Oakland Downtown Plan to Facilitate 29,000 New Housing Units
The Oakland City Council adopted the Downtown Oakland Specific Plan (DOSP), its first comprehensive plan for the area, which integrates racial equity into its vision and implementation. The plan calls for the development of over 29,000 housing units -- potentially representing 10% of the city's population -- including more than 7,200 affordable units. It covers a broad area from the Jack London District to Lake Merritt and will guide development through increased housing, job creation, public service improvements, local business support and enhanced safety measures. The DOSP emphasizes cultural preservation, climate resilience and community connectivity, particularly focusing on addressing historical disparities and modernizing the downtown area. It includes amendments to zoning regulations and planning codes to support its goals, such as encouraging affordable housing and public space improvements. City officials and stakeholders have praised the plan for its ambitious objectives and community-centered approach, aiming to revitalize and unite Oakland’s diverse downtown. (See related CP&DR coverage.)
Federal Government Contributes $5.1 Billion to BART Extension
The Santa Clara Valley Transportation Authority (VTA) will receive a $5.1 billion federal grant to help complete the BART extension to San Jose and Santa Clara, marking the second-largest transit-related grant in U.S. history. Despite this significant funding, the project remains $700 million short of the total needed, with officials seeking additional funds before federal money is released. The BART extension, which aims to enhance regional connectivity and support economic growth in Silicon Valley, has faced several delays and a soaring budget, now estimated at $12.7 billion, with the opening date pushed to 2037.
Developer Purchases Former Sacramento Kings Arena Site
Argent Development, based in Costa Mesa has acquired the 129-acre site of the former Sacramento Kings arena (best known as the Arco Center), moving closer to starting its 183-acre Innovation Park master-planned community in Sacramento's Natomas district. The site sold for $75 million and will now be a part of a development that includes 2,500 housing units, with 10% designated as affordable housing. Infrastructure work is expected to start in 2025, with residential lots available by mid-2026, and will feature a medical campus, a K-8 school, and commercial spaces. (See related CP&DR coverage.)
Newport Beach Housing Element Update Avoids Need for Ballot Measure
The Newport Beach City Council recently amended its general plan to facilitate new housing development, avoiding a potential November ballot measure that could have resulted in non-compliance with state housing laws. The approved plan aims to add 8,174 residential units by 2029, exceeding the state’s requirement of 4,485 units, with possible density bonuses for affordable housing. Despite significant community opposition and concerns about infrastructure strain, the city council chose this approach to meet housing mandates while avoiding conflicts similar to those experienced by neighboring cities such as Huntington Beach.
CP&DR Coverage: Court Rules in Favor of Infill Developer
In an ongoing dispute among commercial neighbors in Lafayette, a condominium developer appears to be besting an adjacent office building owner. Most recently the city got the go-ahead from an appellate court to use the infill exemption contained in the California Environmental Quality Act because the site doesn’t qualify for – in CEQA parlance – an exception to the exemption. Building on the Berkeley Hillside case and other cases, the ruling appears to make it more difficult for project opponents to use the "unusual circumstance" exception to the infill exemption. The case came down to the dueling biologists – and which biologist made a more convincing legal argument to the appellate court. The case was originally unpublished but has now been published by the appellate court.
Quick Hits & Updates
San Francisco voters may face a ballot measure to create an "affordable housing opportunity fund," which would allocate up to $8.2 million annually to subsidize rents for the city's poorest residents starting in 2026. This initiative aims to address the gap where even affordable housing remains out of reach for those earning less than 35% of the median income, amidst insufficient existing rental subsidies.
The Department of Housing and Community Development's praised San Francisco for implementing several reforms to streamline housing development and align with state laws. Key actions include reducing bureaucratic hurdles, accelerating review processes and enhancing transparency, which collectively aim to increase housing production and lower barriers for building across all income levels.
In November, South Pasadena voters will decide on the Neighborhood Preservation & Local Control Measure, which proposes increasing building heights in select corridors to address affordable housing needs while preserving single-family neighborhoods. Critics argue that the measure, which results from a legal settlement requiring the repeal of a three-story height limit, may threaten existing affordable housing and displace renters without ensuring new affordable units. The city's efforts to promote the measure through a $54,000 educational campaign are seen by some as biased advocacy, potentially overlooking the adverse impacts on vulnerable residents.
Beverly Hills developer Leo Pustilnikov has agreed to purchase 17 buildings from the financially troubled Skid Row Housing Trust for $10 million, with the transaction requiring judicial approval next month. This acquisition includes 1,200 units of supportive housing for formerly homeless individuals and Pustilnikov, who is leading the state's largest builder's remedy project in Redondo Beach, plans to partner with the nonprofit Hope the Mission to ensure ongoing social services for tenants while addressing necessary renovations. (See related CP&DR coverage.)
The LA Metro A Line light rail extension received approximately $500 million in state funding from CalSTA, marking a pivotal step towards constructing a 3.2-mile light-rail extension from Pomona to Claremont and Montclair in San Bernardino County. This project is expected to cost $798 million in total and be completed by 2030.
In September 2023, Oakland saw the largest rent decline among the 100 biggest U.S. cities, with one-bedroom rents falling 7.2% to $1,430—the lowest since 2017—and a vacancy rate of 9.4%. This drop reflects broader trends, as 71 of the top 100 U.S. cities experienced rent reductions including San Francisco where rent also decreased by 4.1%.
San Diego approved nearly 9,700 new homes in 2023, largely due to developer incentives, increased approvals for accessory dwelling units, and programs like Complete Communities, according to officials. Despite this surge, the city remains far behind state-mandated housing goals, especially for low-income housing.
The California Department of Housing and Community Development released updated guidelines for the Surplus Land Act (SLA) and a new Dashboard that tracks housing units “unlocked” through the SLA. The Act aims to make unused public land available for affordable housing development and has unlocked 28,419 housing units, including 16,773 affordable ones since 2021.
The Sonoma County Board of Supervisors has approved the project scope and next steps for constructing a $308 million, 200,000-square-foot government center on the current County campus in Santa Rosa. The new center will house 800 to 1,000 employees and include redevelopment space for up to 1,000 housing units, with a focus on affordable housing. The project will replace a deteriorating government center from the 1950s and is expected to be completed by the end of 2026, with further design and environmental analysis to follow.
The long-delayed 280-acre redevelopment project at Candlestick Point may finally begin construction next year. Awarded entitlements in 2010, Irvine-based FivePoint Holdings is planning a massive mixed-use development in conjunction with the neighboring 500-acre San Francisco Naval Shipyard at Hunters Point. The original plan envisioned a total of 10,000 new homes and over 5 million square feet of commercial space, with most of the commercial development focused on the Hunters Point area.
