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Newsom Issues Streamlining Order for Wildfire Rebuilding
Gov. Newsom issued an executive order to accelerate the development of temporary housing for residents displaced by recent wildfires in and around Los Angeles. The order simplifies the approval process for accessory dwelling units (ADUs), allows temporary trailers on damaged properties and waives fees for mobile home parks, while authorizing the use of fairgrounds for emergency shelter. It also temporarily suspends certain environmental and zoning regulations, such as CEQA and Coastal Act rules, to speed up rebuilding, provided new structures do not exceed the size of those lost. Additional actions aim to prevent price-gouging, protect displaced students and restrict opportunistic land purchases in affected areas. These initiatives are designed to provide swift support to those impacted and ensure fair treatment during the recovery period.

State Allocates $2.5 Billion for Wildfire Recovery
The legislature passed, and Gov. Newsom signed, bipartisan legislation allocating $2.5 billion in state aid to wildfire recovery in Los Angeles County, covering efforts such as evacuations, debris removal and environmental testing. The funding comes from a state emergency reserve account, with hopes of reimbursement from FEMA, following a federal funding pledge by former President Biden. These wildfires, which began on January 7, have caused 28 deaths, destroyed over 16,000 structures and forced students from affected schools into remote learning. Newsom emphasized the urgency of providing immediate financial resources to help rebuild devastated communities. Legislative leaders highlighted the importance of bipartisan collaboration in addressing this monumental emergency response.

Bonta Sues City of Tulare over Industrial Zoning
Attorney General Rob Bonta filed a lawsuit against the City of Tulare, challenging its Zoning Ordinance Update that permits cold-storage facilities and other industrial developments by-right, bypassing environmental reviews required under the California Environmental Quality Act (CEQA). These facilities, which emit harmful pollutants like diesel particulate matter from refrigeration units, pose significant health risks, including cancer, to nearby communities like Matheny Tract, a historically marginalized area with high pollution burdens. The lawsuit contends that Tulare violated CEQA and its own General Plan by failing to assess health risks, mitigate environmental impacts or conduct proper environmental reviews. Attorney General Bonta emphasized the importance of prioritizing the health and well-being of Matheny Tract residents, who are disproportionately affected by pollution and other environmental harms. The legal action seeks to hold the city accountable and ensure compliance with state environmental laws.

San Francisco Envisions Major Development on Former Railyard
San Francisco’s Caltrain 4th and King railyard, a 20-acre site at the junction of Mission Bay and South of Market, could soon become a major transit-oriented development hub, featuring a cluster of high-rise buildings, including a proposed 850-foot tower. Property owner Prologis is preparing an application for the project, which is part of a larger $8.25 billion downtown rail extension called the Portal that to transform the area into a dense, mixed-use district with thousands of housing units, office spaces and improved transportation links. The development would help fund a new train station and potentially underground rail extensions, supporting Caltrain's growth and the city's housing needs. While some local projects are stalled, planners are optimistic about the long-term potential of this railyard, citing its prime location and connectivity to transit. The plan also envisions a public park, retail spaces and a revitalized urban environment, although details about the number of buildings and units are still being finalized.

CP&DR Coverage: Los Angeles Housing Plan Increases Density. Sort of.
In a departure from the actions other major cities in California, the Los Angeles City Council voted on December 10 to approve a citywide upzoning designed to meet L.A.’s housing targets – but didn’t touch single-family zoning. Vince Bertoni, the city’s planning director, recently said Los Angeles has accounted for 80% of recent housing construction in Los Angeles County. The Citywide Housing Incentive Program, or CHIP, includes a “mixed-income incentive program,” which encourages mixed-income but “low scale/low rise” housing designed to create a transition along major corridors between high-rises and single-family neighborhoods, as well a 100% density bonus for restricted affordable housing in certain locations.

Quick Hits & Updates

The Santa Barbara County Association of Governments (SBCAG) will fund a pilot commuter train service in partnership with Metrolink regional rail system starting in October to connect Ventura and Santa Barbara counties, aiming to alleviate heavy traffic for the 11,000 daily commuters. The new service avoids previous logistical issues by starting in Moorpark and offering flexible ticketing, subsidized fares, and integration with bus services.

The Tahoe Regional Planning Agency (TRPA) approved provisions for a major redevelopment plan at Homewood Mountain Resort, allowing the resort to move forward with plans to reopen next winter. The plan calls for a new gondola, a hotel, and development of a village at the mountain's base, including 100 housing units. Despite ongoing concerns from locals about making the resort into a private club, Homewood has committed to maintaining public access to the ski area, with penalties for non-compliance, while the resort's development could take up to 10 years to complete.

House Republicans have proposed rescinding $200 million in federal funding for the rehabilitation of San Francisco's Presidio, which was allocated in the Inflation Reduction Act of 2022. The funds were designated for addressing deferred maintenance and climate resilience projects at the park, but the GOP's draft budget cut list aims to reverse this and other conservation funding, drawing criticism from Pelosi and park advocates who argue it would delay vital infrastructure improvements.

The leader of the Cal Exit Now movement, Fresno-based Marcus Ruiz Evans, revived his campaign for California secession after receiving approval to begin collecting signatures for a 2028 ballot measure. If successful, the measure would ask voters whether California should leave the U.S., potentially triggering a report on California’s ability to govern itself, although secession would ultimately require a constitutional amendment, a process that is highly unlikely to succeed.

President Trump issued a directive aiming to reinstate 2019 water regulations that prioritize diverting water from the Sacramento-San Joaquin Delta to Southern California and San Joaquin Valley farms, sparking criticism from environmental groups and state officials. The Biden and Newsom administrations contended that their updated plan balances ecological protections with water supply needs and delivers more water to Southern California than Trump’s rules, which faced accusations of harming endangered species and misunderstanding California’s water system.

Fresno's City Council narrowly approved a long-stalled property tax-sharing agreement with Fresno County, marking a significant shift in local development policy. The deal, passed 6-1, aims to boost city revenue and reduce development restrictions while incentivizing growth in the Southeast Development Area (SEDA), increasing Fresno’s share of property taxes from annexed areas, potentially generating millions annually. However, concerns linger about infrastructure costs and the financial sustainability of large developments.

Assembly Bill 226, introduced this last week by two assemblymembers, aims to stabilize California's FAIR Plan by allowing it to issue catastrophe bonds in the event of liquidity challenges after major disasters like wildfires. This legislation is designed to ensure that homeowners covered by the FAIR Plan can rely on their insurance to pay claims during recovery efforts. (See related CP&DR coverage.)

The California Department of Housing and Community Development updated its ADU Handbook to reflect new laws going into effect this year. Recent updates to California's ADU (Accessory Dwelling Unit) laws make it easier for homeowners to build or permit ADUs, including clarifying rules around unpermitted ADUs built before 2020 and allowing up to eight detached ADUs on properties with multifamily dwellings. The changes also include updates to government code sections, require local agencies to inform the public about ADU permit processes and relax parking and development standards for certain ADUs.

The Hollister Guardians Action group is collecting signatures to launch a referendum to reverse the Hollister City Council's adoption of the 2040 General Plan, which includes expanding the city's "sphere of influence" by 3,000 acres to accommodate future development. The group argues that the plan bypasses Measure A, which requires voter approval for changing land use designations in unincorporated areas.

The U.S. Environmental Protection Agency has denied a request to designate the Tijuana River Valley as a Superfund site, stating that pollution levels in the area do not pose a significant health threat based on available data. Local officials, including those from Imperial Beach and National City, expressed disappointment, citing worsening pollution and the lack of recent sampling to assess the current environmental impact.