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Biden Proposes Housing Grant Program Discouraging Single-Family Zoning In his budget request for the next fiscal year, President Biden has proposed a $10 billion state and local grant program that would work to roll back single-family zoning laws in order to increase affordable housing accessibility in whiter and wealthier neighborhoods. In place of his previous $1.7 billion plan in the Build Back Better package, Biden's new proposal would boost funding for housing as well as road, water, and sewer updates in communities that change their zoning laws. The program would also provide funding for research and technical assistance to help facilitate zoning changes. First, Biden's proposal must get through Congress, but his attempt to confront racial and economic housing inequities at the federal level is significant. Los Angeles to Spend $3 Billion on Homeless Assistance Los Angeles has committed to spending $3 billion over the next five years to provide housing for up to 16,000 of the city's estimated 41,000 unhoused residents. Beds would be available to those who do not require daily-living assistance. The move comes in response to a 2020 complaint from a coalition of residents that the city consistently fails to care for its unhoused population. While the investment is significant, homelessness experts and advocates are concerned about the tens of thousands of residents who will remain without shelter under this settlement and the reliability of the new shelters. Additionally, many groups hope that Los Angeles will enact policies to alleviate rent burden and reduce homelessness risk. State Assess Impacts of Climate Change The Legislative Analyst's Office released "Climate Change Impacts Across California," one report in a series that considers the existing and impending danger of rising temperatures, severe wildfires, more frequent and intense droughts, precipitation that leads to exaggerated flooding, and coastal flooding and erosion form sea-level rise. The report suggests several risks to California's residents and economy, including short- and long-term impacts and permanent changes that make current activities impractical. Researchers also note that burdens will disproportionately affect low-income communities and communities of color in terms of heightened risks and reduced access to economic resources to respond to climate disasters. The report lastly identifies the need for government coordination, more information to guide actions, prioritization of vulnerable populations, and state-level financial assistance. Long-Awaited Bus Line Opens in San Francisco After decades of planning, six years of construction, and a $346 million price tag, San Francisco has introduced its bus rapid transit along Van Ness Avenue, one of the city's oldest, widest, and most congested corridors. Twenty-seven years after the project was first proposed, the city has its first BRT, which features nine north-south stops along a 2-mile section of Van Ness. The Municipal Transportation Agency has suggested that riders will see a 32% reduction in travel times because transit will be separated from car traffic. More benefits include medians with recently-planted trees and public art. SFMTA expects to see a sharp increase in ridership on the 49 line and hopes that, once Muni operators have adjusted to the BRT, riders can travel between Union and Market Street in 15 minutes. San Diego County Falling Short of Carbon Goals San Diego County is far from meeting its carbon reduction goals, according to a study conducted by the Energy Policy Initiatives Center at the University of San Diego. Last year, officials requested a regional report to analyze if current climate policies would allow San Diego to reach net-zero emissions by 2035. The study determined that much larger action on transportation and building and policies that would meaningfully change the way residents work and live are required. Climate action must also meet more impactful social equity and regional collaboration goals through improved support for policy success, outreach to stakeholders, and data collection and tracking methods. Report Touts Potential of Off-Site Housing Construction A report from UC Berkeley's Terner Center for Housing Innovation, "Scaling Up Off-Site Construction in Southern California," analyzes the existing parameters of regional off-site construction, primarily specific to multifamily, affordable, and supportive housing, and identifies the significant roles of various industry stakeholders in advancing off-site housing production. Graduate student researcher Tyler Puller concludes that, though the last decade has seen an increase in off-site construction in order to meet housing demands, reduce costs and waste, and increase energy efficiency and construction quality, factory production must be more stabilized, and funding must be more achievable for off-site development to make a significant impact. Additionally, off-site producers, housing developers, nonprofits, and local and state governments all have a role in fostering off-site construction for affordable housing development. CP&DR Coverage: Cities Play Long Game on Sea Level Rise Though the most dire effects of sea level rise may still be a long way off, cities are, slowly, beginning to account for the threat in their plans. As of yet, the state does not require coastal cities to account for sea level rise in their general plans, although the “State Agency Action Plan for Sea Level Rise,” released in February, calls for cities to include sea level rise in their Local Coastal Plans and/or general plans starting in 2026. And cities can expect OPR to issue further guidance according to 2018’s SB 1035, which calls for cities to incorporate sea level rise into their safety elements and then to update those plans every eight years. SB 1035 builds on 2015’s SB 379, which requires cities to account for all types of hazards related to climate change in their safety elements or local hazard mitigation plans. Quick Hits & Updates A campaign in support of a San Francisco affordable housing measure that could end up on the November ballot has begun, with housing advocates and elected officials responding to the Board of Supervisors' rejection of a measure proposed by Mayor London Breed in January. The Affordable Homes Now measure would accelerate the approval process for new projects. The Berkeley Planning Commission voted , 5-4, to endorse a zoning change that increases the height limit for new BART housing on top of parking lots at two stations from 7 to 12 stories. This would increase the maximum number of housing units from 2,400 to 3,600. Amazon is shifting plans to build five new warehouses in the Bay Area due to criticism from labor unions and environmental groups that they would bring unjust jobs and pollution from vans and trucks. While unclear what the next steps will be, the company has either withdrawn, delayed, or modified its plans, in tandem with San Francisco's 18-month moratorium on Amazon delivery stations. A judge will not block a San Francisco ordinance that permits some small businesses to not pay rent due to pandemic-induced shutdowns, allowing the ordinance, unanimously approved by supervisors last July, to move forward despite pushback from property owners. The Strategic Growth Council is accepting applications for community-led infrastructure projects interested in receiving a portion of the $106.2 million in funding available as part of Round 4 of the Transformative Climate Communities Program. These developments should center environmental, health, and economic benefits for underserved communities. The Seaport Planning Advisory Committee, which oversees the protection of San Francisco Bay, has recommended that the San Francisco Bay Conservation and Development Commission choose to devote the Howard Terminal waterfront for maritime use, not for the proposed $12 billion mixed-use ballpark development. While not a requirement, the suggestion could severely impact or terminate the project. San Francisco restaurants and bars that introduced parklets during the pandemic will not face enforcement fines established by the city until the spring of 2023 as declared by an ordinance passed by the Board of Supervisors. Exceptions for abandoned parklets and for accessibility requirements are in place. The Great Redwood Trail Agency acquired a 200-mile segment of a rail corridor between Marin and Humboldt counties, helping a proposal to convert the route into a recreational trail for pedestrians, hikers, and bicyclists advance. The trail would eventually reach 320 miles through redwood forests, hills, and rivers. While the City of Los Angeles has responded to a lawsuit from the L.A. Alliance for Human Rights by pledging to spend billions of dollars on new housing, Los Angeles County is pushing back, stating that the lawsuit has "no merit." The Alliance's goal is for the city to construct shelter for 60% of the unhoused population, and the city has committed to providing 14,000 to 16,000 beds. The West Oakland Environmental Indicators Project has sued the Port of Oakland, maintaining that its open-air sand and gravel plant, which is currently under construction, will add air pollutants, harming nearby residents' health. The environmental group hopes that construction will halt, though port officials declined to comment on the lawsuit.

The National Oceanic and Atmospheric Administration released a report in February confirming, based on data collected in 2017, that the ocean is likely to rise 9 inches along the California coast by 2050 and up to 6 feet by 2100. As if on cue, a piece of Antarctica’s Conger widely described as “larger than New York City” broke away last month and is now drifting in the Davis Sea. If and when it melts and lends its full mass to the world’s oceans, California will lose just that much more coastline.

Los Angeles County to Limit Development in Fire Hazard Areas The Los Angeles County Board of Supervisors adopted a new Safety Element Update to the county’s general plan, which will limit new development in wildfire hazard zones, reducing regional risk as California braces for what could be another intense fire season. The update restricts new subdivisions in very high fire hazard severity zones and prohibits amendments that would increase residential density in fire- and flood-prone areas to reduce risks to people, property, and wildlife. County officials are celebrating the move to reduce sprawl and minimize construction of new power lines and electrical equipment that are frequently responsible for wildfires. The update will complement the Housing Element to provide safe, affordable housing while protecting natural habitats. (See related CP&DR coverage .) Proposed Oakland  Stadium Faces Two Lawsuits Union Pacific and a coalition of Port of Oakland shipping companies, truckers, and other workers have filed two separate lawsuits against the city and the Oakland A's in Alameda County Superior Court over their proposed Howard Terminal ballpark and mixed-use development. While UP's lawsuit maintains that the project's environmental analysis does not adequately address the impact of a rise in vehicles, bicycles, and pedestrians that would cross UP's tracks near the project, the coalition suggests that the report fails to consider how the new site would disturb cargo transportation. According to a law passed several years ago, the lawsuit must be resolved within 270 days of the project's approval. UP is demanding a specific plan to reduce rail, vehicle, and pedestrian conflicts and minimize congestion. State Provides Guidelines for Implementation of "Duplex Law" The Department of Housing and Community Development released a fact sheet on Senate Bill 9--the "duplex law"--intended to clarify expectations for local agencies, homeowners, and other stakeholders who are implementing the new law. The sheet reviews key aspects of SB 9 and answers frequently-asked questions. The release comes in response to complaints that the Housing Accountability Unit has received from 29 jurisdictions about SB 9. The department is investigating violations of SB 9 that may extend to violations of the Housing Element Law, Housing Crisis Act of 2019, ADU Law, and Housing Accountability Act, over which the HCD can enforce, alongside Attorney General Rob Bonta. State Releases Climate Adaptation Strategies California released its Climate Adaptation Strategy in response to the U.N. Intergovernmental Panel on Climate Change and a new snow survey that reported that the statewide snowpack dropped to 38 percent. The strategy is intended to improve resilience efforts by outlining priorities for protecting vulnerable communities, the environment, and the state's economy. Primary concerns include public health initiatives, a climate-resilient community, nature-based solutions, and coalition building. The strategy is innovative in providing success metrics and timeframes for nearly 150 actions. A copy of the document will be available as an interactive webpage to increase access to information that will be updated as progress occurs and new data emerges. CP&DR Coverage: Attorney General Calls Out Housing Elements Attorney General Rob Bonta has become increasingly aggressive on the planning housing front in the two weeks, warning two cities for allegedly violating state housing law and calling one county’s general plan to account on environmental justice issues. Most of the actions are the result of the “housing strike force” that Bonta created last November. At the time, he called housing “a fight I won’t back down from” and announced action to protect tenants’ rights as well as enforce state housing law. Two of Bonta’s warnings have been aimed at cities that have sought to make expansive use of the exemptions contained in SB 9 – the so-called duplex law – to shield themselves from the law’s impact. Quick Hits & Updates  The Sacramento Republic FC released renderings for a proposed 12,000 to 15,000 seat outdoor stadium at the Railyards, which would double the size of downtown Sacramento. The $1 billion venue would host not just soccer events but Division 1 football, lacrosse, rugby, concerts, graduations, and other events and bring more housing. A San Diego Housing Commission report that studies citywide affordable housing and proposes strategies to maintain affordability has won an Award of Excellence from the National Association of Housing and Redevelopment officials, which awarded 18 housing and community development projects nationwide. Oakland's universal basic mobility pilot program , which was introduced in November 2020 and provided 500 residents with prepaid debit cards to use for public transit, scooters, and bikes, has succeeded in making transit more accessible for low-income residents and residents of color, according a recently released evaluation. Additionally, residents stated that they drove alone less often and rode public transit more. Los Angeles city officials have approved entitlements to build a $1.6 billion housing, hotel, and retail development called Angels Landing. The highest tower would reach 63 stories, and the project is headed for completion before 2028, with environmental approvals and affordable housing and labor deals already secured. Three tenants won their lawsuit against Caltrans, who imposed an "inflation-adjusted price" on low-income tenants who wanted to buy their homes. The ruling will impact all 450 homes that Caltrans seized to build a defunct 710 Freeway extension. While the San Francisco Municipal Transportation Agency is sticking to its September 9, 2022 Revenue Service Date for the Central subway to Chinatown, a leaked report suggests that the opening will likely be delayed until December or into the following year. The original opening date was in 2018. A 312-unit Newport Beach development will move forward after a judge upheld the city's environmental review process and rejected claims from developer Olen Properties Corp. that the city failed to consider noise, traffic, and air pollution burdens. The developer owns a 10-story office structure next to the proposed complex. Gen Z renters are highly attracted to the San Francisco and San Jose metros, according to data from real estate consulting firm Yardi Matrix. Interest largely grew in the second half of 2021, as COVID-19 restrictions eased.

Here’s a new one on the California Environmental Quality Act front: An appellate court has ruled that the environmental impact report for a Livermore development project – a project approved by the city council in that notoriously slow-growth city – was inadequate because it didn’t consider the possibility of purchasing the property for conservation.

Attorney General Rob Bonta has become increasingly aggressive on the planning housing front in the two weeks, warning two cities for allegedly violating state housing law and calling one county’s general plan to account on environmental justice issues.

Cities File Lawsuit to Undo SB 9 'Duplex Law' Four mostly suburban cities in Los Angeles County have filed suit against the state to block provisions of recently adopted Senate Bill 9. The bill legalizes lot splits and the development and redevelopment of duplexes in areas currently zoned for single-family homes. The cities of Carson, Redondo Beach, Torrance, and Whittier have asked a court to find provisions of SB 9 in conflict with the state constitution. As reported in The Real Deal, Carson Mayor Lula Davis-Holmes said SB 9, “takes away the power of cities to respond to the housing crisis in meaningful and practical ways that will best suit the unique circumstances facing each local community.” The petition claims that SB 9 will raise land values, thus increasing housing costs, and faults the law for not requiring affordable units. The suit comes on the heels of the postponement of the "Our Neighborhood Voices" ballot initiative, which would have overturned SB 9, and limited other state land use authority, via voter proposition. Redondo Beach Mayor Bill Brand was one of the sponsors of that initiative. (See related CP&DR coverage .) Attorney General Calls Out Encinitas, Fresno County Housing Elements The City of Encinitas and Fresno County are facing heat from Attorney General Rob Bonta, who has warned both jurisdictions, separately, that their alleged failures to prioritize equitable housing violates state law. In a letter to Encinitas, Bonta wrote in support of a 277-unit complex in a wealthy neighborhood and noted that the state would take legal action if Encinitas did not move faster to approve more housing. Further inland, Bonta notified Fresno County leaders that their General Plan acts against environmental justice and equity and probably violates the Fair Employment and Housing Act. The county has a plan to build new industrial developments in Malaga and Calwa, two neighborhoods that already face high pollution levels. Bonta and his Housing Strike Force have threatened lawsuits if the city and county do not take action. (See related CP&DR coverage .) HCD Releases $220 Million in Grant Funding for Housing A total of 20 affordable multifamily housing developments will have access to $220 million in funding from the Department of Housing and Community Development. The HCD's Multifamily Housing Program will prioritize the preservation and construction of new affordable homes, both transitional and permanent, for low-income households. The move is in response to a particular undersupply of affordable multifamily housing, which, with high rents and home prices, is increasing housing inaccessibility and cost burdens. The HCD has identified 20 projects across 12 counties for funding, including seven in Los Angeles, three in the Bay Area, two in El Dorado, and one each in San Diego and Nevada counties. CP&DR Coverage: Auditor Questions Housing Allocation Methodology The state Auditor’s Office has called on the legislature, the Department of Housing & Community Development, and the Department of Finance to clarify the methodology for establishing housing targets as part of the Regional Housing Needs Assessment process. In particular, the Auditor highlighted the need for methodological clarity for two factors that play an important role in setting the overall target: the overall vacancy rate and the household formation rate. The auditor did not specify what methodology should be used or speculate whether a different methodology would increase or decrease the target but said some legislative changes are needed and both HCD and DOF should engage in more rigorous analysis. Quick Hits & Updates More than half of Californians are worried about paying for housing costs, according to a study from the Public Policy Institute of California. Within the 55% of concerned Californians, 26% are "very concerned" about paying rents and mortgages, and rates increased for low-income residents and renters. Palo Alto is considering a plan to expedite the process of registering about 130 homes as historic, which would disallow homeowners from splitting lots under SB 9. Many have expressed disapproval, noting that this is yet another attempt from a wealthy community to restrict affordable housing. (See related CP&DR coverage .) Next fall semester, UCLA will open two new apartment buildings with 3,446 beds, making the school the only University of California campus to ensure housing for four years to first-year students and two years to transfers. UCLA, unlike other universities, has avoided neighborhood litigations by constructing new housing within its existing campus. The office of Los Angeles City Attorney Mike Feuer is suing online vacation rental company HomeAway for failing to adhere to home-sharing policies. Feuer says that HomeAway did not issue valid registrations for nearly 30% of property transactions between a one-month period and suggests that the company has made thousands of illegal transactions. The California Endowment, a Los Angeles-based charitable foundation, filed a writ of mandate intended to prevent L.A. Metro from fast-tracking a proposed aerial gondola system to transport fans from Union Station to Dodger Stadium. The endowment, whose offices are next door to Union Station, cited concerns about gentrification. Port Hueneme residents will be able to voice their opinion on whether or not the city should change its name during two public meetings before the city council votes on adding a measure to the November ballot. In the meetings, city officials will present on the pros and cons of a name change, and the public can suggest ideas for new names, including the popular "Hueneme Beach." The Richmond City Council has rejected a proposal to build 1,450 homes and 400,000 square feet of commercial space on a 270-acre portion of the city's shoreline. The decision comes after decades of debates and lawsuits over the housing and environmental impacts of developing the Point Molate peninsula. The City of Ontario has approved the conceptual plan for a 370-acre green space that is 10 times bigger than its current largest park. The Great Park will expand horizontally across 3.5 miles on vacant land that used to hold dairy farms and nurseries.

CP&DR Vol. 37 No. 3 March 2022

Project Descriptions Hold Up

Auditor Calls for Better Use of State Properties for Housing A new report from the state Auditor's Office argues that the state must make better use of available property to build more housing. The report acts in response to Executive Order N-06-19, which encourages the use of excess and surplus state-owned land for affordable housing. The office considered the Departments of General Services (DGS), Housing and Community Development, Transportation, and Developmental Services to analyze the state's use of surplus properties. Researchers determined that, while the executive order has been impactful, departments could streamline their processes and go further to build over 32,000 housing units. While the DGS's 73 remaining properties may take seven years to develop, adding one staff member could reduce the timeline by two years. The office also recommends implementing benefits to the executive order. Census Data Suggest Population Declines in Center Cities Los Angeles and San Francisco saw major population declines in the first year of the COVID-19 pandemic, according to new census data. Nearly 160,000 residents left Los Angeles County, though the county's large population meant a 1% per capita loss, while San Francisco lost 54,000 residents and saw a 6.7% per capita loss. Between July 2020 and July 2021, 262,000 residents, driven by domestic migration, left California, pursuing factors such as affordable housing, jobs, and family. The data suggests that residents are acting on an extreme housing crisis in addition to more remote working options and decreasing birth rates. With more affordable costs of living, Riverside and San Bernardino counties, meanwhile, saw population growth. (See related CP&DR analysis .) Report: Assessing Vulnerability of Low-Income Residents in Bay Area A report from UC Berkeley Terner Center for Housing Innovation, On the Edge of Homelessness: The Vulnerability of Extremely Low-Income (ELI) Households in the Bay Area , analyzes the demographic, housing, and labor market qualities of the area's ELI households and considers the structural inequalities that must be confronted at the local, state, and federal level to stabilize housing security. According to lead author Carolina Reid, who worked in partnership with All Home, an inadequate social safety net, affordable housing shortages, and increasing income inequality are all factors that make ELI households particularly at-risk to becoming unhoused. The researchers hope that providing and analyzing data that illuminates the factors leading to this vulnerability will help encourage thoughtful decision-making for officials working to end homelessness. CP&DR Analysis: Legislature Keeps Poking Holes in CEQA In recent years, the legislature has weakened CEQA by a growing number of one-off exemptions and end-runs. And there’s no reason to believe that this trend is going to change any time soon. The new state law adopted last week specifically removes CEQA analysis of enrollment expansion from the long-range development plan process – the UC and Cal State equivalent of the general plan. So, presumably, the impact of enrollment increases can’t – or at least don’t have to – be analyzed in an LRDP environmental impact report. But what happens when an individual project designed to accommodate expanded student enrollment comes along? Is that subject to CEQA? Quick Hits & Updates The California Department of Housing and Community Development (HCD) in partnership with the Office of Planning and Research (OPR), Strategic Growth Council (SGC), and California Air Resources Board (CARB), request public input on: Draft Regional Early Action Planning Grants of 2021 (REAP 2.0) Guidelines for metropolitan planning organization applicants and Draft REAP 2.0 Guidelines for tribal and rural applicants. In response to countless conversations about the future of the Oakland A's waterfront ballpark, City Council Member Carroll Fife intends to introduce a ballot measure to allow Oakland residents to decide the development's fate. If added to the November ballot, the measure would delay the final decision and possibly put a stop to the project. Sites Project Authority may apply for a $2.2 billion low-interest loan using the Water Infrastructure Finance and Innovation Act to help complete the long-anticipated Sites Reservoir project. If completed, the project would increase water supply and reduce water costs for cities and farms on the west side of the Sacramento Valley. BART board member Lateefah Simon will remain in her seat that represents the East Bay and San Francisco after the staff tried to remove her, claiming that she moved outside of her district, even though Simon had confirmed with BART prior to moving that she would remain in her district. BART staff do not have legal authority to remove Simon from her seat and have received pushback for attempting to unseat BART's only Black board member. Michigan's Hillsdale College purchased 1,028 undeveloped acres west of Roseville in unincorporated Placer County in two separate deals for a total of $5.8 million from AKT Development Corp. For over two decades, the land has been an expected spot for higher-education. The demolition of a downtown Santa Monica parking structure is moving forward after a judge's ruling rejected a lawsuit that would have stopped the city from replacing a six-story garage with affordable housing. The decision was based on a CEQA technicality; the petitioners filed to request their hearing past the deadline. Placer County Supervisors approved an ordinance that would set a 3,900 limit on the number of short-term rentals in areas like North Lake Tahoe and Truckee. The ordinance, if officially approved in February, would allow about one-quarter of homes to be listed as short-term rentals in order to preserve housing for the local population and enforce more inspections and fire protections. The Coastal Commission rejected development permits for two homes along the Cambria coast based off of a report that suggests that the small community lacks adequate potable water sources for the new developments. The property owners' attorney argues that they already have water connections installed, so the state should permit construction.

Last week’s big news from the Census Bureau was that California lost 260,000 residents during the pandemic year – the vast majority of which came from the Bay Area and Los Angeles County. (Or , as The New York Times put it , Los Angeles and “San Francisco” experienced “stark losses”.)

So, enrollment increases at the University of California and Cal State are no longer “projects” under the California Environmental Quality Act.

In a new document released last week, the state Auditor’s Office has called on the legislature, the Department of Housing & Community Development, and the Department of Finance to clarify the methodology for establishing housing targets as part of the Regional Housing Needs Assessment process.