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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 . State Aims to Place 7.5 Million Acres under Tribal Stewardship California intends  to place at least 7.5 million acres of land and coastal waters, about 7% of the state, under Indigenous tribal stewardship, reflecting land that was originally promised to tribes in 1850 but never delivered after Congress secretly rejected treaties. The Natural Resources Agency created this policy aimed to repair historical harms by expanding tribal access to ancestral lands and restoring cultural and environmental practices that harmed the tribes as well as the ecosystems. It establishes three types of agreements: access agreements for cultural use, collaborative agreements for shared land management, and land return agreements that transfer ownership back to tribes. These frameworks would allow tribes to revive traditions like cultural burning, which can help reduce wildfire risk and improve ecosystems. Currently, about 1.7 million acres are already under tribal stewardship through a mix of reservations, state partnerships, and land return programs.  San Diego Moves to Take Control of Liberty Station The city of San Diego has taken  key steps in its conflict with a property management company over control of Liberty Station, a 330-acre mixed-use property near a planned sports arena and NAVWAR project. These agreements shift decision-making power to 13 agencies including school districts, community college districts and health districts that have financial interests in Liberty Station and which must approve the payouts in exchange for giving up their rights to the site. So far, only a portion of those agencies have approved or scheduled votes, making their decisions critical to the city’s broader plan. Final approval would allow the city to officially classify Liberty Station as a “future development” site, enabling it to retain ownership rather than sell it off as a liquidation property. The effort is driven in part by a 2023 court ruling tied to a lawsuit from Seligman Properties, which argues that no real future development is planned and that the designation is invalid. Report Identifies Impediments to Development of Affordable Housing Nearly 39,880 affordable homes across 461 projects are currently stalled  because they lack sufficient public funding to begin construction. A report by Enterprise Community Partners, a nonprofit dedicated to increasing housing supply, used data from the California Affordable Housing Production Pipeline which analyzes developments awaiting final funding to suggest that private, federal, and local investment is needed in order to address housing needs. To address the deficit, the brief proposes four key actions: invest immediate state funding, pass a 2026 housing bond, streamline the housing finance system, and tackle rising operational costs like insurance and maintenance. To move along the stalled projects in Pipeline, the state would need roughly $2.3 billion in direct subsidies, $1.8 billion in state tax credits, and $5.8 billion in tax-exempt bonds. On average, every $1 of state funding leverages about $3.6 in federal, local, and private investment, meaning delays could cost the state an estimated $7.7 billion in additional funding. California Needs 1 Million More Affordable Homes California faces  a shortage of close to 1 million affordable homes, making it the third worst state after Nevada in Oregon, according to a report  by the National Low Income Housing Coalition. The findings have not improved much from last year, despite changes in state housing policy, which may be due to lack of funding. Nationwide, there is a 7.2 million shortage of homes affordable and available for extremely low income renters. Extremely low income renters are defined as renters either the federal poverty guideline or 30% of their area median income. For every 100 extremely low-income renter households, only 35 affordable and available rental homes exist nationwide, with the supply ranging from 16 per 100 people in Nevada to 73 in South Dakota. CP&DR Coverage: Fulton on CEQA "Shot Clocks" The passage of AB 130 and SB 131 – the budget trailer bills from last summer – has shifted the landscape for planning in California in new ways. And although the impetus for these shifts came from the state’s desire to encourage more housing, there are pros and cons for both local governments and housing developers from the deal.On the one hand, the two bills – and a later cleanup bill, SB 158 – would seem to tip the scales further in the direction of housing developers. Among other things, the bills created a major new infill housing exemption for infill housing and created a “shot clock” for approval of ministerial projects. On the other hand, the bills may have created more certainty and other advantages for cities and counties – and they may include a few warning signs for developers. Quick Hits & Updates The Solano County Board of Supervisors are requesting  Suisun City to the pause annexation for California Forever until the county can update its general plan. The request, based on a 5-0 vote, came just before a city council meeting where Suisun City will consider a reimbursement agreement with California Forever to cover city expenses for exploring annexation, potentially bringing $10 million in public benefits. A lawyer for Suisun City raised concerns that the county’s letter discussion may have violated the Brown Act. The 21st Century ROAD to Housing Act, which is aimed at bringing down housing costs, was passed  89-10 in the Senate and will now make its way to the House. It faces an uncertain future as House GOP leaders and conservative lawmakers argue they were left out of the bill they say was assembled without their input. It is expected to be one of the only pieces of bipartisan legislation to pass President Trump’s desk this year, and has the potential to become the first major housing bill to become law in roughly three decades.  The City of Santa Monica released  a draft framework for the Great Park set to replace the Santa Monica Airport upon its closure in 2028. The framework organizes the park into eight distinct spaces or “districts”. The framework will be presented to staff and City Council in late April. The Monterey Park City Council voted unanimously on March 4 to place  a June 2, 2026 ballot measure before voters that would prohibit data centers of any size citywide by amending the city’s general plan. The proposal follows strong community opposition to a planned facility, with residents raising concerns about electricity use, water consumption, and environmental impacts. The Oakley City Council approved  the Bridgehead Industrial Project after the developer removed plans for potential data centers from the proposal. The 164-acre development, planned on former vineyards near Big Break Regional Shoreline, will instead focus on logistics and warehouse uses in 10 buildings ranging from 117,180 sf to 936,680 sf. Data centers were removed after strong community opposition over concerns about electricity demand, water use, and environmental impacts, which helped secure enough council support for approval. The Terner Center for Housing Innovation at UC Berkeley examined  data from 691 new affordable housing projects funded by the Low-Income Housing Tax Credit (LIHTC) program in California from 2020–2023 to assess the effect of local impact fees on development costs. Almost all of these projects were charged impact fees, which on average added nearly $20,000 per housing unit to development costs, though approximately 13,660 affordable housing units on 134 projects saw figures closer to $30,000. While fees typically accounted for less than 5% of total development expenses, affordable developments paid an average of approximately $300 million in fees each year. Oakland  has unveiled  its 2025–2029 Economic Development Action Plan (EDAP), designed to stabilize the economy and foster growth, particularly centering racial equity to confront gaps in home and business ownership opportunities. The five central goals of the plan include attracting high-growth industries, supporting local businesses, connecting residents to pathways to employment, investing in under-resourced neighborhoods, and supporting artistic, social and cultural activities. The L.A. County Board of Supervisors unanimously approved  the county’s first heat action plan with three central goals: cooler outdoor spaces, cooler indoor spaces and better public education about the dangers of heat. Strategies include replacing blacktop at schools, installing shade structures, and tightening protections for safe indoor temperatures in rental properties. The Sacramento Local Agency Formation Commission  has approved  the annexation of 450 acres of unincorporated land near Sacramento International Airport for the Airport South Industrial Project into the city of Sacramento. The project would bring warehouses, hotels and restaurants to the currently undeveloped land. BART officials gave  initial approval to a “doomsday” plan which involves potentially shutting down 10-15 stations by next year to save money. The plan would see immediate cost reductions starting January 2027, including a 63% decrease in train service, eliminating the red and green line, ending daily service at 9 p.m., 1,100 layoffs, higher parking fees, and furloughs for police, maintenance and cleaning service workers. LA Metro will open  three new stations on the D Line subway, connecting Los Angeles to Beverly Hills on May 8. Stations will be located at Wilshire/La Brea, Wilshire/Fairfax and Wilshire/La Cienega. Research from UCLA Anderson School of Management suggests that Los Angeles’s Measure ULA  or “mansion tax” may have backfired  by slowing overall development rather than boosting housing supply, and led to increased strategic tax avoidance. After the transfer tax, which applied to property sales over $5 million, took effect in April 2023, city building permits plunged roughly 40 percent overall. The tax has raised about $378 million per year, well under the projected $600 million to $1.1 billion per year. (See related CP&DR coverage .)

By Josh Stephens

In the latest battle over the Housing Accountability Act’s limitation on attorney’s fees in cases involving the California Environmental Quality Act, a group with close ties to labor has won an appellate court victory, in large part because the City of Inglewood ignored the issues raised by the group. The appellate court also said that the city and the developer could not prove a significant financial benefit to the labor unions that appear to be closely linked to the plaintiff.

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 . State Planning Survey Finds Local Departments Clamoring for State Assistance The Governor's Office of Land Use and Climate Innovation (LCI) released  its 2025 Annual Planning Survey Report. Many jurisdictions reported needing increased funding, staff capacity, and technical support in order to keep up with changing legislative requirements without relying on consultant support. Eighty-three percent of jurisdictions requested increased technical support, illuminating a need for the state to provide adequate templates and grant assistance in the form of the forthcoming General Plan Guidelines and an interactive website. Most jurisdictions report they have the capacity to conduct Tribal consultation and generally do not require extensive technical assistance from the state to meet statutory requirements. However, a majority rely primarily on the minimum engagement required under SB 18 and CEQA, rather than pursuing deeper, relationship-based consultation aligned with the “early, often, and meaningful” principles promoted by LCI and the California Natural Resources Agency. San Jose Reduces Taxes, Inclusionary Requirements for Developers The San Jose City Council adopted  three incentive policies designed to boost local housing construction. Two of the measures expand incentive programs that reduce construction taxes and ease affordable housing requirements, while the third and most controversial updates the city’s inclusionary housing policy, which determines how many affordable homes a developer must provide in a given project. Under the previous rules, developers typically had to set aside 15% of units for renters earning 50–100% of area median income or 10% for renters at 30%. The update provides a new option wherein the developer agrees to instead set aside 7% of units for households earning 50% of area median income. The median income for a family of four in Santa Clara County is $195,000. Fire Response in Altadena Prompts Civil Rights Investigation Attorney General Rob Bonta's office has launched  a civil rights investigation into the state’s handling of the 2025 Eaton Fire, particularly to determine whether race, age or disability played a role in the emergency response. Reporting showed that west Altadena, a historically black neighborhood, did not receive an emergency evacuation notice until at least nine hours after the fires were ignited. Eighteen of the 19 people who died in the fires lived on the west side, and across Altadena, nearly half of all black households were destroyed. L.A. County Fire Department officials say previous reviews found no evidence of “discriminatory or structural bias”, and will fully cooperate in the investigation. (See related CP&DR coverage .) Report Details Effect of Local Impact Fees on Affordable Housing Production The Terner Center for Housing Innovation at UC Berkeley examined  data from 691 new affordable housing projects funded by the Low-Income Housing Tax Credit (LIHTC) program in California from 2020–2023 to assess the effect of local impact fees on development costs. Almost all of these projects were charged impact fees, which on average added nearly $20,000 per housing unit to development costs, though approximately 13,660 affordable housing units on 134 projects saw figures closer to $30,000. While fees typically accounted for less than 5% of total development expenses, affordable developments paid an average of approximately $300 million in fees each year. The analysis suggests that waiving, reducing, or deferring these fees could meaningfully improve project feasibility and reduce the need for public funds. CP&DR Coverage: Newport Beach Housing Initiative Qualifies For Ballot Long a bastion of slow-growth sentiment, the City of Newport Beach  is facing a rarified form of NIMBYishm, fitting for the famously upscale Orange County city: A ballot measure to reduce the number of allowed units in the housing element from 9,000 to 2,900, which will appear on the November 2026 ballot. If the measure passes, Newport Beach will join the ranks of cities that have tempted fate by deliberately adopting a noncompliant housing element or undermining a certified housing element. Its capacity of 2,900 homes is just enough to accommodate the city’s allocation of 2,160 below-market-rate homes, and not much more. The city’s total RHNA allocation is 4,845. Critics say that the measure is designed to reduce competition for units that developer Ken Picerne’s company is developing near John Wayne Airport. The measure is also supported by former Mayor Marshall “Duffy” Duffield, Newport Beach Stewardship Association, and Still Protecting Our Newport (STOP). Quick Hits & Updates San Diego city officials have halted  a controversial 23-story project by Vela in Pacific Beach, claiming multiple code violations and lack of necessary information on the project proposal. One major issue in the proposal for the “Turquoise Tower” includes the developer’s tactic of counting certain units as hotel rooms, which would have allowed the project to exceed the normal allowed building height for residential. (See related CP&DR coverage .) San Jose has been ranked  the least affordable city for new homebuyers globally, a new study by financial services company Remitly found. The study surveyed over 150 cities worldwide by comparing average local incomes with standard mortgage criteria. After San Jose, the next most expensive cities in order were Los Angeles, Long Beach, San Diego, and Vancouver, BC. A study found  that the Los Angeles “Mansion Tax”, Measure ULA, caused a drop in property tax revenue as a result of fewer transactions offers at least two-thirds of the revenue the transfer tax brings in. Because assessments typically rise much more slowly than market prices between sales, fewer transactions mean slower growth in property tax revenue. The net loss appears even bigger for high-value homes and commercial properties. (See related CP&DR coverage .) The long-closed Westminster Mall  in Orange County, once the county’s second-most popular shopping center, is set  to be demolished by the end of the first quarter as mixed-use redevelopment plans move forward. Shopoff Realty Investments has acquired most of the 100-acre property, including former Sears and Macy’s lots, and plans to build a mixed-use project called Bolsa Pacific. The 83.8-acre proposal includes 2,250 housing units, a 120-room hotel, at least 220,000 square feet of retail, 15 acres of open space, a food hall and a neighborhood park. San Diego  City Council adopted  a community plan update for the Clairemont neighborhood, adding capacity for 14,000 new homes close to trolley stations and allowing mixed-use developments in Clairemont Town Square and Clairemont Community Core. The plan is meant to encourage walkable communities, and includes recreational areas such as parks and other joint-use areas. The state certified   San Benito County’s 6th Cycle Housing Element after more than six months of review, confirming it meets state housing law requirements and helping the county stay compliant. Certification unlocks access to roughly $11.5 million in state grants for infrastructure projects like road repairs and creek cleanup, and prevents enforcement of the state’s “builder’s remedy” that could override local zoning. The certified plan identifies how the county can accommodate its Regional Housing Needs Allocation of 754 new homes by 2031, though it does not itself authorize construction. (See related CP&DR coverage .) The Davis  City Council voted  unanimously to advance the Village Farms housing development proposal to a June 2026 citywide ballot, allowing voters to decide whether the project can proceed under California’s Measure J/R/D land-use rules. The project would create one of the largest residential developments in Davis’s history, including up to about 1,800 homes. The Santa Barbara City Council approved  a temporary citywide rent freeze for most rental units for the rest of 2026, making it currently the only city in California moving ahead with such a policy. The measure, aimed at preventing landlords from raising base rents while the city develops a permanent rent stabilization ordinance, will remain in effect until a final plan is adopted on December 31, 2026. A recent UCLA study analyzed  challenges facing evacuees of the 2025 Eaton Fire , one of the major fires that devastated Los Angeles last year. The study found that three-quarters of households did not have an evacuation plan before the fire. Most evacuees initially stayed with friends or family, and although many (61%) had not yet returned home at the time of survey, the majority (77%) planned to rebuild or return. YIMBY Law is threatening  to sue the City of Menlo Park after they said that the proposed redevelopment at the former Sunset Magazine property is not eligible for state exemptions. The city has claimed that the development does not meet housing requirements that would make the project eligible for exemption, but the law firm says that these issues were raised too far along in the permitting process, violating the Permit Streamlining Act.

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 . Prologis Eyes Major Development for S.F. Caltrain Yard A developer plans to transform  the 20-acre Caltrain rail yard at Fourth and King streets in San Francisco into a dense new neighborhood with thousands of homes and several high-rise towers. The proposal is led by Prologis, best known for renting warehouses to Amazon, and could include up to 2,500 housing units and roughly 4 million square feet of commercial space, with total development reaching about 8 million square feet. The first phase of the project includes a pair of high-rise twoers. The project could take up to 20 years to complete, with Prologis leading master planning and Caltrain managing upgrades to rail infrastructure. A version of the project has been envisioned for a least ten years. It was then that The Portal, an as-yet undeveloped project that will extend Caltrain service to the Transbay Terminal. Yucapia Reverses Course on Warehouse Approval The Yucaipa City Council voted unanimously to rescind  its earlier approval of an update to the Freeway Corridor Specific Plan, effectively halting a proposed warehouse and logistics project. The reversal also cancels a previously scheduled June 2026 referendum election, which had been triggered after residents gathered thousands of signatures to challenge the project. The controversy centers on a 2-million-square-foot distribution warehouse complex planned in Live Oak Canyon along Interstate 10 called Pacific Oaks Commerce Center. City leaders had originally approved the project in 2025 as part of broader zoning changes for a 1,242-acre corridor along the freeway, arguing it would generate tax revenue, jobs, and infrastructure investment. Residents were opposed to the project because of concerns about diesel truck traffic, air pollution, noise, and the loss of the area’s character. (See related CP&DR coverage .) Draft of Bay Area Regional Plan Released The Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG) released  the proposed final version of Plan Bay Area 2050+ and Transit 2050+, a regional blueprint guiding growth, transportation, and housing across the Bay Area nine counties through 2050. The plan was developed over nearly three years of technical analysis, public engagement, and revisions, including a 59-day public comment period on the draft plan that ended in December 2025. Plan Bay Area 2050+ outlines policy and funding strategies intended to address rising costs, widening inequality, and persistent housing shortages. It integrates land-use planning with transportation investments, emphasizing development near transit and improvements to transit, biking, and walking networks. Sinking Land Jeopardizes California Water Supply Satellite data from the California Department of Water Resources show  that parts of California have sunk dramatically over the past decade, the most extreme cases in sections of the Tulare Basin in the San Joaquin Valley, where certain areas dropped more than seven feet between 2015 and 2025. Agricultural groundwater pumping has been blamed as the major cause of subsidence, according to Paul Gosselin, deputy director for sustainable water management for the California Department of Water Resources. The sinking occurs when excessive groundwater extraction causes underground aquifers — especially clay layers — to compact irreversibly. Long-term impacts threaten infrastructure such as levees and canals and could reduce State Water Project deliveries by as much as 87% by 2043 , according to the California Department of Water Resources. CP&DR Coverage: Benicia Properly Used SB 35 For Projects In Historic Arsenal District A challenge to two SB 35 projects in Benicia by a local preservation group – arguing, among other things, that the projects involved historic structures and wetlands – has been  struck down  by the First District Court of Appeal. The ruling is unpublished and therefore cannot be used as precedent. At issue were two projects located on the former U.S. Benicia Arsenal, which is now the Benicia Arsenal Historic District, which is located on both the National Register of Historic Places and designated as a California state historical landmark. The City of Benicia approved both projects under SB 35,. 1000 Friends Protecting Historic Benicia attempted unsuccessfully to appeal to the Benicia City Council the city’s ruling that that the projects are exempt from the California Environmental Quality Act under SB 35. 100 Friends then sued, claiming the projects did not qualify for SB 35. In the unpublished ruling, the appellate court shot down all of 1000 Friends arguments. Quick Hits & Updates A new UCLA study finds  that across 17 U.S. cities, the average cost to construct a parking space is about $52,000 aboveground and $73,000 underground, not including land costs. The study estimates that required parking can add  $50,000–$100,000 per apartment unit, making housing projects more expensive and especially discouraging smaller, more affordable units. Researchers found parking construction costs have risen about 50% faster than inflation since 2012, meaning mandates increasingly account for a large share of project budgets. A study by the Lincoln Institute of Land Policy recommends  six strategies for integrating equity into climate and housing planning in North American cities. The report recommends securing and expanding local climate action funding, championing resilient affordable housing solutions, supporting community-led green infrastructure projects, restructuring municipal planning to better integrate sustainability, adopting phased implementation strategies to better track results, and fostering community engagement.  City of Industry officials and the owner of the Puente Hills Mall are exploring  the possibility of redeveloping the site into a data center. The mall’s owner, Real Estate Development Associates, submitted a project description to the city in January outlining two development scenarios. One option would build up to 1.6 million square feet of logistics warehouses, while another would include about 813,540 square feet of industrial space plus up to 450,000 square feet of retail or commercial uses. The Marin County Board of Supervisors approved  a $55.4 million development agreement to redevelop former United States Coast Guard housing in Point Reyes Station into affordable rental housing, with funding expected from local housing funds, state farmworker housing grants, and low-income housing tax credits. The project will renovate 36 existing townhomes and a 24-room barracks building, creating about 54 units for extremely low income and low income households. San Francisco Mayor Daniel Lurie and Supervisor Bilal Mahmood introduced  legislation that would cut the city’s transfer tax in half on large real estate transactions, in order to encourage construction of approved but financially stalled projects. The transfer tax would decrease from 5.75% to 2.75% for transactions of at least $10 million and from 6% to 3% for deals of at least $25 million, reversing former Supervisor Dean Preston’s 2020 ballot measure. The tax decreases will be able to be legislated instead of voted on due to a 2024 proposition that allows transfer taxes to be decreased without returning to the ballot. In its place, Lurie and Mahmood introduced a ballot measure to eliminate the tax exemption for foreclosures. A report on Lithium Valley in Imperial County finds  that developing a lithium extraction and battery manufacturing hub could significantly transform the local economy, which currently faces high poverty and unemployment. The report, by Comité Cívico del Valle and Earthworks, examined the Hell’s Kitchen lithium extraction project proposed by Controlled Thermal Resources near the Salton Sea and a legal challenge under CEQA over the project’s approved EIR. It contrasts a “high road” approach, creating well-paid jobs with career pathways, strong labor protections, and local hiring, with a “low road” model that extracts resources without meaningful community benefits. (See related CP&DR coverage .) Governor Gavin Newsom signed legislation authorizing  a $590 million emergency loan to support the Bay Area transit agencies BART, Muni, Caltrain, and AC Transit . The loan will be issued through the Metropolitan Transportation Commission (MTC) and distributed to help maintain service. These agencies are facing severe financial deficits of over $800 million projected for the 2026–27 fiscal year, largely due to reduced ridership following the COVID-19 pandemic. The funding is intended as a temporary bridge to prevent major service cuts while the region works on a long-term solution. A UC Berkeley study highlights  40 potential policy actions that support construction innovation , particularly industrialized construction such as prefabrication and factory‑built housing to boost housing production. The suggestions seek to address existing risk and liability and provide a framework for legislative action. The Peninsula Open Space Trust   purchased  the 1,921-acre Mead Ranch between San Jose and Morgan Hill for $24.3 million to preserve it as open space and wildlife habitat. The property, previously owned by the Bechtel family, will help connect ecosystems between Coyote Valley and the Santa Cruz Mountains. A Santa Cruz County judge ruled  that Watsonville  violated state aviation and environmental laws when it approved a 21-unit housing project near Watsonville Municipal Airport in 2021. The court sided with the Watsonville Pilots Association, finding the city failed to adopt required airport safety standards in its general plan and relied on an inadequate environmental review that did not properly analyze aircraft noise and safety risks. A report from the California YIMBY Education Fund argues  that the City of Los Angeles’s current land-use planning and housing entitlement process is overly discretionary, opaque, and vulnerable to political pressures, which contributes to high housing costs and corruption. The report argues that Los Angeles should make more application types eligible for ministerial approval by reforming site plan review procedures and increasing allowable density, and suggests several strategies to improve the discretionary review process.

When is a fee not a fee? When it’s an in-lieu fee imposed as part of an inclusionary housing ordinance. At least that’s the opinion of a federal judge ruling in a case from San Diego.

All those state housing laws have changed a lot of things in the world of California land-use planning. But one change that has not received enough attention is how the work of planning commissions has been affected.

Both the Senate and the House have passed housing bill with bipartisan support. And while neither bill is likely to become law in its current form – there is a dispute over whether to place restrictions on investors who build so-called “build to rent” housing projects – some housing bill could still pass, with implications for local planners in California.

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 . State Fire Marshall Weighs in on Safety of "Single-Stair" Buildings A new report from California’s Office of the State Fire Marshal examines  whether the state should allow mid-rise apartment buildings with only a single staircase, a design common in many other countries but largely banned in North America. The report, which was submitted several months late, was mandated by Assembly Bill 835 (2023). Currently, California building codes require apartment buildings taller than three stories to have at least two staircases to provide multiple escape routes in case of a fire. The report, released about two months after its legal deadline, takes a generally skeptical view of allowing single-stair buildings, citing safety concerns and emphasizing the importance of redundant exits during emergencies. However, it offers recommendations in case lawmakers decide to move forward with changes to the building code. Housing advocates and architects have pushed for “single-stair reform,” arguing the requirement for two staircases raises construction costs and makes it harder to build small apartment buildings on tight urban lots. The report estimates that adding a second staircase can account for about 7.5% to 12% of a mid-rise building’s construction costs. HCD Launches Site to Catalog over 1,200 Letters Issued on Housing Elements The Department of Housing and Community Development (HCD) has released  a Housing Accountability Unit Letters Dashboard, a site to access all letters issued by the Housing Accountability Unit. Since its formation by Gavin Newsom in 2021 the department has issued over 1,200 letters regarding enforcement and technical assistance to ensure compliance with state housing law. Topics cover ADU ordinances, the Housing Accountability Act, housing element implementation, and Density Bonus Law. All letters are now listed via the Housing Accountability Unit Letters Dashboard and searchable by jurisdiction, date, subject matter, and statutory reference. Interior Department Drastically Cuts NEPA Protections on Federal Lands The Interior Department, responsible for public lands and waters, recently rescinded  nearly eighty percent of previous environmental regulations under the National Environmental Policy Act (NEPA). A press release from the department cited delays and cost concerns for energy, minerals, livestock grazing, infrastructure, wildfire mitigation, water projects and conservation efforts as the catalyst for the rollback. The Interior also oversees activities including drilling and mining on the nation’s lands and in its waters. NEPA requires the federal government to conduct a thorough environmental review and impact report before approval, and serves as a last protection for health and the environment. Critics of NEPA characterize it as an obstacle in the way of energy, infrastructure and conservation projects. High Speed Rail Stations May be Slimmed Down to Cut Costs The California High‑Speed Rail Authority is considering redesigning  planned stations in California’s Central Valley to be smaller and more cost‑effective, a move officials say could save roughly $2 billion as part of efforts to adjust the high-speed rail project to current budget realities. Federal funding cuts led the authority to reevaluate elements of the project and develop its 2026 business plan, which emphasizes cost savings and efficient deployment of resources. Rather than eliminating stations entirely, leaders are looking at “right‑sizing” them so they reflect anticipated early use while keeping options open to adjust in the future. The Legislative Analysts Office reviewed  HSR's recent supplemental project update report, noting available funding may not cover the cost of the initial Bakersfield-to-Merced segment. CP&DR Coverage: Population Growth in Inland Areas State demographers reported that California’s population had increased again in 2024 – if only slightly – making the third year in a row the population had gone up. That’s a market change from the pandemic years, when the state’s population dropped significantly for the first time ever. It ’s possible that this increase has been driven by Biden-era illegal immigration, in which case it probably won’t last. But it’s interesting to see where  in the state the population has been growing. CP&DR  looked at population growth over the past three years, starting in 2022, which was the end of the pandemic and the low point in California population. The results aren’t surprising: Inland population is growing way faster. But the rate of growth in inland areas is way outstripping coastal areas, with one surprising exception: San Diego. Quick Hits & Updates A new "DepaveLA" analysis found  that about 44% of Los Angeles County’s 312,000 acres of pavement may be unnecessary and could potentially be replaced with trees, green space, or storm-water infrastructure. Researchers say much of this excess pavement is in parking lots and private property, where design changes like angled parking or small tree wells could remove thousands of acres of asphalt while reducing heat and flooding. The Stanislaus Regional Housing Authority  has been designated  a “High Performer” by the U.S. Department of Housing and Urban Development under its Section Eight Management Assessment Program (SEMAP), receiving a perfect 100% score for fiscal year 2025. The SEMAP evaluation measures how effectively agencies administer the Section 8 program, including inspections, rent calculations, waitlist management, and proper use of federal funds. Los Angeles’ encampment cleanup program may displace  far more unhoused people than it helps, according to a new study from the UCLA Luskin Institute. Researchers observed that for every one person connected to services, about five people were forced to relocate, with many repeatedly moved during sweeps. Among 51 unhoused residents surveyed, 37% said they had been forced to move more than five times in the previous month, and only one person ultimately obtained shelter through the program. A policy brief by SPUR   proposes  creating a new downtown revitalization authority to coordinate redevelopment in San Francisco. The group argues that concentrating planning, financing, and project delivery in a single entity would streamline efforts to revive the city’s struggling downtown, including real estate projects, public spaces, and support for small businesses and mixed-use districts. The Los Angeles Metro Construction Committee approved  an additional $210 million for the long-planned Link Union Station  (Link US) project, which will add run-through tracks at Los Angeles' Union Station. The project would allow trains to pass through the station instead of reversing, increasing capacity from about 180 to 278 trains per day and cutting dwell times from roughly 20 minutes to about 5 minutes. The Riverside County Transportation Commission   approved  an $80 million contract to conduct a Tier 2 environmental study for the proposed Coachella Valley Rail Project, which would connect Los Angeles, Riverside County, and the Coachella Valley. The study will prepare detailed environmental documents and planning needed to move the 144 mile passenger rail project closer to construction. New regulations for short-term rentals (STR) in Del Mar  and Encinitas  have been approved  by the Coastal Commission and will soon go into effect. The ordinance caps the number of STR permits at 129 city‑wide with area‑specific limits and enforces a three‑night minimum stay, among other restrictions designed to balance tourism with housing and neighborhood impacts San Francisco is creating  a tax incentive district aimed at converting vacant and underused downtown office buildings into housing. The program is projected to make roughly 50 properties eligible for redevelopment, producing up to 4,400 new units. Covering key areas such as the Market Street corridor, the Financial District, Union Square, and neighborhoods south of Market, the district offers qualifying projects annual incentive payments for 30 years to help offset conversion costs. The EPA is proposing  a $24 million cleanup at the previous site of the Lorentz Barrel & Drum Co. Superfund site in San Jose, near San Jose State University. The 5-acre site functioned as a steel drum cleaning facility beginning in 1947 until 1987, when owner Ernie Lorentz was jailed following decades of dumping contaminants into the ground and storm drains. Mike Montgomery, director of the U.S. EPA’s Superfund and Emergency Management Division, says that about 90% of the cleanup has been completed, and this last effort would serve to clear low concentrations of contaminants that have thus far evaded cleanup.

A revision to SB 79 that could expand its reach appears to be barreling through the Legislature quickly right now. Beyond that, the 2026 legislative session doesn’t appear to be shaping up to be as dramatic as 2025 – with one possible exception.

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 . Supreme Court Declines to Hear Huntington Beach Housing Case The US Supreme Court declined  to hear the City of Huntington Beach’s lawsuit against the state. Huntington Beach leaders argued that charter cities shouldn’t have to comply with California’s state-mandated housing plan requirements. The court’s denial of the city's petition for a writ of certiorari leaves in place a decision by the U.S. Court of Appeals for the Ninth Circuit that affirmed the dismissal of the City’s lawsuit. A San Diego Superior Court judge had ordered  Huntington Beach to adopt a compliant housing plan by spring, yet the city council has not publicly begun discussions on this. California officials including Gov. Gavin Newsom and Attorney General Rob Bonta praised the Supreme Court’s decision, saying the city wasted taxpayer dollars fighting what they see as meritless claims. Huntington Beach’s mayor responded that the city will continue to defend what it sees as local control, even as legal options narrow. “We look forward to holding the City fully accountable in state court, where we recently secured a decision that requires it to remedy its violations and significantly restricts the City’s local control until it does so," said Attorney General Rob Bonta in a statement. (See related CP&DR coverage .) San Diego Creates Overrides to Historic Preservation Rules The City of San Diego will override  existing historic preservation rules through  a package of changes that the City Council approved, 5-1, despite objections from area historians and residents concerned about preserving local character. The changes include allowing the City Council to overrule the city’s Historical Resources Board when the board designates a property historic, and it allows developers to take advantage of Complete Communities incentive in Ocean Beach as long as the property is not a historic cottage. Supporters, including several council members and the Building Industry Association, called the reforms modest but important steps to provide certainty for builders. Opponents, including the Save Our Heritage Organisation, argued the move politicizes preservation decisions and is unnecessary, noting that only about 1% of the city’s housing stock is historic and appeals are rare. Southern California Mountain Lions Granted Threatened Species Status The California Fish and Game Commission will grant  threatened species status to over 1,400 mountain lions across six populations within Southern California and the Central Coast. Projects that could affect these animals may now need an incidental take permit. Commissioner Erika Zavaleta said that though the lions do not face imminent extinction, this protective measure was taken to prevent further damage to a population that, according to researchers, faces a 16-28% chance of extinction in the next 50 years. The biggest threat to the lions has become limited gene flow due to their fractured and dwindling habitat, due largely to freeways and development encroaching further on their land, combined with car collisions, rat poison and disease. While supporters say this is a necessary step in protecting the species, opponents such as ranchers and farmers say the species is well-protected by state law, and these changes make it increasingly difficult to kill lions that pose a safety threat to people and livestock. San Jose Rolls Out Program to Encourage Housing Development The San Jose City Council has adopted  a series of housing initiatives, including expanded benefits for office-to-residential conversions downtown, aimed at jump-starting thousands of stalled housing units. The city has approved tens of thousands of homes since 2020 but fewer than one-third have broken ground, leaving San Jose behind the state mandate to plan for 62,200 units by 2031. The downtown high-rise incentive program will now offer major tax and fee reductions for office conversions, including waiving inclusionary housing requirements, a 100% reduction in building and construction taxes, and a 50% reduction in park impact fees for the first 500 units; the next 1,000 units would receive a 50% tax cut and 30% park fee reduction. The city is also expanding its multifamily housing incentive program from 1,800 to 3,600 units, with a 50% cut in construction taxes. CP&DR Coverage: Despite AB 130, Glendale Rejects Sears Redevelopment Design Last year, the Glendale City Council surprised  housing advocates by going against the staff recommendation and rejecting a 682-unit redevelopment on the 4.5-acre site of a long-shuttered Sears store in the heart of downtown. Despite warnings by Chief Assistant City Attorney Gillian van Myuden and Mayor Ara Najarian, the city council voted 4-1 to reject the project’s design – technically, only the design was under consideration. The project apparently met the city’s objective design standard requirements under the Housing Accountability Act, which makes it difficult for the city to turn down a qualifying project. It was a good example, from the prohousing perspective, of the limitations of AB 130. The new law exempts projects of 20 acres or less from CEQA and creates a shot clock that forces a decision to be made. In the aftermath of the vote, the developer is said to be considering taking legal action against the city to see if the denial violates state housing law. Though AB 130 may have hastened the city’s vote, it did not affect its legal obligations one way or another. The council has since reversed its decision. Quick Hits & Updates The Rancho Cordova  City Council unanimously approved  a proposal to develop a new 7,500-seat multi-use arena and surrounding entertainment district on city-owned land, part of a broader effort to create a downtown hub with housing, hotels, retail, and public space. The project, proposed by KozPure Development, LLC with Alpha One Sports and Entertainment Group, LLC, could include two or more hotels, at least 640 residential units, a retail and dining district, and a public plaza. The Riverside  City Council unanimously certified  the environmental impact report for a massive proposed redevelopment called Riverside Alive, which would expand the Riverside Convention Center by 189,000 square feet and would allow the convention center’s parking lot to be replaced by up to five underground parking levels, 168 residential units, 376 hotel rooms and approximately 282,000 square feet of commercial space. In 2005, Stockton-based developer Grupe Company pledged , and soon after withdrew, nearly $500,000 to help update Riverbank’s  general plan after their development in the area was scaled back following public outcry. Now, Grupe has been selected by the state in partnering with Napa developer Keith Rogal to redevelop the former Sonoma Developmental Center , a campus for the developmentally disabled that was closed by the state in 2018, into a large mixed-use project with 990 housing units, 130,000 square feet of commercial space and a 150-room hotel. (See related CP&DR coverage .) A new executive order made  available $10 million in state funding to help Los Angeles -area fire survivors access factory-built and modular homes to speed rebuilding and help maintain neighborhood character after the 2025 wildfires. As a result of continued executive orders, the state has approved 3,000 approved building permits at three times the speed as prior to the January 2025 wildfires. San Diego Unified School District  board voted  to advance a proposal for 1,500 affordable units for educators at their University Heights headquarters, producing housing for 10 percent of the district’s staff. The district defines an affordable unit as one that costs the renter less than thirty percent of their income. A proposed extension of Metrolink  service to run daily north-and southbound trains to Santa Barbara has been canceled  after local planners proposed a similar service through Amtrak Pacific Surfliner instead. The Santa Barbara County Association of Governments learned that negotiating new agreements with the Union Pacific Railroad to allow Metrolink onto its tracks would be delayed into 2026, which undercut the original plan’s timing and feasibility.

A century or so ago, the Sears Corp. sold tens of thousands of catalog homes that were constructed across the United States. Today, the Sears company is still creating homes, as its former stores are converted and redeveloped into housing developments.