Federal Government Contributes to Two California High Speed Rail Projects
Two high speed rail projects in California received Federal Railroad Authority grants totaling over $6 billion. A grant of $3 billion secured by Brightline West, a private company, propels the high-speed rail project from the Inland Empire to Las Vegas, expected to be operational by 2028, coinciding with Los Angeles' Olympic Games. The $12 billion project will connect Rancho Cucamonga to Las Vegas in just over two hours, and featuring stops in Hesperia or Apple Valley. Utilizing a wide Interstate 15 median, the company behind the project already possesses federal permits, labor agreements and the required land for construction, set to commence in early 2023. While Brightline did not secure the full $3.7 billion it sought, the grant ensures the project's progress, intended to serve as both a luxury tourist train and a transportation link between Southern California and Las Vegas. The California High Speed Rail system received $3.1 billion to contribute to the Bakersfield-Merced segment currently under construction. The grant brings total funding to around $27 billion; the segment is expected to cost $33 billion.

San Francisco Takes Action to Streamline Housing, Promote Small Businesses
Ahead of an upcoming state housing deadline, San Francisco's Board of Supervisors adopted a number of reforms this week, including Mayor Breed's ordinance to streamline procedures for small businesses to establish themselves within the city and a housing reform package including protections for rent-controlled and historic buildings. The package includes safeguards for historic buildings and rent-controlled units following the city's failure to meet the initial deadline for residential development rule reforms mandated by the California Department of Housing and Community Development. The ordinance encompasses more than 100 updates to the planning code, primarily easing restrictions on new bars and restaurants in specific neighborhoods, offering flexibility in retail space usage, and expediting the launch process for certain businesses. Additional approved amendments to Mayor London Breed's reform package include safeguards for pre-1923 single-family homes, protection for rent-controlled units from demolition in favor of market-rate projects and the preservation of historic buildings, passing with an 8-3 vote. Breed also introduced an amendment preventing the demolition of rent-controlled units, initially allowing vacant rent-controlled units to be replaced for denser developments.

Sacramento Makes Good on Promise to Upzone
Having promised to upzone significant swaths of the city's residential neighborhoods, the Sacramento City Council formally adopted a housing reform plan that allows diverse housing units in single-family zones, hoping to address the city’s housing crisis. Referred to as the "Missing Middle Housing Plan," it permits the construction of duplexes, triplexes and bungalows within neighborhoods, aiming to increase housing diversity while maintaining the area's character. Sacramento Mayor Steinberg emphasized the initiative's potential to accommodate multiple households on lots initially designated for single-family homes, offering a solution to the housing scarcity that has been under consideration since 2018. The plan seeks to rectify historical zoning practices that enforced discrimination, fostering economic diversity across neighborhoods and mitigating segregation persisting to this day. Expected to roll out in 2025, this plan eliminates restrictive zoning to enable more multifamily units while hoping to uphold the essence of local neighborhoods, aligning with the council's efforts to increase housing density. (See related CP&DR coverage.)

Analysis Finds Massive Deposits of Lithium at Salton Sea
 The U.S. Department of Energy's analysis of the Salton Sea suggests it holds substantial lithium reserves, potentially yielding enough for over 375 million EV batteries. This domestic source aligns with the nation's goals of a net-zero emissions economy by 2050 and a 50% electric vehicle adoption by 2030. Despite these promising prospects, companies like Berkshire Hathaway and EnergySource are facing delays in launching commercial lithium production in the region, hindering immediate progress. Efforts to extract lithium from geothermal brines must adhere to responsible practices to mitigate environmental concerns such as water usage and seismic activity. Overall, the report underscores the importance of implementing proper monitoring and mitigation measures to minimize adverse impacts while leveraging renewable energy sources for sustainable lithium extraction.

New Map Helps Track Affordable Housing Funding Statewide
The California Housing Partnership released its Affordable Housing Map & Benefit Calculator as a tool to map the state's federal- and state-subsidized housing efforts, and those efforts' correlations to the quality of life for residents and surrounding communities. It also released a study on the 324,000 Naturally-Occurring Affordable Homes at Risk in the State. The map quantifies the social, economic and environmental benefits of affordable housing to local economies, individuals and families and taxpayers writ large. The California Housing Partnership established the tool to allow residents to learn where affordable housing is located, as well as the benefits of that housing for future or proposed affordable housing projects. The data on the "naturally-occurring" affordable homes at risk in the state studies the homes – due to location or other market factors – which offer rents naturally affordable to low-income residents. Statewide, these homes surpass the number of state-subsidized affordable homes by almost 400,000. Without oversight, data suggests these naturally-occurring affordable homes will become extinct in the coming years. The study also found 120,000 affordable homes lost their status as naturally-occurring affordable homes in 2020 by pricing out of the rent cap.

CP&DR Coverage: The Complex Economics of Density 
Among the 200-odd housing-related laws that the California has enacted since 2015, many – if not most -- were designed to increase density in one way or another. Some laws encourage housing units where now there are only big boxes and offices. Some encourage developers to build higher in exchange for housing lower-income residents. Others literally put new housing in people's backyards, by way of accessory dwelling units. Patrick Condon, a Vancouver-based planner and professor predicts, provocatively, these laws may simply lead to more expensive housing -- calling into question one of the fundamental orthdoxies of YIMBYism. And yet, writes CP&DR's Josh Stephens, most of Sacramento's incursion on their sacred right to self-determination, if every housing-constrained region and jurisdiction in the state has to upzone, then it might get an economy of scale, and it might meet aggregate demand.

Quick Hits & Updates

Silicon Valley backers behind the potential new city dubbed "California Forever" faced opposition from locals at a recent town hall. Solano County residents criticized the secretive land grab, opposing the investors' vision of a dense city. The California Forever project aims to create jobs and housing but faces criticism for potential habitat and cultural impacts, triggering legal disputes and concerns over community consultation. Separately, leaders from the Sierra Club and other groups held a rally opposing California Forever's plans for a new city in Solano County, citing concerns about agricultural land loss and the initiative's impact on farmland. (See related CP&DR coverage.)

The City of Los Angeles has secured around $93.5 million for providing shade, focusing on building additional bus shelters and other shade installations, to combat extreme heat in areas like the San Fernando Valley. This funding aims to add thousands of bus shelters and shade structures over ten years, recognizing the dangers posed by high temperatures and the necessity for shaded spaces, particularly at bus stops, for public health and equity reasons.

Oakland is implementing changes in its building permit process, aiming to automate 70% of permits by year-end, particularly for smaller residential or commercial projects, allowing immediate online application, payment and permit availability. While this shift may not directly impact larger developments, proponents anticipate it will alleviate staff workload, focusing attention on more critical reviews. The city aims to enhance the "customer experience" for permit applicants by streamlining processes, introducing new digital tools and appointing a citywide official to oversee the permit streamlining efforts.

The development project called "The Rise" at the old Vallco Mall in Cupertino has undergone significant revisions, increasing the number of residences to 2,669 while reducing overall space and commercial square footage to adapt to changing market conditions. The aim is to create a new downtown area in Cupertino, fulfilling housing obligations and offering a dynamic retail environment, potentially commencing construction by late 2024 or 2025. (See related CP&DR coverage.)

The Los Angeles City Council adopted a new law mandating police permits for short-term rental and hotel operators to address concerns over party houses and illicit behavior. Despite the council's unanimous vote, some members expressed worries about increased police workload. Critics questioned the necessity of the police permit, citing its potential impact on small businesses, while proponents highlighted it as a measure to tackle housing issues and ensure safety.

Redco Development plans a three-building high rise project in Palo Alto, proposing 382 dwellings and commercial space on the current Mollie Stone's supermarket site. The development utilizes the contentious provision called "builder's remedy" to bypass local zoning restrictions, aiming for towers as tall as 17 stories--twice as tall as neighboring projects and at densities far beyond existing city limits.

Backers in Oakland plan to launch a minor league baseball team called the Oakland Ballers to provide the city with its own professional baseball team amid the potential departure of the Athletics. The goal of the new team is to galvanize community ownership and fan engagement, inspired by the success of the Oakland Roots, while moving forward independently of the A's, potentially starting their inaugural season in 2024, potentially prior to the A's departure. (See related CP&DR coverage.)

A group in San Mateo aims to designate the Baywood neighborhood as historic, potentially exempting it from the housing development law SB9, which allows up to four residential units on a single-family lot. Residents seek to preserve the Spanish Revival homes, while critics argue that historic designation could hamper housing density in walkable areas. The controversy intensified when a family's plan to replace a house was met with opposition, sparking discussions on race, housing rules and loopholes in California's housing laws like SB 9, the "duplex law."

The California Supreme Court's decision not to review the Measure C ballot measure for San Diego's convention center expansion means ongoing delays as the case goes back to the San Diego County Superior Court to determine if it qualifies as a citizens' initiative. Measure C, which sought to increase the hotel tax for convention center funding, faces legal contention over its status as a citizen-led initiative, with continued legal battles expected. (See related CP&DR coverage.)