While Gov. Schwarzenegger signed the high-profile SB 375, he vetoed nearly every other land use bill of consequence this year. Legislation regarding financing, fire safety, school fees, the California Environmental Quality Act and other matters all failed to escape the governor's red pen.

Construction activity may have declined dramatically, but the number of ballot measures seeking to slow or guide growth remains high. Voters across California will face close to 50 growth-related local ballot measures in November.

It's not unusual for the number of slow-growth measures to increase at the end of a real estate boom. Construction often continues and the real estate market dies, and slow-growth measures are often a reaction to construction rather than the market. In other words, slow-growth ballot measures are a lagging economic indicator of the real estate market. This November's total is down from the 78 measures on the November 2006 ballot, partly because California had two primaries this year.

The state budget signed by Gov. Schwarzenegger in late September shifts $350 million from redevelopment agencies to schools, and it provides no funding at all for transit projects contained in the State Transportation Improvement Program. Still, the sentiment among many local government officials was that the budget could have been far worse.

Senate Bill 375 is alternately being described as the most important land use legislation since the California Coastal Act of 1976, and a step in the right direction. Only time will tell whether the bill is a landmark or an incremental step, but there is no denying that SB 375 author Sen. Darrell Steinberg (D-Sacramento) aimed high. "At the heart of this effort," Steinberg said, "is the need to integrate our housing and transportation plans to create sustainable communities."

Steinberg's bill was by far the most significant land use legislation approved during the two-year legislative session that concluded on August 31.

Urgency legislation extending the life of all subdivision maps by one year has been signed by Gov. Schwarzenegger. The California Building Industry Association (CBIA) praised the governor for signing SB 1185 (Lowenthal). The real estate slowdown has prevented developers from following through with approved projects, and the legislation ensures developers and landowners do not have to go through the entitlement process a second time.

Redevelopment agencies may soon have authority to assist homeowners with subprime loans who are facing foreclosure, and to acquire foreclosed housing.

Under a measure likely to pass the Legislature, redevelopment agencies could aid homeowners, lenders and developers whether or not the subject property is within a redevelopment project area. However, a late amendment to the bill would prevent agencies from using their 20% housing set-aside fund for the activities.

Although the state's mounting budget deficit is expected to predominate in Sacramento for many months, 2008 could be a blockbuster year for land use legislation. Scores of bills related to planning, the California Environmental Quality Act, redevelopment, housing, the Subdivision Map Act, and other land use matters have been introduced during the first two months of the year or remain leftover from 2007.

This could become a year of creative financing, and not merely for the state government. Lawmakers are considering at least three bills that could change the rules for financing local infrastructure.

In the face of never-ending demand for housing and concerns about eroding the job base, some cities are imposing regulations to protect their industrial lands.

Three bills that would have established "green" building standards for housing, commercial structures and state government buildings were vetoed by Gov. Arnold Schwarzenegger. The governor also vetoed a controversial planning bill that would have limited cities' ability to satisfy regional fair-share mandates with non-residentially zoned properties.