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

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

U.S. Supreme Court Declines to Hear California Rent Control Case The United States Supreme Court rejected a significant property-rights challenge to rent control laws in New York City and California, which permit tenants to remain in below-market-cost apartments for extended periods. New York landlords sued, arguing that rent regulation and long-term occupancy violated the Constitution's prohibition on taking private property for public use. While Justice Clarence Thomas issued a partial dissent, the majority found insufficient evidence that landlords were unable to evict tenants for specific reasons. The ruling's impact could have directly affected around 1 million apartments in New York City and potentially influenced California. Despite recent interest from the court's conservative majority in bolstering property rights, rent control has been upheld as property regulation rather than governmental seizure. Challenges to property rights, including developer fees, have emerged in California, reflecting broader debates over governmental takings and private property rights. Tribes, Farmers Reach Agreement on Use of Klamath River Water The Interior Department, tribal nations, and farming groups have reached an agreement regarding the governance of the Klamath River, flowing through California and Oregon, seeking harmony between irrigation needs and environmental revival. Signed by the Klamath Water Users Association and tribal representatives like the Klamath, Yurok and Karuk Tribes, the deal emphasizes enhancing ecosystems and ensuring water dependability for agriculture. Historically, conflicts over water distribution between farmers and tribes have intensified during droughts, with tribes advocating for salmon preservation. The pact includes a $72 million infusion, drawn from the bipartisan infrastructure law, for upgrading agricultural infrastructure and ecological initiatives in the Klamath River Basin. Notably, the agreement fosters cooperation among stakeholders who have grappled with communication barriers in the past, aiming for comprehensive ecological renewal and improved water supply management. State Considers Cessation of Fracking Statewide The California Conservation Department has proposed halting the issuance of permits for well stimulation treatments, commonly known as fracking, across the state. The department's Geologic Energy Management Division aims to safeguard life, property, public health, safety and environmental quality by prohibiting new permits for fracking. Most fracking activities occur in Kern County's oil fields in the Central Valley, where over 2,200 permits have been granted, contributing to about 12% of oil and 17% of natural gas extraction in the state. Fracking involves injecting liquids into bedrock at high pressures to access natural gas and petroleum, emitting pollutants and posing risks of oil spills and harm to marine life. Concerns over fracking's impacts on mental well-being and its contribution to climate change have intensified public dissatisfaction, prompting the proposed regulation. The public and oil industry can provide written feedback on the proposal, with a public hearing scheduled for March 26, reflecting Californians' long-standing desire to move away from fracking toward a safer, sustainable future. Package of Housing Bills Introduced in State Senate State Senator Nancy Skinner introduced her 2024 Housing Package aimed at addressing California's housing crisis through legislation promoting more housing creation, reduced costs and expanded homeownership. The package includes SB 1211, facilitating the construction of accessory dwelling units (ADUs) in multifamily housing properties, SB 1210, which caps utility hook-up fees on new housing units and SB 1212, prohibiting corporate entities from purchasing single-family homes. SB 1211 aims to boost the ADU market by allowing more detached ADUs on multifamily properties, while SB 1210 seeks to lower housing costs by capping utility hook-up fees and allowing payment over a 10-year period. SB 1212 aims to increase homeownership opportunities by preventing large investors from buying single-family homes. CP&DR Legal Coverage: Private Regulation of Short-Term Rentals; CEQA Exemptions In an unpublished ruling, the Fourth District Court of Appeal upheld a preliminary injunction against the Arrowhead Lake Association's new rules preventing short-term renters - and homeowners who are not members of the association - from accessing the privately owned Lake Arrowhead beach. The case still must be tried on the merits, but the appellate court said the homeowners challenging the new rules are likely to win - and, in the process, the justices shot down comparisons between the Lake Arrowhead Association and formal local government bodies - at least as far as the definition of a short-term rental is concerned. It's not unusual for neighboring residents who dislike a project to use the California Environmental Quality Act process as a way to try to stop the problem no matter what is environmental impact. And it's not unusual for elected officials to give angry neighbors what they want, again by using CEQA. It is a bit unusual for an appellate court to call everybody out, however. And in a ruling that could have widespread consequences for tiering of environmental impact reports, that's just what the Fourth District Court of Appeal has done in a case involving a proposed recycling plant in San Diego County. The opinion is important because it allows a exemption to tier off of a programmatic environmental impact report. Quick Hits & Updates The Los Angeles Metro Board of Directors certified the environmental impact report for the Los Angeles Aerial Rapid Transit Project, connecting Dodger Stadium to downtown LA via a gondola system. Despite opposition from residents and concerns over transparency and costs, the project moves forward pending consideration by other agencies before construction approval. A Kern County Superior Court judge upheld a preliminary injunction requiring Bakersfield to maintain water flow in the Kern River to protect fish habitats, ruling against the city's attempts to dismiss claims related to public trust and fish and game code violations. While the judge sided with environmental groups on some claims, such as the classification of Bakersfield's diversion structures as dams, he rejected others, including allegations of public nuisance and failure to fulfill trustee duties, prompting potential amendments to the lawsuit. A company pursuing a large-scale sand and gravel mine near Santa Clarita is suing the State Water Board over a permit needed to use the Santa Clara River for its plan to mine 56 million tons of aggregate, delaying discussions on potential concerns regarding the operation's proximity to the river. The lawsuit alleges discrepancies in the board's decision-making process, while opponents raise concerns about increased traffic, air quality degradation and water usage associated with the proposed mining operation. City Administrative Officer Matt Szabo estimates that Measure HLA, a proposal to make pedestrian and active transportation improvements in Los Angeles, would cost the city at least $3.1 billion over the next decade. Proponents of HLA criticized Szabo's analysis, calling it a "last-minute electioneering ploy," while supporters voiced frustration with the city's handling of traffic safety concerns. (See related CP&DR commentary .) The City of Berkeley has been fined $4 million for mishandling a developer's application to build housing units on the old Spenger's parking lot, with $2.6 million going towards violating the Housing Accountability Act and $1.4 million reimbursing the developer for attorney's fees. The legal battle, spanning six years, involves conflicts over historic preservation, housing affordability, and environmental concerns, highlighting the complexity of development projects in the area. The fine will go into the city's affordable housing trust fund. The California Conservation Department has proposed a regulation to halt the issuance of permits for well stimulation treatments, commonly known as fracking, across the state. The department cited concerns about air and water pollution, oil spills and the use of toxic substances in fracking fluids -- as well as increasing public concern -- as reasons for phasing out permits. A recent poll in San Francisco reveals that over half of voters are concerned about crime, drugs and homelessness, with nearly three-quarters feeling the city is heading in the wrong direction, which could impact Mayor London Breed's reelection prospects. Despite a 7% decrease in reported crimes last year, 69% of respondents believe crime has worsened. Voters support financial incentives to revitalize downtown, with 84% backing incentives for small businesses and 81% for large businesses, along with 71% supporting tax incentives for businesses moving into vacant spaces. The Oakland Ballers minor league baseball team have chosen Raimondi Park as their home field for the Spring 2024 season, with plans to host 48 home games starting in June. They aim to revitalize the park, investing $1.6 million in upgrades to create a premier venue for professional and youth baseball and softball, supported by descendants of baseball legends associated with the park. The Office of Attorney General Rob Bonta is supporting the City of Eureka in its legal battle against the Citizens for a Better Eureka's attempts to block affordable housing developments downtown, arguing that the city complied with environmental regulations and housing policies. This move comes as Citizens for a Better Eureka files motions seeking preliminary injunctions to halt planned affordable housing and transportation projects, citing violations of the California Environmental Quality Act. A new Zoning Reform Tracker from the Othering & Belonging Institute of UC Berkeley documents zoning reform efforts across the country, hoping to follow and log any potential anti-density zoning ordinances promoting race and class-based discrimination in housing. The Zoning Reform Tracker focuses primarily on municipal zoning reform efforts, encompassing both a database and interactive webmap.

State Updates Complete Streets Guidelines, Requiring Consideration of Active Mobility Caltrans released its long-awaited guidelines for the design of complete streets last month; they are effective immediately. "Design Information Bulletin #94 - Complete Streets: Contextual Design Guidelines" offers specific standards and best practices" to support the design of comfortable and convenient streetscapes by utilizing space-efficient forms of mobility such as people walking, biking, rolling, or accessing transit." The guidelines state that agencies must account for road users who are not in cars when designing and upgrading streets, acknowledging "the needs of pedestrians and bicyclists should be given special consideration, as their forward movement is physically taxing and opportunities for rest and shelter are of special importance." The guidelines address many of the state's diverse contexts, from urban cores to rural areas. The guidelines are explained an illustrated in a " storymap " published by Caltrans. Court Cites Anaheim for Denial of Transitional Housing Project An Orange County court ruled in favor of the California Department of Housing and Community Development (HCD), determining that the City of Anaheim violated state housing laws by denying a permit for transitional housing for homeless women with mental health disabilities. The dispute arose when Grandma's House of Hope, an established nonprofit, sought to open a facility in the Anaheim Colony Historic District, but faced opposition from neighbors and a denial of a conditional use permit by the City Council. Governor Gavin Newsom hailed the ruling as a victory against discriminatory housing policies, emphasizing the importance of transitional homes in addressing homelessness. The court's decision highlighted violations of several housing laws by Anaheim and nullified the city's illegal permitting rules, with further proceedings to determine potential remedies. While the city expressed concerns about neighborhood integrity, the ruling underscored the imperative to uphold fair housing practices and provide housing for all community needs. Major Lithium Project Breaks Ground at Salton Sea The recent groundbreaking for the Hell's Kitchen 1 plant marks the beginning of the $1.85 billion project in the Salton Sea area, blending lithium extraction with geothermal power. Despite potential legal challenges, developer Controlled Thermal Resources plans up to seven plants atop a vast lithium brine reserve. The project promises to produce renewable energy and 25,000 metric tons of lithium hydroxide annually, enough for 415,000 electric vehicle batteries. Despite enthusiasm from dignitaries and officials, including White House energy advisor John Podesta, concerns persist over environmental impact and tribal consultation. The project's economic potential, including job creation and revenue generation, is touted, but legal hurdles loom as community groups challenge environmental reviews and compliance with zoning laws. A nonprofit group called Comite Civico del Valle is suing, claiming that the facility's permits were issued without proper consideration for the health effects on local residents and that it will overuse water from the nearby Colorado river. State Certifies Brisbane Housing Element over Housing Advocates' Objections The Department of Housing and Community Development delivered a rare piece of good news to the city of Brisbane regarding its housing element laws. Despite complaints from pro-housing groups about delays in the redevelopment of the Baylands, HCD ruled in favor of the city. Although Brisbane missed a deadline related to publishing an environmental study, HCD determined that there is still time to complete the necessary approvals by January 2026. This decision comes amidst a significant number of cities and counties in California being out of compliance with housing element laws, leading to concerns about affordable housing availability. Despite these concerns, Brisbane officials remain committed to moving the Baylands project forward, which represents a substantial portion of the city's housing obligations. (See related CP&DR coverage.) YIMBY Law Sues Los Angeles for Denial of 100% Affordable Housing Project YIMBY Law filed a second lawsuit against the city of Los Angeles for unlawfully delaying a 100% affordable housing project consisting of 190 homes on Wilbur Ave in Reseda, a single-family-only neighborhood. This legal action follows a similar lawsuit in January 2024 concerning a project on Winnetka Ave. The projects were originally eligible for streamlined approval under Mayor Karen Bass's Executive Directive 1 (ED1) but faced delays due to a revision exempting single-family-only neighborhoods, enacted after the project submissions. According to the lawsuit, and despite advocacy efforts and community support, the planning commission and city council unlawfully stalled these affordable housing projects. YIMBY Law stressed their aims to ensure the approval and streamlining of these projects and others under the original form of ED1. CP&DR Coverage: Cities Anticipate Impacts of Brightline High Speed Rail Last month, Brightline West , a privately developed high-speed rail line connecting Rancho Cucamonga with Las Vegas, received $2.5 billion in private activity bonds from the U.S. Department of Transportation, bringing the $12-billion project one step closer to groundbreaking. All told, the project has received nearly $9 billion in federal loans and grants. Regardless of whether the train arrives, the city believes that this sort of development is appropriate for Rancho Cucamonga no matter what. The city is required to zone for 10,525 additional units according to its 6 th Cycle Regional Housing Needs Allocation. Burris said that it makes sense to concentrate development in a few key areas so that it does not encroach on the city's vast swaths of single-family neighborhoods. Quick Hits & Updates Sonoma County is backing a proposal for a Center for Climate Action as part of the redevelopment plan for the historic Sonoma Developmental Center property, aiming to create a collaborative space to address climate crisis challenges. Funded by a $250,000 grant from the California Coastal Conservancy, the initiative aims to attract stakeholders and private enterprise to tackle climate issues, amidst negotiations for redevelopment of the site, which could include housing units. (See related CP&DR coverage.) Three California Assembly members have proposed a $1 billion bond act to support the expansion of ports to accommodate the development of massive wind farms off the state's coast. The proposed bond, aimed at enhancing port capacity for assembling, constructing and transporting wind turbines, is considered critical for offshore wind projects, aligning with California's goal to transition to 100% clean energy and the projection of offshore wind farms supplying 25 gigawatts of electricity by 2045. After two previous rejections, the city of Davis received approval for its Housing Element from the California Department of Housing and Community Development. The approved plan includes various initiatives such as promoting affordable housing, streamlining development processes and preserving affordable housing. While the approval is a significant step, the city acknowledges challenges ahead, especially regarding meeting future housing requirements without sufficient infill sites. Oakland-based developer oWow filed an application to modify previously approved plans for the redevelopment of 960 Howard St. in San Francisco's Central SoMa neighborhood per a recently enacted provision in state Density Bonus Law. Originally greenlit as a three-story office building with a 9-story residential addition, the project now seeks to add 16 stories, for a total of 274 rental units, including 42 designated as affordable housing. According to a new study by SPUR, California's housing crisis is exacerbated by a decentralized governance system, with multiple agencies and regional processes leading to misalignment and complexity. SPUR's report advocates for state-level reform and offers 11 recommendations to streamline governance and address the housing shortage effectively. San Francisco supervisors rejected a challenge to the redevelopment of a former medical library in Pacific Heights, paving the way for the project to proceed without an environmental review. The proposal aims to preserve the building's facade and add two towers for housing, a decision that could have implications for future housing construction in the city. According to a newly published study from the University of Illinois Chicago, 15,000 U.S. cities will experience significant depopulation by 2100. The study anticipates the southern coast of California will lose population while the northern coast gains a larger population. This trend necessitates a shift in urban planning away from growth-focused strategies, states the study's senior author. The latest National Seismic Hazard Model predicts that nearly three-quarters of U.S. states, including California, face the risk of damaging earthquakes in the next century. Southern Alaska, California and Hawaii have over a 95 percent chance of experiencing damaging earthquakes, while even parts of the Mississippi Valley have up to a 90 percent chance. The Conservation Fund closed a $16 million deal to purchase Richmond Ranch, a 3,654-acre property near San Jose, from Z&L Properties, with plans to convert it into a nature preserve with hiking trails, safeguarding critical habitat for Tule elk and other wildlife and serving as a vital link in the Bay Area Ridge Trail. The property's acquisition by conservationists marks a significant win after Z&L's earlier purchase disappointed South Bay conservationists, with the ranch expected to be jointly managed by the Santa Clara County Parks Department and the Santa Clara Valley Habitat Agency. The Biden administration is allocating $426 million for a project to build a marine terminal in Humboldt County, facilitating the construction and deployment of hundreds of massive turbines for an offshore wind farm 20 miles off the state's coast. This initiative marks a significant step forward in California's efforts to establish offshore wind farms, with plans to generate thousands of jobs and contribute to the state's goal of achieving 100% clean electricity by 2045. The Inland Empire, consisting of Riverside and San Bernardino counties, emerged as California's top job creator over the past four years, adding 128,400 jobs since 2019, primarily fueled by the logistics industry's growth driven by the push for online shopping. This growth accounted for 20% of the state's new jobs while comprising only 9% of the total employment in California, with other regions like Los Angeles, San Diego and Sacramento also experiencing significant job increases.

State Awards Seven Prohousing Designations Seven California jurisdictions -- the cities of Eureka, Healdsburg, Mountain View, Petaluma, San Luis Obispo and Santa Monica as well as Tulare County -- have been designated as Prohousing by the Department of Housing & Community Development for their efforts in promoting housing development across all income levels. With the Statewide Housing Plan highlighting the need for 2.5 million new homes by 2030, this designation recognizes communities going above and beyond state housing laws to expedite housing production. These Prohousing communities will receive funding incentives and additional resources to bolster their innovative housing efforts. These jurisdictions indicated a commitment to state housing goals by streamlining processes, reducing fees and incentivizing affordable housing projects. (See related CP&DR coverage .) Related Cos. Downsizes Major Santa Clara Development The first phrase of the Related Santa Clara project, once envisioned as a sprawling mixed-use development of four million square feet, is undergoing significant downsizing. Developer Related Cos. now envisions roughly 1.6 million square feet of office space with light industrial and advanced manufacturing buildings. Originally slated for 4 million square feet of offices, the shift aims to better align with current market demands, reflecting broader trends in commercial real estate. The development is unlikely to generate the "neighborhood" feel originally envisioned. City officials raised concerns about potential impacts on the city's long-term vision for an entertainment district, given the area's access to public transit. The development includes plans for extensive housing, with several hundred residential units already under construction and slated for completion by 2025. At full build-out, the project could total over 9 million square feet, including significant amounts of residential space. (See related CP&DR coverage .) Assembly Committee to Focus on Plight of Downtowns San Francisco Assemblymember Matt Haney is convening a special committee of lawmakers to address the struggles facing California's downtown areas, acknowledging the criticism they've received from both within and outside the state. The committee aims to craft laws and strategies to revitalize urban cores that have suffered from issues like homelessness, vacant storefronts and remote work trends exacerbated by the pandemic. The committee will study tax credits to encourage workers to return to office, streamlined permitting for adaptive reuse of offices, promoting nightlife and entertainment zones and events, moving universities into downtown areas and aiding small businesses. While cities like San Francisco and Los Angeles often bear the brunt of negative publicity, Haney emphasizes that many cities across California face similar issues. The committee's membership reflects geographic diversity and includes Assemblymembers from various regions, indicating a broad approach to addressing urban revitalization statewide. (See related CP&DR coverage .) Merced Annexes 650 Acres for Mixed-Use Community adjacent to UC Merced The Merced City Council unanimously approved the annexation of the Virginia Smith Trust land, a 650-acre parcel south of UC Merced, marking a significant step in connecting the university to the city. The land is slated for development into thousands of homes, apartments, retail spaces, parks and transportation routes, aligning with efforts to connect UC Merced to the city limits. Revenue generated from the project will fund scholarships for local Merced County students, fulfilling the wishes of the late Virginia Smith, who established the trust in 1971. The project aims to support higher education and benefit the community by expanding scholarship opportunities. Following the city council's decision, the annexation process will proceed through additional approvals, including consideration by the Local Agency Formation Commission of Merced County, with the goal of completing the project no later than June 2024. (See related CP&DR coverage .) Report: State Must Preserve Existing Affordable Housing In a report released by California Housing Partnership on affordable homes at risk, the organization found the state's housing crisis will get worse if there are no actions taken to protect subsidized affordable housing that already exists. Many homes are at risk of market rate conversion, and 4,789 affordable homes may no longer be deemed affordable by 2024. Another 31,309 affordable homes may no longer be deemed affordable in the next ten years. These homes face expiring regulatory restrictions on government-assisted multifamily developers or property owner decisions to opt out, sell or allow properties to convert to market rate. Sixty-five percent of the 22,078 affordable homes lost between 1997 and 2022 were owned by for-profit entities. The report proposed a three-tiered solution and action plan for state leaders, including the enforcement of the State Preservation Notice Law, an expansion of funding for affordable housing entities to purchase at-risk homes and incentive for homeowners to sell to those entities. The counties with the largest number of at risk homes are Los Angeles with 10,286 at-risk homes, followed by Orange and San Diego. CP&DR Coverage: Courts Rule against Environmental Groups In two appellate cases filed recently - one published and one unpublished - environmentalists and neighborhood activists came out on the short end of the stick. The results highlighted in sharp relief something that is often evident in the course of time: Environmentalists and neighborhood activists may often sue and even reach the appellate courts, but once they get there they usually lose. The more important of the two cases is Planning & Conservation League v. Department of Water Resources - a case about water rights, not land use, but one that touched on important issues under the California Environmental Quality Act, including the project's baseline, illegal segmentation, and cumulative impact. The case attracted virtually all the important water and environmental lawyers in the state - but the state prevailed over the environmentalists on all counts. The unpublished case nvolved a single-family home built in an affluent hillside part of Los Angeles's Westside, which required the removal of three city-protected trees and six stumps that the neighbors perceived as valuable. Quick Hits & Updates A coalition called Solano Together launched with a gathering of over 200 people at the Nelson Center in Suisun City, to oppose Flannery Associates' California Forever sprawl development proposal. Speakers emphasized the importance of preserving open spaces and agricultural lands, expressing concerns about the impact on existing cities and farmers. (See related CP&DR coverage .) San Diego officials introduced updates to the Historic Preservation Program through the Preservation and Progress Initiative, aiming to streamline new home construction while preserving historic sites. The initiative encourages adaptive reuse of buildings and proposes a shift from reactive to proactive preservation strategies, with plans for public engagement and policy updates in the coming months. The North County Transit District (NCTD) and San Diego Association of Governments (SANDAG) secured a $53.9 million grant from the U.S. Department of Transportation to replace the aging San Dieguito River Railway Bridge in Del Mar, addressing the region's concerns about geologic instability and rail infrastructure resilience. This project, part of Phase II of the San Dieguito Bridge Replacement, Double Track and Special Events Platform Project, aims to enhance rail service, increase capacity and improve operational reliability along the Los Angeles-San Diego-San Luis Obispo (LOSSAN) corridor, with additional funding sought from state and federal sources to fully support the endeavor. The Inglewood Transit Connector Project, a $2 billion endeavor aimed at linking the Metro K Line to Inglewood and major venues like SoFi Stadium, Kia Forum and the forthcoming Intuit Dome, has encountered significant delays, pushing its anticipated completion from the original target of the 2028 Summer Olympics to at least 2030. This setback means it will miss key events such as the 2026 FIFA World Cup, the 2026 NBA All-Star Game and Super Bowl LXI in 2027. The federal government recently committed over $1 billion to the project. The Federal Transit Administration's Capital Investment Grant program will cover half of the project's cost, with the city securing an additional $873 million from various sources. The California Department of Housing and Community Development is updating California's fair housing plan, including the Analysis of Impediments (AI) to fair housing choice. As part of this process, HCD is conducting a Community Needs Assessment survey to identify housing, community development, and supportive service needs in the state. The survey will inform resource allocations and program activities, and it will be open until April 1. UC Davis released its California General Plan Database Mapping Tool , using linguistic analysis to study statewide local housing plans, detailing the plans by most recently updated and the population of those areas. The database is designed as a public use tool to search by keyword specifically for plans regarding environmental justice. Results of the search will create maps and tables to sort through the many uses of a word throughout the state. The database has been updated with plans up through last year, with new added housing plans to come. Metro, Measure Up! and the Regional Integration of Intelligent Transportation Systems collected transportation data obtained from smartphones to better understand transportation trends and patterns in Los Angeles County between 2017 and 2019-2020. The data is open to the public to inform policy and research. San Francisco has requested a temporary freeze on an ongoing lawsuit that restricts the city from clearing homeless encampments until the U.S. Supreme Court decides a related case from Grants Pass, Oregon, which challenges city codes criminalizing sleeping or sitting in public places as "cruel and unusual punishment." The lawsuit against San Francisco alleges violations of state and federal laws, city policies and the rights of homeless individuals by clearing encampments without providing adequate shelter and unlawfully seizing their belongings. Research suggests that, of assessed office buildings, approximately 25% could potentially be converted into residential spaces, offering a cost-effective solution for building owners facing vacancies and declining cash flows. With U.S. office vacancies at a 30-year high, adaptive reuse projects are gaining momentum, supported by government initiatives like the recent $350 million pledge from the White House. Factors such as building form and location are key in determining a building's suitability for conversion, with successful projects already underway in cities including Calgary, Philadelphia, Toronto and Baton Rouge. Home values in San Francisco saw a significant decline in 2023, dropping by 5.6%, marking the largest decrease among California's largest cities and continuing a trend of tumbling values. Despite this, San Francisco remained among the cities with the highest home values in the country, with the third-highest typical value in December 2023. Visalia's Minor League Baseball team, the Rawhide, faces potential relocation as Major League Baseball mandates upgrades to Valley Strong Ballpark. The city, having filed a lawsuit against the team, must decide whether to upgrade the stadium or risk losing the Rawhide. Eric Shaw, the director of San Francisco Mayor London Breed's Office of Housing and Community Development, is stepping down from his role. Shaw's successor will face challenges in advancing affordable housing development amid a slowdown in market-rate projects and high costs in San Francisco. The developer remaking Horton Plaza mall in San Diego, has unveiled plans for two residential skyscrapers on the site. The developer is expected to break ground on a 40-story tower with 518 apartments in Q2 2025, with completion in late 2027. A second 40-story tower with 332 apartments is also planned, but its timing will depend on market dynamics. (See related CP&DR coverage .)

When Orange County went through its first wave of suburban growth in the 1950s, developers reveled in endless agricultural land to accommodate all its new houses, shopping centers, offices, and parking lots. Seventy years later that land, like many other areas of coastal California, is built out. Orange County’s cities have to increase density and rely on infill development for new growth. Its two largest cities – Anaheim and Santa Ana – are leading the way with two projects suggesting that a region associated with auto-centric sprawl is headed towards denser, walkable mixed-use development. The upcoming infill projects involve reclaiming areas with large parking lots and using that land for denser projects, typically including multi-story structures. A prime example of this is under development in Anaheim, in an area notable for its ocean of parking lots. Attempts to redevelop land immediately surrounding Angel Stadium, home of the Los Angeles Angels baseball team, fell flat in May 2022, when a scandal related to the city’s sale of the stadium to the Angels was uncovered. The sale was canceled, and former Anaheim Mayor Harry Sidhu resigned and pled guilty to fraud.

In a tentative but complicated ruling, a Los Angeles judge has ruled that Redondo Beach effectively denied a controversial beachfront project by not accepting a builder’s remedy application – but said the Coastal Act overrides the builder’s remedy because of the property is not designated for by the city’s Coastal Commission-approved zoning ordinance.

San Jose Seeks to Nullify Builder's Remedy Projects San Jose, aiming to regain control over housing development, has rejected builder's remedy applications filed after June 20, sparking potential legal conflicts over several large residential projects. Mayor Matt Mahan emphasized that builders' remedy is for boosting housing, not downsizing, amidst a controversy affecting 29 projects due to the city's delayed housing element submission. Notably, the downsizing of the Berryessa BART Urban Village project, from 3,450 to 940 units, drew criticism for undermining transit-oriented development. The city argues that its housing plan was compliant since adoption in June, disputing the validity of post-June builders' remedy applications until state approval. Additionally, San Jose questions the application of builders' remedy to projects not aiding housing production goals, potentially intensifying legal battles with developers. Despite the rejection, developers can pursue projects through the regular planning process, but legal disputes loom over the city's stance. Last week, San Jose finally received certification of its housing plan after a year of revisions, securing a blueprint to add 62,200 homes over the next decade. Certification relieves the city of penalties and restores its eligibility for state grants for affordable housing and transit. $2.5 Billion Disneyland Redevelopment Plan Includes Takeover of Anaheim Streets Disneyland plans a $2.5 billion reimagining of its Anaheim resort within its current footprint, requiring taking over some city streets, sparking concerns about increased traffic and insufficient tax revenue for Anaheim. The plan, dubbed DisneylandForward, aims for an enhanced "immersive" experience by integrating attractions, hotels and shops. Disney requests zoning rule relaxation to redesign the resort, including Disneyland and Disney California Adventure Park. However, privatizing some streets and the expansion plan raise concerns about traffic, rent hikes and community displacement among residents. Despite promises of economic benefits, the proposal follows a city corruption scandal, prompting calls for Disney to make more significant commitments to affordable housing. Fullerton Agrees to Adopt Housing Element for 13,209 Homes Attorney General Rob Bonta, in collaboration with the Department of Housing and Community Development, reached an agreement to bring the City of Fullerton into compliance with the state's Housing Element Law. The city will adopt a plan allowing for the development of 13,209 housing units, including 5,187 low- or very low-income units, by November 5, 2024. This agreement, reached through a stipulated judgment, addresses Fullerton's failure to adopt a compliant housing plan for the 2021-2029 period by the statutory deadline of October 15, 2021. Under the agreement, Fullerton will also modernize its zoning code to accommodate affordable housing by December 29, 2024, and comply with the Affirmatively Furthering Fair Housing statute. Failure to comply may result in penalties or loss of authority to approve certain developments. Controversial Light Rail Station Gains Approval in Sacramento Sacramento region leaders approved a new light rail station near a River District public housing complex after initially denying it. County Supervisors Patrick Kennedy and Pat Hume, along with other officials, reversed their votes in a recent Sacramento Regional Transit board meeting, citing new information from staff. The decision came after the California Strategic Growth Council clarified that grant funds could only be used for permanent structures, not for new bus routes as previously proposed. RT secured additional funding, reducing the project cost to about $42 million. Despite some opposition, advocates, including the Sacramento Housing and Redevelopment Authority, emphasized the need for the station to serve residents of the newly finished Mirasol Village. CP&DR Coverage: Sacramento Considers Ways to Regulate Warehouses In recent years, city councils across the Inland Empire--including Colton, Rialto and Riverside—have enacted moratoriums to freeze warehouse development. Others, like Jurupa Valley, have implemented other forms of control that stop short of moratoriums. Now, however, the state legislature is considering wider regional restrictions on warehouse development. Last year, two bills, AB 1748 and AB 1000, would have put the force of state legislation behind this movement. The bills have been supported by environmental justice advocates, who cite the health impacts of diesel trucks on local residents, especially historically disadvantaged minority communities that are clustered in some of the most heavily trafficked areas. Quick Hits & Updates The Fifth National Climate Assessment, published by the federal government, presents dire findings about climate change impacts, including unprecedented temperature increases, frequent wildfires and ongoing drought in the West. Despite the challenges, the report emphasizes the need for action and possibility. The water shortage in the Southwest, including California, is a persistent issue exacerbated by climate change, with reduced snowpack affecting the region's variable water supply. Addressing the problem requires reducing consumption, starting with changes in agriculture. Elected officials are urged to pursue innovative water management strategies in response to the ongoing water crisis. UCLA will receive $200 million from the state to transform the former Westside Pavilion Mall in Los Angeles into a research park focused on immunology and quantum science. The research park, set to be completed in May 2027, will house the California Institute for Immunology and Immunotherapy and the UCLA Center for Quantum Science and Engineering, aiming to position the university and the state at the forefront of these rapidly expanding fields of research. The historic town of Falk, located within the Bureau of Land Management Headwaters Forest Reserve, has been designated as a National Historic Place, recognized for its significance and deserving of preservation. Falk, once a bustling logging and mill town from 1884 to 1937, played a vital role in the region's lumber industry, with infrastructure like a railroad and mill pond supporting its operations and, although the site fell into decline after operations ceased, its historical importance is now highlighted through interpretation and restoration efforts by the BLM Arcata Field Office and Friends of Headwaters. The Los Angeles County Board of Supervisors approved a motion to collaborate with L.A. Metro and the City of Palmdale on establishing a significant bus and passenger rail manufacturing facility in Palmdale, anticipated to bring substantial economic benefits and over 100,000 jobs. The project aims to address industry needs, foster technological advancement, and promote inclusive planning, with plans underway for a 2 million-square-foot manufacturing center at Palmdale Airport. Senator Scott Wiener introduced Senate Bill 969, which aims to create "Entertainment Zones" in California's city centers, allowing bars and restaurants to serve alcohol in public spaces to invigorate downtown areas hit hard by the pandemic. With the goal of boosting foot traffic and supporting local businesses, the bill seeks to emulate the vibrant street life seen at festivals and events, potentially sparking an economic resurgence in cities like San Francisco. Supported by mayors and industry advocates, the initiative aims to draw people back to downtown areas, stimulate business growth, and revitalize communities post-COVID. The Fresno City Council voted to file an injunction to prevent the closure of La Hacienda Mobile Estates mobile home park in northeast Fresno. The decision comes after the council criticized the park owner, Harmony Communities, and may signal a change in the city's approach to the closure of the park. San Diego's new Preservation and Progress initiative seeks to update the Heritage Preservation Program, aiming to streamline home construction processes while protecting historically significant sites. Mayor Todd Gloria emphasized the initiative's goal to prevent misuse of historic preservation to obstruct revitalization and new home construction, promoting a comprehensive review to ensure the protection of architecturally significant structures in San Diego. The Brentwood Planning Commission unanimously recommended against amending the city's housing plan due to concerns about urban sprawl, excessive commuting, and fair housing. Commissioners expressed doubts about the proposed amendments' effectiveness and opted to send the matter back to the City Council for further discussion, along with other topics such as the appointment of a chairperson and vice chairperson for the Planning Commission and approval of a conditional use permit for a commercial building. A judge declined to block San Mateo County from purchasing a hotel in Millbrae for low-priced rental housing, giving a temporary win to Governor Newsom's Project Homekey. However, the judge indicated she would consider Millbrae's argument that the purchase requires voter approval under the state Constitution, potentially posing a challenge to the project's implementation. Brian Kelly, CEO of the California High-Speed Rail Authority since 2018, will resign , intending to stay on during the transition to a new leader. Under his leadership, the agency focused on completing construction segments in the San Joaquin Valley, securing funding, and prioritizing operational readiness. While praised for his contributions, Kelly emphasized the need for a leader with expertise in passenger rail operations as the project transitions towards operations.

Well, it was a bad week in court for environmentalists and neighborhood activists.

Massive Fresno Expansion Put on Hold The City of Fresno is indefinitely shelving the ambitious plan for a 45,000-home community in southeast Fresno known as the Southeast Development Area (SEDA). The plan, though discussed for years, has not yet been adopted by the city council. Challenges including financing the multi-billion-dollar project and discrepancies in population projections have halted progress. Fresno City Manager Georgeanne White emphasized the need for thoroughness in reassessing the feasibility of the 9,000-acre development. Concerns over who will bear the financial burden, public or developers, complicate the project, with public subsidies off the table. White indicated that thge city does not have enough bonding capacity to cover SEDA's infrastructure. Additionally, environmental and labor groups have raised significant objections, citing flawed environmental reviews and environmental costs. As discussions continue, the city faces a pivotal decision between pursuing the SEDA project or exploring alternative avenues for housing development. (See related CP&DR coverage .) Lawsuit Seeks to Stop Delta Tunnel Project Environmental groups filed a lawsuit against the California Department of Water Resources over the Delta Conveyance Project, citing ecological harm. The project aims to divert vast amounts of Sacramento River water, endangering species in the San Joaquin Delta. The tunnel, at 36 feet wide and 45 miles long, would significantly reduce freshwater flow to the delta, impacting Delta smelt and Chinook salmon. The lawsuit alleges violations of the California Environmental Quality Act due to deficient environmental impact reports. A recent court ruling deemed the project's funding efforts unlawful, halting the $16 billion revenue bond issuance. This single-tunnel project replaces the abandoned twin-tunnel California WaterFix project, sparking controversy among environmental advocates. Audit Slams VTA over BART Extension to San Jose A report by the Valley Transportation Authority's auditor general criticizes the agency for a lack of transparency and misleading communication regarding the San Jose BART extension, which has faced significant cost increases and delays. The assessment reveals that VTA internally used higher cost projections while publicly downplaying them, causing concerns about the project's $12.2 billion price tag. VTA applied for federal grants using a $9.1 billion estimate, but continued to cite a lower figure of $6.9 billion publicly. The agency ignored warnings from federal monitors about rising costs and only disclosed the higher estimate months after securing funding. VTA officials maintain they acted with credibility in their grant application, but acknowledge the need for improved communication. The BART extension aims to connect San Jose with downtown through a subterranean tunnel, adding four stations to the transit network. San Francisco Near Top of Ranking for "Urban Mobility Readiness" UC Berkeley and the Oliver Wyman Forum ranked 65 large cities based on their preparedness for the future of urban mobility, ranking San Francisco as fourth best city for urban mobility. San Francisco can credit its ranking to its "market attractiveness" as the city continues to be a central hub of private and public investments with an emphasis in new technology like automated and electric vehicles. The study also noted San Francisco's challenges with public transit, emphasizing their low public transit ridership following the pandemic. The study suggests San Francisco disincentivize car ownership and encourage public transit through more stops and stations along commuter lines and focus on bus and tram services as opposed to developing additional metro and rail stations. Los Angeles ranks 23 on the list as the only other California city represented in the study. CP&DR Coverage: Cities Struggle to Hire Planners At a time when many public-sector planning departments in California face more work than ever, many are also finding that hiring and retaining professional staff is harder than ever. Just as the Covid-19 pandemic reshuffled the populations of many California cities—with residents seeking more living space and wider open spaces — it also put lingering constraints on planning departments themselves. Many midcareer planners took early retirement or themselves moved to suburban or exurban areas, and the state's housing shortage means that many planners cannot afford to live in cities that are hiring. Meanwhile, in order to lessen the housing shortage, the state has placed new burdens on local agencies in the form of complicated Housing Elements and other long-range planning requirements. Quick Hits & Updates Senator Scott Wiener introduced SB 951, aimed at reducing the authority of the California Coastal Commission over neighborhood areas along San Francisco's Ocean Beach, removing privately owned urban parcels from commission oversight. While Mayor London Breed supports the legislation, critics worry about its broader implications for coastal preservation and the balance between housing development and environmental protection. Proposed water conservation regulations for urban areas in California, aimed at adapting to climate change, face criticism from the Legislative Analysts Office for being costly and overly complex, with concerns raised about their implementation challenges and potential disproportionate impacts on lower-income residents. While supporters argue that the regulations are necessary for long-term water efficiency and climate resilience, critics worry about the practicality and fairness of the proposed measures, particularly in light of their estimated costs and limited potential water savings compared to agricultural consumption. Huntington Beach is appealing a federal judge's decision against it regarding California's housing mandates, arguing that as a charter city, it has independence in local governance. The city's move comes after a ruling that it lacked standing to challenge state requirements to zone for housing units, sparking a political debate over local control and state overreach. Hermosa Beach's City Council approved an unusual land value recapture program to encourage affordable housing development, requiring fees from developers building market-rate housing to support affordable housing initiatives. The program aims to capture increased land value in designated zones and has drawn both support and criticism from experts, with concerns raised about its potential impact on development feasibility and effectiveness in raising revenue for affordable housing. The Coastal Commission certified the updated community growth plan for San Diego's Barrio Logan, aiming to improve public health by separating residents from industrial activities and prohibiting new industrial facilities in certain areas. The plan, the first update since 1978, includes measures to triple housing, create a buffer zone between housing and industry, and build new parks, addressing concerns about pollution and industrial encroachment in the neighborhood. The Department of Housing and Community Development announced over $63 million in Excess Sites Local Government Matching Grants (LGMG) to accelerate the development of 975 affordable homes across ten projects statewide. This initiative, part of Governor Gavin Newsom's strategy to address the housing crisis, leverages excess state properties for housing development, with more than $80 million in local government funding matched. These grants support projects in cities like San Francisco, Riverside, Clearlake, Los Angeles, South Lake Tahoe, Placerville, and Atascadero, aiming to provide affordable housing for various income levels and community needs. Federal funding has been approved for the high-speed rail project between the Inland Empire and Las Vegas, aiming for completion before the 2028 Olympics. The Brightline West project, facilitated by a $2.5 billion bond approval, targets a two-hour journey from Rancho Cucamonga to Las Vegas, poised to enhance connectivity and economic competitiveness in the region. The Fifth National Climate Assessment, published by the federal government, presents dire findings about climate change impacts, including unprecedented temperature increases, frequent wildfires and ongoing drought in the West. Despite the challenges, the report emphasizes the need for action and possibility. The water shortage in the Southwest, including California, is a persistent issue exacerbated by climate change, with reduced snowpack affecting the region's variable water supply. Addressing the problem requires reducing consumption, starting with changes in agriculture. Elected officials are urged to pursue innovative water management strategies in response to the ongoing water crisis. Berkeley mayoral candidate and Councilmember Rigel Robinson is resigning from office and ending his campaign due to "harassment, stalking, and threats." Robinson, the youngest council member ever elected in Berkeley, cited the toll on his well-being and family, mentioning burnout from perpetual stress and exhaustion. His resignation leaves his district without a representative until a special election later this year, and the mayoral race now features two council members, Sophie Hahn and Kate Harrison, along with Adena Ishii. A proposed housing development in San Jose's Alviso district, spanning 804 units on a 3.2-acre site, is being refashioned to include 100% affordable apartments, according to city documents. The project, initially planned for a 200-room hotel, was redirected due to the impact of the COVID-19 pandemic on the hotel industry, and the new proposal for 100% affordable housing is being pursued by a unit of Genesis Commercial Capital. The University of California is considering expanding its presence in San Francisco in response to Mayor London Breed's request for the university system to grow its footprint downtown. The UC Office of the President is exploring opportunities to advance research, public service, and education in the city, and UC Berkeley is also involved in the effort. The move comes as more than one-third of the space in San Francisco's office towers remains vacant due to remote work trends.

by CP&DR Staff on January 25, 2024 Report

California Forever Submits Text of Ballot Measure to Solano County California Forever, the development group funded by tech billionaires with plans to build a new city in Solano County, submitted a ballot initiative seeking an exemption from the county's Orderly Growth ordinance, which restricts development in the largely rural county. The plan includes the construction tens of thousands of "middle-class" homes, parks, bike lanes and a solar farm. The project, aimed at being walkable, integrated and eco-friendly, faces skepticism due to its secretive origins and the need for approval from Solano County voters. The proposed city, located north of Rio Vista, could eventually house 400,000 residents, with initial development targeting 50,000 residents by 2026. The ballot initiative promises legally binding guarantees on jobs, down payment assistance and funding for mixed-use projects. However, opposition comes from ranchers, environmentalists and locals concerned about its impact on agriculture, real estate prices and existing infrastructure. The initiative includes a number of commitments, such as funding highway improvements and increasing the buffer zone around Travis Air Force Base. If approved, the measure would appear on the November ballot. (See related CP&DR coverage .) Judges Allow Housing Lawsuit Against Huntington Beach to Proceed The state's lawsuit against Huntington Beach, California, accusing the city of violating state laws to address the housing crisis, is back on track after being temporarily halted in November. A three-judge panel at California's 4th Circuit Court of Appeal ruled that Huntington Beach's status as a charter city does not prevent the state from seeking an expedited hearing on its lawsuit. The lawsuit, led by Attorney General Rob Bonta and Governor Gavin Newsom, alleges that the city violated state law by rejecting a plan to provide enough housing for expected population growth. The decision allows the case to continue expedited proceedings, unless the city persuades the courts to halt the lawsuit for other reasons. The lawsuit targets Huntington Beach's refusal to comply with state laws addressing the housing crisis, and the city previously sought protection in federal court, claiming violations of its constitutional rights. (See related CP&DR coverage .) Cupertino Reaches Settlement with Housing Advocates over Noncompliant Housing Element Housing advocates, represented by YIMBY Law and the California Housing Defense Fund, reached a settlement with Cupertino after lawsuits were filed against it and several other Bay Area jurisdictions for missing the state deadline for housing elements. As part of the settlement, Cupertino will revise its housing plans in compliance with state law and abide by the "builder's remedy," allowing developers to push larger projects through an expedited approvals process. Cupertino must approve 4,588 new homes by 2031, with 1,880 designated for low-income households. The settlement aims to speed up the adoption of a compliant housing element, with Cupertino's Deputy City Manager expressing a commitment to responsible development. While some council members support the settlement for expediting the process, others criticize it, citing concerns about a bypass of environmental review laws and blaming the city's consultants for delays. San Diego Adopts Citywide Housing Reforms The San Diego City Council approved Mayor Todd Gloria's Housing Action Package (HAP) 2.0, part of the Homes for All of Us initiative, aimed at addressing the city's affordable housing challenges. The reforms include amendments to the Land Development Code to preserve existing affordable homes and encourage the construction of new ones, with a focus on protecting vulnerable community members such as those experiencing homelessness, people with disabilities and seniors. The package introduces incentives for various housing options, including single-room occupancy homes for the very-low-income level, affordable student homes near transit and accessible accessory dwelling units (ADUs) for seniors and people with disabilities. It also allows public agencies greater flexibility in developing homes on publicly owned land, addresses environmental justice concerns and promotes the preservation of affordable homes while preventing displacement. Additionally, the reforms implement flexible parking requirements, encourage developments in underused areas near transit and streamline regulations to build family homes in areas with good schools and job opportunities. The HAP 2.0 package is set to return to the City Council for a second reading in early January before reaching the mayor's desk for approval. CP&DR Coverage: Supreme Court May Updend Cities' Ability to Impose Exactions Based on oral argument last week in a case from El Dorado County, the U.S. Supreme Court seems ready to strike down California's Ehrlich/San Remo exception to the Nollan/Dolan rule on exactions - an exception that allows California cities and counties to impose exactions that do not have a “direct connection” to the project in question and that are not “roughly proportional” to the project's impact if they are part of a General Plan or broader legislative effort. The Nollan/Dolan doctrine states that development exactions - including impact fees - must have a “rational nexus” to the development project in question and also must be imposed in a manner that is “roughly proportional” to the impact of the new development on existing conditions. Exactions that do not meet this test are considered a taking of property under the Fifth Amendment to the U.S. Constitution. Quick Hits & Updates Average temperatures in Northern California, particularly across the Central Valley, have steadily increased over the last few decades, with winters becoming at least 2 degrees warmer. While the region is expected to experience a slight warming trend in the upcoming days, this warmer climate could potentially lead to more hazardous winter storms with sleet and freezing rain, affecting various aspects of daily life and agriculture in the area. The Hermosa Beach City Council approved a Land Value Recapture (LVR) program, which involves rezoning areas for mixed-use development, aiming to create market-rate and moderate to low-income homes and apartments. The program includes setting LVR fees of $76 per square foot on residential developments of four or fewer units and $104 per square foot on residential developments of five or more units, with exemptions for owners selling or leasing units at county-defined "moderate to very low income" prices. Attorney General Rob Bonta filed a civil lawsuit accusing Shangri-La Industries, a contractor with the state's Project Homekey homeless housing program, of illegally borrowing over $100 million against the projects, putting them at risk of foreclosure. Bonta demands the return of funds and asks the court to place seven properties in receivership, alleging that Shangri-La took out loans without state approval and failed to record required affordability restrictions, jeopardizing the projects' completion. Three master-planned communities in Southern California—Ontario Ranch, Great Park Neighborhoods, and Rancho Mission Viejo— rank among the nation's 50 fastest-selling communities, according to annual rankings by new-home tracker John Burns Research and Consulting. The trio collectively sold 2,187 homes in 2023, up 70% from 2022, with Ontario Ranch ranked fifth nationally, Great Park in Irvine at 19th, and Rancho Mission Viejo at 31st. The Hoopa Valley Tribe acquired 10,395 acres of land, including the headwaters of Pine Creek, through a $14.1 million purchase, marking the tribe's largest reacquisition of land since the establishment of the Hoopa Valley Indian Reservation in 1864. The tribe plans to restore the historic salmon run, rebuild the elk population and address environmental issues to enhance the well-being of its people on the ancestral territory. The governor's office launched the state's first interactive website, build.ca.gov , allowing residents to track the progress of thousands of publicly funded infrastructure projects across the state. The website provides details on projects ranging from clean energy to transportation and broadband, with an interactive map, a 110-page project list and spotlight stories offering background information on each project. San Francisco has regained compliance with state housing law, closing the window for builder's remedy applications from developers. The city passed the "constraints reduction ordinance" in December, meeting the state's standards and avoiding potential punishments for non-compliance. Senator Aisha Wahab withdrew Senate Bill 397, which aimed to merge the Bay Area's 27 transit agencies. The bill faced opposition from regional transit agencies but signaled ongoing discussions about consolidating some of the Bay Area's numerous transit agencies as they grapple with budget deficits and ridership challenges. A new report from UC Berkeley's Terner Center addresses the economic complexities of housing development, particularly in California, noting the impact of macroeconomic shifts like inflation and rising costs of materials and labor on construction expenses. According to the study, titled "Demystifying Development Math," policymakers and housing advocates often lack comprehension of the financial factors influencing developers' decisions. State Farm plans to raise its average homeowner insurance policies in California by 20% next year, a move attributed to increased costs and risks, amidst challenges in the state's insurance market. The rate hike follows a period of limited new policy acceptance, driven by rising construction expenses and escalating risks from catastrophic events like wildfires. Santa Barbara County is engaging the public to allocate space for 5,000 housing units by 2031 using the "Balancing Act" simulator, allowing users to select land parcels for housing while considering income requirements and county locations. Residents express diverse opinions on housing placement, emphasizing the importance of affordable homes and vacant properties for housing development.