State Releases $789 Million for AHSC Projects
The state will allocate nearly $789.8 million in cap-and-trade funds to support 24 projects across 20 communities, aiming to build 2,483 new affordable homes and enhance infrastructure. This investment, part of the Affordable Housing and Sustainable Communities (AHSC) program, will also fund sustainable transportation initiatives such as zero-emission transit vehicles, new bus shelters and extensive bikeways and sidewalks. The AHSC program aims to integrate housing and transportation improvements to reduce greenhouse gas emissions and meet climate targets. This latest round of funding is the eighth and largest under the AHSC program, which has collectively invested $3.8 billion to date. The initiative also aligns with Governor Newsom's broader efforts to address homelessness and promote affordable housing, including recent executive orders and reforms. These projects are expected to significantly contribute to both affordable housing availability and environmental sustainability in California.
Davis, Berkeley Lead Among California’s Bicycle Ratings
In the 2024 PeopleForBike’s annual City Ratings, California cities performed well, particularly among medium and large cities. Davis and Berkley were highlighted as top medium-sized cities for bicycling with scores of 78 and 71, respectively. In the large cities category, San Francisco achieved a score of 64, making it one of the top-performing large cities in the U.S. for cycling. Among the state’s other large cities, Los Angeles ranked in the 54th percentile, San Diego in the 68th, San Jose in the 70th, Sacramento in the 71st, and Fresno in the 38th. The City Ratings program evaluates cities using the SPRINT criteria, which accounts for safe speeds, protected bike lanes, reallocated space for biking and walking, intersection treatments, network connections, and trusted data.
Report Cites California’s Extreme Disparity between Wages, Housing Costs
The National Low Income Housing Coalition released its newest Out of Reach report, detailing the disparity between wages and the cost of rental housing in the U.S. In 2024, the National Housing Wage — an estimate of the hourly wage a full-time worker must earn to afford a modest rental home without spending more than 30% of their income — is $32.11 for a two-bedroom rental $26.74 for a one-bedroom rental, which is significantly higher than federal or state minimum and median wages for most occupations. California has the highest housing wage average at $47.38, and is home to the eight of the ten most expensive jurisdictions, where the two-bedroom rentals range between $51.62 in Napa County and $77.96 in Santa Cruz County. This means that to afford a Two-Bedroom Fair Market Rent in California, a worker earning minimum wage would need to work 3.0 full time jobs and renters earning the estimated hourly mean renter wage of $30.93 would require working 1.5 full-time jobs.
Congress Considers Bill to Limit Corporate Homeownership
A new Senate bill, introduced by Minnesota Senator Amy Klobuchar and Ohio Senator Sherrod Brown along with eight other Senate Democrats, would require institutional investors buying homes in bulk to report these purchases to federal regulators. An estimated 2% of single-family homes statewide are owned by institutional investors. The Housing Acquisitions Review and Transparency (HART) Act would amend the Clayton Antitrust Act to include residential real estate, addressing concerns over market consolidation by large corporate landlords, such as Blackstone Inc., along with other private equity firms and real estate investment trusts. The bill seeks to enhance transparency and protect consumers by giving the Federal Trade Commission and the Justice Department the ability to review and block large transactions that could drive up housing prices. Despite lacking Republican support, the bill could address concerns over the influence of institutional investors in the housing market, especially in the Sun Belt. Neither California senator is a cosponsor. Two similar state bills, AB 1333 and AB 2584, are being considered by the Legislature.
CP&DR Coverage: California's Lesson for Las Vegas
Nevada Gov. Joe Lombardo has called for the Biden administration to open 50,000 acres of desert to development around Las Vegas so Nevada can add as many as 335,000 homes. The situation Las Vegas faces today, writes CP&DR's Josh Stephens, is a version of the one that most of California's major urban areas faced decades ago: constraints to growth. San Francisco has been hemmed in since the Victorian Era, and Oakland has always been squished between mountains and bay. In Los Angeles, "sprawl hit the wall" in the 1980s. Even the Inland Empire cannot gallop as it once did. In each case, mountains, coastlines, other cities, and, yes, protected open spaces have forced cities to grow through density rather than expansion. Las Vegas could be more dense. It could be more efficient. It could be both inexpensive and attractive. It could take a cue from all the ersatz historicism that it's famous for, accept the gift of artificial constraints, and consider a new approach to urbanism. In short, with a little imagination--real imagination, not just spectacle--southern Nevada could learn from the lessons that California so vividly teaches.
Quick Hits & Updates
A Canadian real estate firm Onni is suing Nexstar Media Group for $30 million, claiming it is owed its deposit following a failed $95 million deal for the 222 West 2nd Street property in Downtown Los Angeles. Onni alleges that material misrepresentations and a significant change in the property's planned use—now designated for homeless housing—invalidated their interest, compounded by undisclosed additional requirements for coordinating with Metro’s future plans.
Tribal leaders from the Yocha Dehe Wintun Nation and the Kletsel Dehe Wintun Nation are urging the Department of Interior to reject the Scotts Valley Casino proposal, arguing that it threatens their ancestral lands, cultural sites and sovereignty, and raises environmental and transparency issues. The Scotts Valley Band of Pomo Indians, who propose the casino project, argue it is crucial for their economic development and self-sufficiency, but face opposition due to concerns about environmental impact and inadequate tribal consultation.
Costa Mesa has adopted new affordable housing requirements for apartment developments of 50 units or more, mandating that 4% to 10% of units be set aside as affordable based on the development's density and affordability level, with an alternative option for developers to pay an in-lieu fee. This policy aims to balance the need for affordable housing with encouraging new construction, while other Orange County cities like Irvine and Newport Beach have similar requirements.
San Diego County launched an interactive website and map to help residents find affordable housing developments funded by the county, featuring details on income limits, eligible populations, unit sizes and links to developers. This tool, part of the County’s Housing Blueprint, consolidates information on existing and under-construction properties, including direct links to application processes and waiting lists, in response to the regional housing crisis.
The Bureau of Land Management imposed a 50-year ban on new mining activities in over 2,800 acres of California's San Bernardino National Forest, safeguarding habitats for four endangered plant species. These plants, including Cushenbury buckwheat and Parish’s daisy, are exclusive to the national forest due to the rich calcium carbonate found in the soil, the same material mined for construction and agriculture.
Workers have breached the final dams on the Klamath River, marking a significant milestone in the largest dam removal project in U.S. history and restoring salmon access to their historic spawning grounds for the first time in over a century. The project, costing around $500 million, aims to revive the river's ecosystem, though it may take time for salmon to fully return and the river to recover from a century of disruption.
State Superintendent of Public Instruction Tony Thurmond launched a statewide effort to accelerate housing development by utilizing the significant amount of developable land owned by California’s local education agencies (LEAs). Combined, California LEAs own 75,000 acres of developable landExternal link opens in new window or tab, providing the potential to create an estimated 2.3 million new housing units throughout the state.
The Anaheim City Council is considering establishing a new housing trust fund to address poverty and rent spikes, with details still being developed by city staff. The fund could receive contributions from various sources and may support initiatives beyond affordable housing, hoping to alleviate housing affordability challenges in the city.
California Attorney General Rob Bonta is continuing to pursue legal action against Elk Grove despite the city's settlement with an affordable housing developer, indicating that the city may have violated housing laws.
The Santa Clara Valley Water District is considering a seawater desalination plant to address water needs in Silicon Valley, having approved a $1.7 million feasibility study for the project. The proposed plant could process between 20 to 80 million gallons of seawater daily, providing between 10 million and 40 million gallons of freshwater, enough for between 100,000 and 500,000 households yearly. The plan, which faces potential environmental opposition and high costs, aims to explore the viability of desalination as a new water course for the region, amidst concerns about its expense and environmental impact.
The Pacific Forest Trust has acquired 11,000 acres at the headwaters of the Trinity River for $15.5 million to safeguard the course of the Trinity Reservoir, a crucial part of California’s water supply. The land, purchased from a timber company and transferred to the Watershed Research and Training Center, will be managed under a conservation easement to maintain its natural and productive state. The purchase was funded by the California Wildlife Conservation Board, the U.S. Department of Housing and Urban Development, and the Sierra Nevada Conservancy.
The California High-Speed Rail Authority appointed Ian Choudri as its new CEO, succeeding Brian Kelly, who is retiring after six years. Choudri, currently a Senior VP at HNTB Corporation, brings over 30 years of experience in transportation and has worked on high-speed rail projects in France and Spain.
