San Francisco Misses State Deadline to Adopt Key Housing Ordinance San Francisco has missed a deadline set by the California Department of Housing and Community Development (HCD) for adoption of a "constraints reduction" ordinance pushed by Mayor London Breed's aimed at streamlining residential development. HCD considers the ordinance key to the success of the city's housing element. Failure to comply might result in the loss of local control over project approvals and decertification of the city's housing element. Simultaneously, efforts are underway to swiftly pass legislation to maintain control over zoning authority and avoid bypassing local planning, particularly concerning the proposed 600-foot tower at Sloat Garden Center. Supervisor Melgar aims to avoid disruptive projects like the high-rise tower near Ocean Beach by passing the legislation within the extended timeframe, confident in preventing undesired outcomes. The focus remains on addressing compliance concerns of the ordinance with local and state laws, with Supervisor Joel Engardio emphasizing the importance of meeting the state deadline to avert potential consequences such as the construction of massive towers in sensitive areas like the Sunset District via a builder's remedy application. Supervisors may reconsider the ordinance today (Nov. 28). LAO Catalogs $3.3 Billion Plan for Housing and Homelessness The Legislative Analyst's Office reviewed the 2023-24 California Spending Plan, which encompasses a $3.3 billion budget for housing and homelessness programs within various departments, including HCD, CalICH and the Tax Credit Allocation Committee. It allocates significant amounts to programs like Homeless Housing, Multifamily Housing and Adaptive Reuse. Additionally, it introduces $672.5 million in solutions, involving spending delays, reductions and trigger restoration for CalHome and Downtown Rebound programs, alongside $600 million in new discretionary spending and tax credits. Notably, it expands the State Low-Income Housing Tax Credits by $500 million and authorizes a $100 million one-time increase for the Multifamily Housing Program. However, it's noted that discretionary spending for housing beyond 2023-24 is limited, with some funds having multiyear expenditure authority. The plan includes legislative measures to enhance oversight and accountability, linking HHAPP funding to regionally coordinated homelessness action plans and revising the California Dream for All program to better target loans. Moreover, proposed legislation transfers grant administration from CalICH to HCD and separates CalHFA as a distinct entity within the Business, Consumer Services and Housing Agency. Berkeley to Upzone Area around University to Accommodate Student Housing The Berkeley City Council unanimously voted to allow taller buildings, up to 12 stories, in Berkeley's Southside area near UC Berkeley, facilitating the addition of 2,652 residential units. This move addresses the city's housing crisis, particularly the shortage impacting UC Berkeley students. With only 23% of students housed by the university, the low rate prompted a judge to temporarily halt student acceptances due to insufficient housing. The zoning modifications aim to alleviate student housing challenges, allowing buildings to rise up to 85 feet on certain streets and potentially reaching 16 stories for projects incorporating affordable and middle-income housing, in line with new state density laws effective next year. Concerns have been raised about density overshadowing green spaces, prompting the council to explore incentives for new housing projects that enhance pedestrian spaces and green roofs. This vote aligns with the city's efforts to comply with state mandates to boost housing, with further changes planned to cater to middle-income households and revise single-family zoning. Study Reviews Impacts of Switch to VMT Analysis A study out of UC Davis found switching from automobile level of services (LOS) to Vehicle Miles Travelled (VMT) to study transportation-related impacts under the California Environmental Quality Act (CEQA) left many jurisdictions in varying stages of studying environmental impacts of VMT on projects. In 2018, Senate Bill 743 (SB 743) was signed into law and changed the best practices of studying transportation-related environmental impacts. Some jurisdictions, according to the study, have since had difficulty quantifying and projecting VMT impacts from completed land use developments. The study additionally found jurisdictions overwhelmingly use LOS outside of CEQA, but those analyses using LOS are not as comprehensive and expensive as they would be for CEQA studies. The study found that jurisdictions can speed up development in urban areas using VMT, and suggested education and funds allocated towards that shift. (See related CPD&R coverage .) San Diego Proposes High Rises in Hillcrest Neighborhood San Diego planning officials unveiled a proposal for the Hillcrest neighborhood that would cap residential density at 86 units per acre, while introducing downtown-style high-rise housing along existing transport corridors and redeveloped areas of the neighborhood's two large hospital campuses. The update would also include a historic district celebrating the legacy of Hillcrest's gay community, with preserved buildings, public art, plaques and other attractions. The changes would result in the construction of approximately 20,000 new housing units, increasing Uptown's population from 51,000 to an estimated 113,500 by 2050. Critics say the proposal is rushed and overly ambitious, while others are concerned that it does not address the lack of libraries and parks in Hillcrest, or its transportation infrastructure. CP&DR Coverage: Long Beach Sees Potential Housing in Moribund Commercial Strips Upzoning is one thing. Getting developers and property owners to redevelop is quite another. Unlike many other coastal cities, Long Beach, population 456,000, has generally welcomed new housing. No major battles arose over its RHNA allocation (around 27,000 units), and it has, of late, aggressively up-zoned many parts of the city to allow multifamily and mixed-use development. The city is targeting, in part, countless small--and, by many accounts, underperforming--retail strips that line its boulevards. Planners have turned into cheerleaders and advocates to encourage complacent property owners to consider building dense housing rather than let storefronts lie vacant. Quick Hits & Updates The City of Los Angeles may pursue an Enhanced Infrastructure Financing District (EIFD) for Downtown. Following the recent approval of the DTLA 2040 plan, set to bring in a significant influx of residents and jobs to Downtown Los Angeles, a proposal aims to fund the area's unmet park and transportation projects through an EIFD. The district would be bounded by the Los Angeles River, the 110 and 10 Freeways and surface streets, which could generate between $1.5 billion and $3 billion for various projects, according to a study. A federal bill advanced by Rep. Mike Thompson could extend the Sacramento-San Joaquin Delta National Heritage Area, including 62 acres of publicly owned land in Solano County. The legislation aims to enable Rio Vista to access federal grants for redeveloping the decommissioned Rio Vista Army base. This expansion request, prompted by Rio Vista, targets parcels like the Army Reserve Center and Wastewater Treatment Plant, owned by the city, intending to preserve cultural heritage and natural beauty while benefiting from $10 million in federal grant funding. A developer plans to erect a 71-story residential tower at 530 Howard St., potentially becoming the tallest apartment building on the West Coast and third-tallest structure in San Francisco. The proposal, featuring 672 apartments, aims to utilize a state approval process, avoiding the need for Planning Commission or Board of Supervisors' approval. The Downtown Oakland Specific Plan, slated for potential City Council approval next year, aims to transform the urban center over 20 years, focusing on housing, economic growth, mobility, culture, health and land use. This 342-page document hopes to revitalize downtown, promote racial equity and generate business by allowing taller, denser housing near transit hubs, fostering a downtown cultural district and simplifying permits for entertainment venues. San Jose State University secured a landmark $113 million deal to convert a vacant downtown hotel tower into student housing, intending to accommodate 700 to 800 students and extend the university's influence over a mile from campus to the western edge of downtown San Jose. Conservation groups filed a lawsuit against the National Park Service for replanting burned giant sequoia groves in Sequoia and Kings Canyon national parks, arguing that the project violates wilderness designations and interferes with natural processes of regeneration. Park officials aim to restore over 1,200 acres by planting seedlings, using methods like mule trains and helicopters, but critics claim this intervention is unnecessary and inappropriate, alleging that the burned areas are already displaying signs of natural regrowth. A state appeals court concluded a 12-year legal battle between Golden Gate Fields racetrack owners and the East Bay Regional Park District over the Bay Trail's cost. The court upheld the district's $2.125 million payment for waterfront land, rejecting the racetrack's demand for $12.85 million, focusing primarily on procedural aspects while leaving the case's merits and potential further appeals uncertain. The Los Angeles Rams are planning a $650 million mixed-use corporate office and practice facility in the Woodland Hills neighborhood of Los Angeles, in the largely suburban San Fernando Valley, plus a retail and commercial component. This project aims to transform underdeveloped spaces into a sports-centric community hub, exemplifying the transition of suburban areas to more experience-oriented, pedestrian-friendly neighborhoods. (See related CP&DR coverage .) According to business website Chamber of Commerce, workers in San Francisco have the costliest average annual commute , losing on average $12,650.66 in wages. The average daily commute cost amounts to $48.66 at an average commute of 58.4 minutes when accounting for median wages. Women in San Francisco, as a result of gender pay disparity, lose an average of $15,381. Fremont has the second most expensive commute nationwide, with lost wages amounting to a yearly average of $12,048. Santa Clarita, Sunnyvale and Huntington Beach each sit in the top 10 most expensive commutes at 6th, 8th and 10th respectively. The San Francisco Housing Authority is suing a development company for breach of contract in the mismanagement of the Housing Choice Voucher Program (Section 8), alleging incomplete paperwork and missed deadlines leading to $6-10 million in financial losses. This mismanagement impacted vulnerable residents' housing assistance, forcing the authority to dip into reserves.

San Diego City Council Rejects Mayor's Housing Package The San Diego City Council rejected Mayor Todd Gloria's Housing Action Package 2.0, initially perceived as uncontroversial. The proposal faced opposition over two elements: redirecting fee waivers from studio to three-bedroom units, and altering rules requiring on-site affordable units for dense developments. A council block tried unsuccessfully to modify or remove these changes, resulting in a deadlock vote of 4-4 with one member absent. Ultimately, the council voted, 5-3, against the package, possibly sending it back to the Land Use and Housing Committee or the full Council for further review. State Lawsuit Against Huntington Beach May Proceed A federal judge dismissed Huntington Beach's housing regulations lawsuit against the state. The judge cited previous Ninth Circuit Court rulings, stating that the city lacked standing to challenge the state's housing mandates in federal court, advising the city to pursue the matter in a state court, emphasizing that the decision on the constitutionality of state housing laws falls within the state's jurisdiction. Huntington Beach's City Attorney expressed plans to appeal the federal court's decision to the Ninth Circuit, believing that the city's lawsuit deserves a comprehensive legal review. Despite this setback, Attorney General Rob Bonta intends to continue his legal battle in the state court to enforce California's housing laws, stressing the necessity for collective efforts in addressing the state's housing crisis. The dismissal of the federal lawsuit allows the state's case against Huntington Beach to proceed in the state court, reigniting discussions on potential penalties if the city does not comply with housing mandates. (See related CP&DR coverage .) "California Forever" Proposes Land Exchange for Conservation The planned city California Forever proposed a land exchange to Solano County Fairfield, and Solano County Water Agency, offering 1,573 acres of high habitat land on Jepson Prairie near Travis Air Force Base in exchange for 1,403 acres of pasture further away. The swap aims to align with the Department of Defense's environmental program and preserve the Solano County Habitat Conservation Plan. The exchange, conditioned on voter and regulatory approval, includes a $1 million contribution towards the conservation plan and aims to finalize by December 31. However, the group behind the large acquisitions is under scrutiny for potential foreign backing, although it recently revealed their largest US tech investors. However, the Committee on Foreign Investment in the United States (CFIUS) continues to investigate the project amid concerns of undisclosed foreign investment and national security risks. Critics remain skeptical of the project's funding sources and its alignment with local interests. Los Angeles Mayor Signs Order to Streamline Housing Approvals Los Angeles Mayor Karen Bass issued an executive directive aimed at enhancing housing affordability and accessibility across the city. This directive seeks to incentivize the construction of housing for people of various income levels, placing a particular emphasis on affordable and mixed-income housing. It outlines measures to reduce barriers to homeownership, expedite housing projects, convert existing buildings into housing and streamline the permitting process. These steps aim to address the longstanding housing crisis by encouraging faster housing development, especially for affordable units and navigating environmental reviews for projects effectively. The directive further establishes an interdepartmental working group to drive organizational improvements and permit clearance coordination, aiming to reduce processing timelines for housing projects by up to 30%. Additionally, technological advancements and enhanced counter services will be pursued to further facilitate the development and coordination of permitting for various projects. State Receives $443 Million in Housing Funds from Feds The State of California and the Biden Administration received a $443 million infusion of federal housing funding for fall 2023. The funding will support various programs to address housing needs throughout the state, with a particular focus on small and rural communities. These programs will provide grants and loans to support affordable rental housing, rental assistance, home-ownership assistance, property rehabilitation and infrastructure improvements, aiming to serve historically underresourced communities. The investment is designed to help bridge the housing gap in all parts of California, including underserved rural areas. This funding is part of a historic effort to ensure equity in housing funding reach and provides smaller jurisdictions with opportunities to access federal dollars to meet their residents' critical housing needs. The funding is expected to have a transformative impact on small and rural areas in California. The programs include the National Housing Trust Fund, HOME-American Rescue Plan Rental Housing Program, HOME Investments Partnership Program and the HOME-ARP Housing Plus Support Program, among others. ICYMI: The Saga of the Oakland A's (Probably) Ends CP&DR has been around since the days of Ricky Henderson, Dennis Eckersley, and the Bash Brothers. In that time, the Oakland A's and their stadium have provided these pages with a steady stream of news, both in standalone articles and, especially, in countless news briefs. In the most recent, and seemingly final, chapter, the team failed to close a deal on its proposed Howard Terminal stadium and development, and the City of Oakland, along with A's fans, tried in vain to prevent the team from moving to Las Vegas. It was for naught. Last week, Major League Baseball approved the move. Here is a selection of CP&DR coverage of the A's stadium saga over the years: New Stadium Craze Sweeps The State (Dec. 21, 2009) Oakland Eyes New Stadiums to Keep Pro Teams (April 21, 2014) Oakland A's to San Jose: It Was Just One of Those Things (Feb. 5, 2015) Stadium Sites Present Opportunities in Sacramento, Oakland (Feb. 28, 2022) A's Stadium Wins A Round In CEQA Lawsuit (Sept. 5, 2022) With the 120-acre Oakland-Alameda County Coliseum Complex now bereft of major league teams, the city now gets to see which developer(s) are willing to play ball on the site of "Baseball's Last Dive Bar." Quick Hits & Updates After 56 seasons, Major League Baseball owners unanimously approved the Oakland Athletics' relocation to Las Vegas, ending their time in Oakland despite the A's owner's efforts and a failed stadium search. The move leaves Oakland without an MLB team as early as 2025 and signals possible MLB expansion, although it's uncertain if the Bay Area could become a candidate following the A's departure. In San Jose's Coyote Valley, a proposal for a massive family compound on a 4.6-acre lot has sparked a heated debate over land preservation versus private property rights. The Santa Clara Valley Open Space Authority seeks to acquire the land through eminent domain to protect the area's rural character and invested funds, while the landowner insists on building an 8,465-square-foot house, leading to a contentious legal battle over the future of the landscape. The California Department of Housing and Community Development certified the City of Walnut Creek's Housing Element, outlining plans for 5,805 new housing units, including 3,501 affordable homes, from 2023 to 2031. Berkeley and BART officials have tentatively agreed on a community benefits package for housing plans above the Ashby station's parking lot. However, concerns remain regarding a power facility expansion that might not address residents' hopes for the area's development, leading to clashes between community groups and BART regarding its design and placement. A new report on proposed legislation in San Francisco suggests that changes aimed at creating opportunities for small businesses could bring 270 to 1,300 new jobs to the city, with potential economic gains ranging from $62 million to $300 million over the next 25 years. However, the impact on housing, particularly the conversion of corner lots into commercial space, could lead to a net job growth of 278 to 1,347 jobs over the same period. Over 40,000 individuals have applied for federal rental assistance in San Francisco, seeking a spot on a waitlist for Section 8 housing vouchers, indicating a high demand for housing support in the expensive market. Despite 6,500 spots opening on the waitlist, only 1,000 rental vouchers are currently available, and it's anticipated to take approximately two years for those on the waitlist to secure a voucher, reflecting the challenges in meeting the housing needs in the city. Los Angeles City Council President Paul Krekorian reached an agreement with the hotel workers' union, Unite Here Local 11, to withdraw a ballot measure requiring hotels to participate in a program placing homeless residents in vacant rooms. Instead, a new set of regulations for hotel development will be introduced, necessitating a more extensive approval process and mandating developers to replace demolished housing, while the union's proposal for housing homeless residents in hotel rooms becomes voluntary, resembling the existing Inside Safe program. Boeing's electric flying company Whisk concluded its flight program at Long Beach Airport by conducting the inaugural public demonstration of an autonomous electric vertical take-off and landing ( eVTOL) air taxi flight in the Los Angeles area. The company is the first eVTOL air taxi to carry out public flights in Los Angeles County. LA Metro's Board of Directors voted 12-0, with one absence, to extend the MetroMicro pilot program until September 2024. The on-demand rideshare service, launched in 2020, initially planned for a three-year pilot, and the extension aims to refine the Micro schedule for efficiency, though concerns about the $42 cost per $1 ride have prompted considerations of a fare increase to $2.50. Metro plans to explore ways to streamline Micro service, particularly in areas with limited public transit options, and will conduct a study to assess the program's viability after the extended period. A recent poll sponsored by the Bay Area News Group and Joint Venture Silicon Valley shows that Bay Area voters are hesitant to support subsidies for commuter rail systems through conventional means like tax, toll, and fare increases. While 56% believe commuter rail is important for the Bay Area and are willing to pay more to maintain it, these levels of support may not meet California's current approval requirements for special taxes, signaling shifting attitudes towards transit investment.

The city of Fresno, which has grown by over 25% since 2000 and has low housing costs relative to coastal metros, is in the midst of another debate over where future growth should go—and how dense it should be. The current debate is over a specific plan for developing prime farmland on the southeast edge of the city, which is relatively unconstrained by topography or neighboring cities. The plan involves approximately 9,000 acres in what is known as the Southeast Development Area, or SEDA, located east of Fresno, south Clovis and north of Sanger. The plan would allow up to 45,000 homes and 150,000 new residents. (Fresno currently has 550,000 residents, and is the largest city in the Central Valley, and the fifth largest in the state.) The plan could be adopted by the end of the year. A 2014 general plan update directed roughly half of the city’s growth to infill development, and the remainder to the urban edges of the city, according to Sophia Pagoulatos, Fresno’s manager of long-range planning. Today 70% of the SEDA land is made up of vineyards and orchards, and 30% of it is residential. Despite the vast acreage that might be developed, city planners envision smart growth rather than sprawl. Pagoulatos and Director of Development Jennifer Clark point to plans to create pedestrian-friendly neighborhoods under SEDA, with transit-oriented amenities, such as the extension of a bus rapid transit service into the new area. Clark called the specific plan “a very progressive document,” which will impose a growth boundary on its eastern edge to prevent sprawl.

In the latest twist in California’s builder’s remedy drama, several projects in San Jose are now proposing using the remedy to downsize their projects from their original proposed size, apparently because they are adjusting to changed market conditions.  According to the Mercury New s , eight of the 19 proposed builder’s remedy projects are reducing their projects, meaning more than 4,000 previously planned units will not be built.

Los Angeles to Speed Up Approvals Process, per Mayoral Order Los Angeles Mayor Karen Bass has issued Executive Directive 7, which aims to reassess the city's site plan review process for market-rate housing developments with 50 or more net new units. This process involves an environmental analysis and can lead to public challenges, creating a barrier to housing production. The directive instructs the city's planning department to explore an ordinance that would increase the threshold triggering site plan review, potentially raising it to 75, 100 or 150 units. The move signals a shift in focusing not only on affordable housing but also on overcoming obstacles for market-rate units within projects that include affordable housing. The directive also calls for research on other housing production strategies, including converting vacant office space into housing and removing barriers to building for-sale homes. State to Proceed with Development of Sites Reservoir Governor Gavin Newsom has invoked new law powers to accelerate approval for the $4.5 billion Sites Reservoir, the first major reservoir in California in nearly 50 years, located 70 miles north of Sacramento. The move is part of a legislative package aimed at removing regulatory obstacles for crucial water, energy and transportation infrastructure projects. The Sites Reservoir, designed to store water from the Sacramento River during wet periods, aims to reserve 1.5 million acre-feet for dry seasons, benefiting around 3 million households. Despite facing criticism for potential environmental impacts, Governor Newsom's certification under Senate Bill 149 streamlines the judicial review process, potentially saving time and costs. The reservoir still requires additional approvals, including a water rights permit and faces funding challenges, with construction expected to begin in 2026 if approved. Court Orders City of Bakersfield to Keep Kern River Flowing A Kern County Superior Court judge issued a 21-page preliminary injunction, ordering the City of Bakersfield to maintain sufficient water levels in the typically dry Kern River to protect fish populations. The ruling , part of an ongoing lawsuit by groups including Bring Back the Kern and Water Audit of California, seeks to compel the city to assess the environmental impacts of diversions from the river under over 135 years of agreements. The lawsuit is based on California Fish and Game Code 5937, requiring adequate water flow past dams to sustain downstream fish populations. The injunction, in effect during the lawsuit, comes after this year's significant runoff revived the river and fish populations. The judge did not specify the required water amount, leaving it to the city and plaintiffs to determine. Plaintiffs see the ruling as a chance for the city to settle the case, emphasizing that the court recognizes the need for water use that benefits people, agriculture, and the environment. Meeting 2023 Greenhouse Gas Targets Looks Increasingly Unlikely Preliminary estimates show that carbon emissions in California increased in 2022, moving the state further away from achieving its ambitious 2030 climate goal to cut statewide emissions by 48% below 1990 levels. This trend contradicts the state's progress in reducing emissions between 2000 and 2019, falling by 12.3%. However, a 33% drop is required in the next seven years to meet the 2030 target, and ultimately achieve carbon neutrality by 2045. Some experts suggest that the California Air Resources Board lacks an implementation strategy to reduce emissions effectively across sectors like transportation, industry and agriculture. Despite the increase in emissions, renewable energy adoption and EV mandates, as well as transparency measures, could help California reach its climate goals. Oceanside Resists Calls for Greater Density in Downtown Area The Oceanside City Council approved a maximum residential density cap of 86 units per acre in the downtown area, in response to community concerns about rapid growth and its associated problems. Supporters of the cap argue that high-density development strains city services, leads to traffic congestion, air pollution and diminishes overall quality of life. Multi-story, mixed-use apartment and condominium buildings near Oceanside pier currently average 175 units per acre. However, with bonuses allowed for affordable housing under state law, the final density could be higher. The move to set a density cap was partly triggered by the approval of a project in January 2022 that exceeded 320 units per acre due to state density bonus laws. Oceanside's general plan aims to limit the downtown district to a total of 5,500 dwellings, which is currently at around 2,300 homes with 637 more entitled or under construction. CP&DR Legal Coverage: Ups and Downs of the Housing Accountability Act Culver City's “anti-mansionization” ordinance violates the Housing Accountability Act by reducing the amount of floor-area ratio permitted in single-family zones, an appellate court has ruled. The city made a variety of arguments, principal among them that SB 330's intent was to prevent downzoning the number of allowable housing units, which the anti-mansionization ordinance does not do. But an appellate panel in Los Angeles rejected this argument. “There is no language suggesting that a reduction in the intensity of land use requires a reduction in the number of housing units, and we will not insert such a requirement into the Act,” the court wrote. An appellate court in Los Angeles has ruled that the City of L.A.'s zoning for a property off the 210 Freeway in Verdugo Hills is consistent with the general plan - even though the relevant zoning categories are not explicitly mentioned in the general plan documents. The ruling scotches a proposed 215-home subdivision and places the property under zoning that limits the property to 19 homes on a 28 acres of land. But the court went farther in its ruling - going out of its way to assert that local governments still have some control over housing. “The Legislature has narrowed the criteria local authorities may rely upon in denying a project,” the court wrote. “However, local control has not been abrogated by the HAA.” Quick Hits & Updates Huntington Beach scored a victory in their housing dispute with Sacramento as a San Diego Superior Court judge ruled that California's lawsuit against the city for violating state housing law must be stayed until a related federal lawsuit filed by City Attorney Michael Gates is resolved. The decision means that, in the interim, the state cannot impose penalties on Huntington Beach regarding its non-compliant housing element. As of the latest semi-official results, Perris' Measure A, a warehouse tax intended for road repairs, has garnered 51.65% support, falling short of the necessary two-thirds threshold. The measure proposes an annual special business license tax on distribution and industrial spaces, aiming to fund road maintenance, with supporters highlighting the strain on roads due to increased truck traffic from warehouses. If the measure fails, city officials will explore alternative options to address road maintenance demands. In a legal dispute over the Oakland A's proposed Las Vegas ballpark, a Nevada judge ruled against a teachers union seeking a referendum on a portion of the state's $380 million spending package for the stadium, stating the petition was confusing and incomplete. The judge's decision comes ahead of an MLB owners' vote on the team's relocation, expected next week, and while the union sees it as a temporary setback, they may need to race against time to gather enough signatures for a 2024 ballot referendum. UC Berkeley plans to develop a downtown "innovation zone" with two large lab buildings, including one for genome engineering, potentially starting construction by late 2024. The project, covering nearly two acres, involves demolishing UC-owned buildings and aligns with the university's goals for expanded academic and research space, though city approval is not required. The L.A. Bureau of Engineering has unveiled a vision plan for the Sepulveda Basin, a large area in San Fernando, with a focus on habitat restoration and enhanced recreational amenities. The plan encompasses 46 projects, estimated to cost $4.8 billion, to be implemented over approximately 25 years, addressing the park-poor conditions in the surrounding neighborhoods and incorporating multi-modal transportation infrastructure. The California Department of Motor Vehicles has revoked Cruise's license to operate fully driverless taxis in the state due to safety concerns and the company's withholding of video footage from an incident where a pedestrian was seriously injured. The DMV stated that "the manufacturer's vehicles are not safe for the public's operation." Cruise--one of two autonomous vehicle companies in the US--disputes the claims and has paused its driverless car operations in San Francisco as a result of the suspension. San Francisco officials and the University of California system are in discussions about converting vacant Downtown properties into satellite housing and classrooms for graduate students, focusing on UC Berkeley graduate students. The efforts aim to revitalize the area while offering students housing and classroom space in vacant commercial towers. A new website, Stay Housed Bay Area, is set to launch with the aim of helping people at risk of homelessness access resources to keep them housed. Operated by the nonprofit All Home, the platform will provide a comprehensive guide to resources available throughout the Bay Area, breaking down barriers to access resources regardless of where individuals reside in the region. The website will offer information on rent assistance, food, and other needs to provide swift assistance to those in precarious situations and change the narrative around homelessness prevention. Stanford University faces new housing requirements after the Santa Clara County Board of Supervisors amended the Stanford Community Plan amid concerns about property tax losses and the strain on surrounding cities' housing construction goals due to Stanford's previous housing projects. The updated plan stipulates that three-quarters of new housing for Stanford University's expansion must be built on its campus, while the remaining 25% can be located on Stanford-owned land in surrounding communities, primarily Palo Alto. BART directors are considering the potential merger of the rail system with other Bay Area transit agencies to address financial challenges stemming from the pandemic's ridership decline. While such consolidation raises logistical questions, it reflects the urgency of finding long-term fiscal stability for transit operators in the region. A tentative ruling by an Alameda County court judge suggests that the city of Oakland breached its contract with a developer by not granting him an extension due to delays in the construction of a marine terminal at the city's port. This ruling could potentially enable the developer to store coal at the planned terminal and ship it overseas, despite environmental concerns about air pollution in West Oakland.

LAFCO Authorizes Incorporation of Mountain House, Pending Vote Mountain House, a new master-planned community west of Tracy in San Joaquin County, will become the county's incorporated eighth city if voters approve in March 2024. The San Joaquin County Local Agency Formation Commission unanimously approved a resolution authorizing incorporation in September. The community added 624 housing units in 2021, achieving a 9.2% growth rate and a population of 28,044 as of January 1, 2022, with roughly 10,000 registered voters. A $70,000 study approved by the San Joaquin County Board of Supervisors will assess Mountain House's financial ability to stand alone as a city. The community generates approximately $900 per capita for municipal services due to a special tax that assesses all square footage. Incorporation would make it California's 483rd city. Incorporation is feasible partly because of the financial structure already in place in Mountain House, including the existing Community Services District and special taxes. (See related CP&DR coverage .) Massive Google Project in San Jose Loses Partner, Will Still Proceed Google and real estate partner Lendlease terminated their partnership to develop four large Bay Area projects, including a transit-oriented neighborhood in downtown San Jose. Despite the split, all four projects will continue. The decision to end the agreements came after a comprehensive review of Google's real estate investments and mutual determination that current market conditions didn't favor the existing agreements. Many tech companies have scaled back their office space needs due to the pandemic, prompting Google to optimize its Bay Area real estate investments. Despite the change, downtown San Jose's economy is recovering, and Google states they remain committed to the Downtown West project, which includes housing commitments and mixed-use development. (See related CP&DR coverage .) San Francisco Punts on Ordinance to Bring Housing Element into Compliance San Francisco supervisors once again delayed a vote on legislation to bring the city's housing element into compliance with state housing laws. The Constraints Reduction Ordinance, sponsored by Mayor London Breed, was introduced as one of 28 actions that San Francisco must take to comply with state law, giving them 30 days to pass the bill. The ordinance streamlines the Planning Code by cutting many forms of discretionary review of housing projects. The Land Use and Transportation Committee has been reviewing the ordinance, and lawmakers have been adding and debating amendments. The city's Department of Housing and Community Development issued a letter last week, warning the committee members to pass the ordinance as originally written, and lawmakers now have to wait for the city attorney's office to review the amendments before proceeding. Terner Center Identifies Homelessness Trends A new report out of UC Berkeley's Turner Center for Housing Innovation summarized five recent trends in California homelessness, utilizing the 2022 Point in Time Count. The report found the state's homeless crisis reached a greater magnitude than that of any other state, continuing to deteriorate throughout the pandemic; racial and ethnic disparities in homelessness rates have continued to expand; homelessness without shelter remains more prevalent in California than in any other state; some of the most significant increases in homelessness in recent years have occurred in regions that previously had low levels of homelessness, such as suburban and rural areas. On any given night in 2022, 30 percent of people experiencing homelessness nationwide were in California. The study found the rate of homelessness among Black individuals was the most pronounced, with approximately 205 people per 10,000 experiencing homelessness; this rate is nearly five times greater than the state's general homelessness rate. The majority of individuals facing homelessness in California, accounting for two-thirds of the 2022 homelessness count, are unsheltered, residing in tents, vehicles or other locations not designed for human habitation. Rates of homelessness were highest in Humboldt County, followed by San Francisco, Mendocino, Santa Cruz and Los Angeles counties. The study suggests, despite proactive interim housing prioritized by the state, funding to address homelessness must increase, programs must be culturally competent and address racial disparities and the housing crisis must be addressed. CP&DR Legal Coverage: Courts Fault Beverly Hills Housing Element, Exempt San Diego Parking Ordinance from CEQA A Los Angeles judge ruled that the Beverly Hills housing element is “deficient” in a variety of ways, including the city's calculations of potential housing development based on its current density standards. The city has announced plans to appeal the ruling, but if ity loses on appeal that could open the door for several builder's remedy projects that have been proposed by a single developer. Californians For Homeownership, the nonprofit legal arm of the California Association of Realtors, sued the city over the adequacy of its housing element, just as it did with La Cañada Flintridge. In an unpublished appellate ruling, a unanimous three-judge panel ruled that the San Diego's ordinance reducing parking standards for multifamily developments near transit stops is not subject to the California Environmental Quality Act. The city was sued by CREED-21, a group typically represented by frequent CEQA litigator Cory Briggs. The appellate court made short work of CREED-21's “circling for parking” argument, partly because of SB 743, which switched the CEQA analysis for traffic from level of service to vehicle miles traveled. Quick Hits & Updates The California Transportation Commission approved CEQA review for the 2.2-mile extension of "The Portal," San Francisco's Downtown Rail Extension. This extension will connect the 4th Street Train Station to the Salesforce Transit Center, accommodating Caltrain and future high-speed rail. The project involves a new underground station at Fourth and Townsend, connecting to the Transbay Transit Center underground station, with completion expected around 2032. The Los Angeles City Council reached an agreement with the Unite Here Local 11 hotel workers' union to remove a measure from the March election ballot that would have mandated hotels to participate in a program placing homeless individuals in vacant hotel rooms. In exchange, the union's proposal for placing homeless residents in vacant hotel rooms would be explicitly listed as voluntary, a move that would cause it to resemble Inside Safe, the program created by Mayor Karen Bass to combat homelessness. The California High-Speed Rail Authority is considering a "shared passenger track alternative" for its Los Angeles to Anaheim segment, which would add a fourth track for freight, Metrolink and high-speed rail operations. The plan is part of efforts to accommodate both passenger and freight services and address community opposition to a proposed freight facility in Colton. A dispute between city and county officials over sewer capacity has caused delays in the approval of 600 homes in Visalia. County representatives blocked three projects proposed for annexation into the city, leading to a standstill in new development, with each side claiming capacity issues or lack of communication as the root cause. Ventura County has the largest housing shortage in the United States, with home construction in the region falling 12.5% short of local needs, resulting in an underproduction of 36,161 homes, according to a study by Up for Growth. California accounts for 11 of the 25 metropolitan areas with the most significant housing shortages, contributing to the state's shortfall of 873,730 homes, or 6.5% of the total statewide. An athletics training center in Oakland once used by various professional sports teams, including the Raiders, has remained vacant for months, with no buyers coming forward, causing concern as city officials expected it to generate millions of dollars. The property, which includes a training facility and sports fields, sits on 16 acres, and a summer auction resulted in no bidders. The property is currently zoned for commercial manufacturing, but experts suggest that exploring residential development may be a more viable option given the lack of interest in commercial use.

State Report Excoriates San Francisco for Permitting Delays A yearlong investigation by state housing officials reveals that San Francisco's housing approval process is excessively long and violates housing laws. The report by the California Department of Housing and Community Development found that it takes 10 months longer in San Francisco compared to any other city in the state to approve housing projects. After approval, the city takes even longer to issue building permits. This situation has hindered the city's ability to address its affordability crisis and meet housing goals set by the state. Failure to reform the process could lead to the revocation of the city's state-approved housing plan, resulting in potential funding loss and the builder's remedy. The report lists numerous actions the city must take to streamline the process - including amending their panning review and reforming CEQA practices - to achieve compliance with state law. Mayor London Breed stated that many of these changes are already underway through her "housing for all" initiative, but there is criticism that the state should invest more in affordable housing. (See related CP&DR commentary .) Court Upholds Los Angeles Transfer Tax; Appeal Likely A group challenging Los Angeles' new transfer tax on property sales, known as the "mansion tax," is preparing to appeal after a judge ruled against them. A Los Angeles County Superior Court Judge ruled that the plaintiffs, led by the Howard Jarvis Taxpayers Association, failed to present sufficient evidence to support their claims against the city of Los Angeles. The transfer tax was implemented to fund affordable housing and combat homelessness, with a 4% tax on property sales or transfers above $5 million and a 5.5% tax on properties above $10 million. The lawsuit's outcome will impact the funds collected from the transfer tax, with the city currently only spending the first $150 million collected, which will be refunded to taxpayers if the lawsuit fails. This legal battle is being closely watched nationally as other cities consider similar mechanisms for increasing revenue. Another challenge to Measure ULA is the Taxpayer Protection and Government Accountability Act, which is scheduled for a statewide vote in November 2024 and could potentially end the transfer tax if passed. (See related CP&DR commentary .) LAO Analyzes State's $3.3 Billion Spend on Housing & Homelessness The Legislative Analyst's Office released a breakdown of the 2023-24 statewide budget for funding housing and homelessness programs, totaling $3.3 billion. The budget also includes $672.5 million in spending solutions, which involve spending delays, reductions and trigger restoration. These measures primarily will affect one-time and temporary spending from previous budgets. New discretionary spending of $600 million is introduced, including a $500 million one-time expansion of State Low-Income Housing Tax Credits and a $100 million one-time augmentation for the Multifamily Housing Program. Discretionary funding for housing and homelessness is limited beyond 2023-24, but some funds have multiyear expenditure authority. Budget-related legislation enhances oversight and accountability for these programs and updates the California Dream for All program to better target loans for first-time homebuyers. Additional legislation transfers the administration of programs and separates entities within the state's housing and homelessness framework. HCD Solicits Feedback Feedback on New Neighborhood Change Map . The Department of Housing & Community Development released a new map measuring neighborhood change in California. The map is intended to inform statewide policy for funding affordable housing. The draft Neighborhood Change Map was developed in response to initial stakeholder feedback received through the Opportunity Framework project. The goal of the Opportunity Framework project is to assess and refine the State's approach to Affirmatively Furthering Fair Housing (AFFH) across different types of neighborhoods and multiple policy areas. Over the last year, HCD and its research partners conducted a review of the literature on the relationship between neighborhood change and AFFH objectives. HCD concluded that prioritizing affordable housing investments in changing neighborhoods could help stabilize communities and further a wider range of AFFH objectives. HCD has created a draft Neighborhood Change Map that identifies census tracts (excluding rural tracts) that have experienced both substantial racial/ethnic change and economic change, and exhibit markers of disproportionate housing need. The deadline for providing feedback to HCD is Nov. 17. Study of Housing Underproduction Scolds Coastal Metros, Praises Central Valley The California YIMBY Education Fund commissioned a study to analyze housing underproduction rates across the state, focusing on the impact of land-use regulations. The study used a "conversion rate" to compare historical housing permitting rates to potential market-feasible development opportunities in each city and county, assuming no zoning limitations. Key findings found, in the absence of regulatory barriers, roughly 30% of the eight million addressable parcels in California could accommodate additional market-feasible units. However, various factors, including labor shortages, material supply chains, willing sellers and zoning regulations, resulted in a statewide annual conversion rate of less than 1% between 2018 and 2021. The study identified significant variations in conversion rates among cities and counties, with some suburbs across the Bay Area and Southern California having low rates despite high housing demand. On the other hand, parts of the Central Valley and Inland Empire are converting market-feasible development opportunities into housing permits at relatively high rates. Examples of areas with high conversion rates include cities like Merced, Visalia, Stockton, and Bakersfield, as well as counties like Kern, Merced and Placer. CP&DR Coverage: Fulton on HCD's New Aggressiveness The state Department of Housing and Community Development has completed its review of San Francisco's housing entitlement practices - and put the city on a very strict schedule to implement those reforms. It's an unprecedented step for the state, intervening so directly - and with such stiff consequences - in a city's entitlement process. The state has told San Francisco that reforms must begin as early as Thanksgiving and if deadlines are not met, HCD will revoke San Francisco's housing element compliance. Revocation would open up the use of builder's remedy among other things. HCD has never undertaken this kind of review before. In so doing, it relied on legal authority granted to it under Government Code Section 11180 et. seq., which allows state departments to “investigate and prosecute actions concerning all matters relating to the business activities and subjects under their jurisdiction.” And there would appear to be nothing preventing the department from undertaking additional reviews in the future for other cities. Quick Hits & Updates A legal dispute among investors involved in the redevelopment of Treasure Island and Yerba Buena Island continues as a court ruled against dismissing claims filed by Kenwood Investments against Stockbridge Capital Group and Wilson Meany. The ongoing litigation may potentially impact the extensive redevelopment project, which includes thousands of homes, retail space, hotels and open areas. (See related CP&DR coverage .) San Jose's BART extension project, which has experienced ballooning costs and significant delays, will now be overseen by an independent committee following a recent announcement. The project's cost has surged from an initial estimate of $4.7 billion to $12.2 billion, and it is now projected to open in 2036, prompting calls for greater transparency and oversight. California State Parks and the Shingle Springs Band of Miwok Indians have signed a five-year agreement to collaborate on preserving and protecting parks located on ancestral Miwok homelands. The pact outlines joint efforts to integrate traditional ecological knowledge into conservation practices, engage in art projects and safeguard cultural resources, promoting the revitalization of sacred practices and the preservation of ancestral lands. The Puente Hills Landfill, which closed in 2013 after decades of receiving waste from over 60 cities in Los Angeles County, is being transformed into a new regional park by the L.A. County Department of Parks and Recreation (DPR). This initiative will create the first regional park in the county in over 35 years, providing recreational and educational opportunities while addressing the severe shortage of parkland in the region. New plans have been submitted for a suburban-style development in San Jose, utilizing the builder's remedy to streamline approval and increase residential capacity to 41 homes. The project covers 18.62 acres and includes eight affordable homes for low-income households in a suburban neighborhood near Alamitos Creek and the historic New Almaden mining town. A recent report highlights the consequences of climate change for Lake Tahoe, revealing that the snow season could be reduced by at least a month, if not three, by the end of the century. Rising temperatures, projected to increase by up to 9 degrees Fahrenheit by 2100, are expected to make the traditional ski season too warm for snowfall at the lake's beginning and end. This decline in snowfall could have a severe impact on Lake Tahoe's ecosystem and the communities that rely on winter tourism. The city of Martinez is embarking on a waterfront redevelopment project, aiming to revitalize its marina and make the area a regional attraction. The plans include redesigning the seawall, expanding the regional trail network, enhancing maritime recreation opportunities, creating an educational and events center and adding various amenities like restaurants, cafes and kayak launches to the waterfront, all designed with sea-level rise in mind.

CP&DR Vol. 38 No. 10 October 2023 Report

UC Berkeley to Redevelop Moffett Field UC Berkeley is partnering with NASA and real estate developer SKS Partners to develop a 36-acre research park in the Mountain View area. This research park will serve as a collaborative space for scientists, students and tech companies to work on projects related to aviation, space exploration, climate change and social sciences. UC Berkeley Chancellor Carol Christ highlighted the unique opportunity for academic and physical expansion, emphasizing the potential to translate research findings into practical inventions and technologies. The park will be located on the decommissioned Moffett Federal Airfield, with NASA leasing the land to UC Berkeley for 99 years at no cost. The proposed $2 billion master plan envisions a modern tech campus with offices, labs, classrooms and outdoor work areas. Construction is set to begin within three years, with plans for residential structures and accommodations, pending environmental review. While specific projects for the Berkeley Space Center are yet to be finalized, a focus on electric automated urban aviation is expected. This aligns with United Airlines' plans to offer electric air taxi service to and from San Francisco International Airport by 2026. The collaboration also offers opportunities for space research and drone testing, making it a crucial venture for advancing research and innovation. REAP Funding Disbursed to Tribes, Rural Communities The state will provide over $54 million in funding to boost climate-resilient infrastructure and affordable housing. A substantial portion, around $29 million, is earmarked to aid twelve Tribal and Rural communities in addressing their specific planning challenges. The grants acknowledge the unique infrastructure and housing needs of these regions, allowing for greater local control to address their priorities and promote climate-friendly housing and economic development. Administered by the California Department of Housing and Community Development, the Regional Early Action Planning Grants of 2021 (REAP 2.0) program aligns with the state's goal to create 2.5 million new homes by 2030, with one million designated for low-income residents. The program hopes to empower local initiatives related to infill housing, infrastructure and community investments, aimed at expanding housing options, reducing vehicle emissions and advancing housing equity. (See related CP&DR coverage .) California Cities Lead Increase in Bicycling since 2019 A recent report by StreetLight Data highlights a notable surge in cycling across the United States since the onset of the pandemic, with San Diego seeing the second-largest growth in cycling at 71% increase from 2019 to 2022. San Diego also saw an increase to high bicycle sales during the pandemic and the installation of new bike lanes. Bakersfield claims the third spot for highest growth at 70.8% in spite of original low levels of cycling activity prior to 2019. San Francisco and Los Angeles metropolitan areas saw a 55.7% and 54.1% increases respectively. The report notes that cities experiencing significant growth generally possess better cycling infrastructure and more favorable weather conditions. Conversely, Fresno posted the highest negative numbers in terms of cycling growth at -10%. On a national scale, there was a 37% increase in the annual average daily bicycle trips between 2019 and 2022. Notably, 2020 and 2021 saw substantial gains, while 2022 marked a plateau. The report emphasizes the importance of sustained investment in safety-focused active transportation infrastructure to revive and sustain the growth in cycling. The data is derived from StreetLight's Active Transportation Monitor, which collects bicycle and pedestrian metrics primarily from smartphone location data. Biden Administration to Assist Cities with Climate Resilience The Biden administration introduced the "National Climate Resilience Framework," a comprehensive plan aimed at enhancing climate resilience nationwide. The framework identifies six overarching goals and proposes specific actions to achieve them, emphasizing locally tailored, community-driven solutions. The plan acknowledges the increasing frequency and severity of extreme weather events due to climate change. The six goals include embedding climate resilience into planning and management, increasing resilience of the built environment, mobilizing capital for climate resilience at scale, providing communities with resources to assess climate risks, sustainably managing lands and waters and ensuring communities are safer, healthier, equitable and economically strong. The administration unveiled the framework alongside a White House climate resilience summit and a commitment of $500 million in climate resilience funding across different agencies. The plan aligns with the federal government's strategy to guide and align climate resilience investments and activities. CP&DR Coverage: Newsom Signs Most Housing Bills Gov. Gavin Newsom signed virtually all remaining housing and land use bills, including the high-profile SB 4 and SB 423. Having vetoed the social housing bill previously, he did not veto any of the additional bills CP&DR has been tracking. Of all the high-profile bills, SB 423 is potentially the most transformative, especially in the Coastal Zone. The bill extends SB 35 until 2036 and applies it in the Coastal Zone for the first time. The bill will subject the Coastal Commission and local coastal programs (LCPs) to objective design standards for the first time - which could be a difficult transition, as coastal development permits to the classic subjective (and often non-specific) standards that SB 35 and the Housing Accountability Act have sought to eliminate. See full coverage of this year's legislative season. Quick Hits & Updates The Local Agency Formation Commission of Monterey County approved the annexation of nearly 49 acres to the City of Gonzales, allowing for the development of a 313,800-square-foot agricultural cooler processing facility, which is set to open in the spring of 2025. The facility will create over 430 jobs and is expected to contribute around $75,000 in tax revenue, processing agricultural crops from nearby fields, providing cold storage, processing lines, administrative offices and mechanical and storage rooms. The San Francisco Board of Supervisors unanimously adopted the Empty Homes Tax, which targets vacant apartments in buildings with three or more units left unoccupied for over 182 days in a tax year. This tax is expected to activate nearly 5,000 units over the first two years, generating over $20 million annually to support affordable housing initiatives in the city. (See related CP&DR coverage.) The industrial city of Vernon, south of Downtown LA, is undergoing a significant transformation with a new zoning ordinance that will add up to 874 apartments, more than quadrupling its population. This change is in contrast to the city's history, where limited housing and city-owned properties allowed for political control through electoral manipulation. The new ordinance, which encourages housing and small-scale commercial uses, aims to make Vernon a more residential and community-oriented city, easing housing challenges for workers in the area. President Biden announced California is one of seven recipients of a $7 billion federal hydrogen hub grant program aimed at advancing clean energy efforts and climate goals. California will receive up to $1.2 billion to develop hydrogen projects for public transportation, port operations and transport, focusing on reducing greenhouse gas emissions. While critics express concerns about hydrogen's energy-intensive production and potential environmental risks, California aims to create a hydrogen hub exclusively using renewable energy and biomass, contributing to clean energy and the reduction of carbon emissions in various sectors. Conservationists purchased a 394-acre property along the Russian River in Sonoma County, which includes the Clar Tree, a 2,000-year-old redwood believed to be the tallest tree in the county. The Clar Tree was threatened by a timber harvest plan, which led to a legal battle and ultimately the land purchase. Save the Redwoods League raised $6.5 million to secure the property. The organization plans to transfer the land to Sonoma County for ongoing stewardship and restoration, improving wildfire resilience and nurturing the forest toward old-growth status, with a potential for public access in the future. Preserve Calavera has reached a settlement in its lawsuit concerning the Tierra Norte project, which aimed to build up to 400 homes in Oceanside on land historically used for agriculture. The agreement calls for all-electric housing, a comprehensive transportation demand management program to reduce single-occupant vehicle trips, new height limits near existing homes, improved landscaping and noise reduction measures. La Cañada Flintridge argues a statewide law to desegregated historically discriminatory communities, known as "affirmatively furthering fair housing" is unconstitutional based on the recent precedent of the U.S. Supreme Court's decision on affirmative action in an effort to push back against approving the area's first multifamily housing project in more than a decade. Analysis released by the Environment California Research & Policy Center suggests Los Angeles, Ventura and San Diego counties could potentially generate renewable energy equivalent to powering over 270,000 homes annually by installing solar infrastructure along their highways. The report indicates these counties possess more than 4,800 acres of suitable space for solar development alongside highways, with the potential to accommodate up to 960 megawatts of renewable energy capacity. A federal appeals court panel has suspended an upcoming gold mining venture in the eastern Sierra Nevada, scheduled to start this week by Kore Mining Ltd. near Mammoth Lakes, where they intended to drill 12 600-foot holes on roughly 1,900 acres. This action follows a lawsuit filed by environmental organizations against Kore Mining and the U.S. Forest Service in October 2021, asserting that the drilling would harm groundwater feeding into the Owens River and disturb the bi-state sage grouse's habitat.

After years of fighting, the City of Coronado has reached a legal settlement promising to adopt a compliant housing element by April 2024.

Insurance Plan Seeks to Maintain, Expand Coverage in Wildfire Zones California's insurance commissioner announced a regulatory plan, supported by the industry, allowing insurers to incorporate future climate risks into their pricing models and mandating increased coverage in fire-prone areas. This follows decisions by major insurers, including State Farm General Insurance and Allstate, to stop issuing new homeowner policies or renewing existing ones in the wildfire-affected state. Insurers argued that California's current rules limiting predictive models and rate increases made coverage too expensive. The new plan, yet to be formally proposed, would enable insurers to use forward-looking climate data, pending commissioner approval, potentially leading to higher premiums statewide. As part of the agreement, insurers committed to covering at least 85% of their statewide market share in high-risk areas. The shrinking insurance market has left many California homeowners without property insurance or resorting to the state-mandated insurer of last resort. The proposal, aiming to address the insurance crisis, will undergo a rule-making process and workshops, with a targeted completion by December 2024. Consumer advocates express concerns about potential premium increases. Fresno Property Tax Exemption Could Affect 12,000 Future Units The Fresno City Council granted a key developer exemption for his planned 71-home development from a community facilities district. The tax aimed to cover a shortfall in police and fire services for new developments, attributed to the expiration of a property tax-sharing agreement with Fresno County in 2020. The developer argued against double-taxation without added benefits for residents. The council, in a 4-3 vote, approved measures exempting the developer's project and potentially impacting 10,000 future single-family homes and 2,000 multi-family units. The decision leaves the city facing a potential annual shortfall of $1.8 million in property taxes, with concerns raised about subsidization by homeowners throughout the city. Despite differing opinions on the financial impact, the council members emphasized the need for negotiations with Fresno County for a more equitable tax-sharing agreement. Los Angeles Controller Calls for Aggressive Climate Action Los Angeles City Controller Kenneth Mejia is calling for an update to the city's "Green New Deal," expressing concerns that the 2019 climate plan lacks transparency and measurable outcomes. In a recent report, Mejia criticized the plan for its vague goals and insufficient metrics in the most recent progress report . The report emphasizes the need for clear, measurable outcomes and calls for bolder targets in renewable energy, housing, and reducing car usage. Mejia's analysis aims to work with city departments and the public to enhance the plan, acknowledging the urgency to address climate change within the next seven to ten years. While some goals, like sourcing 70% of the city's water locally by 2035, are well-constructed, others lack specificity. Mejia's team recommends a continued focus on transit-oriented development and real-time tracking for achieving renewable energy goals, emphasizing Los Angeles as a potential model for other cities in addressing climate change. San Francisco Launches Program to Revive Downtown Storefronts San Francisco's Vacant to Vibrant program, addressing a worrying number of vacant storefronts and other street-level commercial spaces post-pandemic, officially launched with the first cohort featuring 17 businesses. Among these are Devil's Teeth Baking Co. and Green Apple Books, housed in a previously deserted 500-square-foot space at One Embarcadero Center. The program aims to revive downtown areas impacted by a 34.7% office vacancy rate and supports small businesses with grants up to $8,000 for three months, while property owners receive $5,000. The temporary nature of the pop-ups allows property owners the option for longer-term arrangements, fostering potential permanent relationships. City leaders anticipate the program will add variety and interest to the downtown experience, encouraging the revitalization of the area. (See related CP&DR coverage .) CP&DR Coverage: Supreme Court Takes on Exactions The U.S. Supreme Court has agreed to take a development fee case from El Dorado County that the California Supreme Court declined to hear. It's the most important Supreme Court land use case to come out of California since the court decided both the Nollan and First English cases in 1987. The case will test the question of whether the “rational nexus” and “rough proportionality” tests of the so-called Nollan/Dolan line of cases can be overridden by state legislation - and could narrow the ability of local governments in California to impose impact fees on developers. It's even possible that the ruling could eliminate inclusionary zoning for housing. Quick Hits & Updates Oakland experienced the largest decline in one-bedroom rental prices among the top 100 U.S. cities, with a 7.2% drop in September year-over-year, reaching a median of $1,430—the lowest since at least 2017. San Francisco's metropolitan area saw a 4.1% decrease in rents, falling from $1,960 to $1,880, and the national rental market is showing a similar trend with a 1.2% decline. The Midway Rising project, selected to redevelop the 48-acre Sports Arena site in the Midway District of San Diego, will no longer include 250 planned residential units for middle-income housing and a 200-room hotel. The changes were revealed during a San Diego City Council meeting, with the development group citing financial infeasibility for the middle-income housing due to the unavailability of certain economic incentives and the current high-interest rates, while the hotel plans were affected by the discovery of an 8-foot sewage line requiring a setback, leading to the reconfiguration of the project. City officials and residents in Costa Mesa oppose the state's plan to repurpose part of the Fairview Developmental Center into a regional emergency operations center, arguing that the property is crucial for much-needed housing. The proposed Southern Region Emergency Operations Center faces resistance as residents voice concerns about its impact on housing development, while state officials consider alternatives, and the public comment period for the project's draft Environmental Impact Report remains open until October 20. San Francisco officials are suing Chinatown property owners, alleging inhumane living conditions and years of ignoring tenant complaints and code violation notices. The lawsuit targets three hotels, accusing owners and their LLCs of creating a public nuisance, endangering health and safety and violating state housing law. The landlords face potential penalties and legal fees if the city prevails in court. The California Natural Resources Agency is accepting proposals for the Urban Greening Grant through November 20, 2023 via the System for Online Application Review (SOAR) . The San Diego City Council's Land Use and Housing Committee discussed a response to a Grand Jury report revealing a regional housing shortage, with the city noting it has implemented most recommendations but rejecting the suggestion to support legislation for a county agency dedicated to raising housing revenue. The proposed response, pending full city council approval, must be submitted to the San Diego County Superior Court by Nov. 6. The California Air Resources Board's plan to achieve carbon neutrality and reduce greenhouse gas emissions by 85% below 1990 levels by 2045 emphasizes the need to address transportation, the largest source of emissions. However, an analysis by the Natural Resources Defense Council reveals a disconnect between the state's transportation spending and climate goals, with less than one-fifth of the budget allocated to projects reducing vehicle miles traveled, highlighting the urgency for aligning investments with decarbonization priorities. A sizeable majority of residents continue to avoid the Bay Area's major urban centers, including San Francisco, Oakland and San Jose, due to concerns about crime, homelessness and a lack of clear identity and attractions. A poll sponsored by the Bay Area News Group and Joint Venture Silicon Valley reveals that 83% of respondents rarely or never visited downtown Oakland, 79% avoided downtown San Jose, and 70% stayed away from downtown San Francisco in the past year. The findings indicate serious challenges for the region's economic future and highlight residents' growing dissatisfaction and pessimism about the direction of their cities. The Beverly Hills City Council unanimously approved an ordinance to comply with Senate Bill 9, allowing homeowners to subdivide and build new units. The city voted to limit the total size of new dwellings to 800 square feet, including basements and additional rules on accessory dwelling units will be considered by the Planning Commission in December. The Los Angeles City Council voted 8-6 to halt a contentious hotel project in Benedict Canyon due to concerns about environmental impact and public safety, citing potential ethics violations, environmental threats and community opposition. Metrolink is taking steps to improve its train services and frequency by investing in strategic upgrades throughout its 500-mile system. Additionally, they are planning to construct new infill stations near LA General Medical Center and the Pico Rivera community, enhancing accessibility for the San Bernardino and Orange County Lines.

Gov. Gavin Newsom signed virtually all remaining housing and land use bills on Wednesday, including the high-profile SB 4 and SB 423. Having vetoed the social housing bill previously, he did not veto any of the additional bills CP&DR has been tracking.