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State to Support Newport Beach in Lawsuit to Limit Housing
The Orange County Superior Court has granted the Newsom administration and California Attorney General Bonta permission to file amicus briefs supporting the City of Newport Beach in a lawsuit over the city’s new housing plan. Last August, the nonprofit Still Protecting Our Newport filed a lawsuit against the city over the city council’s decision to approve steps needed for the implementation of the housing element without voter approval. SPON’s lawsuit argues that the approval of changes without a ballot initiative violates section 423 of the city charter, which requires voters to approve any decisions that would significantly increase development in Newport Beach, unless precluded by state law. The current element calls for the creation of 8,174 housing units, compliant with the state mandate for 4,845 new residential units through 2029. In the past, Newport Beach, and many other coastal cities, has been at odds with the state over the alleged burden of its RHNA numbers.
Supreme Court Ruling Could Limit Federal Environmental Review
On an 8-0 decision, the Supreme Court ruled to limit the power of the National Environmental Protection Act, claiming that it stifles projects developed by or in partnership with the federal government, particularly infrastructure projects. The ruling claims that NEPA has resulted in fewer, and most costly, developments than originally intended by the 1970 law. “A 1970 legislative acorn has grown over the years into a judicial oak that has hindered infrastructure development under the guise of just a little more process. A course correction of sorts is appropriate,” said Justice Brett M. Kavanaugh, speaking for the court, as reported in the Los Angeles Times. Like the California Environmental Quality Act, NEPA (which was inspired in part by a 1969 California oil spill) requires environmental review of certain projects and can be the basis for lawsuits by opponents of projects. California projects that could be hastened by the ruling include High Speed Rail and the Delta Conveyance Project. The case, TK, concerned a proposed rail spur in Utah. Despite the unanimous decision, the court's three liberal justices did not sign on to the ruling, indicating that they agreed with the narrow focus on the Utah project but do not believe the ruling should set precedent for other NEPA-related projects. (See related CP&DR commentary.)
Oceanside Joins Movement to Push Back against Warehouses
The Oceanside City Council voted 3-2 to overturn the Planning Commission’s approval of the Eddie Jones warehouse project. The 32-acre industrial site was previously home to a Deutsch Company electronics plant from 1966 to 2022, when it was demolished. Opponents of the project cited concerns over noise and air pollution, increased truck traffic, and the overall size of the development, which would be three times bigger than the Deutsch Company plant and sit 800 feet from the nearest houses. Proponents of the project argued that the increases in noise and pollution would be minimal, and the project would create 510 permanent jobs across different income and skill levels, in line with the city’s economic goals. (See related CP&DR coverage.)
Federal Reserve Study Suggests Looser Regulations Will Not Ease Housing Prices
A new study from researchers at the University of California and the Federal Reserve Bank of San Francisco questions the widely accepted idea that easing housing regulations will significantly lower home prices. By comparing housing growth and prices from 1980 to 2020 across various U.S. metro areas, the paper found that easier-to-build cities did not necessarily add more housing, even when demand increased. This challenges the argument that deregulation is the key to solving high housing costs, particularly in expensive regions like the Bay Area. Critics argue the paper’s methods are flawed, especially its reliance on total income as a measure of housing demand, which may not capture potential residents. While the study has sparked debate, experts caution against drawing conclusions from one paper and emphasize the need for broader, long-term research. (See related CP&DR coverage.)
San Francisco Explores "Family Zoning"
San Francisco's new Family Zoning Plan proposes large changes to the city's zoning codes to help meet the state-mandated housing goal of 82,000 homes by 2031. The plan would allow denser multifamily housing in more neighborhoods, particularly in the northernmost and western parts of the city, and promote development along transit corridors and commercial streets. The plan introduces new zoning categories, loosens density restrictions and aims to ensure equitable housing access while maintaining protections for small businesses and renters. The city plans to finalize the proposal through legislation and invites the public to provide input through hearings and events.
CP&DR Legal Coverage: Dodger Stadium Gondola Strikes Out in Court
In an unpublished ruling, an appellate court has found fault with the environmental impact report for the proposed aerial gondola from Los Angeles Union Station to Dodger Stadium and has ordered LA Metro to redo the EIR. The court found that LA Metro had not sufficiently analyzed noise impacts during the construction period and had failed to adequately consult with the Santa Monica Mountains National Recreation Area, which has jurisdiction over the natural resources in several parks that would be affected by the gondola. But the 119-page ruling was not all bad news for LA Metro, however. The court ruled that a land use inconsistency with the Los Angeles State Historic Park near Chinatown was easily resolved with an amendment to the park’s general plan. The court also said Metro had properly analyzed alternatives, including increased bus service from Union Station to the stadium.
Quick Hits & Updates
Via a recent vote, the Encinitas City Council is supporting a proposed state constitutional amendment that would return housing authority to local governments, aiming to rally other like-minded cities to join their effort. This local pushback highlights a growing movement among some municipalities to oppose pro-housing state laws, even amid lawsuits and rising homelessness in places like Encinitas.
The Department of Housing and Community Development revoked Fresno’s Prohousing Designation, citing multiple housing policies the city has not passed since the fall 2024 deadline. The Prohousing Designation gives cities and counties the ability to apply for millions of dollars in state housing subsidies and is given to cities and counties the state believes are doing a good job of addressing local housing needs. It is the first such revocation since the program began in 2021. (See related CP&DR coverage.)
Developer Paul Petrovich, who previously secured a $26 million settlement from Sacramento, is threatening legal action again after the city denied his request to build 61 single-family homes on land partially zoned for multi-family housing in Crocker Village. City officials and advocates argued the proposal conflicted with policies promoting diverse, transit-accessible housing, while Petrovich and some residents claimed the decision undermines community planning and violates state housing law. (See related CP&DR coverage.)
San Francisco officials are advancing a long-stalled plan to redevelop the historic but blighted Alexandria Theater into a new eight-story residential building with 75 homes, while preserving key architectural features. The proposal, backed by Supervisor Connie Chan, includes a three-year deadline for construction to begin and mandates that at least 12% of the units be affordable housing.
A Santa Barbara County judge has ordered Sable Offshore Corp. to pause all coastal construction and repairs tied to its offshore oil operations until the company secures proper permits from the California Coastal Commission. This comes after Sable resumed oil production near Refugio State Beach, sparking backlash from environmentalists and regulators.
New data from the Bay Area Council business association’s Return to Office survey shows more Bay Area workers are returning to the office but most are choosing cars over transit for their commute. While rush hour freeway congestion has returned to pre-pandemic levels, BART is serving 170,000 trips each weekday, down from 400,000 pre-pandemic. Experts posit that the increasing prevalence of hybrid work schedules and flexible hours post-pandemic is changing how commuters use transit.
The Lompoc City Council adopted an ordinance to decrease development impact fees for new residential projects from $40,000 to $3,100 per unit to encourage construction of new housing. The move comes as Lompoc attempts to increase its housing supply and attract new development, and Council members stressed the necessity of increasing the housing supply to meet the needs of working families.
A report out of UC Berkeley’s Terner Center finds that California's affordable housing development process is hindered by the complex "stacking" of multiple funding sources, which increases costs and delays construction. The report recommends consolidating housing planning functions and standardizing applications to improve efficiency, a proposal that aligns with Governor Newsom’s plan to streamline housing efforts.
Gov. Newsom is pushing for a trailer bill to expedite the Delta Conveyance Project, a $20 billion water rerouting plan, by shortening judicial reviews and eliminating construction deadlines. The project, which has faced opposition from environmental and delta lawmakers, aims to address California’s future water supply challenges, but critics argue it is costly and ineffective, while water agencies supporting the project see it as crucial for securing future water supplies.
Once a hub of downtown San Diego, Horton Plaza is now facing foreclosure as ambitious redevelopment plans by Stockdale Capital Partners to turn it into a "technology hub" have stall edamid rising costs and debt. The future of the site remains uncertain. (See related CP&DR coverage.)
