State to Return Land to Paiute People in Owens Valley & Orange County
California's Department of Fish and Wildlife plans to return the historic Mt. Whitney Fish Hatchery, including over 40 acres of land in Inyo County, to the Indigenous Paiute people, marking the state's first land return to a California tribe, aligning with Governor Newsom's support for addressing tribal issues through initiatives like the Tribal Based Nature Solutions Program. The Fort Independence Indian Community of Paiute Indians, the land's original inhabitants, plans to preserve the hatchery and the land's ecosystem while making it accessible to the public, underscoring water's deep cultural significance for the Paiute. In a separate case, the Acjachemen and Tongva tribes secured 6.2 acres at Bolsa Chica Mesa, reclaiming ancestral territory in Orange County. The acquisition aligns with the LandBack movement's broader goal of restoring and safeguarding territories seized by the United States.

Transit Ridership Recovery Remains Mixed across California
Public transit ridership across most major U.S. cities remains notably lower than pre-pandemic levels, as highlighted by American Public Transportation Association (APTA) data. In California, Oxnard and Fresno experienced the highest levels of return, with 93% and 91% of ridership, respectively, in August or September 20203 when compared with 2019 levels. San Diego, Los Angeles and San Jose follow in ridership rates. San Francisco struggles with 51% public transit ridership, but with a 43% increase on their Muni Metro light rail network. This decline in public transit usage affects cities' overall well-being and vitality, impacting environmental cleanliness, accessibility for car-free individuals and urban space utilization. Efforts to revive transit ridership involve various strategies, including fare reductions or free rides, investing in new routes and infrastructure and adjusting routes based on evolving travel patterns post-pandemic. (See related CP&DR coverage.)

Reclaimed, Treated Water Could Contribute to California's Supply
The California State Water Resources Control Board is poised to approve regulations enabling the conversion of sewage into drinkable water, a process known as "toilet to tap." This landmark decision, expected next week, will impact various communities, including Santa Clara County, Los Angeles and San Diego, potentially providing a constant water supply amidst escalating concerns over climate-induced droughts. The proposed rules will allow highly treated sewage, after advanced purification, to return to the main water supply, promising top-tier water quality. Despite anticipated benefits, complete implementation may take years, pending administrative approvals, with coastal communities set to gain the most due to their wastewater discharge patterns. Public acceptance remains a challenge, with about one-third of the population expressing reservations, although experts believe growing awareness of water scarcity could increase receptivity. Rigorous purification methods underpinning direct potable reuse are expected to mitigate concerns about unknown contaminants, aligning favorably with existing indirect potable reuse systems, reflecting a broader shift towards sustainable water management in response to worsening climate-linked water challenges.

Legal Challenge to San Diego's Midway Rising Project Fails
A San Diego judge dismissed the final legal opposition to Measure C, paving the path for the Midway Rising redevelopment project in the Sports Arena area. The measure, passed by voters in 2022, eliminated the 30-foot coastal height restriction for the Midway District, encompassing the 48.5-acre Midway-Pacific Highway Community Plan area. San Diego Mayor Todd Gloria expressed joy over the ruling. Critics argued that lifting the restriction would obstruct coastal panoramas and lead to traffic congestion. Advocates countered that the development blueprint would be advantageous for the entire region. The Midway Rising initiative is expected to introduce over 4,000 housing units, a sports arena, a park and a district for entertainment and cultural arts.

CP&DR Legal Coverage: Beverly Hills Loses Big
A Los Angeles judge has suspended the City of Beverly Hills’ permitting authority because he found the city had not adopted a housing element compliant with state law. However, the Beverly Hills city attorney says the city has appealed the ruling and therefore it will not go into effect while on appeal. The stakes in Beverly Hills are high, as the city is currently dealing with 13 builder’s remedy applications totalling almost 1,300 units – projects that are likely to move forward with little review if the city’s housing element is deemed non-complaint by appellate courts. L.A. Superior Court Judge Curtis Kin ruled against the city back in September in a lawsuit brought by Californians For Homeownership, an arm of the California Association of Realtors. But on December 21, Kin suspended all of Beverly Hills’ permitting power, with the exception of home expansions, until the city adopts a housing element he deems compliant with state law.

Quick Hits & Updates

Real estate groups are challenging San Francisco's Empty Homes Tax, approved in November 2022 to prompt apartment availability and fund affordable housing, arguing it infringes on property rights. The lawsuit against Proposition M was allowed to proceed after a judge rejected the city attorney's assertion that the challenge was premature, permitting a response deadline for the property owners' claims by January 12.

The Bay Area faces significant housing cost challenges, with approximately one-third of households considered "cost-burdened," spending over 30% of their income on housing expenses, based on the American Community Survey. While the region's median income has risen, it doesn't necessarily benefit low-income individuals, leading to high rates of cost burden among Black and Hispanic households, with disparities exacerbated by rising housing costs.

The San Diego Association of Governments (SANDAG) initially considered five routes to relocate train tracks off the eroding Del Mar bluffs, then narrowed them down to two, but faced objections from residents. Now, amidst community concerns and disagreements with the Del Mar City Council and fairgrounds, multiple new potential routes are being considered, complicating the decision-making process for the project aimed at addressing safety concerns due to bluff erosion, with construction possibly commencing in 2028 and concluding by 2035.

Nonprofit organization Fix the City has initiated a lawsuit against Los Angeles city officials regarding a planned 33-bed homeless housing facility, citing violations of state and city law for not conducting an environmental study and bypassing a competitive bidding process. Despite the City Council's approval of the project to address homelessness in the area, Fix the City alleges legal infringements.

San Francisco's population, which faced a steep decline during the pandemic, has started to rebound, growing by around 1,400 people in the year up to July 2022 and by about 4,900 people in the subsequent year, reaching a total of roughly 848,000 residents. The recent increase in population reflects a shift, with more people moving into the city compared to those leaving, showing signs of recovery despite being smaller by approximately 22,000 people than mid-2020.

A new state analysis highlights a projected $6 billion decline in California's gas tax revenue over the next decade, mainly due to electric car policies and climate programs reducing gasoline and diesel sales. This decrease in funds, approximately 31%, poses a significant challenge to state transportation funding, potentially impacting highway programs, road maintenance and public transit unless substantial new funding sources are identified.

$70 million in federal funding has been allocated by the Bureau of Reclamation (BOR) for Salton Sea restoration, marking the first substantial federal funding for the Sea's stabilization and restoration. This funding aims to expand the Species Conservation Habitat Project, covering over 4,000 acres, mitigating dust emissions and rehabilitating the habitat at the southern edge of the Sea, crucial for environmental health and dust suppression.

LA Metro plans to acquire around 80 properties, including businesses and residences, to build the initial phase of the East San Fernando Valley Light Rail Project. The project, estimated at $3.7 billion, will stretch 6.7 miles between Van Nuys and Pacoima, requiring acquisitions for construction, electrical facilities and track-laying. Metro is offering cash incentives, up to a 20% bonus above appraised property value and increased relocation payments to expedite acquisitions, aiming for completion by 2030 with 11 stations connecting diverse communities.

A setback hit Rise Gold's efforts to reopen the Idaho-Maryland Mine in Grass Valley. Nevada County's Board of Supervisors denied the company's claim for vested rights to mine billions in gold, alleviating concerns among residents opposed to mining's return due to environmental impacts from the Gold Rush era. Rise Gold, facing an uphill battle to mine, is now pursuing a permit, a process requiring environmental scrutiny and board approval, although the Planning Commission has advised against it, highlighting the challenges ahead for the mining company.

The Los Angeles City Council approved District NoHo, a massive 15-acre mixed-use development near North Hollywood's Metro station, encompassing 1,481 residential units alongside commercial and office spaces, with a quarter designated as rent-restricted. Despite approval, concerns persist regarding the project's allocation of affordable housing, sparking criticism and advocacy from community members for a more substantial focus on affordable units within the development.