This article is brought to you courtesy of the paying subscribers to California Planning & Development Report. You can subscribe to CP&DR by clicking here. You can sign up for CP&DR’s free weekly newsletter here.
Norwalk's Refusal to Zone for Homeless Shelters Causes State to Impose Builder's Remedy
Governor Gavin Newsom called out the south Los Angeles County city of Norwalk's recent decision to extend its ban on new homeless shelters, stating that it is inhumane to prohibit such facilities while people live on the streets. In response to the city’s actions, state officials have invoked the "builder's remedy," which effectively prevents Norwalk’s from restricting large apartment developments in areas typically governed by local zoning laws, due to the city’s non-compliance with the Housing Accountability Act. The Norwalk City Council had initially voted to halt permits for shelters, citing public health concerns, but ignored warnings from state housing officials that the ban was illegal. Mayor Margarita Rios defended the ban, arguing for the need for better collaboration with the state, while local officials expressed frustration at being sidelined in the decision-making process. As Norwalk faces a requirement to plan for over 5,000 new homes by 2029, the state's intervention may lead to an influx of larger housing projects, challenging the city's existing zoning restrictions.
Los Angeles Metro Approves Region's Largest-Ever Transit Oriented Development
The Los Angeles County Metropolitan Transportation Authority (Metro) has approved a joint development agreement with NOHO Development Associates, LLC for a significant 11.8-acre project at the Metro North Hollywood Station. This development, named District NoHo, will be Metro's largest housing initiative, featuring a mix of affordable housing, retail, office space and public open areas. The initial phase includes approximately 570 mixed-income apartments, with a portion set aside for low-income residents earning less than 60% of the median income for the region. When fully completed, the project is expected to offer over 1,400 apartments along with more than two acres of publicly accessible space. This initiative aligns with Metro’s Vision 2028 Strategic Plan, which aims to create more affordable housing near transit to enhance accessibility and promote community development.
State Planning Think Tank OPR Gets Rebranded as Office of Land Use and Climate Innovation
The Office of Planning and Research has become the Governor’s Office of Land Use and Climate Innovation (LCI). Per a letter from LCI Director Sam Assefa, the office will continue to focus on equity, climate resilience, responsible land use, the California Environmental Quality Act, and grant funding for communities that have been historically underserved. LCI includes the State Planning and Policy Development, the California Strategic Growth Council, the California Racial Equity Commission, and the Governor’s Military Council. The name change also entails moving several programs and offices to new and existing state entities that better align with their individual missions and service areas. The California Jobs First program and the Zero-Emission Transit Roadmap have relocated to the Governor’s Office of Business and Economic Development, and the California Initiative to Advance Precision Medicine will be integrated into the Health and Human Services Agency. In addition, California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission are now all part of the Governor’s Office of Community Engagement and Volunteerism. (See related CP&DR coverage.)
Major Sutter County Development Akin to "a New City" Gets Key Approval
Sutter County Supervisors approved tract maps for parts of Sutter Pointe, a proposed development described as a "new city" that could accommodate approximately 17,500 homes in the southern part of the county, near Sacramento. Recent approvals allow developers to begin infrastructure work for housing designated for older adults, with plans for family homes anticipated to follow by 2028. The project woudl put housing on about 2,900 acres and commercial uses on 3,600 acres, with 1,000 acres left as open space. Many unresolved issues remain, especially concerning the impact on local schools due to an expected increase in student population. The development is strategically important as nearly 70% of Sutter County is in FEMA-designated floodplains, limiting other growth opportunities. While progress has been made, the project's future hinges on resolving negotiations with school districts to ensure adequate accommodations for new students.
CP&DR Coverage: November Local and Statewide Ballot Measures
Perhaps the most significant thing about state and local ballots in California this fall is what’s not on them. With the state bearing down on local governments over housing, for the first time in memory only one slow-growth measure is headed to the November ballot. It’s a significant change from past years, when an array of local measures limiting growth – and, in some cases, accommodating it – have appeared on the ballot. Also not on the ballot: A $20 billion Bay Area housing bond and a ballot measure in Solano County to permit the gigantic California Forever new town to move forward. Otherwise, there are big state ballot measures, including Prop 5, which would lower the voter threshold for local jurisdictions to float bons, and Prop 33, which is yet another attempt to strengthen rent control laws. There are a variety of local measures, led, as always, by San Francisco.
Quick Hits & Updates
The Los Angeles City Planning Commission has voted to prioritize new housing development in areas already designated for apartments, while largely preserving the existing single-family zones that make up about 72% of the city's residential land. This decision is part of a larger rezoning effort mandated by state law to accommodate over 450,000 new homes in the next five years and it has sparked debate between homeowner groups and housing advocates regarding the city's affordability challenges and the need for denser housing options.
The California Department of Housing and Community Development (HCD) released its 2024-2025 Notice of Funding Availability (NOFA) calendar, offering over $4.8 billion for housing and homelessness resources in the coming ten months. This includes funding from Proposition 1, the Behavioral Health Infrastructure Bond Act and programs for homeless assistance, as well as planned allocations for Tribal Entities totaling more than $190 million.
A new study out of UCLA looks at housing vacancy in Los Angeles, particularly focusing on the perceived issue of high vacancy rates in newly constructed market-rate and mixed-income housing, finding that the city's vacancy rates are among the lowest in the nation and have decreased over the past 15 years, with types of vacancies mirroring those in other areas. The research suggests that while measures like vacancy taxes could lead to slight reductions in vacancy rates, they would not effectively address challenges faced by overcrowded households, super-commuters, or future housing needs.
Brightline West, the high-speed train project connecting Las Vegas to Southern California, has secured the Federal Railroad Administration's approval of $3 billion in funding, paving the way for construction to begin in early 2025. Expected to cost around $12 billion and capable of reaching speeds over 200 mph, the train aims to alleviate traffic on Interstate 15, reduce emissions and create over 35,000 jobs, with daily operations projected to support about 1,000 jobs once operational by 2028. (See related CP&DR coverage.)
Santa Ana has approved the transformation of the Metro Town Square mall into a mixed-use development featuring thousands of homes, senior housing, retail spaces and open areas, a project expected to significantly boost the local economy. The Santa Ana City Council recently approved the initiative, which aims to create nearly 6,000 construction jobs and generate close to $11 million in new tax revenue, while also addressing state housing mandates.
A San Francisco DMV building will be redeveloped into a multi-use complex featuring 372 homes, including units for low-income families. This initiative is part of a broader effort to convert underutilized state-owned properties into affordable housing, addressing California's housing crisis while enhancing public services in a centrally located area near transit and amenities.
The Los Angeles City Council unanimously adopted a motion to reassess its rent control policies, which could lead to changes that favor tenants over landlords in determining annual rent increases. An independent report commissioned by the city found that current regulations often benefit landlords, suggesting potential reforms that could limit rent hikes and address the region's affordable housing crisis.
The Alameda Food Bank is facing a lawsuit from two community members aiming to halt construction of its new facility, raising concerns about the impact on its services for the community. Executive Director Teale Harden emphasized the potential risks of prolonged litigation, which could disrupt food distribution for over 1,200 families that the organization serves weekly.
The Federal Transit Administration has awarded an $893.3 million grant to the Los Angeles County Metropolitan Transportation Authority for a new light rail line in the East San Fernando Valley, which will span 6.7 miles and include 11 stations serving communities like Van Nuys and Pacoima. Expected to open in 2031, this project aims to restore train service to the area for the first time in 70 years, with a focus on community engagement and local hiring, while promoting sustainability through a solar power system to meet maintenance facility energy needs.
The Berkeley City Council approved an agreement with BART to develop hundreds of apartments, including over a third designated as affordable, at the Ashby BART station. The deal allows BART to utilize the west parking lot for construction while Berkeley will lease a smaller lot for development, although concerns were raised about the limited affordable housing and the potential displacement of Black residents in South Berkeley.
