Major Los Angeles Rezoning Plan Takes Step Forward
The Los Angeles City Council Planning and Land Use Committee has endorsed a rezoning plan aimed at increasing housing availability in the city by focusing new market-rate and affordable housing in commercial corridors and dense residential areas. The Citywide Housing Incentive plan, which is part of the city's response to state RHNA mandates, aims to create space for an additional 255,000 homes. The committee's vote largely preserved single-family zones, but some council members continue to advocate for opening up these areas to help combat economic and racial segregation. The proposal allows developers to build more in areas near transit, jobs and schools, with incentives for including affordable units, though single-family zones would only be affected if owned by public or faith-based organizations. Despite concerns from tenant advocates about potential displacement, the committee chose not to impose further demolition restrictions, although they did amend the plan to limit the number of homes faith-based groups could build on single-family lots. Critics contend that the plan will not satisfy state housing requirements (see item below). The full City Council is expected to consider the plan by February.
UCLA Study Faults Los Angeles Rezoning Plan for Perpetuating Inequities
A recent study examines Los Angeles’ Citywide Housing Incentive Program (CHIP) in light of California's housing production targets. The study finds that the rezoning will only boost the city's capacity for new homes by about 30%, falling short of its RHNA requirement of over 250,000 new units. Expanding development incentives to include single-family neighborhoods, which cover 72% of residential land, could dramatically increase housing capacity and help address the affordability crisis. The analysis finds that, while the program may comply with state mandates to increase housing capacity and address segregation, it still faces significant limitations, particularly in low-resource neighborhoods. The Mixed Income Incentive Program (MIIP) offers only a modest improvement according to fair housing metrics, increasing housing capacity by about 380,000 units, but it still concentrates much of this capacity in lower-income areas. The study argues that expanding development in higher-resource neighborhoods, including single-family zones, is essential to meet both housing production goals and fair housing objectives. Without stronger incentives for higher-density development in wealthier areas, the city is unlikely to effectively address displacement and affordability challenges.
State Awards $113 Million in Grants for Coastal Resilience and Access
The Coastal Conservancy approved over $113 million in grants for 47 projects aimed at coastal restoration, resilience, public access and climate adaptation. The funding will support initiatives across the state, from Del Norte to San Diego counties, and includes efforts to acquire land for conservation, restore coastal habitats and increase public access to the coastline. Additional grants were awarded for projects in Santa Barbara, Los Angeles and other counties, including coastal resilience efforts such as habitat restoration, wildfire resilience and sea-level rise adaptation. Several grants also support community engagement and the creation of "Coastal Stories" projects to highlight diverse cultural perspectives on California's coast. These projects collectively aim to restore over 650 acres of habitat, acquire more than 1,100 acres for conservation and improve access to coastal areas for public enjoyment. The funds also include specific support for climate resilience measures to protect the coast from rising sea levels and other environmental impacts.
Major Slopeside Development at Palisades Tahoe Wins Approval
The Placer County Board of Supervisors approved a controversial 85-acre resort village at the base of the Palisades Tahoe ski resort (formerly Squaw Valley), a project that has sparked heated opposition from local residents and environmental groups. The development will add hundreds of lodging units, hotel rooms, commercial space and parking, with construction planned over 25 years. Opponents are concerned about increased traffic, environmental damage and strain on local resources, especially the potential impact on Lake Tahoe’s water clarity and traffic congestion. Proponents argue that the project will boost the local economy, offering more amenities and year-round tourism, while Alterra Mountain Co. has pledged measures to mitigate traffic and environmental impacts. Despite legal challenges and ongoing resistance, the project was approved unanimously, with the county promising to monitor and adjust as needed during the phased development. (See related CP&DR coverage.)
CP&DR Coverage: CEQA Case Draws on People's Park Rule
In the first important court ruling following up on the People’s Park case, an appellate court in Los Angeles has reversed its earlier ruling that housing project near the University of Southern California isn’t eligible for the Class 32 infill exemption from the California Environmental Quality Act. But the court also said that the City of Los Angeles must first correct another error – ensuring that the project conforms to the areas old redevelopment plan, which has now been folded into the city’s zoning code. The case involves a proposed seven-building complex of 100 apartments to be built on 2.3-acre site in the West Adams district less than one mile from campus. The court concluded that, in order for the Class 32 exemption to apply, the city must find that the project conforms not only with the zoning but also with the redevelopment plan. But, based on a lawsuit from the West Adams Heritage Association, the Second District Court of Appeal found that noise from a rooftop deck would create a potentially significant impact that disqualified the project from the CEQA exemption. (CP&DR’s coverage of this previous ruling can be found here.) The court ruled on the First District Court of Appeal’s ruling in the People’s Park case, which involved potential noise from student housing in a new housing project in Berkeley on the site of the storied protest location.
Quick Hits & Updates
Sacramento officials unveiled a $40 million plan to revitalize the Old Sacramento Waterfront, including upgrades to boardwalks, docks and buildings, as well as funding for a new hotel and expanded tourism initiatives. The plan also allocates $5 million in state funding for a hotel development and $2 million for Visit Sacramento to attract more festivals, with the goal of boosting local tourism and generating economic growth in the city.
UC Berkeley’s Terner Center analyzed and identified 53 sites owned by the United States Postal Service in California, located in high-resource, residential areas near public transit as potential candidates for housing development. The research suggests prioritizing these sites for further evaluation, noting that many have sufficient usable land for multifamily housing, though additional assessments are needed to address site-specific challenges like zoning and infrastructure.
The Center for Jobs and the Economy released a report that analyzes the impact of CEQA lawsuits on housing production. While the 3.5 million-home statewide shortfall intensifies, lawsuits against new housing that prevent upzoning, transit accessibility, and housing affordability under the guise of environmental violations continue to grow.
Los Angeles city officials failed to spend over $500 million of the $1.3 billion budgeted for homelessness in fiscal year 2024, due to inefficiencies, staffing shortages and outdated systems. While the city has faced criticism for its lack of transparency and accountability in addressing homelessness, Mayor Karen Bass's office emphasized her efforts to tackle the issue and modernize the city's approach.
San Francisco's Muni transit system faces the possibility of significant bus, train and cable car service cuts, as well as potential closures, due to a growing fiscal deficit and the failure of Proposition L, which would have provided new funding. The agency is projected to have a deficit between $239 million and $322 million by 2026, with possible cuts to services like cable car lines, streetcars and frequent bus routes unless new funding sources are found.
Los Angeles is set to begin a $740-million project to transform wastewater into purified drinking water at the Donald C. Tillman Water Reclamation Plant, a key step in expanding the city's local water supply amid worsening droughts and climate change. The initiative will produce 20 million gallons of potable water daily by 2027, making use of recycled wastewater and is part of broader efforts to reduce reliance on increasingly unreliable imported water sources.
The Biden administration and eight California water agencies have reached an agreement to fund a nearly $1-billion project to raise the B.F. Sisk Dam and expand the San Luis Reservoir near Los Banos. This expansion aims to increase the state's water-storage capacity, allowing for more water retention during wet years. The expanded reservoir will provide water to 2 million people, agricultural areas and wetlands in the Central Valley. With the project's completion expected in less than 10 years, it represents a major step in bolstering water resilience amid climate change. However, additional funding is still needed to fully realize the project.
The San Luis Obispo County Local Agency Formation Commission approved the annexation of a 1,400-unit housing development into the Nipomo Community Services District, allowing the project to move forward. This decision follows previous approvals, including a vote by the county Board of Supervisors, despite some dissent from local officials.
The La Jolla Community Planning Association expressed strong opposition to a proposed 22-story development in Pacific Beach that would surpass the area's 30-foot height limit, fearing it could lead to similar high-rise projects in La Jolla. While developers argue it will address housing needs, local residents and leaders are challenging the project, which uses state laws to bypass local zoning restrictions, with some even exploring legal avenues to prevent its approval.
San Francisco's Embarcadero Plaza is set for a transformation into a park twice the size of Union Square, with a public-private partnership aimed at redesigning the space and integrating it with the adjacent Sue Bierman Park. The project, expected to cost at least $25 million, will feature a retail corridor, event stages and green areas, with construction likely taking three years to complete.
Democrats in Congress have introduced the Homes Act of 2024, which aims to create a new federal housing authority to provide billions in funding for affordable housing across the U.S., particularly for low-income households. The legislation proposes a public alternative to private development, with plans to generate 1.25 million housing units over ten years, including a significant portion designated for extremely low-income families, although it faces significant challenges in securing funding and support within Congress.
California has secured a new 25-year lease agreement with federal partners to keep San Onofre State Park open, ensuring continued access to its beaches, trails and campgrounds. The deal, facilitated by advocacy groups and local officials, protects this popular surf destination, which attracts about 2.5 million visitors annually, from potential access restrictions following the expiration of its previous lease.
The Los Angeles Ethics Commission has accused real estate developer Samuel Leung of 444 violations of city campaign finance laws, including allegations of laundering campaign money and reimbursing donors from 2009 to 2015. Following a previous investigation that uncovered over $600,000 in questionable political donations tied to Leung's apartment project, the commission's filing indicates that he reimbursed or facilitated reimbursement for numerous contributions that exceeded legal limits, potentially resulting in substantial penalties.
