an anticipated surplus of 15,000 prison beds by 2024-25, potentially saving the state over $1 billion annually. Despite financial incentives, Governor Gavin Newsom has not committed to these reductions, prompting calls from organizations like Californians United for a Responsible Budget to redirect funds to community-based resources and reentry programs. The U.S. Social Progress Map evaluates quality of life across U.S. cities using 50 indicators covering basic needs, wellbeing and opportunity, revealing that six of the top ten cities for social progress are in California. Leading the rankings are San Ramon (#1) and Pleasanton (#2) in the Bay Area, followed by Folsom (#5), Carlsbad (#7), Irvine (#8) and Fremont (#10). This comprehensive tool helps policymakers and communities make data-driven decisions to promote equity and wellbeing beyond traditional economic measures. San Francisco is reconsidering the implementation of congestion pricing, inspired by the success of New York's recently implemented program, which has significantly reduced traffic, commute times and increased transit use. Despite slow downtown recovery and political resistance, officials are exploring the idea, particularly as a potential solution to the city's transit funding challenges amid a projected budget deficit for BART and Muni.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Feds May Sell Millions of Acres Across Western States Senate Republicans have introduced a proposal for the Forest Service and Bureau of Land Management to sell between 0.5% and 0.75% of their total 438 million acres of land. That would amount to 3.3 million acres of federal land in 11 western states, including parcels near California landmarks like Yosemite, Lake Tahoe and the Trinity Alps, and large swaths of the Sierra Nevada Mountains. The plan, part of President Trump's budget package, claims to be aimed at addressing the housing crisis by allowing construction on these lands, though specific sale locations remain unspecified. Some interpretations of the bill place the number of acres open to sale at far more -- up to 250 million acres, mostly in the West. While proponents argue the sales would generate between $5 billion and $10 billion in revenue and support economic development, critics warn the move threatens public access to outdoor spaces. Exemptions would apply to protected areas like national monuments and wilderness regions, but concerns remain about the feasibility of developing rural tracts lacking infrastructure. The proposal faces an uncertain path forward, with even some Republicans expressing reservations. Local Authority Could Aid Fire Recovery with Tax-Increment Financing An independent panel is calling on the California Legislature to create a new local authority to oversee rebuilding after the Palisades and Eaton fires. The Blue Ribbon Commission on Climate Action and Fire-Safe Recovery issued over 50 recommendations, including the creation of a Resilient Rebuilding Authority led by a board with members appointed by the governor, state lawmakers and local governments, with guidance from citizen advisory boards. The Commission recommended the proposed authority buy fire-razed lots--using increment financing, in an echo of the state's defunct redevelopment system--and coordinate development and construction at scale, with displaced residents being first in line for new homes. Commission members say this approach will prevent land from being bought up by investors and developers to be turned into more expensive homes. The commission also recommended a ballot measure for the creation of a new Los Angeles County Fire Control District, focused on wildfire management and fire risk reduction. Other recomendations include encouraging constructing all-electric homes, standardizing soil testing and cleanup, creating "buffer zones" around urban-wild boundaries, "fire-hardened" construction codes, additional water storage capacity and dousing systems, and voluntary programs shifting development to low-risk areas. Amid Controversy over Appointment Process, San Francisco Names Planning Director Mayor Daniel Lurie has name Sarah Dennis Phillips has been named San Francisco's new city planning director. Her contentious selection process culminating in three of the seven planning commission members walking out and refusing to vote on the appointment, objecting to the decision process. Mayor Lurie's office submitted Phillips, currently the executive director for the city's Office of Economic and Workforce Development, for the position less than a day before the vote. In the past, planning director appointments involved a search process of several months. The three protesting commissioners were appointed by the Board of Supervisors, while the four voting for Phillips were appointees of former Mayor London Breed. Phillips will oversee the finalizing of a rezoning allowing for 46,000 new housing units, due to be adopted by the Board of Supervisors by Jan 31, 2026. She succeeds Rich Hillis, who had held the position since 2020. Yurok Tribe Completes Acquisition of 47,000 Acres in North State The Yurok Tribe in Northern California has finalized the largest “land back” transfer in the state's history by acquiring 47,000 acres around the Blue Creek watershed, doubling their modern land holdings and restoring ancestral territory. This land, adjacent to their reservation near Klamath in Del Norte County, includes vital salmon sanctuary areas and is being managed as a community forest with sustainable logging and ecological restoration efforts. The acquisition complements recent dam removals on the Klamath River, enhancing habitat for migrating salmon and steelhead and reflects a partnership between the tribe, Western Rivers Conservancy and public and private funders. The Yurok Tribe is the largest in California, with over 5,000 enrolled members. CP&DR Coverage: Sacramento Updates The Assembly Downtown Recovery Committee has pulled together 13 already introduced bills into a downtown “package” designed to help downtowns as they recover from Covid-related declines. The “package” was announced by the committee's chair, Assemblymember Matt Haney, D-San Francisco. The bills cover a wide range of topics including streamlining Medi-Cal enrollment for the homeless, streamlining alcohol licenses and restaurant openings, and creating an option for cities and counties to permit bars to open until 4 a.m. Three of the 13 bills will be of particular interest to planners, developers, and property owners, with two of them using a tax-increment-like mechanism to help finance adaptive reuse of buildings, including conversion of office buildings to residential use. In his “May revise” budget for next year, Gov. Gavin Newsom has proposed creating the long-awaited state vehicle miles traveled mitigation program, with mitigation to be allocated on a region-by-region basis. In all likelihood, the VMT mitigation bank funds will wind up as yet another layer of financing for affordable housing, similar to funds available from the Affordable Housing and Sustainable Communities program. The complication is that, as the California State Association of Counties pointed out, “This is notable as there is no current standard for VMT assessment, reduction, or mitigation price used in the state.” Quick Hits & Updates A San Diego judge dismissed the lawsuit seeking to mandate Del Mar's approval of the 259-unit Seaside Ridge housing project, ruling that the developer must first appeal the city's denial through local channels before seeking court intervention. While the developer argues Del Mar violated state housing law by rejecting the project under the builder's remedy during a period of Housing Element noncompliance, the city maintains the application was incomplete and no final decision was made, making court action premature. (See related CP&DR coverage .) San Diego will cap the number of ADUs that can be built on a single-family lot, closing a loophole in ADU incentives that led to a handful of cases in which property owners built over a dozen on a single lot. The council also adopted new rules capping ADUs at two stories, setting a maximum size of 1,200 square feet, and allowing homes to be sold rather than only rented. Councilmembers characterized the move as a correction to a program intended to ease housing supply, but which had led to some exploitation. STV and Sonoma-Marin Area Rail Transit (SMART) have opened a new commuter rail station and 3.2-mile extension in Windsor, featuring upgraded track, bridges, crossings and a fully integrated pedestrian path. This extension marks a major milestone in SMART's effort to complete a 70-mile rail corridor from Larkspur to Cloverdale, aimed at improving regional mobility and sustainable transportation in the North Bay. (See related CP&DR coverage .) Berkeley officials approved a 28-story, 599-unit apartment tower at 1998 Shattuck Avenue, which would be the city's tallest residential building, signaling a significant shift in local housing politics. Despite growing support for high-density development and state laws encouraging it, developers say high construction costs, tariffs and financing challenges make it unlikely the tower will be built soon. Belvedere released a revised housing plan that clarifies previous proposals without altering the number or location of units, and the state has informally indicated the changes are sufficient to move the plan toward certification. Although the city remains out of compliance with state housing law and faces potential penalties, officials expect the plan to be approved contingent on final zoning changes that support at least 160 new housing units through 2031. California High-Speed Rail Authority officials are disputing findings of the Federal Railroad Administration's audit, calling the report inaccurate and misleading. The audit recommends rescinding $4 billion of federal funding for the project, originally planned as an $33B LA to San Francisco line opening in 2020. After massive delays and cost hikes, the Rail Authority is now focusing on the completion of a 172-mile central valley line, with construction fully funded for 119 miles from Shafter to Madera. The 2025 Happy City Index ranks San Diego as the 34th happiest city in the world, recognized for its efforts in sustainability, public health and livability. Other California cities appearing in the top 200 include San Jose and Los Angeles, though they rank lower due to challenges in affordability and transportation. The Justice Department's new legal opinion says President Trump can revoke or alter national monuments created by previous presidents, putting California's recently designated Chuckwalla and Sáttítla Highlands monuments at risk. This move has sparked strong opposition from conservationists and lawmakers, with potential legal battles expected over the authority to undo these protections. Los Angeles, in partnership with CityLab-UCLA, is addressing its housing affordability crisis by reimagining approximately 24,000 small, vacant residential lots scattered across the city. Through a design competition led by CityLab-UCLA, architects proposed compact, multi-unit housing prototypes that avoid traditional single-family homes in favor of space-efficient designs with outdoor areas and natural light. The city plans to pilot these models on a dozen publicly owned lots to demonstrate how such underused parcels can support affordable homeownership. The City of Sacramento has proposed charging residents $120 dollars a year for parking permits to park in front of their own homes to help cover its $44 million budget deficit. The residential permit program, affecting around 30,000 residents in various areas of the city, has been free since its creation. LA Metro will move forward on a plan for the underground construction of the proposed Southeast Gateway line between Union Station in downtown and the city of Artesia. So far the city has identified $2 billion in funding for the first section between the A line Slauson Station and Artesia, the section is projected to cost $5 billion. One proposed solution to the shortfall is an enhanced infrastructure financing district.