Plan for San Francisco's Candlestick Point Megaproject Moves Forward The redevelopment plan for Candlestick Point, a 280-acre site on San Francisco's waterfront, recently received initial approval from the city's Office of Community Investment and Infrastructure (OCII). This updated plan features taller buildings, the transfer of commercial space from the adjacent Hunters Point Shipyard and a focus on creating an “innovation district” to attract tech firms. However, significant changes include extending deadlines for public financing and construction due to previous delays. Community groups have raised concerns about the affordability of the new housing, arguing that it may exclude lower-income residents displaced by the redevelopment. The proposal now moves to further reviews, including the OCII Oversight Board and the Planning Commission, with ongoing debate about its impact on local communities and affordability. Oakland Port Seeks New Proposed for A's Stadium Site at Howard Terminal With the Oakland A's having abandoned their plans for a $1 billion waterfront stadium and surrounding development at Howard Terminal, the Port of Oakland is now seeking new proposals for the site. Initially, the A's envisioned a mixed-use project featuring a 35,000-seat ballpark, residential units, commercial space and public amenities. With the team's plans to relocate to Las Vegas and the exclusive negotiating agreement with the port expiring, the port aims to explore alternative uses for the disused 50-acre property. The port is open to proposals that include maritime, industrial, commercial, recreational and water-oriented developments. This shift represents a significant opportunity for the port to drive economic growth and job creation in the region. Building Permits Fall across Southern California Southern California's homebuilding activity has slowed due to high lending rates impacting developers. In the three months ending in July, permits for new housing units dropped by 13% year-over-year but were still 7% higher than the five-year average. The decline was consistent across the region, with permits down in Los Angeles, Orange, Inland Empire and San Diego counties. Multifamily permits fell sharply as apartment builders scaled back, while single-family permits also decreased, reflecting cautious homebuilders and rate-sensitive buyers. Despite the recent slowdown, permit numbers remain above the long-term average in some areas, suggesting mixed impacts on housing availability and affordability. Goleta Housing Development Entagled in Dispute over Builder's Remedy, Measure G A Goleta property owner is suing the City of Goleta over the right to utilize California's builder's remedy to construct 56 single-family homes, including 13 affordable units, on 12 acres called the "Shelby property." The application was an updated version of a development approved in a 2011 tract map. The City of Goleta rejected Glynne Couvillion's application in 2023, leading to litigation where the judge will review issues related to the Housing Accountability Act and builder's remedy. The Shelby property, with a complex zoning history and recent changes, faces opposition from conservationists and local groups, while legal debates continue over the application of 2012's Measure G--which requires voter approval of changes to certain agricultural properties--and the project's adherence to current regulations. The outcome will impact Goleta's housing landscape, addressing the city's urgent need for affordable housing amidst ongoing planning and environmental concerns. CP&DR Coverage: Protections for Threatened Bumblebee Could Impede Development As California grapples with a deepening housing underproduction crisis, developers might be facing an unexpected challenger: Crotch's bumblebee. And it could be just the beginning of a new era of endangered species protection, as more insects become eligible for protection - and the methodology for understanding listing and protection might be very different for insects. The bumblebee (scientific name: Bombus crotchii ) has an extremely wide range within California, including the Mediterranean region, Pacific Coast, western Mojave desert, Central Valley, and foothills, and has also been observed in southwest Nevada near the California border. If the bumblebee were to be listed, it could pose significant challenges to developers all across the state. They would have to adhere to new regulations, including undergoing extensive survey processes and implementing unclear conservation practices, potentially delaying previously established timelines. Quick Hits & Updates Los Angeles' Measure ULA, a tax on high-value property sales aimed at funding housing initiatives, has generated $375 million since its implementation, falling well short of the expected $600 million to $1.1 billion annually. Despite facing legal challenges and opposition, the tax is moving forward, with plans to allocate $160 million next year for programs like social housing, eviction defense and support for low-income first-time homebuyers. (See related CP&DR coverage .) The Afterthought Mine in Shasta County has been designated a Superfund site by the EPA due to its severe pollution, with acidic drainage 1,200 times above allowable limits contaminating Little Cow Creek and its tributary, the Sacramento River. The cleanup will involve extensive study and possibly passive treatment methods, but the site will require ongoing treatment for potentially hundreds of years, with costs fronted by taxpayers. Though the Brightline West high speed rail line will run between California and Nevada, Senate Majority Leader Chuck Schumer is advocating for Siemens Mobility to manufacture its trainsets in Upstate New York's Southern Tier, which could generate hundreds of jobs. Siemens was chosen to build the American Pioneer 220 trainsets for the Brightline. Schumer highlighted the Southern Tier's strong manufacturing base and skilled workforce as key advantages. (See related CP&DR coverage .) California's homelessness crisis continues to grow , with nearly 186,000 individuals affected, though the rate of increase has slowed compared to previous years, with the largest increase statewide occurring in San Joaquin County. While some counties have reported progress through increased funding and new shelters, discrepancies in counting methods and data accuracy challenge efforts to fully understand and address the crisis. A Los Angeles County Superior Court judge has struck down a city law aimed at phasing out oil production within city limits, ruling that state jurisdiction supersedes local control over drilling operations. The law, backed by the L.A. City Council and environmental activists, sought to halt new oil and gas extraction and end existing operations within 20 years; however, the ruling may be overturned if a pending state bill allowing local governments more control over oil operations is signed by Governor Newsom. Under the Green and Resilient Retrofit Program, HUD has awarded $3.6 million in Surplus Cash Loans to Pleasant View Apartments in Fresno to support energy efficiency and climate resilience improvements. This funding is part of a larger initiative to enhance nearly 2,000 homes across the country, focusing on reducing carbon emissions and increasing sustainability in housing. Recent tests at a former rocket testing site in Canoga Park revealed high levels of toxic chemicals, including TCE and PCE, in nearby homes and businesses, prompting calls for further investigation. The report recommends additional testing at residential and commercial sites to the north and east of the former Rocketdyne location, as groundwater may be transporting the detected toxic chemicals in those directions. A University of California, Davis study found that over 50% of ride-hailing trips in California replaced more sustainable transportation options like public transit and cycling, or resulted in new vehicle miles, highlighting the environmental impact of these services. The research, conducted to inform the Clean Miles Standard, also revealed that ride-hailing disproportionately affects those without personal vehicles or from racial and ethnic minority groups and suggests improvements such as better integration with public transit and increased vehicle efficiency to enhance sustainability. A recent U.S. Geological Survey study revealed a tenfold increase in post-fire erosion in Northern California from the late 1980s to the 2010s, exacerbated by larger and more intense wildfires, which poses significant risks to water resources and ecosystems. This erosion, which is expected to worsen with climate change, threatens to reduce reservoir capacities, harm aquatic life and increase flood risks, underscoring the need for improved land and forest management practices to mitigate these effects. San Jose has become the priciest city in the U.S. for both buying and renting homes, with average home prices at around $1.5 million and median rents exceeding $3,300 monthly. Experts suggest renting may be more financially advantageous in Silicon Valley due to the high cost disparity between buying and renting. The Revitalizing Downtowns and Main Streets Act federal legislation proposes a 20% tax credit for converting underutilized commercial properties into residential units, with additional incentives for affordable housing and rural areas. The bill aims to address high office vacancy rates and the affordable housing crisis exacerbated by the Covid-19 pandemic and is supported by multiple trade groups with a companion bill in the Senate.

Federal Government Awards $900 Million to Los Angeles for Transportation Los Angeles will receive nearly $900 million in funding from the federal government to enhance its infrastructure and transportation system in preparation for the 2028 Olympic and Paralympic Games. The monies will come from a spending package signed into law by President Biden and grants secured through the U.S. Department of Transportation's New Starts and Expedited Project Delivery Pilot Programs. The bulk of this funding, approximately $709.9 million, will be allocated to LA Metro projects including the East San Fernando Valley Light Rail and the D Line subway extension. Additionally, $160 million will be used for street and transit improvements, traffic safety and better neighborhood connectivity. Key initiatives include expanding mobility hubs, improving pedestrian and bike infrastructure and supporting community planning for open spaces. This investment aims to address current infrastructure needs while ensuring long-term benefits for the city's residents and visitors. State Allocates $343 Million for Public Transit California has allocated an additional $343 million in funding to support public transit; it is the second wave of funding from the transit recovery package in the 2023-24 state budget, building on the $1.9 billion announced last month. Governor Gavin Newsom emphasized the state's dedication to improving public transportation as part of his infrastructure enhancement agenda. This new funding is part of Senate Bill 125, which allocates a total of $5.1 billion over several years to regional transportation agencies for both operational and capital improvements. Specific uses of the funds include maintaining service levels, investing in zero-emission vehicles and constructing transit hubs. The funding aims to enhance mobility, support sustainable transit systems and align with the needs of a diverse range of California communities. Research Seeks to Standardize VMT Analysis New research published in the Journal of the American Planning Association calls for the implementation of consistent methods to estimate vehicle miles traveled (VMT) for individual properties. California adopted VMT metrics for environmental analysis in 2013 via SB 743. Currently, there is no nationally standardized method, leading to significant variation in VMT estimates depending on the method used. The researchers evaluated 12 different methods for estimating site-generated VMT across eight office sites in California and Utah and found considerable discrepancies, particularly in trip generation estimates. The study suggests planning policies should mandate consistent estimation methods for comparability as well as industry-wide standards or alternative performance metrics. (See related CP&DR coverage .) Proposed Federal Program Would Support Housing, Sustainable Transportation The federal Advisory Council on Historic Preservation (ACHP) has circulated a draft Program Comment to streamline historic preservation reviews for federal investments in housing, climate-smart buildings and climate-friendly transportation. This initiative aims to accelerate the renovation and reuse of historic buildings for affordable and climate-resilient housing by simplifying review processes for interior renovations, sitework and façade projects. For climate-smart buildings, the proposal would facilitate the installation of solar panels, upgrades to energy-efficient systems and other improvements without extensive reviews. In transportation, the comment seeks to expedite pedestrian, bicycle and public transit infrastructure projects to enhance accessibility and safety. The draft comment is currently open for consultation with various stakeholders to refine its provisions before final approval. CP&DR Coverage: Santee Council Improperly Sidestepped Referendum on Fanita Ranch Environmentalists have won the latest round one of California's longest-running development battles, the attempt by HomeFed to build a 3,000-home Fanita Ranch development in an apparently high-wildfire-risk area of Santee east of San Diego. San Diego County Superior Court Judge Katherine Bacal ruled in August that the Santee City Council erred in 2022 when rescinded all of the 2020 Fanita Ranch approvals, thus allowing the council to remove the referendum from the ballot, and then approved the same project anew under an urgenc ordinance not subject to referendum. The approval took place after the city recirculated some sections of the project's environmental impact report in response to Judge Bacal's ruling in March of 2022. An appeal is expected. Quick Hits & Updates The "Downtown Sacramento Livability Strategy" by the Downtown Sacramento Partnership outlines critical needs and urgent priorities for enhancing downtown's livability, emphasizing the production of affordable housing and the creation of desirable amenities. The 40-page document serves as a strategic guide, challenging local leaders to address both housing supply and demand issues and transform downtown Sacramento into a vibrant, sustainable urban neighborhood. A study out of RAND finds mandatory Project Labor Agreements (PLA) attached to Los Angeles Proposition HHH - or publicly funded supportive housing aimed at addressing homelessness - significantly increased project costs by about 22%, more than double previous estimates and resulted in longer completion times without achieving economies of scale. This increase in costs suggests that using a PLA could reduce housing output by approximately 20%, necessitating an additional $1.2 billion to produce the same number of units. Oakland completed the sale of its 50% share of the Coliseum to Ray Bobbitt's African American Sports and Entertainment Group (AASEG) for $125 million, with plans to transform the site into a dynamic complex featuring sports venues, dining and housing. The sale is expected to provide immediate financial relief to the city and will see the Coliseum hosting the Oakland Roots SC soccer team while AASEG finalizes the purchase of the remaining ownership share from the A's. San Francisco's Bus Rapid Transit (BRT) project on Van Ness Avenue has been awarded a Silver designation by the Institute for Transportation and Development Policy, marking it as one of the top three BRT projects in the U.S. This recognition reflects significant improvements in transit speed, safety and reliability, with bus travel 36% faster, injury collisions down 54% and transit reliability up 45%. A new report by the RAND Corp. about the impact of a Project Labor Agreement (PLA) attached to Proposition HHH in Los Angeles reveals that the PLA increased total development costs by 21%, more than double previous estimates. The study also found that PLA projects took 8 months longer to complete on average compared to non-PLA projects. Allstate has received approval for the largest home insurance rate increase in California in three years, with an average hike of 34.1% for its 350,000 customers. The increase, effective at the first renewal date after November 7, ranges from decreases of 57% to increases of nearly 650%, depending on the location. This rate adjustment follows a broader trend of rising insurance costs in California, driven by increased claims and repair costs. (See related CP&DR coverage .) An independent analysis estimates that evacuations from the Lake Tahoe area could take nine to 14 hours due to road congestion and closures, significantly longer than previous estimates of under four hours. The study, conducted using artificial intelligence, highlights the urgent need for updated emergency planning and better coordination among local agencies to address the challenges of evacuation during major wildfires. The Federal Transit Administration approved environmental review documents for the first segment of the Southeast Gateway Line, making it eligible for major federal funding crucial to the $7.1 billion project. The 14.5-mile segment will begin utility work by the end of this year and, when completed, will connect 1.4 million residents from Union Station in Downtown LA to Artesia. Plans are underway to develop the former Pleasant Hills Golf Course in San Jose into a 113-acre residential community with 1,716 housing units, including both market-rate homes and affordable rentals. The project aims to meet local housing needs and features up to 50,000 square feet of retail space and a public plaza, with approvals anticipated from both county and city officials by late 2024 and 2025, respectively.

Gov. Gavin Newsom has weighed in on a Beverly Hills housing dispute , saying that the city’s denial of a 165-unit apartment building proposed by developer Leo Pustilnikov in a builders remedy application is a violation of state law. Apparently Beverly Hills thought it was in the clear because the denial came the day after the Department of Housing & Community Development approved the city’s housing element.

State Releases $789 Million for AHSC Projects The state will allocate nearly $789.8 million in cap-and-trade funds to support 24 projects across 20 communities, aiming to build 2,483 new affordable homes and enhance infrastructure. This investment, part of the Affordable Housing and Sustainable Communities (AHSC) program, will also fund sustainable transportation initiatives such as zero-emission transit vehicles, new bus shelters and extensive bikeways and sidewalks. The AHSC program aims to integrate housing and transportation improvements to reduce greenhouse gas emissions and meet climate targets. This latest round of funding is the eighth and largest under the AHSC program, which has collectively invested $3.8 billion to date. The initiative also aligns with Governor Newsom's broader efforts to address homelessness and promote affordable housing, including recent executive orders and reforms. These projects are expected to significantly contribute to both affordable housing availability and environmental sustainability in California. Davis, Berkeley Lead Among California’s Bicycle Ratings In the 2024 PeopleForBike’s annual City Ratings , California cities performed well, particularly among medium and large cities. Davis and Berkley were highlighted as top medium-sized cities for bicycling with scores of 78 and 71, respectively. In the large cities category, San Francisco achieved a score of 64, making it one of the top-performing large cities in the U.S. for cycling. Among the state’s other large cities, Los Angeles ranked in the 54th percentile, San Diego in the 68th, San Jose in the 70th, Sacramento in the 71st, and Fresno in the 38th. The City Ratings program evaluates cities using the SPRINT criteria, which accounts for safe speeds, protected bike lanes, reallocated space for biking and walking, intersection treatments, network connections, and trusted data. Report Cites California’s Extreme Disparity between Wages, Housing Costs The National Low Income Housing Coalition released its newest Out of Reach report, detailing the disparity between wages and the cost of rental housing in the U.S. In 2024, the National Housing Wage — an estimate of the hourly wage a full-time worker must earn to afford a modest rental home without spending more than 30% of their income — is $32.11 for a two-bedroom rental $26.74 for a one-bedroom rental, which is significantly higher than federal or state minimum and median wages for most occupations. California has the highest housing wage average at $47.38, and is home to the eight of the ten most expensive jurisdictions, where the two-bedroom rentals range between $51.62 in Napa County and $77.96 in Santa Cruz County. This means that to afford a Two-Bedroom Fair Market Rent in California, a worker earning minimum wage would need to work 3.0 full time jobs and renters earning the estimated hourly mean renter wage of $30.93 would require working 1.5 full-time jobs. Congress Considers Bill to Limit Corporate Homeownership A new Senate bill, introduced by Minnesota Senator Amy Klobuchar and Ohio Senator Sherrod Brown along with eight other Senate Democrats, would require institutional investors buying homes in bulk to report these purchases to federal regulators. An estimated 2% of single-family homes statewide are owned by institutional investors. The Housing Acquisitions Review and Transparency (HART) Act would amend the Clayton Antitrust Act to include residential real estate, addressing concerns over market consolidation by large corporate landlords, such as Blackstone Inc., along with other private equity firms and real estate investment trusts. The bill seeks to enhance transparency and protect consumers by giving the Federal Trade Commission and the Justice Department the ability to review and block large transactions that could drive up housing prices. Despite lacking Republican support, the bill could address concerns over the influence of institutional investors in the housing market, especially in the Sun Belt. Neither California senator is a cosponsor. Two similar state bills, AB 1333 and AB 2584, are being considered by the Legislature. CP&DR Coverage: California's Lesson for Las Vegas Nevada Gov. Joe Lombardo has called for the Biden administration to open 50,000 acres of desert to development around Las Vegas so Nevada can add as many as 335,000 homes. The situation Las Vegas faces today , writes CP&DR's Josh Stephens, is a version of the one that most of California's major urban areas faced decades ago: constraints to growth. San Francisco has been hemmed in since the Victorian Era, and Oakland has always been squished between mountains and bay. In Los Angeles, "sprawl hit the wall" in the 1980s. Even the Inland Empire cannot gallop as it once did. In each case, mountains, coastlines, other cities, and, yes, protected open spaces have forced cities to grow through density rather than expansion. Las Vegas could be more dense. It could be more efficient. It could be both inexpensive and attractive. It could take a cue from all the ersatz historicism that it's famous for, accept the gift of artificial constraints, and consider a new approach to urbanism. In short, with a little imagination--real imagination, not just spectacle--southern Nevada could learn from the lessons that California so vividly teaches. Quick Hits & Updates A Canadian real estate firm Onni is  suing Nexstar Media Group for $30 million, claiming it is owed its deposit following a failed $95 million deal for the 222 West 2nd Street property in Downtown Los Angeles. Onni alleges that material misrepresentations and a significant change in the property's planned use—now designated for homeless housing—invalidated their interest, compounded by undisclosed additional requirements for coordinating with Metro’s future plans. Tribal leaders from the Yocha Dehe Wintun Nation and the Kletsel Dehe Wintun Nation are urging the Department of Interior to reject the Scotts Valley Casino proposal, arguing that it threatens their ancestral lands, cultural sites and sovereignty, and raises environmental and transparency issues. The Scotts Valley Band of Pomo Indians, who propose the casino project, argue it is crucial for their economic development and self-sufficiency, but face opposition due to concerns about environmental impact and inadequate tribal consultation. Costa Mesa has adopted new affordable housing requirements for apartment developments of 50 units or more, mandating that 4% to 10% of units be set aside as affordable based on the development's density and affordability level, with an alternative option for developers to pay an in-lieu fee. This policy aims to balance the need for affordable housing with encouraging new construction, while other Orange County cities like Irvine and Newport Beach have similar requirements. San Diego County  launched an interactive website and map to help residents find affordable housing developments funded by the county, featuring details on income limits, eligible populations, unit sizes and links to developers. This tool, part of the County’s Housing Blueprint, consolidates information on existing and under-construction properties, including direct links to application processes and waiting lists, in response to the regional housing crisis. The Bureau of Land Management imposed a 50-year ban on new mining activities in over 2,800 acres of California's San Bernardino National Forest, safeguarding habitats for four endangered plant species. These plants, including Cushenbury buckwheat and Parish’s daisy, are exclusive to the national forest due to the rich calcium carbonate found in the soil, the same material mined for construction and agriculture. Workers have breached the final dams on the Klamath River, marking a significant milestone in the largest dam removal project in U.S. history and restoring salmon access to their historic spawning grounds for the first time in over a century. The project, costing around $500 million, aims to revive the river's ecosystem, though it may take time for salmon to fully return and the river to recover from a century of disruption. State Superintendent of Public Instruction Tony Thurmond launched a statewide effort to accelerate housing development by utilizing the significant amount of developable land owned by California’s local education agencies (LEAs). Combined, California LEAs own 75,000 acres of developable landExternal link opens in new window or tab, providing the potential to create an estimated 2.3 million new housing units throughout the state. The Anaheim City Council is  considering establishing a new housing trust fund to address poverty and rent spikes, with details still being developed by city staff. The fund could receive contributions from various sources and may support initiatives beyond affordable housing, hoping to alleviate housing affordability challenges in the city. California Attorney General Rob Bonta is continuing to pursue legal action against Elk Grove despite the city's settlement with an affordable housing developer, indicating that the city may have violated housing laws. The Santa Clara Valley Water District is considering a seawater desalination plant to address water needs in Silicon Valley, having approved a $1.7 million feasibility study for the project. The proposed plant could process between 20 to 80 million gallons of seawater daily, providing between 10 million and 40 million gallons of freshwater, enough for between 100,000 and 500,000 households yearly. The plan, which faces potential environmental opposition and high costs, aims to explore the viability of desalination as a new water course for the region, amidst concerns about its expense and environmental impact. The Pacific Forest Trust has acquired 11,000 acres at the headwaters of the Trinity River for $15.5 million to safeguard the course of the Trinity Reservoir, a crucial part of California’s water supply. The land, purchased from a timber company and transferred to the Watershed Research and Training Center, will be managed under a conservation easement to maintain its natural and productive state. The purchase was funded by the California Wildlife Conservation Board, the U.S. Department of Housing and Urban Development, and the Sierra Nevada Conservancy. The California High-Speed Rail Authority appointed Ian Choudri as its new CEO, succeeding Brian Kelly, who is retiring after six years. Choudri, currently a Senior VP at HNTB Corporation, brings over 30 years of experience in transportation and has worked on high-speed rail projects in France and Spain.

CP&DR Vol. 39 No. 8 August 2024

As California grapples with a deepening housing underproduction crisis, developers might be facing an unexpected challenger: Crotch’s bumblebee. And it could be just the beginning of a new era of endangered species protection, as more insects become eligible for protection – and the methodology for understanding listing and protection might be very different for insects. “I do believe this huge evolution,” said David Smith, an energy and environment partner at the Manatt law firm. “It's not just about Crotch’s bumblebee, but this new era where insects are going to start being listed may get their attention and cause them to think of alternative approaches.” The bumblebee (scientific name: Bombus crotchii ) has an extremely wide range within California, including the Mediterranean region, Pacific Coast, western Mojave desert, Central Valley, and foothills, and has also been observed in southwest Nevada near the California border. They are most active between March and September, with queens most active in the spring.

Group Sues Newport Beach for Adopting Housing Element A recently filed lawsuit against Newport Beach accuses the City Council of violating the city charter by approving housing ordinances and resolutions without allowing voters to decide in the November election. The nonprofit Still Protecting Our Newport argues that this approval bypasses Section 423 of the charter, which mandates voter input for significant land use decisions unless preempted by state or federal law. The city contends that state housing mandates, which require the zoning for 4,845 new residential units by 2029, override this charter provision. The council believes failing to comply with these mandates could result in substantial fines and the imposition of state control over local zoning. The housing plan under dispute proposes 8,174 units, exceeding the state’s requirements by 68% to address potential development challenges. Critics argue that the plan could be revised to better support affordable housing development and reduce the required number of new units. Major Bills on Coastal Housing, Fire Hazard Zones Die in Legislature Two legislative efforts that had attracted attention, and protests, recently have died. Despite a push to limit the ability of the Coastal Commission to deny housing projects in the Coastal Zone, a series of new bills aimed at easing coastal development restrictions and facilitating construction have either stalled or been significantly diluted, leaving the commission's authority largely intact. Most notably, San Diego Assemblymember David Alvarez pulled his bill AB 2560. A proposed overhaul of California’s wildfire hazard mapping system, Senate Bill 610, has been rejected by the state Assembly. The bill aimed to replace the current hazard severity zones with a unified “wildfire mitigation area” classification, which supporters argued would simplify and standardize wildfire preparation. Meanwhile, the Senate Appropriations Committee has advanced Assembly Bill 2986, which calls for a feasibility study on the potential incorporation of East L.A. as a city or special district. Prohousing Jurisdictions Now Number 50; HCD Awards $15.3 Million in Grants The California Department of HCD has granted Napa, San Leandro, and Walnut Creek the Prohousing Designation, joining 47 other communities recognized for their commitment to promoting housing development. Among the highlights on the cities’ applications: Napa the city provides property owners with easy access to dozens of low-cost, off-the-shelf, pre-approved ADU plans; San Leandro developed a Priority Development Area to allow for higher densities and greater floor area ratios and to remove height limits for infill housing near transit, resulting in an additional 2,500 homes; Walnut Creek adopted the Community Benefits program, which provides opportunities for developers to receive additional height limits, greater floor area ratio, and density bonuses for a project in exchange for providing amenities desired by the city. Additionally, nearly $15.3 million in incentives, ranging from $560,000 to $1.25 million, were awarded to 19 previously recognized Prohousing communities to support further housing initiatives. (See related CP&DR coverage .) CP&DR Coverage: Joshua Tree Conservation Act Stymies Developers Wildfire, development, and, most of all, climate change are threatening the western Joshua tree. Surveys indicate that young trees are taking root in only 50% of the current range; in a worst-case scenario, the tree could go nearly extinct. In 2023, at the urging of environmental groups, the legislature passed the Joshua Tree Conservation Act as a trailer bill. The act affords the western Joshua tree the equivalent of threatened status under CESA—including restrictions on residential development and a near-ban on commercial and industrial development on parcels containing Joshua trees--and is believed to be a novel approach to species conservation. The act went into effect earlier this year and is expected to remain in effect for at least 10 years. That may mean 10 years in which desert communities struggle to promote development and meet their Regional Housing Needs Allocation numbers. It is yet another instance in which conservation is complicating the state’s efforts to provide housing – especially on the urban fringes. Quick Hits & Updates The Land Trust of Santa Cruz County recently acquired a 247-acre property near the Pajaro River to create new estuarine habitats for wildlife and aims to protect adjacent coastal areas from flooding. This method reflects a broader shift towards adapting to climate change by working with natural processes rather than solely relying on engineering solutions. Analyzing the 50 most populous states according 2020 U.S. Census Bureau Data using data from FEMA and the US EPA, Policygenius found San Francisco has the lowest exposure risk to the worst impacts of climate change, while Los Angeles is seventh-worst city in the nation in terms of predicted climate change impacts on the city. San Francisco is predicted to have only three days of extreme heat by 2050, compared with Los Angeles's predicted 34 extreme heat days by 2050. Los Angeles also scores badly on social vulnerability and community resilience. Huntington Beach has been  granted a year to create new citywide housing plans after a judge ruled that the city violated state law by refusing to plan for more housing. The city has been in conflict with the state over requirements to allow for at least 13,368 housing units this decade and may face fines if they do not meet the requirement. Additionally, a charter amendment on the November ballot could require voter approval for zoning changes related to the new housing plan. The Santa Clara Valley Water District has allocated $1.7 million to conduct a feasibility study over the next year for a seawater desalination plant on the San Francisco Bay as a part of its efforts to explore new drinking water sources. The proposed plant could produce between 10 to 40 million gallons of freshwater daily by processing 20 to 80 million gallons of seawater, but the project might face significant opposition due to high costs and environmental concerns. The San Antonio Station Alliance is advocating for a proposed BART station at the intersection of 14th Avenue and East 8th in East Oakland, a transit-desolate area where they say the absence of a station reflects historical racial biases in transit planning and leaves a significant portion of the community underserved. Such infill stations are cost-effective, could enhance regional connectivity, and address a lack of economic opportunities, but advocates also underscore the danger of gentrification. An analysis of eight Southern California municipalities responses to the state's 2018 law mandating affirmative action for fair housing in their General Plans' housing elements found that, despite creating numerous programs, most did not effectively advance fair housing goals, with affluent cities continuing to concentrate affordable housing sites in less affluent neighborhoods, highlighting implementation challenges of the affirmatively further fair housing mandate. A study by Enterprise Community Partners concludes that repurposing vacant or underutilized strip malls into affordable or mixed-income multifamily housing and mixed-use developments offers a promising solution to housing affordability and supply challenges, while also supporting economic development and creating green spaces. The study concludes state and local policymakers' support is crucial for such redevelopment projects, which may involve accessing public grants and loans like Low-Income Housing Tax Credits or Community Development Block Grants to integrate community-serving uses. A report from UC Berkeley's Turner Center for Housing Innovation surveyed the small multifamily rental property market and found these properties, typically owned by individuals or small portfolio owners, play a crucial role in providing lower-cost housing, but concerns about habitability and affordability persist, especially in older buildings and among owners facing financial challenges. Further research and policy measures are needed to address these issues and support both tenants and owners in this segment of the rental housing market. The San Diego Board of Port Commissioners has granted a three-year extension to the entitlement phase of the exclusive negotiating agreement with the developer of the $3.8 billion Seaport San Diego project. This extension allows developer 1HWY1, selected in 2016, until October 1, 2027, to secure the necessary government approvals and raise the required capital for the redevelopment of the Central Embarcadero bayfront. California has allocated $351.5 million in the 2024-2025 state budget to enhance Los Angeles' Exposition Park, including nearly six acres of new green space and an underground parking garage, in preparation for the 2028 Los Angeles Olympics. More than 400,000 students in Los Angeles are now enrolled in the Metro GoPass program, which offers unlimited free rides on buses and trains, with over 40 million student boardings recorded as of June. Launched as a pilot in 2021 and made permanent in April 2024, the program has expanded to include 1,600 schools and is seen as a crucial support for student transportation and access to education. HDC  certified Palo Alto's 2023-2031 housing element, marking a significant step in guiding future housing production and policies. This achievement underscores Palo Alto's commitment to affordable housing, highlighted by a record of investing $52 million in housing projects, including recent developments and ongoing initiatives to expand affordable housing throughout the city. San Jose is pioneering a new state law that allows homeowners to sell accessory dwelling units (ADUs) as condominiums, aiming to boost the city's affordable housing options. The city is the first to adopt AB 1033, passed last year, that allows for the sale of ADU. San Jose has already seen significant growth in ADU construction, contributing over 20% of the city's new housing stock in recent years.

Sponsors Remove $20 Billion Housing Bond from Bay Area Ballot The Bay Area Housing Finance Authority (BAHFA) withdrew a proposed $20 billion housing bond measure, Regional Measure 4, from the November ballot due to significant errors in its cost projections. The bond, intended to fund affordable housing across the Bay Area, had faced challenges from opponents suing over its language and financial details, which inaccurately reported projected costs as $670 million instead of the actual $910 million. This setback follows four years of effort by housing advocates and local officials who had hoped to leverage high voter turnout during the presidential election. The decision to pull the measure comes as the last day to withdraw ballot items expired and the bond's critics had argued it would unfairly increase taxes on property owners and renters. Moving forward, supporters of RM 4 will focus on promoting Proposition 5, which seeks to lower the required voter approval threshold for local affordable housing bonds. The withdrawal of the bond measure is a significant blow to affordable housing initiatives in the region, exacerbating funding challenges and potentially impacting future housing development. Plan for Solano County Air Force Base Updated A Solano County commission approved a revised Travis Air Force Base Land Use Compatibility Plan, despite opposition from Suisun City and the now delayed California Forever project. The new plan introduces a Low Altitude Maneuvering Zone (LAMZ) that could limit development in areas previously planned under earlier guidelines. The commission's decision, which passed 6-1 with one abstention and one absence, was criticized by California Forever CEO Jan Sramek for lacking public input and necessary data. Sramek argued that the new zone, which Travis AFB leadership reportedly doesn't consider essential, could damage the project's credibility and hinder future development. Suisun City officials expressed concerns that the LAMZ could significantly reduce potential revenue from planned developments, impacting their finances. The commission's plan aims to protect Travis AFB operations by restricting land uses within the LAMZ and has made adjustments to address some concerns, such as allowing reviews of new conservation projects. (See related CP&DR coverage .) San Jose Diridon Station Upgrade to Cost up to $10 Billion The Diridon Station redevelopment in San Jose is evaluating two design options: a ground-level design costing $3 billion to $6 billion and an elevated-track design costing $5 billion to $10 billion. Public entities are expected to be responsible for most, if not all, of the funding. Both options are designed to upgrade the station and accommodate California High Speed Rail and turn the station into a “. An advisory committee consisting of officials from the City of San Jose, the Santa Clara Valley Authority, Caltrain, the Metropolitan Transportation Commission, and the California High-Speed Rail Authority are exploring new tax measures and creative funding solutions, with a potential new governance entity through state legislation to oversee construction. It will also seek federal funds. The station is the centerpiece of a 250-acre zone that will include a massive complex for Google, which plans to add over 12,000 homes and millions of square feet of office space. The committee is expected to recommend an alternative in about a year. (See related CP&DR coverage .) New Laws Lead to Proliferation of ADUs in Los Angeles County Since state laws changed in 2016 to promote accessory dwelling units (ADUs), Los Angeles County has seen a surge in their construction, with one in five new housing units in the county being an ADU in 2022. According to an analysis by the Los Angeles Times, the county has led in ADU construction, issuing 45,000 permits between 2018 and 2023, and has permitted more ADUs per capita than any other in California. The distribution of ADU permits has varied widely across the county, with cities like San Fernando (69.97 permits per 1,000 housing units), Rosemead (56.84), and Temple City (56.83) leading in ADU approvals. In contrast, cities like Westlake Village (1.16), Cerritos (2.38), and Cudahy (2.88) have issued far fewer permits. Cities that added the most ADUs saw a 1.8% increase in housing stock and a smaller population drop (1.5%) compared to those that added the fewest, which experienced a 2.6% population decline. The growth is driven by streamlined permitting in lower- and middle-income areas, where ADUS are more likely to be rented out, unlike wealthier neighborhoods. CP&DR Coverage: &Fulton on Newsom's "Creative" New Infill Plan & When Gov. Gavin Newsom announced on July 31 that he had signed an executive order to stimulate infill development, most of the publicity was around reforming building codes - and possibly finding a way to ditch the two-stairway requirement for apartment buildings, which YIMBY advocates say would significantly decrease the cost of multifamily housing. But buried in the executive order was a potentially far-reaching concept which, if it is successfully implemented, could have far-reaching consequences for California land use: the idea that infill housing can be a mitigation measure under the California Environmental Quality Act. It's a creative idea. But it's not really about infill housing. It's about mitigating the impact of additional vehicle miles traveled on transportation project under SB 743. If it works, it would mean that transportation funds - state funds, local sales tax funds, and possible federal funds - would be used to build infill housing. Quick Hits & Updates A developer seeking to transform defunct properties once operated by the University of California San Francisco is pushing for the establishment of an Enhanced Infrastructure Financing District (EIFD) to facilitate the project. The EIFD is intended to support Prada Group's plans for redeveloping two significant sites in Laurel Heights: the former UCSF campus and the old California Pacific Medical Center, together adding over 1,300 new homes. Los Angeles has extended the deadline for businesses to secure permanent permits under the “Al Fresco” program to December 31, 2024, due to complications in the application process. The extension aims to assist over 3,000 businesses struggling with new regulations. Mayor Karen Bass has urged city departments to simplify the application process and ensure all completed applications are reviewed and processed within 30 days. Archer Aviation plans to launch its air taxi service in Los Angeles by 2026, using existing infrastructure at locations like USC, LAX and SoFi Stadium to provide quieter, multi-propeller flights over traffic. The company has received FAA clearance for commercial testing and aims to integrate its service with local airports and airlines, such as United and Southwest. While Archer intends to use underutilized existing facilities rather than build new ones, challenges such as regulatory approvals, electrification for charging and affordability remain. A judge blocked San Diego County's Fanita Ranch -- a development project aimed at building 3,000 new homes, citing violations of the city's general plan and state environmental laws due to its location in a high fire hazard zone. The court's decision invalidates the city's attempt to bypass a public vote, which was previously required by local voters. Environmental and wildlife groups view the ruling as a significant victory, reinforcing the protection of sensitive habitats and preventing increased wildfire risks. The Moreno Valley City Council approved a plan to redevelop the Moreno Valley Mall, which will include over 1,600 new residential units, additional retail, office space, two hotels and a conference center. The redevelopment will utilize existing parking lot space and also involve renovating the mall's interior and façade, including repurposing former retail spaces, with groundbreaking for the project anticipated to start in 2024. The Insurance Commission is updating the state's FAIR Plan, a fire insurance pool for homeowners who can't secure traditional insurance, to enhance affordability and reliability. These changes, prompted by Governor Newsom, include expanded coverage, improved financial stability, and greater transparency. (See related CP&DR coverage .) San Francisco has proposed a ban on property management software, like RealPage's YieldStar, which they claim inflates rents and hampers competition. The software's algorithm suggests rental prices and discourages negotiation, contributing to rising rents and higher vacancy rates. The ordinance aims to address these issues and could become a model for other cities also affected by the software. A new study by Michael Manville, a Professor of Urban Planning at UCLA's Institute of Transportation Studies, argues against classifying vehicle miles traveled (VMT) solely as a cost, suggesting it could hinder effective transportation policy and lead to ineffective mitigation measures. The report advocates for improving urban infrastructure to reduce driving and implementing dynamic pricing for road use to manage demand better. Manville suggests that direct pricing and better capacity management are more practical and impactful solutions than the current VMT-based approach. (See related CP&DR coverage .) YIMBY Law has launched a new dashboard to track compliance with Housing Element plans across California; the dashboard aggregates data from the California Department of Housing and Community Development and the US Census, providing a transparent tool for advocates and the public to monitor housing plan implementation. This initiative supports the Campaign for Fair Housing Elements, which seeks to ensure cities and counties fulfill their housing obligations.

Oakland Downtown Plan to Facilitate 29,000 New Housing Units The Oakland City Council adopted the Downtown Oakland Specific Plan (DOSP), its first comprehensive plan for the area, which integrates racial equity into its vision and implementation. The plan calls for the development of over 29,000 housing units -- potentially representing 10% of the city's population -- including more than 7,200 affordable units. It covers a broad area from the Jack London District to Lake Merritt and will guide development through increased housing, job creation, public service improvements, local business support and enhanced safety measures. The DOSP emphasizes cultural preservation, climate resilience and community connectivity, particularly focusing on addressing historical disparities and modernizing the downtown area. It includes amendments to zoning regulations and planning codes to support its goals, such as encouraging affordable housing and public space improvements. City officials and stakeholders have praised the plan for its ambitious objectives and community-centered approach, aiming to revitalize and unite Oakland's diverse downtown. (See related CP&DR coverage .) Federal Government Contributes $5.1 Billion to BART Extension The Santa Clara Valley Transportation Authority (VTA) will receive a $5.1 billion federal grant to help complete the BART extension to San Jose and Santa Clara, marking the second-largest transit-related grant in U.S. history. Despite this significant funding, the project remains $700 million short of the total needed, with officials seeking additional funds before federal money is released. The BART extension, which aims to enhance regional connectivity and support economic growth in Silicon Valley, has faced several delays and a soaring budget, now estimated at $12.7 billion, with the opening date pushed to 2037. Developer Purchases Former Sacramento Kings Arena Site Argent Development, based in Costa Mesa has acquired the 129-acre site of the former Sacramento Kings arena (best known as the Arco Center), moving closer to starting its 183-acre Innovation Park master-planned community in Sacramento's Natomas district. The site sold for $75 million and will now be a part of a development that includes 2,500 housing units, with 10% designated as affordable housing. Infrastructure work is expected to start in 2025, with residential lots available by mid-2026, and will feature a medical campus, a K-8 school, and commercial spaces. (See related CP&DR coverage .) Newport Beach Housing Element Update Avoids Need for Ballot Measure The Newport Beach City Council recently amended its general plan to facilitate new housing development, avoiding a potential November ballot measure that could have resulted in non-compliance with state housing laws. The approved plan aims to add 8,174 residential units by 2029, exceeding the state's requirement of 4,485 units, with possible density bonuses for affordable housing. Despite significant community opposition and concerns about infrastructure strain, the city council chose this approach to meet housing mandates while avoiding conflicts similar to those experienced by neighboring cities such as Huntington Beach. CP&DR Coverage: Court Rules in Favor of Infill Developer In an ongoing dispute among commercial neighbors in Lafayette, a condominium developer appears to be besting an adjacent office building owner. Most recently the city got the go-ahead from an appellate court to use the infill exemption contained in the California Environmental Quality Act because the site doesn't qualify for - in CEQA parlance - an exception to the exemption. &Building on the & Berkeley Hillside case and other cases, the ruling appears to make it more difficult for project opponents to use the "unusual circumstance" exception to the infill exemption. The case came down to the dueling biologists - and which biologist made a more convincing legal argument to the appellate court. The case was originally unpublished but has now been published by the appellate court. Quick Hits & Updates San Francisco voters may face a ballot measure to create an "affordable housing opportunity fund," which would allocate up to $8.2 million annually to subsidize rents for the city's poorest residents starting in 2026. This initiative aims to address the gap where even affordable housing remains out of reach for those earning less than 35% of the median income, amidst insufficient existing rental subsidies. The Department of Housing and Community Development's praised San Francisco for implementing several reforms to streamline housing development and align with state laws. Key actions include reducing bureaucratic hurdles, accelerating review processes and enhancing transparency, which collectively aim to increase housing production and lower barriers for building across all income levels. In November, South Pasadena voters will decide on the Neighborhood Preservation & Local Control Measure, which proposes increasing building heights in select corridors to address affordable housing needs while preserving single-family neighborhoods. Critics argue that the measure, which results from a legal settlement requiring the repeal of a three-story height limit, may threaten existing affordable housing and displace renters without ensuring new affordable units. The city's efforts to promote the measure through a $54,000 educational campaign are seen by some as biased advocacy, potentially overlooking the adverse impacts on vulnerable residents. Beverly Hills developer Leo Pustilnikov has agreed to purchase 17 buildings from the financially troubled Skid Row Housing Trust for $10 million, with the transaction requiring judicial approval next month. This acquisition includes 1,200 units of supportive housing for formerly homeless individuals and Pustilnikov, who is leading the state's largest builder's remedy project in Redondo Beach, plans to partner with the nonprofit Hope the Mission to ensure ongoing social services for tenants while addressing necessary renovations. (See related CP&DR coverage .) The LA Metro A Line light rail extension received approximately $500 million in state funding from CalSTA, marking a pivotal step towards constructing a 3.2-mile light-rail extension from Pomona to Claremont and Montclair in San Bernardino County. This project is expected to cost $798 million in total and be completed by 2030. In September 2023, Oakland saw the largest rent decline among the 100 biggest U.S. cities, with one-bedroom rents falling 7.2% to $1,430—the lowest since 2017—and a vacancy rate of 9.4%. This drop reflects broader trends, as 71 of the top 100 U.S. cities experienced rent reductions including San Francisco where rent also decreased by 4.1%. San Diego approved nearly 9,700 new homes in 2023, largely due to developer incentives, increased approvals for accessory dwelling units, and programs like Complete Communities, according to officials. Despite this surge, the city remains far behind state-mandated housing goals, especially for low-income housing. The California Department of Housing and Community Development released updated guidelines for the Surplus Land Act (SLA) and a new Dashboard that tracks housing units “unlocked” through the SLA. The Act aims to make unused public land available for affordable housing development and has unlocked 28,419 housing units, including 16,773 affordable ones since 2021. The Sonoma County Board of Supervisors has approved the project scope and next steps for constructing a $308 million, 200,000-square-foot government center on the current County campus in Santa Rosa. The new center will house 800 to 1,000 employees and include redevelopment space for up to 1,000 housing units, with a focus on affordable housing. The project will replace a deteriorating government center from the 1950s and is expected to be completed by the end of 2026, with further design and environmental analysis to follow. The long-delayed 280-acre redevelopment project at Candlestick Point may finally begin construction next year. Awarded entitlements in 2010, Irvine-based FivePoint Holdings is planning a massive mixed-use development in conjunction with the neighboring 500-acre San Francisco Naval Shipyard at Hunters Point. The original plan envisioned a total of 10,000 new homes and over 5 million square feet of commercial space, with most of the commercial development focused on the Hunters Point area.

CP&DR Vol. 39 No. 7 July 2024 Report

San Diego General Plan Update Embraces New Vision for Growth, Sustainability On a unanimous vote, the San Diego City Council adopted a comprehensive general plan amendment called Blueprint SD, aiming to guide the city's growth while addressing climate change, expediting zoning updates and tackling racial segregation. It is the first major general plan update sicne 2008. The plan promotes sustainable housing development in transit-friendly areas and seeks to increase multi-family housing in predominantly white neighborhoods to combat historical segregation. While the proposal received support from pro-growth advocates, it faced criticism from some community groups concerned about potential negative impacts on single-family neighborhoods and existing transit infrastructure. Mayor Todd Gloria emphasized that Blueprint SD represents a significant step toward creating an equitable and sustainable future for all residents. Berkeley Rejects Major Upzoning; Will Study More Modest Version After a lengthy and heated five-hour meeting, the Berkeley City Council voted to revise a proposal aimed at allowing small apartment buildings in predominantly single-family neighborhoods. The initial Middle Housing proposal would have permitted three-story buildings with no unit limits, but the amended version now imposes density restrictions, allowing five to seven units per typical 5,000-square-foot lot. Concerns were raised about the proposal's ability to address the historical context of single-family zoning, which has perpetuated racial segregation since its inception in 1916. Some residents voiced worries about the impact of new housing on lower-income neighborhoods and the potential for increased gentrification, while others argued that not providing more housing options is contributing to the displacement of communities of color. The council's vote directs staff to draft a proposed ordinance, with further town hall meetings planned to discuss the proposal and its implications. (See related CP&DR coverage .) City of Merced Annexes Land Including UC Merced UC Merced has officially been annexed into the City of Merced following a unanimous vote by the Local Agency Formation Commission. The annexation includes 1,140 acres and will pave the way for a new university community that connects the campus with the city. This move, seen as a milestone after 40 years of planning, aims to enhance infrastructure, provide services like fire response and create thousands of affordable housing units. Funding from the Virginia Smith Trust, which was established for educational purposes, will support scholarships for local high school students. While the annexation is expected to foster economic growth and strengthen ties between the university and the city, concerns about funding for fire services remain a topic of discussion among local leaders. (See related CP&DR coverage .) Survey Estimates Amount of Government-Owned Buildable Land Nationwide The Center for Geospatial Solutions used parcel-level data to provide a detailed examination of development potential on federal, state, and local government-owned lands across the United States. The study, titled Who Owns America , identified over 276,000 acres of buildable land in transit-accessible urban areas across the U.S. which is capable of supporting over 1.9 million new homes. California ranks fifth among states with the greatest housing development opportunities with 14,158 acres of buildable land, mainly going in the southern two-thirds of the state. This represents 5.2% of the total buildable area nationwide of which 43.81 acres are federally owned land and 1,052 acres are state land. CP&DR Coverage: Envisioning the "Missing Middle" in California and Elsewhere Los Angeles-based planner Max Podemski explores the history and varieties of working class housing in his new book & A Paradise of Small Houses . In it, Podemski highlights nine cities -- including Boston (triple-deckers, Philadelphia (row houses), Los Angeles (dingbats), Houston (townhouses), and his native Portland (bungalows) -- to figure out how cities accommodated diverse, growing populations. Podemski insists that none of these past trends provides a blueprint for the future. And, yet, there's plenty of inspiration to be found. Podemski recently spoke with CP&DR's Josh Stephens about the past and future of working class housing. Quick Hits & Updates Bay Area voters will decide on a historic $20 billion bond measure this November aimed at building or preserving up to 90,000 affordable homes across the region's nine counties. The measure, unanimously approved by the Bay Area Housing Financing Authority board, would levy a new property tax to fund the initiative, estimated to cost homeowners about $190 annually per $1 million of assessed property value through 2078. While facing skepticism over tax increases, proponents argue the bond is crucial to alleviate severe rent burdens and homelessness, though it requires a two-thirds majority to pass unless a separate ballot measure lowers the threshold to 55%. In San Francisco's Hub District near Market Street and Van Ness Avenue, plans to revive the stalled One Oak housing project are underway. Originally intended as a 40-story condo tower, the project is now proposed to include 516 units of rental apartments, an increase from the previous plan of 460 units. The new development partnership seeks approval for a density boost and a reduction in affordable housing fees, facilitated by recent legislative changes aimed at easing financial viability challenges for residential projects in the city. UC San Diego & received approval from the Board of Regents to build a 6,000-bed housing village to address a severe housing shortage due to rapid enrollment growth and expensive off-campus housing. The $2 billion project, located in a 20-acre area near the Blue Line trolley station and Interstate 5, aims to offer four-year housing guarantees with rent at least 20 percent below market value. Additionally, UCSD received permission to build a $350 million, 150,000-square-foot life science research building on campus. San Francisco city leaders are exploring a new subway project along Geary Boulevard and 19th Avenue, an idea that has been around since the 1930s. The proposed line, which could span over eight miles and cost at least $15 billion, seeks to address future transit needs and support increased housing developments, potentially serving up to 300,000 passengers daily while connecting to the city's existing and future rail networks. Developer TenSouth asserts that the City of Gilroy must approve its 501-unit project on Las Animas Avenue under builder's remedy, citing a July 2 letter from the state's Department of Housing and Community Development that supports this claim. The dispute centers on whether Gilroy's draft housing element, which was not state-certified until August, should affect the project's eligibility, with TenSouth accusing the city of wrongfully delaying the project and threatening legal action. LA Metro published a draft environmental impact report for the K Line's (Crenshaw Line) northern extension to Hollywood, featuring three potential underground routes with varying lengths and ridership projections, ranging from 47,200 to 59,700 daily trips. The project's estimated costs range from $11 billion to $14.8 billion, with construction expected to start in 2041 and funding opportunities being explored through initiatives like an Enhanced Infrastructure Financing District in West Hollywood. (See related CP&DR coverage .) The San Francisco Board of Supervisors unanimously approved a major redevelopment project for the Stonestown Galleria site, which will introduce 3,500 new housing units, extensive retail and office spaces and community amenities over the next two decades. The development, spearheaded by Brookfield Properties, will begin with infrastructure improvements in 2026 and use an Enhanced Infrastructure Financing District for funding, maintaining the existing mall throughout construction. Over 350,000 policyholders are & suing California's FAIR Plan, which provides fire insurance for those unable to find coverage elsewhere, accusing it of failing to cover smoke damage as required by the law and leaving homeowners with unsafe living conditions. The plaintiffs allege that FAIR Plan policies fail to meet state coverage requirements and identify numerous violations; they also argue that a misleading update from 2017 states that the policy only covers “direct physical damage” from smoke and fails to address the full range of smoke-related issues. At Representative Maxine Waters's behest, the U.S. House of Representatives & removed $200 million allocated for the Inglewood Transit Connector from its Department of Transportation budget, putting the project's future at risk. Inglewood Mayor James Butts argues that, despite some business displacement, the project will create 17,000 jobs, with 35% of work being designated to Inglewood residents, and he calls Rep. Waters's suggestion to use buses as impractical.