Sponsors Remove $20 Billion Housing Bond from Bay Area Ballot
The Bay Area Housing Finance Authority (BAHFA) withdrew a proposed $20 billion housing bond measure, Regional Measure 4, from the November ballot due to significant errors in its cost projections. The bond, intended to fund affordable housing across the Bay Area, had faced challenges from opponents suing over its language and financial details, which inaccurately reported projected costs as $670 million instead of the actual $910 million. This setback follows four years of effort by housing advocates and local officials who had hoped to leverage high voter turnout during the presidential election. The decision to pull the measure comes as the last day to withdraw ballot items expired and the bond's critics had argued it would unfairly increase taxes on property owners and renters. Moving forward, supporters of RM 4 will focus on promoting Proposition 5, which seeks to lower the required voter approval threshold for local affordable housing bonds. The withdrawal of the bond measure is a significant blow to affordable housing initiatives in the region, exacerbating funding challenges and potentially impacting future housing development.

Plan for Solano County Air Force Base Updated
A Solano County commission approved a revised Travis Air Force Base Land Use Compatibility Plan, despite opposition from Suisun City and the now delayed California Forever project. The new plan introduces a Low Altitude Maneuvering Zone (LAMZ) that could limit development in areas previously planned under earlier guidelines. The commission's decision, which passed 6-1 with one abstention and one absence, was criticized by California Forever CEO Jan Sramek for lacking public input and necessary data. Sramek argued that the new zone, which Travis AFB leadership reportedly doesn’t consider essential, could damage the project's credibility and hinder future development. Suisun City officials expressed concerns that the LAMZ could significantly reduce potential revenue from planned developments, impacting their finances. The commission's plan aims to protect Travis AFB operations by restricting land uses within the LAMZ and has made adjustments to address some concerns, such as allowing reviews of new conservation projects. (See related CP&DR coverage.)

San Jose Diridon Station Upgrade to Cost up to $10 Billion
The Diridon Station redevelopment in San Jose is evaluating two design options: a ground-level design costing $3 billion to $6 billion and an elevated-track design costing $5 billion to $10 billion. Public entities are expected to be responsible for most, if not all, of the funding. Both options are designed to upgrade the station and accommodate California High Speed Rail and turn the station into a “. An advisory committee consisting of officials from the City of San Jose, the Santa Clara Valley Authority, Caltrain, the Metropolitan Transportation Commission, and the California High-Speed Rail Authority are exploring new tax measures and creative funding solutions, with a potential new governance entity through state legislation to oversee construction. It will also seek federal funds. The station is the centerpiece of a 250-acre zone that will include a massive complex for Google, which plans to add over 12,000 homes and millions of square feet of office space. The committee is expected to recommend an alternative in about a year. (See related CP&DR coverage.)

New Laws Lead to Proliferation of ADUs in Los Angeles County
Since state laws changed in 2016 to promote accessory dwelling units (ADUs), Los Angeles County has seen a surge in their construction, with one in five new housing units in the county being an ADU in 2022. According to an analysis by the Los Angeles Times, the county has led in ADU construction, issuing 45,000 permits between 2018 and 2023, and has permitted more ADUs per capita than any other in California. The distribution of ADU permits has varied widely across the county, with cities like San Fernando (69.97 permits per 1,000 housing units), Rosemead (56.84), and Temple City (56.83) leading in ADU approvals. In contrast, cities like Westlake Village (1.16), Cerritos (2.38), and Cudahy (2.88) have issued far fewer permits. Cities that added the most ADUs saw a 1.8% increase in housing stock and a smaller population drop (1.5%) compared to those that added the fewest, which experienced a 2.6% population decline. The growth is driven by streamlined permitting in lower- and middle-income areas, where ADUS are more likely to be rented out, unlike wealthier neighborhoods.

CP&DR Coverage: Fulton on Newsom's "Creative" New Infill Plan 
When Gov. Gavin Newsom announced on July 31 that he had signed an executive order to stimulate infill development, most of the publicity was around reforming building codes – and possibly finding a way to ditch the two-stairway requirement for apartment buildings, which YIMBY advocates say would significantly decrease the cost of multifamily housing. But buried in the executive order was a potentially far-reaching concept which, if it is successfully implemented, could have far-reaching consequences for California land use: the idea that infill housing can be a mitigation measure under the California Environmental Quality Act. It’s a creative idea. But it’s not really about infill housing. It’s about mitigating the impact of additional vehicle miles traveled on transportation project under SB 743. If it works, it would mean that transportation funds – state funds, local sales tax funds, and possible federal funds – would be used to build infill housing.

Quick Hits & Updates

A developer seeking to transform defunct properties once operated by the University of California San Francisco is pushing for the establishment of an Enhanced Infrastructure Financing District (EIFD) to facilitate the project. The EIFD is intended to support Prada Group's plans for redeveloping two significant sites in Laurel Heights: the former UCSF campus and the old California Pacific Medical Center, together adding over 1,300 new homes.

Los Angeles has extended the deadline for businesses to secure permanent permits under the “Al Fresco” program to December 31, 2024, due to complications in the application process. The extension aims to assist over 3,000 businesses struggling with new regulations. Mayor Karen Bass has urged city departments to simplify the application process and ensure all completed applications are reviewed and processed within 30 days.

Archer Aviation plans to launch its air taxi service in Los Angeles by 2026, using existing infrastructure at locations like USC, LAX and SoFi Stadium to provide quieter, multi-propeller flights over traffic. The company has received FAA clearance for commercial testing and aims to integrate its service with local airports and airlines, such as United and Southwest. While Archer intends to use underutilized existing facilities rather than build new ones, challenges such as regulatory approvals, electrification for charging and affordability remain.

A judge blocked San Diego County's Fanita Ranch -- a development project aimed at building 3,000 new homes, citing violations of the city’s general plan and state environmental laws due to its location in a high fire hazard zone. The court's decision invalidates the city's attempt to bypass a public vote, which was previously required by local voters. Environmental and wildlife groups view the ruling as a significant victory, reinforcing the protection of sensitive habitats and preventing increased wildfire risks.

The Moreno Valley City Council approved a plan to redevelop the Moreno Valley Mall, which will include over 1,600 new residential units, additional retail, office space, two hotels and a conference center. The redevelopment will utilize existing parking lot space and also involve renovating the mall’s interior and façade, including repurposing former retail spaces, with groundbreaking for the project anticipated to start in 2024.

The Insurance Commission is updating the state’s FAIR Plan, a fire insurance pool for homeowners who can't secure traditional insurance, to enhance affordability and reliability. These changes, prompted by Governor Newsom, include expanded coverage, improved financial stability, and greater transparency. (See related CP&DR coverage.)

San Francisco has proposed a ban on property management software, like RealPage’s YieldStar, which they claim inflates rents and hampers competition. The software’s algorithm suggests rental prices and discourages negotiation, contributing to rising rents and higher vacancy rates. The ordinance aims to address these issues and could become a model for other cities also affected by the software.

A new study by Michael Manville, a Professor of Urban Planning at UCLA’s Institute of Transportation Studies, argues against classifying vehicle miles traveled (VMT) solely as a cost, suggesting it could hinder effective transportation policy and lead to ineffective mitigation measures. The report advocates for improving urban infrastructure to reduce driving and implementing dynamic pricing for road use to manage demand better. Manville suggests that direct pricing and better capacity management are more practical and impactful solutions than the current VMT-based approach. (See related CP&DR coverage.)

YIMBY Law has launched a new dashboard to track compliance with Housing Element plans across California; the dashboard aggregates data from the California Department of Housing and Community Development and the US Census, providing a transparent tool for advocates and the public to monitor housing plan implementation. This initiative supports the Campaign for Fair Housing Elements, which seeks to ensure cities and counties fulfill their housing obligations.