In it’s recent decision in United Neighborhoods for Los Angeles v. City of Los Angeles (2023) ___ Cal.App.5th ___, the Second District Court of Appeal affirmed a judgment voiding the City of Los Angeles’s reliance on the CEQA Class 32 Infill Exemption for a hotel project in Hollywood that would demolish 40 rent-stabilized units (RSO). In upholding the trial court decision, the appellate court emphasized the City’s failure to adequately assess the Project’s consistency with all applicable general plan policies, as required by CEQA Guidelines section 15332(a).…

Continue Reading Second District Addresses CEQA’s Class 32 Infill Exemption Criteria

In the ever-evolving landscape of residential real estate, California is once again at the forefront with the passage of Assembly Bill (AB) 1837 and AB 2170, which became effective on January 1, 2023. Aimed at increasing homeownership for individual residents, these laws build upon the groundwork laid by Senate Bill (SB) 1079 in 2020, which required institutions to sell foreclosed homes individually instead of in bundles, in an effort to create more affordable housing and community stability by limiting when investors can purchase foreclosed homes. The new law, codified in California Civil Code section 2923 et seq., extends SB 1079’s protections until January 1, 2031.…

Continue Reading Navigating California’s New Foreclosure Laws: A Guide for Institutions

The City of Los Angeles’s Planning Department is proposing an expansion to the City’s innovative adaptive reuse policies. Specifically, the City is proposing to amend Sections 12.03, 12.22 A.26, 12.24 X and 16.05 of the Los Angeles Municipal Code (LAMC) and Adaptive Reuse Incentive Areas Specific Plan (Ordinance No. 175,038) in an attempt to reshape the Los Angeles cityscape from 2023 to 2025 by converting vacant commercial spaces into dwelling units, guest rooms or joint living and work quarters (“Citywide Adaptive Reuse Ordinance[1]”). The amendment is intended to facilitate the reuse of existing buildings to address the City’s housing crisis and revitalize Downtown Los Angeles. The conversion of vacant office space will provide a sustainable response to urban development challenges and impacts of the COVID pandemic on the real estate market.…

Continue Reading Los Angeles Citywide Adaptive Reuse Ordinance: A Push Towards Sustainable Housing

In late June, California’s Fourth District Court of Appeal upheld a Superior Court decision in Save Our Access v. City of San Diego, providing clarity for determining when a “later activity” is beyond the scope of an existing Program Environmental Impact Report (PEIR) under the California Environmental Quality Act (CEQA). Specifically, the Court held that a proposed ballot measure initiated by the City of San Diego to exclude the Midway-Pacific Highway Community Plan area from a voter-enacted height limit did not qualify as a “later activity” within the scope of the existing PEIR for the Community Plan Update because the PEIR relied on the height limit in its analysis of the potential environmental impacts. The Court held that the proper remedy is for the City to conduct further analysis of the potential impact of taller buildings in the Community Plan area in order to comply with CEQA before proceeding with the ballot measure.…

Continue Reading California Court Holds Proposed Ballot Measure Excluding Community Plan Area from Height Limit Is Not a “Later Activity” For Purposes of a Within-the-Scope Analysis

On July 6, 2023, Los Angeles Mayor Karen Bass signed into law a provision to exempt certain affordable housing projects from the city’s Site Plan Review Process. The exemption was made as an amendment to Site Plan Review Ordinance, codifying part of Mayor Bass’ Executive Directive 1, which intends to address the city’s homelessness crisis by accelerating the pace and lowering the cost of building affordable housing.…

Continue Reading Los Angeles Mayor Signs New Legislation Exempting Affordable Housing Projects from Site Plan Review

On July 10, 2023, California Governor Gavin Newsom signed into law a package of bills intended to accelerate critical infrastructure projects across the State aimed at achieving monumental climate and clean energy goals while also creating up to 400,000 jobs. With the goal of “building more, faster,” this infrastructure streamlining package will take effect immediately, and includes portions of Newsom’s previously proposed infrastructure package reforming the California Environmental Quality Act (CEQA)[1].…

Continue Reading Build More, Faster? Newsom Signs Infrastructure and Budget Legislation 

On June 13, 2023, the Second Appellate District affirmed the City of Pomona’s use of a statutory exemption for its Commercial Cannabis Overlay Permit Program under California Environmental Quality Act (CEQA) Guidelines section 15183, finding that the program required no additional environmental review. The decision in Lucas v. City of Pomona is noteworthy for the appellate court’s broad interpretation of the statutory exemption,[1] holding that (i) the City’s zoning ordinance, General Plan Update, and environmental impact report (EIR) that do not address “density” may be exempt under CEQA Guidelines section 15183, and (ii) uses, including cannabis-related uses, that are not literally included in land use plan documents, may be determined to be sufficiently similar to existing and defined land uses allowed by underlying zoning.…

Continue Reading Commercial Cannabis Permit Program and Overlay District Statutorily Exempt Under CEQA Guideline Section 15183

Recent amendments to the National Environmental Policy Act (NEPA), which Congress included in the Fiscal Responsibility Act of 2023 (FRA), aim to streamline federal environmental review by imposing time limits, clarifying the scope of review and agencies’ roles, and narrowing some key definitions. Most of the amendments simply codify regulatory definitions or agency practices already in effect, so the practical impact of the changes is likely to be limited. Nonetheless, the amendment of NEPA is noteworthy in its own right and could signal a new willingness in Congress to address a process often seen as cumbersome and prone to delay.…

Continue Reading NEPA Amendments Aim To Streamline Environmental Review But Largely Codify the Status Quo

On June 10, 2023, a jury in Portland, Oregon found PacifiCorp and Pacific Power (collectively, “PacifiCorp”) liable for negligence, trespass, and nuisance based on a series of four wildfires that occurred during Labor Day weekend in 2020. PacifiCorp prevailed against the plaintiffs on the claim of inverse condemnation. With respect to the tort-based claims, the jury awarded approximately $72 million in compensatory damages to 17 plaintiffs. The jury later found PacifiCorp liable for $18 million in punitive damages, or one quarter of the compensatory damages that the jury awarded to the 17 plaintiffs. The jury’s liability findings apply to a broader class of owners, whose damages will need to be individually proven in a yet-to-be defined second phase of proceedings. Post-verdict motion practice and appeals may affect the jury’s findings.…

Continue Reading Beyond Inverse Condemnation in Wildfire Litigation: An Oregon Jury Finds Utility Liable for Negligence, Trespass and Nuisance

It is well known that between New York’s enactment of the Marihuana Regulation & Taxation Act (commonly known as the Cannabis Law) on March 31, 2021 and the slower than anticipated adoption of regulations for adult-use cannabis retailers and implementation of the Act there have been few (and in some geographic areas of the state, no) licensed retail dispensaries opened for the sale of adult-use of cannabis and cannabis related products. As a result, there has been a proliferation of unlicensed retailers (often referred to as “sticker shops” because the sale of stickers comes with the “gift” of cannabis products) selling cannabis products and its derivatives. On May 3, 2023, however, with the conclusion of New York State’s annual budget process and the signing of the state budget bill by Governor Hochul, a series of other bills passed by the state Assembly and state Senate were signed into law by the Governor. Among those additional measures are changes to New York’s Cannabis Law[1] which are intended to curtail, among other activities, the unlicensed sale, distribution and storage of cannabis and cannabis products throughout the state. …

Continue Reading New York Landlords May Get Stuck with the Bill for Unlicensed Cannabis Sticker Shops

In the City of Los Angeles, the “Homelessness and Housing Solutions Tax” (Measure ULA), commonly referred to as the “mansion tax,” went into effect on all qualifying real property transfers on April 1, 2023. Prior to Measure ULA, all real estate transfers in the City were subject to a City transfer tax of 0.45% and a County of Los Angeles transfer tax of 0.11%. Under Measure ULA, residential and commercial real property sales and transfers valued at or over $5 million, but less than $10 million, are subject to an additional tax of 4%. Sales and transfers valued at or over $10 million are subject to an additional tax of 5.5%. The Los Angeles Times noted that, based on the Multiple Listing Service, in March 2023 there were 126 homes and condominiums listed over $5 million in the City and in April, there were only two.[1] Understandably so, in anticipation of Measure ULA, owners and developers rushed to try to close escrow prior to the April 1st effective date.…

Continue Reading Measure ULA May Not Measure Up