Focus
Newsom’s proposed budget cuts $350M from housing programs
The Real Deal – January 16
After years of record budget surpluses, California now faces a projected $22.5 billion budget deficit, Governor Gavin Newsom announced last week. As part of a required adjustment in state spending, Newsom proposed cutting $350 million from housing programs. The proposed cuts amount to a 12% reduction of housing-related general funds compared to last year. Of the $350 million, $300 million would come out of two programs designed to help low and moderate income first-time homebuyers, and $50 million would come out of a program that promotes the construction of accessory dwelling units, or “granny flats.” The cuts would not necessarily come into effect, however, if the state’s general fund is healthy enough in January 2024.
News
Court ruling could upend UC Berkeley’s plan to build on People’s Park
Berkeleyside – January 6
Five months after UC Berkeley attempted to begin student housing construction in People’s Park and was thwarted by activists and a court order, the park is still in limbo —now once again an encampment for homeless residents, surrounded by felled trees, and vandalized construction equipment. Most recently, the Alameda County Superior Court released a draft tentative opinion saying that the university’s Environmental Impact Report (EIR) failed to (i) justify the decision not to consider alternative locations to the People's Park project and (ii) adequately assess the impacts of student-generated noise on residential neighborhoods near the campus and impacts related to the displacement of local residents by the university's growing population. The case was scheduled for oral argument on January 12, 2023.
New Bay Area maps show hidden flood risk from sea level rise
Los Angeles Times – January 17
A report released on Tuesday maps areas that could flood from groundwater hovering just a few feet, or even inches below ground. This layer of water gets pushed upward as denser water from the ocean moves inland from rising tides. On its way up, even before the water breaks the surface, it can seep into the cracks of basements, infiltrate plumbing, or, even more insidiously, re-mobilize toxic chemicals buried underground. The new findings are the result of an unprecedented joint effort by Pathways Climate Institute, the San Francisco Estuary Institute, UC Berkeley, and a team of regulators, building officials, and flood-control agencies to identify where the groundwater along the bay shoreline is close to, or already breaking, the surface.
Federal agencies share ‘blueprint’ for transportation decarbonization
Utility Dive – January 10
The Biden administration on Tuesday released the U.S. National Blueprint for Transportation Decarbonization. The blueprint lays out strategies for cutting all greenhouse gas (GHG) emissions from the transportation sector, which currently accounts for a third of all domestic GHG emissions by 2050. The blueprint has a three-pronged approach: increase convenience and efficiency, and transition to clean options — the last of which federal regulators expect will drive the majority of emissions reductions. As for changes in planning and design, the blueprint highlighted several focuses, including equitable transit-oriented development, local zoning reform, and supporting safe active transportation.
S.F.’s DMV could become one of the city’s biggest affordable housing sites
San Francisco Chronicle – January 6
Just before Thanksgiving, San Francisco Supervisor Dean Preston stood before television cameras in the Department of Motor Vehicles’ vast Fell Street parking lot, urging the state to consider allowing affordable housing to be developed on the 2½-acre property. Now, just six weeks later, the state agency has initiated the process of selecting a nonprofit developer to take on development of the rectangular parcel a half a block from the eastern end of the Panhandle. Previous studies have indicated that the site could handle about 400 housing units, which would make it one of the city’s largest affordable housing developments.
Belmont officials seek more electric in homes
San Mateo Daily Journal – January 17
Belmont’s City Council has passed an ordinance calling for more electric appliance replacement and vehicle charging infrastructure in the city, taking inspiration from state laws. The reach code ordinance focuses on new multi-family and commercial buildings being all-electric and adding more electric vehicle infrastructure and charging stations based on type and use.
Cities repurpose underused malls to address housing shortage
Smart Cities Dive – January 13
Across much of the U.S., retail centers and malls face a precarious future, while many cities struggle with a lack of affordable housing. Some local governments are converting or seeking to convert unused strip centers and malls into housing or mixed-used developments to address both challenges. CBRE reported in December 2022 that more than 50 million square feet of retail space had left the market since 2003, with the trend expected to continue in 2023.
Similar efforts are underway in San Francisco. As Downtown braces for a real estate crash, a San Francisco legislative analyst urged policymakers to consider financial incentives and eliminating red tape for converting empty offices to housing.
As discussed in our prior alert, a new California law (AB 2011) will streamline the local approval process for certain affordable and mixed-income housing projects on commercial land. The new law will be operative on July 1, 2023.
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