Group Sues Newport Beach for Adopting Housing Element
A recently filed lawsuit against Newport Beach accuses the City Council of violating the city charter by approving housing ordinances and resolutions without allowing voters to decide in the November election. The nonprofit Still Protecting Our Newport argues that this approval bypasses Section 423 of the charter, which mandates voter input for significant land use decisions unless preempted by state or federal law. The city contends that state housing mandates, which require the zoning for 4,845 new residential units by 2029, override this charter provision. The council believes failing to comply with these mandates could result in substantial fines and the imposition of state control over local zoning. The housing plan under dispute proposes 8,174 units, exceeding the state’s requirements by 68% to address potential development challenges. Critics argue that the plan could be revised to better support affordable housing development and reduce the required number of new units.

Major Bills on Coastal Housing, Fire Hazard Zones Die in Legislature
Two legislative efforts that had attracted attention, and protests, recently have died. Despite a push to limit the ability of the Coastal Commission to deny housing projects in the Coastal Zone, a series of new bills aimed at easing coastal development restrictions and facilitating construction have either stalled or been significantly diluted, leaving the commission's authority largely intact. Most notably, San Diego Assemblymember David Alvarez pulled his bill AB 2560. A proposed overhaul of California’s wildfire hazard mapping system, Senate Bill 610, has been rejected by the state Assembly. The bill aimed to replace the current hazard severity zones with a unified “wildfire mitigation area” classification, which supporters argued would simplify and standardize wildfire preparation. Meanwhile, the Senate Appropriations Committee has advanced Assembly Bill 2986, which calls for a feasibility study on the potential incorporation of East L.A. as a city or special district.

Prohousing Jurisdictions Now Number 50; HCD Awards $15.3 Million in Grants
The California Department of HCD has granted Napa, San Leandro, and Walnut Creek the Prohousing Designation, joining 47 other communities recognized for their commitment to promoting housing development. Among the highlights on the cities’ applications: Napa the city provides property owners with easy access to dozens of low-cost, off-the-shelf, pre-approved ADU plans; San Leandro developed a Priority Development Area to allow for higher densities and greater floor area ratios and to remove height limits for infill housing near transit, resulting in an additional 2,500 homes; Walnut Creek adopted the Community Benefits program, which provides opportunities for developers to receive additional height limits, greater floor area ratio, and density bonuses for a project in exchange for providing amenities desired by the city. Additionally, nearly $15.3 million in incentives, ranging from $560,000 to $1.25 million, were awarded to 19 previously recognized Prohousing communities to support further housing initiatives. (See related CP&DR coverage.)

CP&DR Coverage: Joshua Tree Conservation Act Stymies Developers
Wildfire, development, and, most of all, climate change are threatening the western Joshua tree. Surveys indicate that young trees are taking root in only 50% of the current range; in a worst-case scenario, the tree could go nearly extinct. In 2023, at the urging of environmental groups, the legislature passed the Joshua Tree Conservation Act as a trailer bill. The act affords the western Joshua tree the equivalent of threatened status under CESA—including restrictions on residential development and a near-ban on commercial and industrial development on parcels containing Joshua trees--and is believed to be a novel approach to species conservation. The act went into effect earlier this year and is expected to remain in effect for at least 10 years. That may mean 10 years in which desert communities struggle to promote development and meet their Regional Housing Needs Allocation numbers. It is yet another instance in which conservation is complicating the state’s efforts to provide housing – especially on the urban fringes.

Quick Hits & Updates

The Land Trust of Santa Cruz County recently acquired a 247-acre property near the Pajaro River to create new estuarine habitats for wildlife and aims to protect adjacent coastal areas from flooding. This method reflects a broader shift towards adapting to climate change by working with natural processes rather than solely relying on engineering solutions.

Analyzing the 50 most populous states according 2020 U.S. Census Bureau Data using data from FEMA and the US EPA, Policygenius found San Francisco has the lowest exposure risk to the worst impacts of climate change, while Los Angeles is seventh-worst city in the nation in terms of predicted climate change impacts on the city. San Francisco is predicted to have only three days of extreme heat by 2050, compared with Los Angeles's predicted 34 extreme heat days by 2050. Los Angeles also scores badly on social vulnerability and community resilience.

Huntington Beach has been granted a year to create new citywide housing plans after a judge ruled that the city violated state law by refusing to plan for more housing. The city has been in conflict with the state over requirements to allow for at least 13,368 housing units this decade and may face fines if they do not meet the requirement. Additionally, a charter amendment on the November ballot could require voter approval for zoning changes related to the new housing plan.

The Santa Clara Valley Water District has allocated $1.7 million to conduct a feasibility study over the next year for a seawater desalination plant on the San Francisco Bay as a part of its efforts to explore new drinking water sources. The proposed plant could produce between 10 to 40 million gallons of freshwater daily by processing 20 to 80 million gallons of seawater, but the project might face significant opposition due to high costs and environmental concerns.

The San Antonio Station Alliance is advocating for a proposed BART station at the intersection of 14th Avenue and East 8th in East Oakland, a transit-desolate area where they say the absence of a station reflects historical racial biases in transit planning and leaves a significant portion of the community underserved. Such infill stations are cost-effective, could enhance regional connectivity, and address a lack of economic opportunities, but advocates also underscore the danger of gentrification.

An analysis of eight Southern California municipalities responses to the state's 2018 law mandating affirmative action for fair housing in their General Plans' housing elements found that, despite creating numerous programs, most did not effectively advance fair housing goals, with affluent cities continuing to concentrate affordable housing sites in less affluent neighborhoods, highlighting implementation challenges of the affirmatively further fair housing mandate.

A study by Enterprise Community Partners concludes that repurposing vacant or underutilized strip malls into affordable or mixed-income multifamily housing and mixed-use developments offers a promising solution to housing affordability and supply challenges, while also supporting economic development and creating green spaces. The study concludes state and local policymakers' support is crucial for such redevelopment projects, which may involve accessing public grants and loans like Low-Income Housing Tax Credits or Community Development Block Grants to integrate community-serving uses.

A report from UC Berkeley's Turner Center for Housing Innovation surveyed the small multifamily rental property market and found these properties, typically owned by individuals or small portfolio owners, play a crucial role in providing lower-cost housing, but concerns about habitability and affordability persist, especially in older buildings and among owners facing financial challenges. Further research and policy measures are needed to address these issues and support both tenants and owners in this segment of the rental housing market.

The San Diego Board of Port Commissioners has granted a three-year extension to the entitlement phase of the exclusive negotiating agreement with the developer of the $3.8 billion Seaport San Diego project. This extension allows developer 1HWY1, selected in 2016, until October 1, 2027, to secure the necessary government approvals and raise the required capital for the redevelopment of the Central Embarcadero bayfront.

California has allocated $351.5 million in the 2024-2025 state budget to enhance Los Angeles' Exposition Park, including nearly six acres of new green space and an underground parking garage, in preparation for the 2028 Los Angeles Olympics.

More than 400,000 students in Los Angeles are now enrolled in the Metro GoPass program, which offers unlimited free rides on buses and trains, with over 40 million student boardings recorded as of June. Launched as a pilot in 2021 and made permanent in April 2024, the program has expanded to include 1,600 schools and is seen as a crucial support for student transportation and access to education.

HDC certified Palo Alto's 2023-2031 housing element, marking a significant step in guiding future housing production and policies. This achievement underscores Palo Alto's commitment to affordable housing, highlighted by a record of investing $52 million in housing projects, including recent developments and ongoing initiatives to expand affordable housing throughout the city.

San Jose is pioneering a new state law that allows homeowners to sell accessory dwelling units (ADUs) as condominiums, aiming to boost the city's affordable housing options. The city is the first to adopt AB 1033, passed last year, that allows for the sale of ADU. San Jose has already seen significant growth in ADU construction, contributing over 20% of the city's new housing stock in recent years.