Senate Committee Puts Damper on Newsom's Infrastructure Plan The Senate Budget Committee voted , 3-0, to recommend shelving Gov. Newsom's highly publicized package of bills designed to promote development of climate-friendly infrastructure, partially through CEQA streamlining. The three-member committee, consisting of two Democrats and one Republican, voted unanimously against the ten-bill package. Committee members said that the package, which was introduced only two weeks ago, is too complex for the legislature to properly consider it before the September 30 legislative deadline. June 2 is the deadline for bills to move out of their respective houses of origin. The package could still prevail in budget negotiations, or Newsom could re-introduce it via policy committees. “The overwhelming agreement is that we need to build clean faster and cut green tape,” said Committee Chair Sen. Josh Becker, as quoted in CalMatters. “Although... we are rejecting the governor's trailer bill proposals based on process, as seven days is insufficient to vet the hundreds of pages of policy nuance in these proposals, we look forward to working with the administration on all of these critical issues.” (See related CP&DR coverage .) Santa Ana Asks State for Exemptions from Key Housing Laws The Santa Ana City Council will consider filing for exemption of properties from two state housing laws in an effort to exact more local control. Set to vote on the exemption resolution, Santa Ana received a letter from Attorney General Rob Bonta's office urging the council to vote at a later date and consider the impacts of the resolution. The properties eligible presently under state law allow residential development on commercially-zoned sites with little to no local control from planners. Under Assembly Bill 2011 and Senate Bill 6, Santa Ana can label that land as exempt and find other eligible, alternative sites for residential development. City officials stated they are considering the exemption not to avoid state housing law, but because they are already complying. The city has already reached 52% of their Regional Housing Needs Allocation and has a state-certified Housing Element. The City Council will consider the resolution later next month. Redlands Puts Pause on Warehouse Development; Seeks Housing Instead Redlands City Council voted to extend a moratorium for the next year on the development of 15 warehouse properties. The city council hopes to rezone the properties for residential use and affordable housing during that time. Council members indicated that they want to prioritize housing over logistics. The original moratorium in June 2022 was only 45 days for new warehouse projects at 15 Commercial Industrial District properties falling within the East Valley Corridor Specific Plan. The housing plan designates more housing under the state's housing inventory for Redlands. City staff extended the deadline to make further adjustments to Redlands' Housing Element, with an anticipated spring 2024 completion. Report Identifies Roadblocks to Housing Production in L.A. A report by the Los Angeles Business Council (LABC) found entitlement processes are impeding Los Angeles's ability to meet its lofty housing production goals. The study referenced UCLA and California State University, Northridge's findings that the city is not keeping up with housing demands and its ability to meet California's Regional Housing Needs Assessment (RHNA) would require the city to complete 57,000 units per year. Presently, the city completes less than 9,000 annually throughout the last decade. LABC's report concludes fast-tracking approval of affordable housing projects and state laws exempting qualifying mixed-income projects from discretionary reviews would add a significant number of housing units. LABC recommends extending those measures to market-rate housing and increasing coordination between city agencies. CP&DR Coverage: Cities Slow to Adopt SB 10 Streamlining A faint successor to the failed SB 827 and SB 50, Senate Bill 10 clears the way for cities to zone for up to ten units on infill parcels currently zoned for as few as one home so long as they are within a half-mile of a major transit stop. Specifically, it carves out a CEQA exemption for the upzoning to save time and money—and, importantly, preempting many would-be lawsuits— in the name of infill development. But more than a year after SB 10's passage, interest from cities and counties has been tepid. Reluctance prevails despite aggressive Regional Housing Needs Assessment goals that many jurisdictions have to achieve in their housing elements and accompanying zoning codes. Humboldt County and the City of San Diego, though, appear to be blazing a trail. Both are considering incorporating SB 10 into their housing action plans. San Diego is drafting its “Housing Action Package 2.0,” and Humboldt County is working on its “Multifamily Rezone Project.” Quick Hits & Updates Following two lawsuits against the Coastal Commission, a homeowners' association in Half Moon Bay is encouraging the commission to reconsider the homeowners' plans to build a seawall around expensive beachfront homes facing rising sea levels. The association is continuing to legally push against the city's proposed relocation plan of the homes, hoping to set a precedent against relocation and in favor of protecting expensive beachfront properties along the state coast. Voters in Sierra Madre approved Measure M, a zoning map amendment as well as a plan and development agreement for a contentious 17-acre, 42-unit housing development. The project stalled since November's failed Measure HR almost changed the zoning plans against the development. MLS announced an investor will pay $500 million for expansion rights in San Diego for a new club and home of California's fourth MLS team. The team will start playing by 2025 in the 35,000-seat Snapdragon Stadium, owned by San Diego State University (on the site of the former Jack Murphy Stadium). The Sycuan Indigenous Tribe will take a minority stake in the team, making it the first Indigenous tribe to take an ownership stake in a soccer team in the US. Following the expiration of the Oakland A's contract with the Port of Oakland at Howard Terminal, the Port announced plans to develop a 50-acre site to support exports from the Central Valley and inland, potentially including overnight truck parking and temporary dry and refrigerated storage. The Moreno Valley City Council voted to approve the city's planning commission recommendation that the proposed plan for the Moreno Valley Mall move forward. The plan includes transforming the Moreno Valley Mall into four apartments totaling 1,627 units, two different hotels, 40,000 square-feet of retail space and additional office space. The city will consider mixed-income housing and job opportunities. A new study found the U.S. lost 8% of its affordable housing units during the pandemic due to a number of units converting to market rate. This loss amounts to 500,000 affordable units for low-income renters. In the midst of the ongoing legal dispute between Los Angeles City and a coalition of downtown residents suing the city for allowing inhumane and unsafe conditions to worsen downtown, the city petitioned a federal appeals court to end the lawsuit. The city claims the U.S. District Judge overseeing the case has overstepped his legal jurisdiction in refusing to accept a settlement between the group and the city. A group of investors and business owners are pushing a large-scale transformation of San Francisco's Fisherman's Wharf, including a food hall, interactive museum, short-term apartment rentals, and public space centering on and around Pier 45. The Long Beach City Council is once again considering a plan to replace a Terminal Island freeway with a large park space to work as a green buffer between the Port of Long Beach and the western part of the city impacted by traffic congestion and air pollution. UC Berkeley's Terner Center for Housing Innovation released a nation-wide report on how states are incentivizing local housing production by analyzing state pro-housing laws. The database and typology of state laws is used to understand trends in overall housing legislation on the state level.

CP&DR Vol. 38 No. 5 May 2023

The University of California’s battle with Berkeley residents continues on several fronts – with UC winning two recent appellate court cases and the California Supreme Court agreeing to hear the biggest pending case.

Redondo Beach Council Attempts to Block Major Builders Remedy Project The Redondo Beach City Council unanimously voted to block the development project of a power plant which included 2,700 residential units, office space, a hotel and 22 acres of open green area. The council stated the plan did not include certain requirements including city land and zoning law amendment requests, environmental reviews, coastal development permits and design review, siding with the Community Development Director's initial decision regarding the project. The project intended to break ground once the power plant ceased operations on Dec. 31. The project originally filed under the builder's remedy under the Housing Accountability Act to divert compliance requirements with the city's general plan. The builder's remedy is only applicable in cities without a general housing plan, and Redondo's 2021-29 housing element was filed with the state on June 5 and certified Sept. 1. The development application was filed in August 2022, sparking debate over the viability of the builder's remedy application. (See related CP&DR coverage .) Newsom Pushes Plan to Speed Climate-Friendly Developments and Infrastructure Governor Newsom announced wide-scale legislation and an executive order to expedite transportation, clean energy, water and infrastructure construction across the state. The plans include shortening contracting for bridge and water projects, limiting environmental litigation timelines to nine months, and easing permitting processes in the Sacramento-San Joaquin River Delta and other waterways in the state. His administration believes the legislation and executive order will expedite projects by more than three years and reduce construction costs to meet the state's climate goals. The plan includes 11 bills and the package will be included in the 2023-24 state budget to go through both houses of the Legislature by June 15. Targeted projects may include solar, wind, and battery storage projects; transit and regional rail construction; clean transportation, including maintenance and bridge projects; water storage; Delta Conveyance Project; semiconductor fabrication plants; and wildlife crossings; among others. “The only way to achieve California's world-leading climate goals is to build, build, build - faster," said Newsom in a statement. Reparations Task Force Recommends Land Use Remedies Governor Newsom's reparations task force finalized its housing proposal recommendations to the California Legislature, including recommendations to ease the lingering impacts of housing segregation in the state. One proposal includes the creation of a state agency to approve residential zoning ordinances based on their ability to dismantle or uphold residential segregation. The legislature should further identify cities and counties with historically redlined neighborhoods to require those neighborhoods to submit residential land use ordinances to a state agency for approvals based on the ordinance's impact on local residential racial segregation, or the cities and counties create an administrative appeal board to review all challenges to permitting decisions and zoning laws. The task force also suggests direct financial support or subsidized down payments, lower mortgages and homeowner's insurance to increase homeownership for Black residents. Another suggestion is preference in renting, homeownership and business opportunities for Black residents previously pushed out of areas of redevelopment. Elk Grove Will Defend against State Housing Lawsuit Elk Grove City Council voted unanimously to fight California Attorney General Rob Bonta's lawsuit against the city over Elk Grove's rejection of an affordable housing project. The lawsuit claims the city violated state housing law by rejecting the project. Bonta went forward with the lawsuit following his promise if Elk Grove City Council rejected the project again. In a public statement, he said the lawsuit sends a message to localities presumed to be fighting fair housing laws. Bonta and his team within the California Department of Justice dedicated to enforcing those state laws sued the city of Huntington Beach in April over affordable housing requirements by the state. Elk Grove officials have not come forward with comment, but vow to continue to find an alternate site for the development. Huntington Beach Must Pay $3.5 Million to Housing Nonprofit A state appeals court upheld a trial court ruling siding with an affordable housing group arguing the city of Huntington Beach revised its 2013-2021 housing element only after the advocate group sued the city in 2015. Despite the original 2015 lawsuit dismissal, the court upheld the groups's position against the city under the "catalyst theory." The court found the city adopted Senate Bill 1333, allowing the city to gain a partial legal victory over the housing advocacy group, and ordered the city to pay $3.5 million in legal fees. The advocacy group's executive celebrated the victory, stating other litigation against state housing requirements will conclude similarly to their lawsuit. The decision follows Huntington Beach's $5 to $7 million court settlement with the Pacific Airshow. (See related CP&DR coverage .) CP&DR Coverage: Vacancy Taxes Attempt to Spur Landlords to Fill Units A few California cities are implementing taxes designed to encourage property owners to rent existing units or to develop empty lots. The so-called “vacancy tax” requires property owners to pay extra taxes on property that is vacant or underutilized. Interest has grown recently in the Bay Area, where San Francisco and Berkeley voters passed ballot measures allowing vacancy taxes to be collected in 2024. Oakland has had a vacancy tax since 2018. The Sacramento City Council is in the early stages of exploring a vacancy tax for empty storefronts or residences, or both. West Hollywood is as well. Besides prodding owners to use their property, vacancy taxes can also provide a funding source for affordable housing. Berkeley expects to raise between $4.5 million and $7 million through its vacancy tax program. Quick Hits & Updates In a response to delays and rejections from the Alhambra City Council, the Los Angeles-based developer behind a new 790-unit residential project filed a builder's remedy application in Alhambra. The state law enables plans with a baseline of affordable units an accelerated application process in cities where there is no accepted housing element update. Responding to increased highway traffic and sea-level rise projection, the California Transportation Commission will decide whether to approve at least an $8 toll on Highway 37 between Marin and Vallejo. The toll would take effect in 2027. In the midst of the A's announcement of focused efforts of a ballpark in Las Vegas, the team's lease with the port of Oakland for a proposed park at Howard Terminal expired. The A's have not yet commented on whether or not they will extend the agreement with the Port. A unanimous vote confirm's the California Coastal Commission's decision to study the impact of climate change on coastal access as rising sea levels impact private property-built seawalls. The plan will not give the Commission any new jurisdiction or regulatory power, but will enable them to work with municipal agencies, private businesses and tribal governments to ensure public beach access. The Center for Biological Diversity is suing the California Geologic Energy Management Division for approval of new oil and gas wells close to homes, beaches and wildlife habitats. The lawsuit claims there has not been sufficient environmental review of the wells in Los Angeles and San Luis Obispo counties. Mayors from the state's 13 largest cities encouraged state lawmakers to double the state's housing resources grant to $2 billion and make the funding permanent. The mayors also requested thee state allocate $1.5 billion into Project Homekey to ensure the program continues. In exchange, the group proposed an accountability framework for projects funded by the state. The League of California Cities filed an amicus brief last week asking the Los Angeles County Superior Court to rule in favor of the charter cities of Redondo Beach, Carson, Torrance, Whittier and Del Mar in a lawsuit involving the cities' authority in Senate Bill 9 projects. The five charter cities filed a lawsuit in superior court claiming SB 9 is unconstitutional because cities cannot enforce land use and zoning laws within projects creating two lots on single-family residential parcels. Port of Long Beach officials released a $4.7 billion plan at their harbor commission meeting for a floating, offshore wind facility supporting multiple 1,000-feet tall wind turbines. The project would be the largest offshore wind turbine facility offshore in the U.S. With the support of state and federal officials, the project could start as soon as January 2027. A report by the water advocacy group California Water Impact Network found Governor Gavin Newsom's planned water transport tunnel under the Sacramento-San Joaquin River Delta expensive for an uncertain deliverable based on climate change impacts.

The City of Santa Monica has reached a legal settlement with the developer that proposed using the builder’s remedy for 14 different projects totaling about 4,000 housing units.

Long Beach's Garcia Introduces Parking Bill in Congress Congressman and former Long Beach Mayor Rob Garcia announced a new federal bill proposing banning minimum requirements for parking near public transportation hubs. The former Long Beach mayor hopes to alleviate the financial impacts of parking requirements on housing, while also promoting public transit, walkability in cities and housing density. Presently, parking minimums require developers to provide off-street parking with every project. Pro-housing and public transit advocates have historically pushed back against parking minimums, maintaining they increase dependence on cars, increase carbon emissions, decrease community walkability, occupy valuable real estate and increase housing costs. Furthermore, they argue parking requirements around transit hubs create large issues the same communities who primarily rely on public transit, and not cars. Rep. Garcia's proposed bill would follow in the footsteps of Governor Newsom's recent bill banning parking requirements for developments approximate to transit hubs in California. HCD Updates Lists of Jurisdictions Running Afoul of SB 330 The California Department of Housing and Community Development released updated lists of affected cities and counties on its statutory determinations webpage based on data obtained from the 2020 census. HCD lists over 450 cities and roughly 150 communities in unincorporated county areas. The lists are pursuant to SB 330 , which made changes to land use and zoning law to remove barriers and impediments to building new housing in urban areas of the state, specifically in areas in which underproduction is most prevalent, known as "affected cities" and "affected counties". SB 330 prohibits these jurisdictions from taking certain zoning related actions, including, among other things, downzoning certain parcels, imposing a moratorium, or imposing design review standards that are not objective. It also requires jurisdiction-wide housing replacement when housing affordable to lower-income residents is demolished. Lawsuit Seeks to Prevent Upzoning in Marin County Unlike many lawsuits attempting to compel California cities to add housing, a local resident sued Marin County alleging the changes to countywide housing plans made to comply with state housing mandates actually violates state laws. The lawsuit argues the changes to the countywide plan impact 24 individual community housing plans in Marin County. The county's update to the original housing plan seeks to follow the state housing mandate of 3,569 additional units in the area by 2030, a 1,700% increase from the county's 2015-2022 mandate of 185 units. The mandate also requires new steps in the county's housing element to address racial integration in the area. The lawsuit against the county alleges the county's housing plan is now inconsistent with the new amendments, and furthermore seeks to override local jurisdiction on community housing plans on the strict sizes of new developments. (See related CP&DR coverage .) California High Speed Rail Proceeds with Station Designs Los Angeles-based design studio Kilograph is working with two London-based architecture firms, Foster+Partners and ARUP, on preliminary design plans for California High Speed Rail Authority stations in Fresno, Merced, Hanford and Bakersfield. Both London-based firms were jointly awarded a $35.3 million contract for the initial site plans and design, with the design studio coming on to conduct visual representations of the station designs. The designs indicates the largest station would be built in Fresno at a former Greyhound bus station. All four stops are the first along the first operational portion of a future bullet-train system. The line is now under construction in the central San Joaquin Valley, with new renderings released by the design studio of open-air rail platforms, retail and restaurant offerings for passengers. If construction and design continues according to the project's plans, the train would be operable between 2030 and 2033. CP&DR Coverage: Voter-Approved Transfer Tax May Chill Development in L.A. Approved by Los Angeles voters in November, and implemented April 1, Measure ULA imposes a 4% transfer tax on property transactions of $5 million-$9.9 million, and a 5% tax on transactions of $10 million and above, and dedicates the funds to the development of affordable housing. The emotional appeal of Measure ULA centered on this sort of decision calculus. Supporters of Measure ULA, which include nonprofit housing developers, social justice advocates, and trade unions, promoted it as a "mansion tax." That's a solid way to get 512,000 votes, for a 57%-43% win, in a city with 16% poverty rate and a rent-burden rate of 35%. But ULA taxes much more than mansions: it taxes any real estate transaction of $5 million and higher. Kneecapping the development industry may be fine if (like L.A.'s mayor) you're sick of all the "luxury" residential buildings that have gone up lately. But, if "luxury" buildings are the only projects that pencil out now, then what of working class, "missing middle" housing? That's exactly the type of housing Los Angeles needs. Quick Hits & Updates The California Department of Housing and Community Development unilaterally rejected the Town of Belvedere's 2023-2031 housing element, adopted by the city illegally before the state's review. The state probed the legality of the city's avoidance of rezoning and the delay of a local redevelopment project. Multiple housing watchdogs called the element insufficient. In the wake of two failed agreements with developers, the Concord City Council will consider qualifications from potential developers for the 5,046-acre former Naval Weapons Station abandoned in 1999. The redevelopment concept includes 13,000 housing units, commercial space and a 2,450-acre East Bay Regional Park. (See related CP&DR coverage .) Senator Scott Wiener abandoned substantial plans for California Environmental Quality Act (CEQA) reform, citing political difficulties. The reform would have included limiting CEQA's overreach of projects involving the effect of population growth - like noise, traffic and new infrastructure - as well as new housing projects in existing neighborhoods. Voters in Sierra Madre last week approved a zoning map amendment as well as a plan and development agreement for the contentious 17-acre, 42-unit housing development, green-lighting the Meadow at Bailey Canyons Project despite some residents' concerns about environmental impacts. The project has been stalled for years after the developer included a 3-acre public park and payments for public safety and water supply impacts into the plan. Petaluma City Council approved an agreement between the city and the Sonoma-Marin Area Railroad Transit (SMART) District to start construction on a commuter train in east Petaluma, marking it the second SMART station in the city. (See related CP&DR coverage .) The city of San Diego listed almost eight acres of its city hall complex under California's Surplus Land Act to sell excess municipal agency-owned land prioritizing low-income housing projects. Affordable housing developers can respond to the listing with redevelopment plans including at least 25 percent of units dedicated low-income. Federal wildlife officials are considering granting the bi-state sage grouse threatened status under the Endangered Species Act, potentially restricting development in the bird's habitat in the high desert of California and Nevada. The bi-state sage grouse has been considered for threatened status three times since 2013, with proponents citing political gamesmanship preventing regulations. A study out of UC Berkeley found 129 hazardous industrial sites along the coastline face risks of flood and subsequent hazardous materials water contamination due to rising sea levels. Oil refineries, sewage treatment centers and nuclear and fossil fuel power plans could see flooding by 2050, with 423 sites flooded by 2100.

Among the many concerns about California’s housing supply is that the state’s tax structure encourage property owners to keep land vacant or otherwise underutilized – especially if longtime property owners have low taxes because of Proposition 13. The structure is the basis of conspiracy theories about how developers of “luxury” buildings keep units vacant in order to create artificial scarcity.

State Continues to Lose Population; Housing Production Rises A report from the Department of Finance finds that state population decline has continued but is slowing, with a 0.35% population decrease, roughly 138,400 persons, in 2022 compared to a 0.53% decrease between 2021 and 2022. Total births remain low and deaths are decreasing from pandemic highs, but still remain inflated. Among major cities, Los Angeles had the highest percentage and absolute population loss, at -1%, pushing the city's population down to 3.766 million. Despite the population loss, the report found that housing production increased .85% in 2022, the highest since the 2008 Great Recession. California added 123,350 housing units on net, including 20,683 accessory dwelling units, to bring total housing in the state to 14,707,698 units. New construction represents 116,683 housing units with 63,423 single family housing units, 51,787 multi-family housing units, and 1,473 mobile homes. The rates of construction grew in 2020 and 2021, but particularly in 2022 saw a giant increase. Central and Northern California counties saw the largest percentage increase in housing growth, with Placer County at around 4.1%. Bigger cities, conversely, gained the largest number of total units built. Los Angeles and San Diego built the most single-family homes in 2022. 54% of the new construction were single-family homes and 44% were multifamily units. 1% were mobile units. Experts say this increase is crucial in battling the ongoing housing crisis in the state, but would hope that more populous and job-rich counties would see increases in housing. Los Angeles OKs Two Long-Awaited Community Plans The Los Angeles City Council adopted two community plans for Hollywood and Downtown, respectively, that, if successful, would result in 135,000 new housing units over the next 20 years. The DTLA 2040 Plan and Hollywood Community Plan both include safeguards for preventing displacement and strategies for affordable housing construction to remain affordable for the next 99 years. Developers in Hollywood can now build larger projects if there is a certain number of affordable units. Now falling under an "inclusionary housing system," newly constructed residential projects downtown are required to include a percentage minimum of affordable units, and can build larger projects as long as they include a larger number of affordable units. This does not apply to office or manufacturing buildings converted into housing. Residential development is now permitted in a part of skid row between 5th, 7th, San Pedro and Central Avenue as long as they consist of 80% affordable units. Residential and hotel development is now restricted in parts of the Fashion District, on downtown's southern edge. (See related CPD&R coverage .) Pittsburgh City Council Approves Controversial Project and Annexation After 20 years of discussion and controversy, the Pittsburg City Council approved the Faria/Southwest Hills Annexation Project, a 1,500-home project in the hills above the city, green lighting the master plan and development agreement for the Seeno development company. The vote overrules a Planning Commission recommendation against the project. The project includes an additional recreation center and designated open space; development will cover 341 of the property's 606 acres. A previous version of the project's environmental impact report had been successfully challenged in court on the grounds that it would disturb the local ecosystem. There were also concerns from the neighboring city of Concord about visual impacts. The plan was set in motion by a 2005 ballot measure, Measure P, which enabled the city to annex the land, followed by 2006 agreement to establish a greenbelt between the property and the rest of the city. (See related CP&DR coverage .) University of California to Develop 22,000 Beds across Nine Campuses In a response to a student housing shortage, the University of California board of regents voted to approve plans for residential projects across UC Santa Cruz, UC San Diego, UCLA, UC Irvine and UC Riverside, adding almost 8,000 additional beds. The board of regents hopes to push towards its fall 2028 goal of a further 22,000 beds across all nine campuses. A top UC official stated the plans face many obstacles, including the threat of lawsuits particularly dealing with the California Environmental Quality Act and unreliable state funding. Most recently, a judge ruled in favor of neighborhood opponents citing CEQA violations of a UC Berkeley housing development at People's Park. The project hopes to find funding via the state's Higher Education Student Housing Grant Program, but may only receive funds up to $50 million as opposed to the entire $500 million application. CP&DR Legal Coverage: Major Ruling on Subdivision Map Act A property owner in Oakland won a court victory declaring that a parcel first depicted on a map in the 1850s is a legal parcel - even though the city claimed it had been merged with other parcels as the result of several conveyances of the property through a single deed. It's the first major “antiquated subdivision” ruling in almost 20 years. The case involves the property owner's attempt to establish that an 8,800-square-foot single-family lot in the San Antonio neighborhood of Oakland - which currently has a single-family home first built in 1895 - is actually several lots because the original parcel map was filed prior to the Subdivision Map Act's passage and the lots existed prior to later Map Act amendments. As land values in California have skyrocketed over the last 30 years, owners of “antiquated” lots have increasingly sought to have their pre-Subdivision Map Act parcels deemed legal and therefore developable. Quick Hits & Updates Berkeley and state attorneys filed supporting briefs for UC Berkeley's fight to build student housing at People's Park. UC Berkeley recently appealed the original decision by San Francisco state appeals course in favor of Supporters of People's Park, bringing the case to the state Supreme Court. The Public Policy Institute of California in a recent study of the increasing number of Californians leaving the state found most residents move to nearby states, with higher earners moving to states with lower income taxes. An Earth Day study by the Public Policy Institute of California reports 74% of all adults in the state believe it is necessary to take immediate action to combat the impacts of climate change, with white demographics least likely to hold the view at 66%. The partisan divide increased dramatically between 2003 and 2023 with a little more than 30% of Republicans in the state supporting immediate action. Santa Rosa City Council voted unanimously to create an Enhance Infrastructure Financing District using a percentage of property taxes to support infrastructure and general improvement projects in the hopes of revitalizing its downtown. The city hopes to team with Sonoma County on the proposal. Santa Rosa City Council voted unanimously to create a financing district using a percentage of property taxes to support infrastructure and general improvement projects in the hopes of revitalizing its downtown. The city hopes to team with Sonoma County on the proposal. The Supreme Court allowed a number of California county and city cases against oil companies to continue, rejecting five additional appeals by oil companies in five other states. The original cases filed by local governments in the state seek damages from over 30 companies profiting off oil. The California Natural Resources Agency will be accepting proposals for the Environmental Enhancement and Mitigation Program from May 1, 2023 through June 30, 2023, via the System for Online Application Review . Final grant guidelines are available here .

S.F. Planning Commission Approves Controversial Projects The San Francisco Planning Commission approved three controversial housing developments, including a long-delayed 495-unit tower on a valet parking lot in the Mid-Market neighborhood, a project with nine townhomes and a single-family home on one property in Chinatown and a 19-unit group home development near Dolores Park. The Mid-Market tower, 469 Stevenson, was nixed 18 months ago by the Board of Supervisors, and became a symbol of San Francisco obstructionism. But recent legislation, SB 7 (the “Environmental Leadership Development” program), makes it almost impossible for neighbors or politicians to delay or kill residential projects. It is the first project to be certified by Gov. Newsom under SB 7; certification will ensure any potential CEQA litigation raised by project opponents is resolved within 270 days of filling. The two townhomes and single-family home project in Chinatown fell under scrutiny by both the Commission and neighborhood groups for blocking almost 17% of sunshine for a nearby park utilized by many senior residents as their only outdoor green space. Multiple commissioners opposed the project but refused to vote it down. The group home development in Dolores Park was approved last year after reducing the total floors planned from six to five. State officials called this an illegal maneuver in January, and the sixth floor was restored and the plan approved. Under recently proposed legislation praised by pro-housing advocates, the latter two projects would not have to appear before the Planning Commission. (See related CP&DR coverage .) State Sues Elk Grove Over Supportive Housing Project Attorney General Rob Bonta has filed a lawsuit against the City of Elk Grove over a downtown supportive housing project that the city denied, claiming violations of the Housing Accountability Act, SB 35, and fair housing laws. The developer of the 66-unit project had sought a variety of waivers and concessions under the Density Bonus Law, including a waiver of a ground-floor retail requirement, but the city claimed the retail requirement was a "foundational land use regulation," not a waivable condition. The suit alleges that the Elk Grove City Council improperly claimed that the project did not meet the city's zoning standards and was therefore ineligible for SB 35 ministerial review. In today's lawsuit, the state seeks injunctive relief to require Elk Grove to approve the project and realign with state law. The developer had previously sued as well. (See related CP&DR coverage .) Oakland Athletics' Move to Vegas Likely Dooms Waterfront Stadium Complex The Oakland Athletics announced efforts towards building a ballpark in Las Vegas, signaling the demise of a proposed mixed-use stadium development on the Oakland waterfront. The city of Oakland had previously been negotiating to keep the team in the city when the A's president announced the team entered a purchasing agreement last week on a 49-acre site in Las Vegas for a 35,000-seat stadium. Oakland Mayor Sheng Thao responded critically to the move, stating the city will end negotiations on a multibillion dollar deal to build an $11 billion stadium and residential development at Howard Terminal. The Oakland A's would still need a public-private partnership to finance the ballpark and 75% approval from MLB owners. Nevada Governor Joe Lombardo said in a statement the move would be beneficial to Southern Nevada and the state. The move follows the NFL's Raiders moving to Las Vegas and the NBA Warriors moving into San Francisco. (See related CP&DR coverage .) Supreme Court Refuses to Review “Save Livermore Downtown” Suit The California Supreme Court denied Save Livermore Downtown petition for review of an affordable housing development approved the City Council two years prior. The plan involves two four-story buildings comprising130 affordable units. This is the third court ruling against Save Livermore Downtown. The mayor of Livermore responded that he is troubled watching a small group "waste millions of dollars in carefully orchestrated campaigns." Save Livermore Downtown stated they will continue to advocate for appropriately planned and sited development projects. (See related CP&DR coverage .) CP&DR Coverage: New Housing Laws Challenge Local Ballot-Box Zoning Ballot-box zoning - the practice of adopting land use legislation by initiative and often requiring a subsequent vote to approve future projects - was once a predominant feature of the California planning landscape. Beginning in the 1970s - and accelerating during the ‘80s and ‘90s - ballot-box zoning was a critical component of that era's growth management regime. Now, writes CP&DR's Bill Fulton, ballot-box zoning is running up against the recent state-level push to allow more housing production. And it may be that ballot-box zoning will lose. The big question that remains is whether the state's aggressive housing production regime will pre-empt local voters' power to restrict development via initiative. Quick Hits & Updates For the next 60 days, the drafted California State Rail Plan is available for public comment. The draft includes proposed investment strategies for economic growth, tools to bring equity to vulnerable communities statewide and address statewide climate goals. Alongside the public draft, Caltrans is providing virtual public workshops and Equity Priority workshops to cover the contents of the plan. A Newport Beach-based company plans to fund a nightly first-class, private passenger train between San Francisco and Los Angeles with fares starting at $300 and going up to $1,000. The backers are negotiating contracts with Union Pacific Railroad Co. and Metrolink, with a projected service start of summer 2024. The Santa Clara County Local Agency Formation Commission delayed for the second time a consideration of Gilroy's plan to add 55 acres to its city limits. LAFCO may deny the request, asserting the move is premature in the city's development. Gilroy plans to use most of the space for housing. Following the threat of a lawsuit by the ACLU, the Los Gatos Town Council voted to revoke its censure of a planning commissioner over emailed remarks. The Council stated they did not consider the commissioner's First Amendment rights when censuring her for an email she sent blaming "rich, white, anti-housing men" derailing housing developments in Los Gatos. A San Diego City Council vote approved the conversion of Fifth Avenue in Downtown San Diego as a pedestrian plaza, potentially banning cars and parking every day of the week. The area of downtown has been closed for vehicle traffic various hours five days a week since July 2020. Management consulting firm McKinsey released a report on Los Angeles's state of homelessness, citing that, at the current rate, over 100,000 residents could be experiencing homelessness by the 2028 Olympics. The report studies the complexity of the issue in Los Angeles, finding population, growth rate and sprawl as contributing factors, citing a response must work to prevent homelessness, address people at various stages of homelessness, provide immediate support for those who experience "nonchronical" homelessness and tailored support for those who experience "chronic" homelessness. The Culver City Council voted to remove protected bike lanes in the city, with another vote slated for the next two years, citing traffic as the main consideration in adding another car lane. The city must now propose modifications for the scrapped bike lane project for review by the California Environmental Quality Act. A lawsuit filed against the city of Coronado by nonprofit Californians for Homeownership concluded with the court siding with the city. The original lawsuit claimed the city illegally refused ADUs permits with new, single-family homes. The court found that, of 89 permit applications for ADU filed in the city between 2013 and 2020, the city approved all but 14 simultaneous construction of ADUs and single-family homes. In a survey by the League of California Cities, cities' efforts to reduce rates of homeless are stymied by increasing demand for housing and services. The survey found 85% of cities indicated they have programs to prevent and reduce homeless, and 8 out of ten cities are spending general funds to address the crisis. Furthermore, 90% of responders stated fiscal concerns over addressing the crisis longterm. Cal Cities Executive Director stated state funding is critical to slow the increase in demand and fund local programs.

San Francisco Considers Major Streamlining Proposal San Francisco Mayor London Breed and Supervisor Joel Engardio proposed new legislation that would eliminate Planning Commission meeting hearings delaying development by months or even years. The proposed legislation would "eliminate unnecessary processes and hearing, eliminate certain requirements and geographic restriction and expand housing incentive programs," according to Mayor Breed's news release. The legislation targets the conditional use approval process requiring developers to appear before the commission on projects already compliant with zoning laws. The legislation focuses on north and west sides of the city, with higher resources and increasing units. Mayor Breed hopes the change will help build multifamily housing, increasing the flexibility in location and form for housing. Breed also announced a program to permit public financing of infrastructure costs for projects, as well as a proposal to adjust the site permitting process. Lawsuits Threaten Treasure Island Redevelopment The companies leading the redevelopment of San Francisco's Treasure Island--Kenwood Investments, Stockbridge Investments, and Wilson Meaney--are suing each other over expected returns on the project. The project is set to be the largest housing development in Northern California, redeveloping the naval based to include approximately 8,000 units of housing, retail property, parks and public transportation. Some fear the lawsuit will delay the project. Two of the three real estate companies are suing the third over a longer projected timeline, decreasing previously anticipated profits. The third real estate company is countersuing on the grounds of a conspiracy to breach contract for profit. The project agreement dates back to 2001, with concerns in where share now lies between the three companies due to contract changes over the years. The redevelopment poses a huge economic boon to the developers involved, but the site poses environmental issues and barriers, including lawsuits over environmental concerns. The most recent project on Treasure Island is a 138-unit project including 71 units for formerly unhoused families coming out of supportive housing, 43 units of lower-income housing and 23 homes for current residents. 27% of the homes and apartments slated in the redevelopment will be affordable housing as part of the 2011 approval of the project. State Chooses Developer for Major Parcel in Sonoma County Following months of considerations, the California Department of General Services selected the Grupe Company and Rogal & Partners to head the $100-million redevelopment project at the former Sonoma Development Center in Sonoma Valley. The deal requires the firms to purchase a 180-acre plot of the 945-acre state-owned property "as is" to create a mixed-use development including 620 housing units, businesses, a proposed climate research center and a hotel. The rest of the acreage will be preserved open space. The supervisors hope the project will create 900 new jobs. The deal between the county to lead a project on state-owned land is first of its kind in the state. The Grupe Company and Rogal & Partners were chosen for their previous project experience and consistent plan for the site. (See related CP&DR coverage .) Report Quantifies Vacant Land in Major Cities A new report from CommercialCafe ranks the 20 most populous cities in the US with the largest amount of vacant acreage, with Los Angeles ranking 6th highest, San Diego ranking 12th, San Jose ranking 13th, and San Francisco ranking last among the 20 cities studied. Los Angeles specifically has over 40,000 acres of unused land (against a total area of 502 square miles) with an average parcel size of 1.25 acres across almost 34,000 parcels of land. The study additionally found 11 million square feet of unused office space in Los Angeles. According to the study, there exists ample space in Los Angeles to develop but, despite the high demand in Los Angles for housing, the city's approvals process is slow. New incentive programs exist in the city to spur density and speed up the permitting process. A different study earlier this month found Los Angeles ranked almost last in the nation's large cities issuing new residential permits. San Diego and San Jose both have around 11,000 acres of vacant parcels, though San Diego's total area is nearly twice as big as San Jose's. San Francisco has a grand total of 473 acres of vacant parcels. Dallas and Fort Worth rank Nos. 1 and 2, respectively, in the story. CP&DR Coverage: Court Chastens Clovis over Density Workaround In a complicated ruling , an appellate court has concluded that Clovis - an affluent suburb of Fresno - violated the Housing Element Law by using a citywide overlay zoning district (known as the Regional Housing Needs overlay) that still allowed lower densities than the Housing Element called me. The court also made important decisions on the discrimination front, saying that “disparate impact” can be found even if a project is not denied and that the overlay problem also created a violation of the state's Affirmatively Furthering Fair Housing law, or AFFH. Legal experts are debating the significance of the ruling, especially since it appeared to find fault with the approach of the Department of Housing and Community Development, which found Clovis's Housing Element compliant. UC Davis law professor Chris Elmendorf said that even though HCD was criticized in the ruling, overall it was a win for the state. The ruling, he said in a tweet, “lets HCD make practical judgments about what's reasonable and workable rather than itself being a box-checking stickler.” Quick Hits & Updates The California Department of Housing and Community development found both the City of Pleasanton and the City of Orange's 2023-2031 Housing Elements non-complaint. The city of Orange cited multiple land parcels unlikely to be inventoried land including an existing hotel, school, training facility and multiple shopping centers. Pleasanton's Housing Element lacked proper insight into the same, in addition to unaddressed environmental issues and Affirmatively Furthering Fair Housing policies and programs. The Inglewood City Council unanimously approved a development plan to relocate 41 business and 305 workers to make way for a people mover between the Metro K Line and stadiums. The $12 million plan includes "relocation specialists" for each business presently located at the Inglewood Center shopping plaza and the Holly Park Plaza. A lawsuit filed against the city of Coronado by nonprofit Californians for Homeownership concluded with the court siding with the city. The original lawsuit claimed the city illegally refused ADUs permits with new, single-family homes. The court found that, of 89 permit applications for ADU filed in the city between 2013 and 2020, the city approved all but 14 simultaneous construction of ADUs and single-family homes. Following a petition from the Center for Biological Diversity, the California Department of Fish and Wildlife released a recommendation to protect the greater sage grouse under the state's Endangered Species Act. Their report found the Center for Biological Diversity's petition contained enough scientific evidence to list the birds as either endangered or threatened. A developer in Claremont submitted a Preliminary Housing Application (SB 300) under the "Builder's Remedy" for an 87-unit project at the site of the former La Puerta Middle School. The project would include 20% low-income housing, making it eligible for a streamlined review under the "Builder's Remedy" state housing law. Researchers have found even more evidence concerning the health and community impacts of warehouse facilities on low-income communities and communities of color. The report details the burdens of air pollution, noise levels, and congestion on residents living near warehouses. (See related CP&DR coverage .) A development group proposed a $2.5-billion soccer stadium to a host a new Major League Soccer team in San Diego County's Vista Bayfront. Petra Development Group plans to singlehandedly pay for the stadium. As part of Alhambra's longterm planning for roads and infrastructure, the city is hearing early plans for the end of the 710 Freeway to reconfigure the interchange. Presently, the end of the freeway creates excess traffic in Alhambra, and the plans to address the Freeway deposits includes converting the six-lane freeway stub into a four-lane street with extra pedestrian accessibility. Huntington Beach City Council approved a 90-day plan to address homeless in the city. The plan follows the City Council's vote against a housing plan addressing homeless. The new 90-day plan includes outreach, communication to business owners about resources and rights and a review of existing programs for the unhoused population. Fresno has joined the ranks of eleven new jurisdictions designated Prohousing by the state. "This designation comes at a critical time as we work to address availability and affordability in Fresno," Mayor Jerry Dyer said.

Fights over subdivided parcels from the 19 th Century may seem a bit arcane. But they are likely to become more common in the years ahead as California property owners try to find ways to create more buildable parcels for new housing – especially after a recent ruling from Oakland. A property owner in Oakland has won a court victory declaring that a parcel first depicted on a map in the 1850s is a legal parcel – even though the city claimed it had been merged with other parcels as the result of several conveyances of the property through a single deed. It’s the first major “antiquated subdivision” ruling in almost 20 years. The case involves the property owner’s attempt to establish that an 8,800-square-foot single-family lot in the San Antonio neighborhood of Oakland – which currently has a single-family home first built in 1895 – is actually several lots because the original parcel map was filed prior to the Subdivision Map Act’s passage and the lots existed prior to later Map Act amendments. The property in question is located on East 21 st St. in Oakland, east of Lake Merritt. The existing home has a large yard, so most likely the property owner is seeking to essentially split the lot to allow additional development.

State Lawsuit Against Huntington Beach Amended to Focus on Housing Element The office of Attorney General Rob Bonta, with support from the Department of Housing and Community Development, amended the state's existing lawsuit against Huntington Beach. The lawsuit originally filed against Huntington Beach was on the grounds of the city's ban on the processing of SB 9 and accessory dwelling unit (ADU) applications. Since the bans by the city have been reversed by Huntington Beach City Council, the amendment to the lawsuit now covers the city's failure to adopt a housing element due back in October 2021. Huntington Beach City Council additionally recently voted against a recent state-approved housing plan to address affordable housing in the city. The housing plan would have zoned for almost all 13,368 units required of the city's Regional Housing Needs Assessment. A federal judge last week further rejected Huntington Beach's request for a temporary restraining order against the state for their failed compliance with housing laws. San Diego Residents Sue over Reduced Parking Requirements A group of San Diego residents are suing the city over the environmental impacts of accelerated housing developments. The group claims the city is allowing developers to build higher buildings with less parking behind homes. The lawsuit argues the city amended housing development requirements in an attempt to meet climate action goals in "Transit Priority Areas" without properly reviewing environmental impacts and impacts on communities. These "Transit Priority Areas" allow developers to build higher buildings without parking if within one mile of public transit. Earlier this year, the city voted to expand the distance from a half mile to a full mile. By doing this, the city allowed thousands of acres to be eligible to new apartments and accessory dwelling units (ADUs). The lawsuit alleges the city make massive changes to code without proper review. The group is asking a judge prohibits the city issue any further permits without environmental impact reports. Terner Center Releases Database of New Housing Laws The Terner Center for Housing Innovation at UC Berkeley released a brief on California's recent housing legislation and a database of every housing law passed in the state between 2017 and 2022. Since 2017, more than 100 new laws regarding housing production have passed in the state. The brief, on which CP&DR publisher Bill Fulton was lead author, features interviews with planners and lawyers to comprehend the impact of new housing legislation on housing production in the state. The brief serves as an attempt to connect new laws and housing production despite difficulties of gathering data on the subject. Furthermore, other issues impact housing production other than legislation, including production costs and availability of land. The brief serves to narrow down the scope and goals of recent legislation using real-life advocates and practitioners as touchpoints in the conversation. Both the brief and the database together serve as an overview of state housing legislation and the impacts of that on housing production today. 50-Story High Rise Proposed in Residential Neighborhood in San Francisco Developers revealed a new plan for a 50-story skyscraper in the Outer Sunset district of San Francisco. The skyscraper would house 712 new apartments and replace a garden center and parking lot. 113 units would be affordable housing, and the site would features 100,000 square feet of retail space and a 212-car parking lot. The affordable units enable the development to take advantage of state density bonus law, according to developers. The skyscraper would join a neighborhood of two-to-three-story homes and tower over the rest of the neighborhood, likely causing pushback from the neighborhood. A previous proposed 12-story building in the area prompted a petition with 1,500 signatures to stop the plan, citing negative impacts on the soundscapes, livelihood of zoo animals across the street from the proposed site and psychological state of the neighborhood. The Outer Sunset has already been slated for more density development, and developers say the city needs to add 11,000 new housing units in the next 7.5 years to the area. Developers received a density bonus of up to 50% more units if there is affordable housing included. The Planning Department Chief of Staff stated he believes the plans are not in compliance with state and local laws. CP&DR Coverage: Legislature Considers Deluge of Planning Laws In recent years, legislators have coordinated to propose core sets of bills to promote housing production. Last year included the vaunted “Senate Housing Package,” most of which got signed into law. This year , in part because rough one-third of legislators were newly elected in November, bills covering housing and other aspects of land-use appear to be more of a hodgepodge, with a range of new and old approaches. Some, such as those that would increase funding for affordable housing, are bound to delight planners of all stripes; others, like Assembly Bill 1485, may strike fear in the heart of staffers and consultants who already feel overworked. Arguably, the most controversial bill comes from a predictable source—or, rather, it may be controversial because of its sources—Sen. Scott Wiener. SB 423 would extend in perpetuity his 2017 bill SB 35, which is scheduled to sunset in 2026. Quick Hits & Updates The Southern California Association of Governments Regional Council adopted its Digital Action Plan to help 191 cities and six counties across the region access broadband internet. Presently, more than 1.7 million Southern California residents do not have proper internet speeds or access to the internet. The plan will seek and secure funding, coordinate with local agencies and the public to bridge the digital divide, advocate for better data and gather information through technical and strategic studies to inform decision-making and the public. Riverside is considering selling naming rights to city property, including a number of. downtown buildings. Last month, the city council voted overwhelmingly to hire a consultant to develop a Corporate Partnership Program to increase city revenue. In a move to protect agricultural land from housing or commercial development in the central Imperial County, Oswit Land Trust and the Trust for Public Land obtained almost 2,000 acres of farmable land. The funding came from the California Department of Conservation's Sustainable Agriculture Conservation program, conserving critical agriculture acreage at risk of conversion to commercial or housing usage. An oversight board in San Francisco proposed that $30 million of a $85 million transfer tax - enacted by voters in 2020 - should go towards housing for public-sector employees. The recommendation will now go to the city's Housing Stability Fund Oversight Board. The transfer tax is paid anytime a property changes ownership in the city. A UCLA researcher studied the impacts of land-use regulations in San Diego and their impact on residential housing in high-risk areas with exposure to wildfires. The paper found zoning and land-use regulations prohibit residents from moving away from high-risk areas and will be exacerbated as climate change worsens. A new analysis from a San Francisco policy research group and local chapter of the Urban Land Institute found that the destitute downtown area could once again see life with over 11,000 new housing units with the city's funding assistance. According to the preliminary summary analysis, if 40% of the vacant areas in SF's downtown area were converted, 11,200 new housing units could be created. The full analysis will be published later this spring.