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Audit Supports HCD Efforts to Encourage Housing Element Compliance
An audit of the California Department of Housing and Community Development (HCD) found that the agency’s letters jurisdictions regarding noncompliant housing elements were generally able to provide valuable feedback, but certain jurisdictions may require individualized assistance. HCD generally met statutory deadlines. But, many jurisdictions still struggled to revise plans due to complex new legal requirements, increased housing allocations, and community opposition. From August 2021 to August 2023, HCD reviewed 1,049 housing elements for 389 jurisdictions. As of January 2026, 90.2 percent of jurisdictions have adopted housing elements found to be in compliance with state law. HCD’s written findings alone often weren’t sufficient, and local governments emphasized that one-on-one assistance was vital to understanding and addressing required changes. However, HCD’s capacity to provide individualized support was strained by heavy workloads, turnover, and overlapping submission deadlines.The report found that online guidance was detailed but not always issued in time to be maximally useful. HCD has indicated that it largely agrees with the CSA findings and recommendations and will implement suggested changes to strengthen the program. (See related CP&DR coverage.)
Newsom Seeks to Rein in Corporate Owership of Housing
Gov. Gavin Newsom will target large corporate landlords and private equity investors that buy up housing in California, saying their practices make it harder for ordinary residents to afford homes. In his State of the State address, Newsom said he wants to work with the Legislature to regulate or curb the influence of these big investors, potentially through enhanced oversight, enforcement, and changes to the state tax code. Newsom’s proposal reflects growing political concern about how investor-owned homes affect affordability and competition for buying opportunities in the state.
Los Angeles Faces Lawsuit over Building in Fire Zones
The city of Los Angeles is being sued for repeatedly approving new development in areas known to be at high risk for wildfires, allegedly ignoring state fire safety regulations. The lawsuit by State Alliance for Firesafe Road Regulations and the Federation of Hillside and Canyon Associations cites 75 examples of building permits and other approved plans that they allege violate fire safety regulations. The state’s “minimum firesafe regulations” require approved developments to meet certain criteria including wide, flat roads with only short dead-end roads, standardized water sources, and when applicable, at least 30 feet of space between buildings and property lines. In areas recently impacted by the January 2025 wildfires, the debate of housing density and fire safety is especially relevant, with residents worried that the state’s push for denser housing in the city will further endanger them by further slowing evacuation.
San Francisco Approves City's Third-Tallest Building
The San Francisco Planning Department approved plans for a 67-story mixed-use skyscraper at 10 South Van Ness Avenue, replacing a two-story commercial building with 1,019 apartments, ground-floor retail, and parking. In 2021, the developer purchased a lot at 1979 Mission St. and transferred ownership to the city in order to meet off-site affordable housing requirements, which allowed the company to develop a fully market-rate skyscraper at the Van Ness property. Recent updated plans for the tower include 89 below-market-rate units and reduce the total number of units but increase the building’s height, with a mix of studio-sized and family-sized apartments, parking for 255 cars, and bicycle storage. If built as proposed, the project would become the third-tallest building in the city.
CP&DR Coverage: The Legislature's Approach to CEQA in 2026
As the Legislature prepares to convene in January, another round of changes to the California Environmental Quality Act seems likely. The question is whether the 2026 changes will be incremental – clarifying, among other things, some of the “Swiss-cheese” holes punched in CEQA in 2025 – or whether someone in the Legislature will attempt a more comprehensive attempt at reform. Notably, the California Chamber of Commerce has attracted significant attention with proposals for 2026 that would make major changes in CEQA, which includes adding several “shot clocks” to move the CEQA process along faster, a streamlined alternatives analysis, and an exemption for small projects. However, executing a holistic reform remains complicated, as several players, namely pro-housing advocates, conservation organizations, and environmental justice groups, remain steadfast in advancing their varied missions. All of which leaves the legislators themselves in the middle, trying to figure out how to straddle all of these competing political interests – most of which work against comprehensive CEQA reform.
Quick Hits & Updates
California’s plan to build a 45-mile tunnel under the Sacramento-San Joaquin River Delta to transport water from north to south hit a financial roadblock when a court ruled the state lacked authority to issue $16 billion in bonds for the project. The tunnel, supported by Gov. Newsom and water agencies but opposed by environmental groups, would bypass delta wetlands and take about 13 years to construct.
The San Diego Unified School District is seeking a plan to build hundreds of affordable homes for its own employees on excess district property in response to the region’s high housing costs, but discussions have now paused the process over concerns regarding quality and cost per unit. Board leaders reviewed more than a dozen developer proposals that could have produced around 1,500 new homes, but at a recent board meeting, long-time member Richard Barrera suggested developers revise proposals completely to better align with the district’s goals.
The state launched a new website to connect Eaton and Palisades fire victims with resources for rebuilding, including access to vetted contractors and builders and four homebuilding pathways including modular, pre-designed, semi-custom and custom homes. Launched nearly one year after the fires, the website also includes resources for mortgage relief, building estimates and support.
The City of Inglewood has voided its development agreement with L.A. Rams owner Stan Kroenke’s Hollywood Park Land Company, saying it was improperly adopted and therefore unenforceable, and has refused to perform under its terms. In response, Kroenke’s companies, which developed SoFi Stadium and the surrounding Hollywood Park complex, argue that they are owed hundreds of millions of dollars after the City received over $25 million in revenue from the Hollywood Park campus.
Residents of Woodland Hills in Los Angeles are organizing against a proposed 20-acre, 398 home development in a Very High Fire Hazard Severity Zone on the grounds of the Woodland Hills Country Club. Residents say the future remains unclear as to whether the project will be able to bypass public hearings and environmental review under AB 2011 and its subsequent amendments, which expand its protections beyond its original intent to increase affordable housing stock.
A town north of Sacramento is set to be the first 3D printed neighborhood in California. The development, a project of Sacramento startup 4dify, consists of five homes made of concrete. The technology produces homes in a much shorter time frame and with lower construction costs, with one machine able to print eight to ten houses per year.
