Now the hard part starts: Actually building the housing. California is gradually swallowing the zone changes and other requirements to meet the extremely challenging Regional Housing Needs Assessment targets in the sixth cycle of housing elements. The Department of Housing and Community Development reports that two-thirds of cities and counties in the state now have adopted housing elements. Appeals have been denied ; lawsuits have been shot down . Local jurisdictions that are out of compliance are mostly accommodating the builder’s remedy applications that have come their way. Yes, some reluctant cities are still fighting – Huntington Beach first among them and Beverly Hills is currently fighting a judge’s housing element ruling that shut down its permitting power. And San Francisco is struggling to make changes that will eliminate the possibility of its compliance being revoked. But mostly they are falling in line. Even Coronado has now made a deal with the state. So despite these ongoing skirmishes, California’s communities appear mostly ready to accommodate lots more housing. The question now is whether the private market will build it. And if not, what does that mean for cities and counties around the state that have vastly expanded their housing capacity in their new housing elements? Most cities in California’s big metropolitan regions don’t have to deal with housing elements again until the late 2020s. But already, HCD has issued target letters to rural jurisdictions that are on a five-year cycle beginning next year. There is no question that the housing market is changing – or, at least, the financial calculus of developers and lenders is changing. Yes, prices are still high and inventory is low. But high interest rates mean that it’s harder for developers to borrow money at a rate that makes their projects work financially. And already we are seeing developers back off in unexpected ways. One of the biggest headlines in the San Jose area over the last month was the decision by several builder’s remedy applicants to actually reduce their project size , even though the builder’s remedy virtually guarantees approval of a project of any size. Entitlements matter, but so do pro formas. Indeed, despite more than 100 new laws since 2017 designed to make entitlement easier, the needle has barely moved. In 2018, the year Gavin Newsom promised to build 2.5 million housing units in five years while running for governor, the state saw 114,000 new residential units built. In 2022, the year he ran for re-election after the passage of dozens of pro-housing laws, that figure had grown to only 120,000. As the accompanying chart shows, California has had housing production slowdowns in the past (early ‘80s, mid ‘90s and during the Great Recession), but never has a period of low production lasted so long. We haven’t seen a year with more than 120,000 new housing units produced since 2007.

State to Return Land to Paiute People in Owens Valley & Orange County California's Department of Fish and Wildlife plans to return the historic Mt. Whitney Fish Hatchery, including over 40 acres of land in Inyo County, to the Indigenous Paiute people, marking the state's first land return to a California tribe, aligning with Governor Newsom's support for addressing tribal issues through initiatives like the Tribal Based Nature Solutions Program. The Fort Independence Indian Community of Paiute Indians, the land's original inhabitants, plans to preserve the hatchery and the land's ecosystem while making it accessible to the public, underscoring water's deep cultural significance for the Paiute. In a separate case, the Acjachemen and Tongva tribes secured 6.2 acres at Bolsa Chica Mesa, reclaiming ancestral territory in Orange County. The acquisition aligns with the LandBack movement's broader goal of restoring and safeguarding territories seized by the United States. Transit Ridership Recovery Remains Mixed across California Public transit ridership across most major U.S. cities remains notably lower than pre-pandemic levels, as highlighted by American Public Transportation Association (APTA) data. In California, Oxnard and Fresno experienced the highest levels of return, with 93% and 91% of ridership, respectively, in August or September 20203 when compared with 2019 levels. San Diego, Los Angeles and San Jose follow in ridership rates. San Francisco struggles with 51% public transit ridership, but with a 43% increase on their Muni Metro light rail network. This decline in public transit usage affects cities' overall well-being and vitality, impacting environmental cleanliness, accessibility for car-free individuals and urban space utilization. Efforts to revive transit ridership involve various strategies, including fare reductions or free rides, investing in new routes and infrastructure and adjusting routes based on evolving travel patterns post-pandemic. (See related CP&DR coverage .) Reclaimed, Treated Water Could Contribute to California's Supply The California State Water Resources Control Board is poised to approve regulations enabling the conversion of sewage into drinkable water, a process known as "toilet to tap." This landmark decision, expected next week, will impact various communities, including Santa Clara County, Los Angeles and San Diego, potentially providing a constant water supply amidst escalating concerns over climate-induced droughts. The proposed rules will allow highly treated sewage, after advanced purification, to return to the main water supply, promising top-tier water quality. Despite anticipated benefits, complete implementation may take years, pending administrative approvals, with coastal communities set to gain the most due to their wastewater discharge patterns. Public acceptance remains a challenge, with about one-third of the population expressing reservations, although experts believe growing awareness of water scarcity could increase receptivity. Rigorous purification methods underpinning direct potable reuse are expected to mitigate concerns about unknown contaminants, aligning favorably with existing indirect potable reuse systems, reflecting a broader shift towards sustainable water management in response to worsening climate-linked water challenges. Legal Challenge to San Diego's Midway Rising Project Fails A San Diego judge dismissed the final legal opposition to Measure C, paving the path for the Midway Rising redevelopment project in the Sports Arena area. The measure, passed by voters in 2022, eliminated the 30-foot coastal height restriction for the Midway District, encompassing the 48.5-acre Midway-Pacific Highway Community Plan area. San Diego Mayor Todd Gloria expressed joy over the ruling. Critics argued that lifting the restriction would obstruct coastal panoramas and lead to traffic congestion. Advocates countered that the development blueprint would be advantageous for the entire region. The Midway Rising initiative is expected to introduce over 4,000 housing units, a sports arena, a park and a district for entertainment and cultural arts. CP&DR Legal Coverage: Beverly Hills Loses Big A Los Angeles judge has suspended the City of Beverly Hills' permitting authority because he found the city had not adopted a housing element compliant with state law. However, the Beverly Hills city attorney says the city has appealed the ruling and therefore it will not go into effect while on appeal. The stakes in Beverly Hills are high, as the city is currently dealing with 13 builder's remedy applications totalling almost 1,300 units - projects that are likely to move forward with little review if the city's housing element is deemed non-complaint by appellate courts. L.A. Superior Court Judge Curtis Kin ruled against the city back in September in a lawsuit brought by Californians For Homeownership, an arm of the California Association of Realtors. But on December 21, Kin suspended all of Beverly Hills' permitting power, with the exception of home expansions, until the city adopts a housing element he deems compliant with state law. Quick Hits & Updates Real estate groups are challenging San Francisco's Empty Homes Tax, approved in November 2022 to prompt apartment availability and fund affordable housing, arguing it infringes on property rights. The lawsuit against Proposition M was allowed to proceed after a judge rejected the city attorney's assertion that the challenge was premature, permitting a response deadline for the property owners' claims by January 12. The Bay Area faces significant housing cost challenges, with approximately one-third of households considered "cost-burdened," spending over 30% of their income on housing expenses, based on the American Community Survey. While the region's median income has risen, it doesn't necessarily benefit low-income individuals, leading to high rates of cost burden among Black and Hispanic households, with disparities exacerbated by rising housing costs. The San Diego Association of Governments (SANDAG) initially considered five routes to relocate train tracks off the eroding Del Mar bluffs, then narrowed them down to two, but faced objections from residents. Now, amidst community concerns and disagreements with the Del Mar City Council and fairgrounds, multiple new potential routes are being considered, complicating the decision-making process for the project aimed at addressing safety concerns due to bluff erosion, with construction possibly commencing in 2028 and concluding by 2035. Nonprofit organization Fix the City has initiated a lawsuit against Los Angeles city officials regarding a planned 33-bed homeless housing facility, citing violations of state and city law for not conducting an environmental study and bypassing a competitive bidding process. Despite the City Council's approval of the project to address homelessness in the area, Fix the City alleges legal infringements. San Francisco's population, which faced a steep decline during the pandemic, has started to rebound , growing by around 1,400 people in the year up to July 2022 and by about 4,900 people in the subsequent year, reaching a total of roughly 848,000 residents. The recent increase in population reflects a shift, with more people moving into the city compared to those leaving, showing signs of recovery despite being smaller by approximately 22,000 people than mid-2020. A new state analysis highlights a projected $6 billion decline in California's gas tax revenue over the next decade, mainly due to electric car policies and climate programs reducing gasoline and diesel sales. This decrease in funds, approximately 31%, poses a significant challenge to state transportation funding, potentially impacting highway programs, road maintenance and public transit unless substantial new funding sources are identified. $70 million in federal funding has been allocated by the Bureau of Reclamation (BOR) for Salton Sea restoration, marking the first substantial federal funding for the Sea's stabilization and restoration. This funding aims to expand the Species Conservation Habitat Project, covering over 4,000 acres, mitigating dust emissions and rehabilitating the habitat at the southern edge of the Sea, crucial for environmental health and dust suppression. LA Metro plans to acquire around 80 properties, including businesses and residences, to build the initial phase of the East San Fernando Valley Light Rail Project. The project, estimated at $3.7 billion, will stretch 6.7 miles between Van Nuys and Pacoima, requiring acquisitions for construction, electrical facilities and track-laying. Metro is offering cash incentives, up to a 20% bonus above appraised property value and increased relocation payments to expedite acquisitions, aiming for completion by 2030 with 11 stations connecting diverse communities. A setback hit Rise Gold's efforts to reopen the Idaho-Maryland Mine in Grass Valley. Nevada County's Board of Supervisors denied the company's claim for vested rights to mine billions in gold, alleviating concerns among residents opposed to mining's return due to environmental impacts from the Gold Rush era. Rise Gold, facing an uphill battle to mine, is now pursuing a permit, a process requiring environmental scrutiny and board approval, although the Planning Commission has advised against it, highlighting the challenges ahead for the mining company. The Los Angeles City Council approved District NoHo, a massive 15-acre mixed-use development near North Hollywood's Metro station, encompassing 1,481 residential units alongside commercial and office spaces, with a quarter designated as rent-restricted. Despite approval, concerns persist regarding the project's allocation of affordable housing, sparking criticism and advocacy from community members for a more substantial focus on affordable units within the development.

Coastal Commission Imposes Large Fine on Homeowners in Aptos The Coastal Commission voted unanimously to fine the Rio Del Mar Beach Island Homeowners Association near Santa Cruz $4.7 million due to violations dating back to 1982. These infractions pertained to obstructed beach access and mismanagement of the Revetment, impacting coastal resources and views. The two fines include almost $2.8 million for access violations and nearly $2 million for non-access-related infractions, constituting nearly $4.8 million together. Though the penalty is the most severe in Santa Cruz County by the commission, some members believed it wasn't stringent enough, stating the penalties could have been even higher, constituting only 75% of the maximum for access violations and 25% for other violations. Despite no comment from the homeowners' representatives, community members celebrated it as a significant victory, especially for free public parking at Rio del Mar. The Coastal Commission's decision reflects a clash between private property rights and decades-old permit conditions, underscoring the commission's influence in ensuring public access along the state's coastline. Massive Wind Farm Slated for Port of Long Beach The Port of Long Beach unveiled plans for Pier Wind, a $4.7-billion project for assembling massive offshore wind turbines, marking a significant milestone this week as the environmental review period for the project begins. The proposal outlines a 400-acre terminal on new land made from dredged material, where turbines akin to the size of the Eiffel Tower would be assembled, floated to a storage area and later towed to sea. Included in the plans is a new wharf to facilitate vessel access and a transportation corridor for vehicle access to the complex, anticipated to transform the city's skyline with turbines reaching heights of up to 1,100 feet, potentially doubling the Long Beach International Gateway Bridge and rivaling the Wilshire Grand Center in Los Angeles. This project aims to assist California in achieving its goal of generating 25 gigawatts of offshore wind power by 2045 and aligns with the federal objective to cut offshore wind power costs by 70% by 2035, pending approvals from local, state and federal agencies in two phases over nine years, potentially completing the initial phase by 2031 and the entire complex by 2037. Delayed Environmental Review Complicates Major Bay Area Development The San Mateo County city of Brisbane missed a deadline to complete an environmental impact report for the Baylands project, intending to introduce 2,200 homes and 6.5 million square feet of commercial space. Although the California Department of Housing and Community Development approved Brisbane's housing plan, it heavily relied on the Baylands site for 90% of its housing production from 2023 to 2031. Advocates expressed concern over the missed deadline, emphasizing its significance in adhering to housing element goals and obtaining certification based on a solid plan and its execution. Brisbane's City Manager contested the characterization of the missed deadline, citing ongoing efforts to resolve complexities hindering the study's completion. However, concerns lingered about potential penalties, such as losing state funding and facing alternative projects bypassing local approvals, if deadlines continued to be missed, highlighting the challenges faced by small cities managing large-scale developments within limited resources. Environmental Groups File Suit to Block Sites Reservoir Environmental and conservation groups filed a lawsuit in Yolo County Superior Court opposing the Sites Reservoir project, alleging its detrimental impact on the Sacramento River ecosystem, fish and greenhouse gas emissions. The project, with an estimated cost of $4.4 billion, includes dams and tunnels and is praised by Governor Gavin Newsom's office for its potential to benefit millions of households and enhance Northern California's water capacity. Critics, such as Friends of the River and the Center for Biological Diversity, argue that the reservoir will divert crucial water from the Sacramento River system, endangering species like salmon and steelhead. Despite Newsom's efforts to expedite the project using Senate Bill 149, environmental groups question the adequacy of the environmental impact report under the California Environmental Quality Act (CEQA). Concerns also arise regarding the limited statewide storage increase, heightened evaporation rates due to climate change, potential methane emissions and adverse effects on water quality and fish populations, leading to skepticism about the reservoir's effectiveness in addressing water scarcity. Environmental advocates view the Sites Reservoir as an expensive and inadequate solution, urging exploration of more cost-effective alternatives to manage California's water resources. Cost of Living Hurts Los Angeles's Global Competitiveness According to a new study by the Los Angeles Area Chamber of Commerce, California's economic competitiveness in the global and federal markets is losing traction. One of the main concerns in economic prosperity is the rate at which potential labor forces are leaving the state for places with lower costs of living. Focusing particularly on Southern California and analyzing the past, current and assumed future of the state's economic output, the study found the area generates only 40% of the state's economic output despite containing most of the state's population and jobs. The disparities between the industries in Southern and Northern California necessitates a different economic strategy for the state highlighting regional differences. The study also recommended partnerships between higher education and industry to meet the demand from local industries for workers, defining business attraction and retention strategies within regions, address high costs of living and ensuring housing matches the states in economic competition with California and support newer entrepreneurial infrastructure to remove barriers of entry. CP&DR Coverage: Bishop Downtown Plan Wins APA Award This year, the City of Bishop received the chapter's Comprehensive Plan (small jurisdictions) Award of Excellence for The Downtown Bishop Specific Plan & Mixed-Use Overlay — a plan designed to manage growth in and enhance the heart of one of California's most sought-after small towns. The decision to focus growth in the city's downtown wasn't just a progressive planning fantasy. It was, essentially, a necessity due to the city's geographic and environmental constraints. While Bishop may be a particularly scenic example of small-town planning, the principles at play in the downtown plan are applicable to small towns around the state and, indeed, around the country. “Downtown does tend to be the spiritual heart of the community,” said Chad Nabity, former chair of the American Planning Association's Small Town and Rural Planning Division. “Maintaining that and keeping that vibrant and alive helps maintain the essence of the community.” Quick Hits & Updates The California Public Utilities Commission voted to extend Diablo Canyon Power Plant's operation until 2030, contradicting the initial plan to close it in 2025. Despite concerns over the aging plant's safety and high costs exceeding $6 billion, the extension aims to bolster the state's energy grid reliability and serve as a transition toward renewable energy goals, emphasizing it won't operate beyond 2030. Critics fear rate hikes and safety risks due to the plant's proximity to fault lines, while proponents argue its necessity to meet the state's climate goals, providing about 9% of California's electricity and 17% of its zero-emission power. The Tahoe Regional Planning Agency recently approved policy changes to tackle the housing crisis in Lake Tahoe, focusing on adjusting zoning regulations to promote affordable and workforce housing while emphasizing water quality, transit proximity and smaller multi-family units. These modifications aim to incentivize housing projects near transit areas, provide deed-restricted units for lower-income residents and encourage stormwater management practices to protect water quality. The Oakland Athletics have agreed to pay $45 million for their share of the Coliseum property by May 14 as per their 2019 purchase agreement. The payment timeline requires $15 million in 2024, 2025 and 2026, triggered earlier due to the team's decision to relocate to Las Vegas, despite uncertainties surrounding their home for 2025-2027 seasons and the expiration of the Coliseum lease in 2024. Sacramento Mayor Darrell Steinberg recently stepped back from his proposal to raise the countywide sales tax for affordable housing and transportation projects, citing voter sentiments and the current fragile state of affairs. He plans to offer a ballot measure template for future use but won't pursue the tax increase in 2024, aiming to establish a consistent funding source for affordable housing while acknowledging the city's significant deficit in meeting demand for low-income housing units. San Francisco's former Hunters Point Naval Shipyard, a site intended for redevelopment, faced a setback as recent testing again discovered radioactive objects, including a deck marker and a pea-sized glass object, in areas previously cleared of contamination. The discoveries, reminiscent of a 2018 radium find, could hinder plans to transform the site into a housing neighborhood, leading to environmental concerns and potential delays. Amidst this, Greenaction plans to sue the Navy and EPA, alleging violations in cleanup standards and missed deadlines, while various legal battles and controversies persist regarding the shipyard's cleanup. Culver City and Sentinel Peak Resources have agreed to cease oil drilling and decommission all wells in the Culver City section of the Inglewood Oil Field by 2029, aiming to transition the area for residential, commercial and recreational purposes. This cessation of drilling marks a step in Los Angeles County's larger initiative to cease oil and gas extraction, potentially opening up significant real estate investment opportunities in the region. The City of Sacramento is contemplating a vacancy new tax targeting owners of over 3,600 undeveloped vacant lots, primarily in North Sacramento, aiming to incentivize development on dormant land. This proposed tax would penalize landowners who haven't initiated construction or secured building permits, potentially generating approximately $20 million annually if approved by city voters. Three executives, including Siavash Tahbazof, from a San Francisco design and engineering firm, face charges for allegedly bribing Department of Building Inspection workers. The charges stem from a wider federal corruption probe revealing a pattern of bribery and improper financial benefits in the city's building processes. Ridership at BART's Santa Clara County stations, opened in 2020, has severely fallen short of expectations, with current daily averages at less than 10% of initial estimates. The San Jose expansion continues to face cost overruns and construction delays. Local officials voted 6-5 against building a light rail station near a new public housing complex in the River District, citing cost concerns and potential service cutbacks elsewhere. Despite the decision, community representatives are advocating for improved transportation access, emphasizing the need for better transit options for residents.

by CP&DR Staff on December, 21 2023

San Diego Approves Suite of Housing Incentives The San Diego City Council adopted a wide-ranging set of measures aimed at tackling the city's housing crisis with a 7-1 vote following a heated three-hour public hearing. Included in the package is a controversial developer incentive that critics fear could exacerbate segregation by limiting low-income residents' access to affluent areas. Council members remain optimistic about the incentive's benefits, having made amendments to address concerns. The package emphasizes various incentives, such as building single-room-occupancy hotels, converting commercial sites to housing and accommodating housing for college students. Additionally, it introduces protective measures for displaced low-income residents and aims to stimulate home construction to meet mandated goals. Some community leaders criticize elements of the plan, specifically the allowance for developers to build low-income and market-rate housing at different locations under the Complete Communities program, which was previously required to be on the same site. Initial plans to enact SB 10 density provisions were eliminated from the plan in the face of stakeholder opposition. The city has faced challenges in meeting housing targets, with concerns raised about potential repercussions, including segregation and unknown consequences. (See related CP&DR coverage .) State Releases Environmental Report for Delta Water Tunnel The Department of Water Resources released the final environmental impact report for a long-discussed 45-mile water tunnel beneath the Sacramento-San Joaquin River Delta. Championed by Gov. Gavin Newsom, the Delta Conveyance Project aims to modernize California's water system by transferring water from the Sacramento River to southern areas via large pumps, an initiative Newsom deems vital to combat climate change-induced droughts and enhance water infrastructure resilience. However, critics, including environmentalists, question the $16 billion project's impact on the delta's delicate ecosystem and endangered fish species, advocating for alternative water management solutions such as recycling and stormwater capture. Initially envisioned as a two-tunnel project under former Governor Jerry Brown, Newsom now supports a single-tunnel version of the initiative, with estimated construction costs at $16 billion. Proponents highlight the tunnel's potential to capture substantial water during heavy storms, though opponents express concerns about the detrimental effects on native fish populations. Despite differing viewpoints, some water districts and business groups support the project as essential in navigating California's changing climate, emphasizing its role in securing water supplies during challenging conditions. State Certifies San Francisco Housing Element; City Avoids Penalties The Department of Housing and Community Development certified San Francisco's housing streamlining legislation, preventing potential penalties like the loss of affordable housing funding and local control over development approvals. The California Department of Housing and Community Development confirmed the city's ordinance aligns with state law and emphasized the need for San Francisco to fulfill outstanding required actions. Following missed deadlines, the city finally passed the legislation, originally proposed by Mayor London Breed, after introducing amendments safeguarding rent-controlled units, historic buildings and single-family homes predating 1923. This move is part of the state's objective to push San Francisco to build 82,000 units over eight years, with 46,000 designated as affordable for low- and moderate-income families, streamlining processes and reducing Planning Commission hearings for many projects. The amended reform package passed by a 9-2 vote. Lake Tahoe Development Plan Faces Lawsuit A group of residents in the Lake Tahoe basin are suing to contest recent development plan changes in court, aiming to impede alterations that seek to promote affordable housing, hospitality and dining on the lake's West Shore. The legal action, lodged in Placer County Superior Court, intents to safeguard Lake Tahoe, according to the coalition filing the suit. Late in October, Placer County supervisors sanctioned pivotal revisions to the overarching Tahoe development plan, influencing building guidelines across the basin from South Lake Tahoe's periphery to Kings Beach, overseen jointly by the Tahoe Regional Planning Agency. Despite county claims that the adjustments would bolster lodging, mixed-use redevelopment and workforce housing, skeptics among Tahoe residents fear exacerbation of existing problems like traffic, crowding and pollution. The lawsuit challenges the approval process under the California Environmental Quality Act, demanding a fresh environmental impact report considering the lake's infrastructure challenges. Terner Center Recommends Reforms to State's "Prohousing" Program UC Berkeley's Terner Center for Housing Innovation released new analysis of the state's Prohousing Designation Program (PDP) overseen by the California Department of Housing and Community Development (HCD), concluding the program can improve by consolidating "prohousing" criteria, enhancing transparency of the criteria and implementing data-driven analysis of policy reforms' impact on housing production. The PDP, started in 2021, assesses local areas' housing policies, considering zoning, timelines for housing construction, cost reduction strategies and potential extra points for equity and sustainability efforts. Jurisdictions achieving this prohousing designation gain advantages in applying for grants and access to special funding opportunities. The analysis recommends several methods to increase the effectiveness of the program, including simplifying criteria, reducing the complexity of the application process and solid metrics to study the impact of the PDP. The Turner Center suggests to adapt elements of California's PDP for the federal Pathways to Removing Obstacles to Housing (PRO Housing) program run by HUD, which emphasizes federal support for expanding housing availability. Moreover, the Turner Center adds linking additional funding sources, such as infrastructure or transportation funds, to the PDP could further encourage jurisdictions to actively address housing challenges in a meaningful way. (See related CP&DR coverage .) Los Angeles County Plans to Source 80% of Water Locally by 2040 Los Angeles County's newly adopted water plan aims to increase local water sourcing substantially over the next 20 years due to climate change impacts and escalating costs associated with external water supplies. This strategic plan outlines a shift towards sourcing 80% of water locally by 2045, focusing on stormwater capture, recycling and conservation to increase water supply by 580,000 acre-feet annually. The initiative underscores the need for water conservation and beneficial reuse, diverting stormwater away from coastal pollution. Started in 2019, the plan gained traction emphasizing collaboration among over 200 independent water agencies in the county to develop regional water strategies and shared goals. The plan's objectives encompass enhancing water supply reliability, groundwater collection, managing wildfire impacts and supporting failing water systems in low-income communities by offering resources for improvement. Environmental groups commend the county's commitment, lauding the plan's responsiveness to stakeholder concerns and its potential for leveraging state and federal funding opportunities while prioritizing equitable access to clean water for all residents. CP&DR Legal Coverage: U.S. Supreme Court May Forbid Exactions For half a century, planners in California and across the country have relied on a wide variety of “exactions” - impact fees, environmental “mitigations,” inclusionary housing ordinances, and other items developers are required to fork over in order to get an entitlement. But now the U.S. Supreme Court appears likely to box in entitling agencies on entitlements more strictly than ever before. The only question is how far the justices will go. This is coming to the fore because the Supreme Court decided to accept a little-noticed California appellate court ruling, Sheetz v. County of El Dorado , which was decided last year. The court upheld El Dorado County's imposition of a $23,000 fee on as part of the approval for an 1,800-square foot manufactured home. It's a foregone conclusion that the court will strike down the California rule about broad policy not being covered by Nollan/Dolan . At the very least, that will be a boon to the consulting industry that does nexus studies. But how far beyond that will they go? Quick Hits & Updates Shasta County filed a lawsuit against the California Energy Commission (CEC) regarding the Fountain Wind Project, alleging lack of CEC authority to approve it and demanding cessation of any related actions due to jurisdictional issues. The county, partnering with the Pit River Tribe, contends that the wind energy project poses risks to the environment, cultural resources and community well-being. Meanwhile, ConnectGen, the project developer, argues for the project's necessity in meeting California's carbon reduction goals and highlights its economic benefits, including local job creation and tax revenues. A proposed gondola linking downtown Los Angeles with Dodger Stadium, initially priced at $125 million in 2018, now projects a potential cost of up to $500 million according to an environmental impact report, facing regulatory hurdles and unresolved concerns about funding and future development. Despite the report's focus on the gondola as a transit project, community worries persist regarding potential construction, while specifics about financing sources and guarantees against taxpayer funds remain undisclosed. A recent report reveals that San Diego is falling significantly behind on its housing construction targets, needing to triple its efforts, particularly in constructing low and moderate-income housing units, concentrating more than half of new homes in just three neighborhoods, sparking debates on the effectiveness of current incentives, and prompting calls for additional measures and more effective strategies to meet the city's urgent housing needs. Despite improvements from the pandemic peak, over 1 million California renters are behind on rent, with almost 150,000 fearing eviction in the next two months, largely impacting economically vulnerable renters and low-income households, exacerbating the already expensive rental market across the state, particularly in areas like San Francisco and Los Angeles, leading to increased housing stress and eviction concerns, signaling a crisis in California's housing market. A redevelopment plan for Piers 30-32 and Seawall Lot 330 in San Francisco, which includes housing, retail and a bay swimming pool, faces a $125 million financing gap due to increased infrastructure costs and compliance modifications. Developers are negotiating with the Port, exploring tax districts, and using office space to cover necessary construction expenses amid challenges affecting other waterfront projects in San Francisco due to rising construction costs and market factors. The San Diego Trolley is the highest-ridership light-rail line in the US since the pandemic, with over 34 million trips in 2022, surpassing other major systems. While its ridership dipped during the pandemic, it retained a higher level compared to other systems due to factors like the Mid-Coast Trolley extension and efforts to maintain service levels. As transit ridership picks up nationwide, San Diego's Trolley continues to maintain its top-ranking position in 2023, although other cities are experiencing faster recovery rates. California ranks as the top state for transportation policies and spending priorities according to a new scorecard released by the Natural Resources Defense Council (NRDC). The report highlights California's leadership in sustainable transportation investments, emphasizing initiatives like vehicle charging stations, public transportation and bicycle infrastructure while addressing climate change and equity concerns. Caltrans omitted a significant industrial park from its environmental review connected to a freeway expansion in Fresno, despite prior knowledge of its existence. This omission has raised legal and ethical concerns regarding the project's impact on public health and environmental effects, casting doubt on Caltrans' decision-making process and transparency. Los Angeles city is set to spend around $40 million to rescue the failed Skid Row Housing Trust, expecting further expenses by mid-2024, stemming from the trust's financial collapse earlier this year. The city aims to stabilize the properties and transfer them to new nonprofit housing providers to prevent a humanitarian crisis, despite frustrations and financial challenges during the rescue efforts. The San Jose City Council unanimously adopted stronger protections for 13 mobile home parks, mandating developers to seek council approval and a general plan amendment for potential redevelopment, aiming to preserve affordable housing spaces. This decision reflects the council's commitment to maintain these communities amid concerns over their conversion into high-density housing, providing reassurance to residents, particularly seniors with lower incomes, who have fought to safeguard their neighborhoods.

Federal Government Contributes to Two California High Speed Rail Projects Two high speed rail projects in California received Federal Railroad Authority grants totaling over $6 billion. A grant of $3 billion secured by Brightline West, a private company, propels the high-speed rail project from the Inland Empire to Las Vegas, expected to be operational by 2028, coinciding with Los Angeles' Olympic Games. The $12 billion project will connect Rancho Cucamonga to Las Vegas in just over two hours, and featuring stops in Hesperia or Apple Valley. Utilizing a wide Interstate 15 median, the company behind the project already possesses federal permits, labor agreements and the required land for construction, set to commence in early 2023. While Brightline did not secure the full $3.7 billion it sought, the grant ensures the project's progress, intended to serve as both a luxury tourist train and a transportation link between Southern California and Las Vegas. The California High Speed Rail system received $3.1 billion to contribute to the Bakersfield-Merced segment currently under construction. The grant brings total funding to around $27 billion; the segment is expected to cost $33 billion. San Francisco Takes Action to Streamline Housing, Promote Small Businesses Ahead of an upcoming state housing deadline, San Francisco's Board of Supervisors adopted a number of reforms this week, including Mayor Breed's ordinance to streamline procedures for small businesses to establish themselves within the city and a housing reform package including protections for rent-controlled and historic buildings. The package includes safeguards for historic buildings and rent-controlled units following the city's failure to meet the initial deadline for residential development rule reforms mandated by the California Department of Housing and Community Development. The ordinance encompasses more than 100 updates to the planning code, primarily easing restrictions on new bars and restaurants in specific neighborhoods, offering flexibility in retail space usage, and expediting the launch process for certain businesses. Additional approved amendments to Mayor London Breed's reform package include safeguards for pre-1923 single-family homes, protection for rent-controlled units from demolition in favor of market-rate projects and the preservation of historic buildings, passing with an 8-3 vote. Breed also introduced an amendment preventing the demolition of rent-controlled units, initially allowing vacant rent-controlled units to be replaced for denser developments. Sacramento Makes Good on Promise to Upzone Having promised to upzone significant swaths of the city's residential neighborhoods, the Sacramento City Council formally adopted a housing reform plan that allows diverse housing units in single-family zones, hoping to address the city's housing crisis. Referred to as the "Missing Middle Housing Plan," it permits the construction of duplexes, triplexes and bungalows within neighborhoods, aiming to increase housing diversity while maintaining the area's character. Sacramento Mayor Steinberg emphasized the initiative's potential to accommodate multiple households on lots initially designated for single-family homes, offering a solution to the housing scarcity that has been under consideration since 2018. The plan seeks to rectify historical zoning practices that enforced discrimination, fostering economic diversity across neighborhoods and mitigating segregation persisting to this day. Expected to roll out in 2025, this plan eliminates restrictive zoning to enable more multifamily units while hoping to uphold the essence of local neighborhoods, aligning with the council's efforts to increase housing density. (See related CP&DR coverage .) Analysis Finds Massive Deposits of Lithium at Salton Sea The U.S. Department of Energy's analysis of the Salton Sea suggests it holds substantial lithium reserves, potentially yielding enough for over 375 million EV batteries. This domestic source aligns with the nation's goals of a net-zero emissions economy by 2050 and a 50% electric vehicle adoption by 2030. Despite these promising prospects, companies like Berkshire Hathaway and EnergySource are facing delays in launching commercial lithium production in the region, hindering immediate progress. Efforts to extract lithium from geothermal brines must adhere to responsible practices to mitigate environmental concerns such as water usage and seismic activity. Overall, the report underscores the importance of implementing proper monitoring and mitigation measures to minimize adverse impacts while leveraging renewable energy sources for sustainable lithium extraction. New Map Helps Track Affordable Housing Funding Statewide The California Housing Partnership released its Affordable Housing Map & Benefit Calculator as a tool to map the state's federal- and state-subsidized housing efforts, and those efforts' correlations to the quality of life for residents and surrounding communities. It also released a study on the 324,000 Naturally-Occurring Affordable Homes at Risk in the State. The map quantifies the social, economic and environmental benefits of affordable housing to local economies, individuals and families and taxpayers writ large. The California Housing Partnership established the tool to allow residents to learn where affordable housing is located, as well as the benefits of that housing for future or proposed affordable housing projects. The data on the "naturally-occurring" affordable homes at risk in the state studies the homes - due to location or other market factors - which offer rents naturally affordable to low-income residents. Statewide, these homes surpass the number of state-subsidized affordable homes by almost 400,000. Without oversight, data suggests these naturally-occurring affordable homes will become extinct in the coming years. The study also found 120,000 affordable homes lost their status as naturally-occurring affordable homes in 2020 by pricing out of the rent cap. CP&DR Coverage: The Complex Economics of Density Among the 200-odd housing-related laws that the California has enacted since 2015, many - if not most -- were designed to increase density in one way or another. Some laws encourage housing units where now there are only big boxes and offices. Some encourage developers to build higher in exchange for housing lower-income residents. Others literally put new housing in people's backyards, by way of accessory dwelling units. Patrick Condon, a Vancouver-based planner and professor predicts, provocatively, these laws may simply lead to more expensive housing -- calling into question one of the fundamental orthdoxies of YIMBYism. And yet, writes CP&DR's Josh Stephens, most of Sacramento's incursion on their sacred right to self-determination, if every housing-constrained region and jurisdiction in the state has to upzone, then it might get an economy of scale, and it might meet aggregate demand. Quick Hits & Updates Silicon Valley backers behind the potential new city dubbed "California Forever" faced opposition from locals at a recent town hall. Solano County residents criticized the secretive land grab, opposing the investors' vision of a dense city. The California Forever project aims to create jobs and housing but faces criticism for potential habitat and cultural impacts, triggering legal disputes and concerns over community consultation. Separately, leaders from the Sierra Club and other groups held a rally opposing California Forever's plans for a new city in Solano County, citing concerns about agricultural land loss and the initiative's impact on farmland. (See related CP&DR coverage .) The City of Los Angeles has secured around $93.5 million for providing shade, focusing on building additional bus shelters and other shade installations, to combat extreme heat in areas like the San Fernando Valley. This funding aims to add thousands of bus shelters and shade structures over ten years, recognizing the dangers posed by high temperatures and the necessity for shaded spaces, particularly at bus stops, for public health and equity reasons. Oakland is implementing changes in its building permit process, aiming to automate 70% of permits by year-end, particularly for smaller residential or commercial projects, allowing immediate online application, payment and permit availability. While this shift may not directly impact larger developments, proponents anticipate it will alleviate staff workload, focusing attention on more critical reviews. The city aims to enhance the "customer experience" for permit applicants by streamlining processes, introducing new digital tools and appointing a citywide official to oversee the permit streamlining efforts. The development project called "The Rise" at the old Vallco Mall in Cupertino has undergone significant revisions, increasing the number of residences to 2,669 while reducing overall space and commercial square footage to adapt to changing market conditions. The aim is to create a new downtown area in Cupertino, fulfilling housing obligations and offering a dynamic retail environment, potentially commencing construction by late 2024 or 2025. (See related CP&DR coverage .) The Los Angeles City Council adopted a new law mandating police permits for short-term rental and hotel operators to address concerns over party houses and illicit behavior. Despite the council's unanimous vote, some members expressed worries about increased police workload. Critics questioned the necessity of the police permit, citing its potential impact on small businesses, while proponents highlighted it as a measure to tackle housing issues and ensure safety. Redco Development plans a three-building high rise project in Palo Alto, proposing 382 dwellings and commercial space on the current Mollie Stone's supermarket site. The development utilizes the contentious provision called "builder's remedy" to bypass local zoning restrictions, aiming for towers as tall as 17 stories--twice as tall as neighboring projects and at densities far beyond existing city limits. Backers in Oakland plan to launch a minor league baseball team called the Oakland Ballers to provide the city with its own professional baseball team amid the potential departure of the Athletics. The goal of the new team is to galvanize community ownership and fan engagement, inspired by the success of the Oakland Roots, while moving forward independently of the A's, potentially starting their inaugural season in 2024, potentially prior to the A's departure. (See related CP&DR coverage .) A group in San Mateo aims to designate the Baywood neighborhood as historic, potentially exempting it from the housing development law SB9, which allows up to four residential units on a single-family lot. Residents seek to preserve the Spanish Revival homes, while critics argue that historic designation could hamper housing density in walkable areas. The controversy intensified when a family's plan to replace a house was met with opposition, sparking discussions on race, housing rules and loopholes in California's housing laws like SB 9, the "duplex law." The California Supreme Court's decision not to review the Measure C ballot measure for San Diego's convention center expansion means ongoing delays as the case goes back to the San Diego County Superior Court to determine if it qualifies as a citizens' initiative. Measure C, which sought to increase the hotel tax for convention center funding, faces legal contention over its status as a citizen-led initiative, with continued legal battles expected. (See related CP&DR coverage .)

What Will The Supreme Court Do To Exactions?

Lake Tahoe Residents File Suit against Plan to Increase Housing A coalition of residents on the California side of Lake Tahoe area filed a lawsuit to block recently-approved modifications to a development plan allowing for increased affordable housing, hotels and dining options on the West Shore of Lake Tahoe. This legal action, filed in Placer County Superior Court, aims to safeguard the lake's well-being, opposing amendments made by the Placer County supervisors to the Tahoe development plan. While the amendments seek to enable more lodging, mixed-use development and workforce housing throughout North Tahoe, the residents argue these changes could exacerbate existing problems like traffic congestion and pollution. They express skepticism about the benefits claimed by the county's plan and fear it might favor luxury homes over much-needed affordable housing. The lawsuit alleges violations of the California Environmental Quality Act and demands a revised environmental impact report considering the strain on Tahoe's infrastructure due to the pandemic. Newsom Asks Court to Review Property Tax Ballot Measure At the request of Gov. Newsom and Democratic legislators, the California Supreme Court agreed to review a 2024 state ballot initiative--titled "Lower Supermajority Requirement to 55% for Local Special Taxes to Fund Housing and Public Infrastructure Amendment" (LRCA) -- requiring voter approval for tax and fee increases, including taxes related to land use. Backed by business groups, the LRCA has gained enough signatures for the ballot, but Governor Gavin Newsom and Democratic leaders argue that it could severely limit elected officials' powers and demand a constitutional revision. Typically, the court determines a ballot's constitutionality after voter approval, but in a past case, it removed an initiative without deciding on its constitutionality, necessitating a two-thirds legislative approval for revisions. Newsom's team has condemned the initiative as a move by business interests to disrupt government functions, while its proponents defend it as safeguarding voters' rights. The LRCA aims to uphold the two-thirds majority for tax increases while retroactively mandating voter approval for regulatory actions affecting finances since 2022, sparking concerns from city mayors and educational associations about potential economic threats to services. Developer Wavers on Cupertino Builder's Remedy Proposal The City of Cupertino received its first "builder's remedy" proposal, envisioning a five-story apartment complex at 20015 Stevens Creek Boulevard, inclusive of affordable housing units. Despite this, the developer's partner recently halted the plans without a specific explanation, suggesting that builder's rememdy provisions alone are not enough to make the project viable. The 70-foot proposal, aiming to establish 141 units near The Rise development by Sand Hill Property Company, was initially filed in May under Senate Bill 330 to expedite approval processes. However, a subsequent application leveraging the builder's remedy sought to bypass local zoning control due to Cupertino's non-compliant Housing Element plan, which was expected to demonstrate a strategy for accommodating 4,588 dwelling units between 2023 and 2031. The same development company also navigates a separate builder's remedy permit for 3150 El Camino Real in Palo Alto, responding to city support uncertainties by providing an alternative route to secure housing construction if the initial application faces rejection. High Rise Proposed in Palo Alto via Builder's Remedy A developer has proposed a 17-story, 382-unit apartment complex at 156 California Ave. in Palo Alto, invoking the "builder's remedy" to bypass certain restrictions in cities lacking state-approved housing plans. The joint venture project exceeds the city's height limit and density allowances, seeking to replace a store while integrating affordable units. The pre-application, submitted under Senate Bill 330 to ease housing shortages, faces contention due to Palo Alto's non-compliance with state-certified housing plans. The city claims exemption from the builder's remedy, yet the developer argues the project qualifies. However, critics argue the affordable units fall short, lamenting the use of state mandates without addressing housing affordability issues. Advocates for the project highlight its transit-friendly location and potential contributions to sustainability, echoing calls for more housing near amenities and transportation hubs. Report: California Rents Have Budged Slightly A study by the California Housing Partnership reports rent affordability improved slightly for moderate- and low-income households while extremely low-income renters (1.21 million households) saw no increase in affordability from previous years. Those extremely low-income renters cannot afford rent in any county, with some areas remaining consistently out of reach for all low-income renters. The study found very low-income renters can afford rent in only seven counties. 72% of zip codes are affordable to median-income families and 42% of zip codes are affordable to low-income families. The study recommends state policy address the need for extremely low-income housing to prevent poverty and homelessness. CP&DR Coverage: Can 45,000 New Homes Qualify as "Smart Growth"? 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. The plan could be adopted by the end of the year. Despite the vast acreage that might be developed, city planners envision smart growth rather than sprawl. Quick Hits & Updates The Metropolitan Transportation Commission is allocating $776 million in subsidies to Bay Area transit agencies like BART and SFMTA, with BART receiving $352 million (45%) and SFMTA $309 million (40%), aiming to prevent significant service cuts until 2026. These subsidies, a portion of the $1.1 billion transit bailout in California's budget, come with conditions requiring action against fare evasion and accountability in regional coordination efforts, demanding BART to upgrade fare gates by 2025 and SFMTA to strategize for reducing fare evasion on Muni. San Jose State University plans to purchase a former hotel tower by December 2025 for $113 million to transform it into student housing, intending to house 700 to 800 students starting next fall, significantly expanding its presence in downtown San Jose. The university aims to exercise its option to buy the tower 25 months into the leasing deal and has plans for substantial renovations, with a focus on creating a student-centric environment equipped with amenities such as dining areas, fitness centers and study lounges. A housing package that the San Diego City Council rejected is getting an overhaul from Mayor Todd Gloria and Council President Sean Elo-Rivera due to the city's pressing housing crisis, aiming to address affordability by increasing housing supply. The revised plan, including controversial elements like allowing low-income housing at different locations under the Complete Communities program, will return to the council for potential approval, emphasizing the shared goal of offering housing opportunities across income levels citywide. The Metropolitan Transportation Commission is allocating $776 million in subsidies to Bay Area transit agencies like BART and SFMTA, with BART receiving $352 million (45%) and SFMTA $309 million (40%), aiming to prevent significant service cuts until 2026. These subsidies, a portion of the $1.1 billion transit bailout in California's budget, come with conditions requiring action against fare evasion and accountability in regional coordination efforts, demanding BART to upgrade fare gates by 2025 and SFMTA to strategize for reducing fare evasion on Muni. San Jose State University plans to purchase a former hotel tower by December 2025 for $113 million to transform it into student housing, intending to house 700 to 800 students starting next fall, significantly expanding its presence in downtown San Jose. The university aims to exercise its option to buy the tower 25 months into the leasing deal and has plans for substantial renovations, with a focus on creating a student-centric environment equipped with amenities such as dining areas, fitness centers and study lounges. A housing package that the San Diego City Council rejected is getting an overhaul from Mayor Todd Gloria and Council President Sean Elo-Rivera due to the city's pressing housing crisis, aiming to address affordability by increasing housing supply. The revised plan, including controversial elements like allowing low-income housing at different locations under the Complete Communities program, will return to the council for potential approval, emphasizing the shared goal of offering housing opportunities across income levels citywide. A tech company plans to occupy the former Aerojet land in Rancho Cordova, aiming to create over 1,000 jobs by building an electric vehicle battery manufacturing facility. Local businesses anticipate increased foot traffic and economic growth, particularly from the company's proposed 1.5 million square feet of office space, which could enhance Sacramento's status as a zero-emission vehicle hub. Based on alternatives analysis for LA Metro's proposed Sepulveda Transit Corridor Project data, an underground subway from Van Nuys to UCLA would take 12 minutes, carrying up to 120,000 weekday riders, while an aerial monorail would take over double the time and accommodate fewer passengers due to indirect UCLA stations requiring transfers. Discussions about cost estimates and route alignments persist for the six proposed alternatives, emphasizing the subway's faster travel times and higher ridership against the perceived cost-effectiveness of the monorail. StreetLight Data reported a nationwide 36% decrease in daily walking trips between 2019 and 2022, with all states and major metropolitan areas experiencing drops, while the National Association of City Transportation Officials highlighted increased usage in shared bikes and e-scooters, particularly with rising popularity in electric bikes. This trend indicates a shift in walking becoming more recreational than a utility mode, raising concerns about its impact on transportation and climate, even as pedestrian deaths reached a 40-year high in 2022.

CP&DR Vol. 38 No. 11 November 2023 Report

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.