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Hollister 2040, we hardly knew ye. In what may be the shortest-lived adoption of a general plan in state history, the Hollister City Council approved a general plan update, along with its environmental impact report (and Climate Action Plan), in late December. A mere three months later, the city council rescinded the plan and committed $431,000 to draft a new one. It’s rare for a city to rescind a general plan – especially a recently adopted one. In doing so, the city may have exposed itself to sanctions, or lawsuits, from the Department of Housing and Community Development and lawsuits from housing advocacy organizations like Californians for Homeownership. The plan was designed in part to comply with the city’s Regional Housing Needs Allocation requirements, calling for 4,163 units (including 2,350 affordable units) to be added to the city of 44,500 by 2031. At issue was the question of whether the city should add 3,300 acres to its sphere of influence, with the prospect of annexing the acreage and zoning it for relatively low-density housing. The expanded sphere of influence would have formed a rough ring around the existing city limits, representing almost a doubling of the city’s geographical size. Located in mostly rural San Benito County, Hollister is either on the far southern extent of the Bay Area commute shed — or a rural redoubt, defiantly removed from urban commotion. “We felt that expanding the sphere of influence was not the kind of smart growth the city should be engaging in,” said Jessica Wohlander, policy and advocacy associate manager with environmental group Green Foothills.

This article is brought to you courtesy of the paying subscribers toCalifornia Planning & Development Report. You can subscribe to CP&DR by clicking here. You can sign up for CP&DR's free weekly newsletter here. California Forever Envisions "Solano Foundry" Industrial ParkCalifornia Forever has reprioritized its plans for a new city in Solano County with an expanded vision that includes a 2,100-acre advanced manufacturing site known as the “Solano Foundry.” Unveiled at the Reindustrialize Summit, the Foundry is positioned as a response to the decline in domestic manufacturing capacity and is projected to generate approximately 40,000 jobs across sectors such as aerospace, robotics, logistics and energy, an increase from their original promise of 15,000 jobs. While company representatives emphasize the economic and strategic benefits of such a facility, critics contend that similar industrial uses could be accommodated within existing cities, questioning whether the initiative serves more as a promotional effort for their larger proposal. Local officials remain divided: some express support for the potential economic diversification and reduction in out-commuting, while others cite concerns about insufficient engagement with communities and the capacity of local governments to manage such large-scale development. The proposal arrives as the county considers broader planning updates, with annexation discussions paused and regulatory streamlining for manufacturing gaining traction at the state level. (See related CP&DR coverage.) Protests Put IEFD at Sacramento Railyards on HoldA planned expansion of Sacramento's Railyards Enhanced Infrastructure Financing District (EIFD) has been halted after local stakeholders formally protested the proposal, triggering a one-year delay under a state law that calls for for a pause if more than 50% of local residents protest. The expansion, which was intended to fund infrastructure for a new soccer stadium and mixed-use development, drew criticism for offering only 6% affordable housing despite public subsidy involvement. The expanded EIFD would have raised up to $90 million for the project, which is led by the Wilton Rancheria Tribe. Unite Here Local 49, representing hospitality workers, filed a lawsuit alleging the city failed to count protest letters and argued the deal prioritized private developers over community needs. City officials, including Mayor Kevin McCarty, reaffirmed support for the project and said alternative funding mechanisms are being pursued that would not rely on the General Fund. Sacramento Republic FC and developers maintain they will move forward with the planned 12,000-seat stadium, while opponents continue to call for greater affordability, displacement protections, and community benefits. Feds Cancel High Speed Rail Funding, State SuesThe Trump administration officially cancelled $4 billion in federal funding for Californias high-speed rail project, after a federal assessment that found "no viable path" for the project to meet the grant's 2033 deadline for limited passenger operations, and accused the High Speed Rail Authority of mismanaging the project. Long a target of public attacks by President Trump, the HSR network was originally scheduled for completion in 2020 and is around $100 billion over budget from its original cost of $33 billion. Construction is currently confined to the Central Valley, with the initial 119-mile stretch around 59% complete. The High Speed Rail Authority has filed a lawsuit against the Trump Administration, arguing that the federal assessment was based on outdated information and the decision to revoke funds reflects "personal animus" against the project. Gov. Newsom vowed to use every avenue possible to fight the federal government's decision, citing the importance of continued progress for America's only under-construction high-speed rail system. Program Seeks to Increase Shade Coverage in Los AngelesThe USC Dornsife Public Exchange, in collaboration with the UCLA Luskin Center for Innovation, is launching the ShadeLA initiative. The effort aims to increase tree canopy and shade infrastructure to mitigate the dangers of climate change-driven extreme heat, while making LA safer for upcoming world sports events including the 2026 FIFA World Cup, the 2027 Super Bowl, and the 2028 Olympics. LA County currently sees 1,500 excess emergency room visits per extreme heat day, and the number of extreme heat days is projected to increase by 31% by 2050. Shade is one of the best ways to reduce heat risk, and urban shaded areas can feel up to 70 degrees Fahrenheit cooler than in direct sun. The ShadeLA initiative aims to add new shade through trees and built structures, and preserve existing shade with science-informed decisions. CP&DR Coverage: Newport Beach Case Reaffirms Preeminence of State Law over Local Ballot InitiativesAn Orange County judge has reiterated this principle that state laws override local land-use ballot measures yet again in a ruling involving a case from Newport Beach. In 2000, voters approved the so-called “Greenlight” initiative, which requires voter approval for general plan amemdnet that would “significantly increase” the density or intensity of land uses in the city. Stop Polluting Our Newport, a longtime citizen activist group, then sued, claiming that the city had violated the Greenlight initiative by not taking the housing and land use element updates to a vote. the First District Court of Appeal laid out a two-part test to determine whether an ordinance of a charter city like Newport Beach is pre-empted by state law. SPON and NBSA argued that the city could have held a vote in advance of the state's deadline for implementation of the housing element, and that such a measure might well have passed. But, Judge McCormick wrote, “The point is not the date by which the City was required to comply with section 65583.4, or that voters might approve the amendments; it is that the City was required to comply with the statute.” Quick Hits & Updates Governor Newsom and the California Department of Housing and Development arereleasing $101 million for the rapid rebuilding of multifamily rental housing following the January 2025 fires. The funding is intended to meet the immediate housing needs of communities impacted by the fires, and will prioritize projects that are ready for construction, close to burn areas, and with a resident preference for displaced households. The money will be available through HDC's Multifamily Finance Super NOFA (Notice of Funding Availability), allowing afforable housing developers to apply for a range of funding awards through a single application. The NOFA requires all projects to be affordable for 55 years. The Port of San Diego approved a negotiating agreement with the McGary Group, a developer planning a sports and entertainment complex for the 124-acre Otay District of Chula Vista. The proposal includes three hotels with up to 700 rooms, a multi-use stadium, a 300,000 square foot retail area, two golf courses, and more. A report from Stanford's Institute for Economic Policy Research finds that California's homelessness crisis remains one of the worst in the country, citing insufficient shelter capacity, a shortage of housing, and weak incentives for drug treatment as key drivers of the state's high rate of homelessness, particularly unsheltered homelessness. The report emphasized that data collection and transparency has not kept up with massive new government investments, and need to be overhauled to understand the effectiveness of policies and investments. In June LA Metro ridership fell to its lowest level of the year following large-scale immigration raids throughout LA County. Overall ridership fell 13.7% from May. Following the detention without warrants of three Pasadena residents by masked immigration agents at a Metro bus stop, as well as reports of federal agents questioning riders at a Metro station, Mayor Bass and other city officials have raised concerns about federal policy making people fearful of taking public transit. The San Diego Foundation and the San Diego Association of Governments announced $14 million in funding for 10 affordable housing projects across San Diego County, which will bring 966 affordable housing units to market between December 2026 and 2030. Since 2020 home prices in San Diego County have risen by 42%, and over a third of residents spend over 30% of their income on housing. A judge has upheld Newport Beach's housing plan, rejecting lawsuits from two local groups that challenged the city's compliance with state housing mandates. The ruling supports the city's 2022 Housing Element update and its 2024 zoning and general plan amendments, which aim to accommodate 4,845 new housing units as required by the state. Mayor Joe Stapleton emphasized that the city acted within legal bounds and avoided severe penalties, including large fines and potential loss of local land-use control. Irvine City Council members are considering a plan to replace the Oak Creek Golf Club, a site protected as permanent open space by a 1988 voter-approved initiative, with 3,100 housing units, a school and parks, sparking debate over whether the preservation designation can be removed without another public vote. While the city attorney argues the council has legal authority to amend the designation without voter approval, several council members and former officials insist that changing the status should require a vote. A new report from the Public Policy Institute of California finds that while California lost 789 company headquarters between 2011 and 2021 (about 1.9% of its total) the overall impact on jobs and the state's economy is modest, as most companies retain other operations in the state and many new firms launch or close each year. Researchers suggest that the slight increase in headquarters relocating to states with lower tax and regulatory burdens points to the need for California policymakers to critically evaluate regulations for their costs and effectiveness to improve the business climate. Two UC Berkeley teams won first and second place in a national affordable housing competition with proposals to redesign a neglected housing complex in Florida, balancing cost, resilience and community needs. Team Blue's winning design, “Mango Commons,” proposed a climate-resilient, high-density development featuring green infrastructure, family-centered amenities and a path to homeownership. An engineering proposal was submitted for a plan to restore part of Tulare Lake, once the largest body of fresh water west of the Mississippi river. The plan calls for the purchase of 24,000 acres of land from multiple private owners and the state. The reservoir and wetlands created would help prevent floods, provide wildlife habitat, and be of cultural and spiritual significance to the Tachi Yokut Tribe, who lived around the lake before it was drained for agriculture. Via executive order, President Trump is creating the Make America Beautiful Again Commission with the goal of expanding access and promoting economic growth on public land. This is the latest in a series of moves by the Trump administration to open protected land to activities including drilling, mining, and development. In June LA Metro ridership fell to its lowest level of the year following large-scale immigration raids throughout LA County. Overall ridership fell 13.7% from May. Following the detention without warrants of three Pasadena residents by masked immigration agents at a Metro bus stop, as well as reports of federal agents questioning riders at a Metro station, Mayor Bass and other city officials have raised concerns about federal policy making people fearful of taking public transit.

The builders remedy reform bill is moving forward in the Legislature ; though the YIMBY movement is divided over the bill and significant amendments have been made in the Senate that would decrease allowable densities and affordability requirements. Meanwhile, at least one city ; West Hollywood ; is seeking legislation that would exempt it from the builders remedy. AB 1893, carried by Assemblymember Buffy Wicks, sailed through the Assembly. But at a Senate Housing Committee hearing on June 18, the bill ran into opposition from YIMBY Law and several amendments were made. The bill will now go to the Senate Local Government Committee. In the last two years the builders remedy ; which requires local governments to approve almost any project a developer proposes if they do not have a compliant housing element ; has emerged as perhaps the most controversial aspect of Californias effort to increase housing production. However, even though YIMBY law reports that 160 builders remedy projects have. Been proposed, none have so far moved through to construction, in part because cities are resisting implementation. Wicks, a strongly prohousing legislator, introduced AB 1893 earlier this year in order to put guardrails on the builders remedy and defuse some of the opposition. Among other things, the bill would decrease the percentage of affordable housing required in a builders remedy project and limit the amount of density a builders remedy project could include. (CP&DRs previous coverage of AB 1893 can be found here.) A wide range of housing and YIMBY groups have opposed the bill, while California YIMBY supports it. Even as housing and YIMBY groups oppose the bill, so do some local government advocacy groups. Although neither the League of California Cities and the California Chapter of American Planning Association have taken a position, the Calilfornia Contract Cities Association has come out against it, as did a few individual cities. The two most important changes accepted by the Senate Housing Committee were: A change in the affordability requirements. Currently, the builders remedy is allowed for projects that dedicate either 20% of the units for low-income housing or 100% for moderate-income housing. The original Wicks bill cut the 20% to 10%. The Senate version increases the 10% up to 13% -- there was considerable discussion at the committee over whether 10% or 13% was the right number ; but scales back to 10% for very low income units and 7% for extremely low income units. A change in the permitted density. Currently, the law allows any density. The original Wicks bill called for limiting density to double whats required to achieve housing element goals or triple what the local density calls for. The new bill limits the number to 50% of whats required for housing element goals (but still triple the local zoning). According to the Senate staff analysis, this equates to an increase of 15-23 units per acre in rural areas, 30 units acre in suburban areas, and 45 units per acre in metropolitan counties. The only "no” vote in the Senate Housing Committee came from Rosilicie Ochoa Bogh, a Republican Realtor from the Inland Empire who asked that the bill be changed to include more consistent Housing Element review from the Department of Housing and Community Development. "I have a city who … has gone through so many different reviewers … and theyre not able to get further along because each one is so subject as to what they need to do or not do,” she said at the hearing. The law firm Allen Matkins published an excellent summary of the current state of the bill here. Meanwhile, West Hollywood plans to take an innovative approach to dealing with the builders remedy issue. Cities resistant to new housing ; ranging from La Cañada Flintridge to Beverly Hills to Redondo Beach ; have simply refused to process builders remedy applications and/or fought developers ferociously in court. Huntington Beach simply declared itself exempt from the builders remedy, thus drawing a lawsuit from the state. By contrast, West Hollywood ; which has been designated as a prohousing city by HCD ; will seek state legislation specifically exempting it from builders remedy. HCD declared West Hollywoods Housing Element in compliance with state law in 2023, but that did not stop developer Leo Pustilnikov ; who is in builders remedy battles with both Beverly Hills and Redondo Beach ; from filing builders remedy applications in WeHo as well. "I completely understand why the builders remedy exists and why the Legislature created it, but I dont understand why the builders remedy should have any applicability to the City of West Hollywood" longtime councilmember John Heilman said at a recent council meeting. With 35,000 residents in 1.9 square miles, West Hollywood is one of the densest cities in the western United States. According to the Department of Finance Demographics Research Unit, the city increased its housing stock by 6% between 2010 and 2024.

The passage of AB 130 and SB 131 – the budget trailer bills from last summer – has shifted the landscape for planning in California in new ways. And although the impetus for these shifts came from the state’s desire to encourage more housing, there are pros and cons for both local governments and housing developers from the deal.

Regular readers of CP&DR will recall the major controversy over the review under the California Environmental Quality Act of the proposed construction of a student housing project on the People’s Park property in Berkeley: A community group in Berkeley – Make UC A Good Neighbor -- challenged the CEQA analysis and won in the appellate court. Then the Legislative adopted a bill to essentially overturn the appellate ruling and the California Supreme Court ruled in favor of the University of California and against the neighbors.

by CP&DR Staff Vol. 40 No. 1 January 30, 2025 Report

By CP&DR Staff on February 27, 2025

by CP&DR Staff Vol. 40 No. 4 April 24, 2025 Report

by CP&DR Staff Vol. 40 No. 5 May 29, 2025

by CP&DR Staff Vol. 40 No. 6 June 26, 2025

by CP&DR Staff Vol. 40 No. 7 July 31, 2025 Report