Legislative Update 

July 2024

By Craig Benedetto & Marshall Anderson, Legislative Advocates 

FEDERAL UPDATE

U.S. SUPREME COURT ALLOWS FOR CITIES TO ENFORCE HOMELESS LAWS

In a 6-3 decision, the U.S. Supreme Court overruled the 9th Circuit Court of Appeals on a major homeless enforcement decision.  The ruling came from a lawsuit over an issue in Grants Pass, Oregon.  Since then, a number of cities, including the City of San Diego, joined in support of the appeal to the US Supreme Court saying that the decision by the 9th Circuit in Grants Pass to not allow that city to enforce its homeless laws makes it impossible to address conditions on the streets and getting unsheltered individuals into housing.  It is hoped that this ruling will allow for further enforcement to improve conditions throughout San Diego.  To read the ruling, click HERE.

U.S. SUPREME COURT OVERTURNS 1984 CHEVRON DECISION; WEAKENS AUTHORITY OF ADMINISTRATION/AGENCIES TO INTERPRET CERTAIN LAWS

In another 6-3 decision, the U.S. Supreme Court overturned a 1984 decision colloquially known as Chevron. The 1984 decision had allowed administration officials to interpret laws in an effort to regulate the environment, public health, workplace safety, and consumer protections.  It was a major battle pitted between the business community and numerous special interest groups.  Chevron ultimately allowed federal agencies to fill in the details when laws passed by Congress weren’t clear.  Opponents of that decision, for years, have argued that this type of action by federal agencies exceeds their constitutional authority and that  interpretation should be left to judges, not bureaucrats.  A majority of the Supreme Court agreed.  To read the ruling, please click HERE. 

BIDEN SEEKS 5% ANNUAL RESIDENTIAL RENT CAP

President Biden unveiled a proposal to cap rents at 5% per year on landlords who own 50 or more residential units. This proposal, which would need to clear congress, immediately received skepticism from industry representatives and some policymakers who believe increasing housing supply through construction and regulatory changes would prove more effective. California, which approved the Tenant Protection Act in 2019, already disallows rent increases of more than 5% plus the change in inflation from April 1 of the prior year to April of the current year, as measured by Consumer Price Index. To read the President’s statement, please click HERE. 

STATE UPDATE

GOVERNOR ISSUES ORDER ON REMOVING HOMELESS ENCAMPMENTS

Governor Gavin Newsom issued an executive order last month directing state agencies to address homeless encampments. The order follows a recent Supreme Court ruling on Grants Pass v. Johnson, which allows government agencies to enforce against tent encampments. While state agencies can act on state property, the order still allows for local control, meaning it’s up to individual municipalities to determine how they may enforce. It’s worth noting that Newsom’s announcement does not require relocation to shelter. The City of San Diego’s own encampment ordinance requires enough shelter beds to be available on any given day in order to break up encampments. It is unclear at this time if the City may overrule its recently adopted policy, especially after the proposed 1,000-bed homeless shelter, Hope @ Vine, failed to reach consensus among City Councilmembers. Civil rights groups have warned of legal challenges against the potential mistreatment of homeless individuals. Nevertheless, the Mayor had previously noted his support for the appeal of Grants Pass and the right to clear encampments. To learn more, please click HERE.

STATEWIDE BALLOT TAKES SHAPE, COMPETING PROP. 47 REFORM MEASURE RETRACTED

California voters will decide on 10 statewide ballot measures this November. The range of proposals includes public safety, bonds, and wage increases:

• Proposition 2: $10 billion bond for public school construction and repairs. The bond, along with Prop. 4 below, aims to restore some of the state’s budget cuts. 
• Proposition 3: Strikes ban on same-sex marriage from the California Constitution.
• Proposition 4: $10 billion bond for climate change preparedness, including $3.8 billion for drought and flooding measures, $1.5 billion for wildfire preparedness, $1.2 billion to combat sea level rise, and park funding and sustainable farming. 
• Proposition 5: Changes voter threshold for local government borrowing (specific to affordable housing and infrastructure projects). At present, most local bond proposals need a two-thirds majority vote to be approved. If Proposition 5 passes, the threshold comes down to 55% for bonds that support low-income housing, road and transit expansions, parks, wildfire resilience, and other public infrastructure projects. Prop. 5 seeks to weaken taxpayer protections against government spending that were established with Proposition 13, and would lead to higher taxes
• Proposition 6: Ban all forms of forced labor, including labor in state prisons. 
• Proposition 32: Increases California's minimum wage from $16 to $18 per hour.
• Proposition 33: Rent control. Allows local governments to place rent caps on homes occupied after February 1, 1995 homes. Previous attempts failed in 2018 and 2020.
• Proposition 34: Mandate that specific healthcare providers allocate almost all funds from a federal prescription drug program towards patient care. 
• Proposition 35: Establish a permanent tax on managed health care insurance plans. The measure attempts to increase funding for Medi-Cal.  
• Proposition 36: Measure would reform Proposition 47 but making repeat shoplifting a felony and increase penalties for certain drug charges. An attempt by the Governor to add a competing measure with far less teeth was withdrawn at the 11th hour. 

To learn more, please click HERE.

CITY OF SAN DIEGO

‘BLUEPRINT SD’ APPROVED UNANIMOUSLY

The San Diego City Council unanimously approved Blueprint SD, a citywide planning tool aimed at identifying the City’s housing, climate, and mobility goals to better implement them at the community planning level, Tuesday. Blueprint SD is expected to expedite the community plan update process and more than double annual housing production with a select emphasis on building homes near transit priority areas. Staff noted that the general plan refresh would play a critical role in addressing San Diego’s housing shortage and the development of more housing types near job centers and transit lines, while preserving industrial and commercial land. The business community did express concern about a last minute addition to the Blueprint incorporating language from the City’s approved Climate Action Plan regarding electrification of existing and new buildings.  BOMA is following up with the Planning Department and Councilmember LaCava’s office to address that language. To learn more on the Blueprint refresh, please click HERE. 

UNIVERSITY CITY COMMUNITY PLAN UPDATE AND HILLCREST FOCUSED PLAN AMENDMENT TO GO BEFORE CITY COUNCIL

The City Council will take up the University City Community Plan Update, as well as the Plan Hillcrest update, on July 30. BOMA has been tracking these plan updates, which would nearly double the density for housing in both communities, as well as increase the amount of jobs space to help ensure balanced communities.  Several road segments will also be adjusted to make them more walkable and bicycle friendly. To learn more about the University Community Plan Update, please click HERE.  To learn more about the Plan Hillcrest, please click HERE.

‘HOPE @ VINE’ MEGA-SHELTER ITEM RETURNED TO STAFF AMID COMMUNITY, FINANCIAL CONCERNS; COUNCIL EXPECTED TO REVISIT IN SEPTEMBER

The San Diego City Council convened until nearly midnight, this month, on a proposal to lease an empty warehouse that would serve as a 1,000-bed homeless shelter. The shelter, called Hope @ Vine, received criticism from nearby neighbors and the city’s Independent Budget Analyst, who had concerns about the lease terms. Despite hours of testimony, discussion, and numerous breaks, the City Council elected to return the item to staff. City staff stated at the time that they would bring the item back to city council before the legislative recess in August; however, the Mayor later confirmed that the item would return in September. To read the Mayor’s statement, please click HERE.

BUILDING PERMIT EXTENSION ITEM APPROVED

The San Diego city council voted earlier this month to approve an item that will provide additional extensions for building permit applications. The item would allow for additional time allowances for permit applications, as well as existing building and development permits. Noting the economy and challenges facing projects, like financing, industry groups have argued that this modest allowance would protect investments made in the processing of housing and commercial projects, and help facilitate their completion in a timely manner, versus those applications and permits expiring due to unforeseen challenges that are beyond the applicant’s control. More information will be forthcoming from the City through an information bulletin.  The extensions will be retroactive to June 1, 2024.

CITY COUNCIL APPROVES LAND DEVELOPMENT CODE UPDATE

The San Diego City Council unanimously approved the Land Development Code Update, which includes around 100 changes aimed at clarifying development regulations, ensuring compliance with new state laws, and corrections and reforms aimed at easing the development process. Notable changes include allowances for residential to be a primary use in EMX zones and the addition of Density Bonus incentives for commercial developments that contribute to the construction of affordable housing. To view the full Land Development Code Update, please click HERE. 

CITY COUNCIL FAILS TO REACH DECISION ON ENDING VIRTUAL PUBLIC COMMENT

A proposal by San Diego City Council President Sean Elo-Rivera to eliminate public comments by phone and Zoom during city council and committee meetings was tabled to September. The item, which went before San Diego’s Rules Committee this month, faced significant backlash with critics arguing it would limit participation for those unable to attend in person due to health, disability, or other obligations. Proponents argued that virtual comments, which were instituted during the COVID-19 pandemic, lengthen meetings and impact council’s ability to efficiently convene. Given the public opposition, Elo-Rivera instead elected to postpone a decision until after the August legislative recess. It’s worth noting that the proposal would have also allowed the Council President to place direct-to-docket items (those that skip a committee hearing) on the consent agenda. You can read the proposed amendments HERE.

CITY OF SAN DIEGO RECEIVING PUBLIC INPUT ON RESIDENTIAL TRASH PICKUP FEES

Following the passage of Measure B in San Diego, City officials are conducting a community outreach campaign to decide on trash pickup fees and services for single-family homes. Measure B, which passed in 2022, amended the 1919 “People’s Ordinance”, ending free single-family waste pickup and allowing the city to adopt a fee in the future. Now, the city plans on hosting nine neighborhood forums and an online survey to gather input on how much residents should pay, recycling frequency, bulk item handling, and a potential "pay as you throw" program. Community forums will be held at the following locations (all are scheduled for 5:30pm-7:00pm):

• August 5th: Logan Heights Library, 567 S. 28th St.
• August 6th: Valencia Park/Malcolm X Library, 5148 Market St.
• August 12th: Mira Mesa Library, 8405 New Salem St.
• August 13th: Mission Valley Library, 2123 Fenton Parkway
• August 19th: Mission Hills Library, 215 W. Washington St.
• August 26th: Point Loma Library, 3701 Voltaire St.
• August 27th: Serra Mesa-Kearny Mesa Library, 9005 Aero Drive
• September 3rd: Scripps Miramar Ranch Library, 10301 Scripps Lake Drive
• September 9th: La Jolla/Riford Library, 7555 Draper Ave.

A virtual workshop will be held 10:00am - 11:30am on Aug. 24. The city’s Environmental Services Department Webpage may be found HERE.

CITY OF SAN DIEGO UPDATES STORMWATER STANDARDS MANUAL

The City of San Diego has updated its Stormwater Standards Manual. These updates are intended to provide minor clarifications and further guidance to ensure compliance with the city’s stormwater system. To read the updated manual and for a summary of changes, please click HERE. 

COUNTY OF SAN DIEGO AND OTHER REGIONAL AGENCIES

BOARD OF SUPERVISORS VOTE TO COMBAT “CORPORATE LANDLORDS” VIA BOARD LETTER

The San Diego Board of Supervisors, in a 3-1 vote (Anderson opposed), approved a motion aimed at addressing corporate homebuyers and landlords who own over 25 units. The action directs the Chief Administrative Officer to “explore measures,” to protect renters and return to the board at a future date. These measures may include potential litigation against landlords who are accused of tenant harassment and price gouging. Additionally, staff was asked to investigate the extent of corporate ownership of single-family rental units in the region and develop policies to prevent anti-competitive behavior and protect housing for first-time buyers. We expect the CAO to report back in the coming months. To read Supervisor Lawson-Remer’s board letter, click HERE. 

CHULA VISTA TO EXPLORE FEASBILITY OF DEVELOPING EDUCATION, BUSINESS HUB

The City of Chula Vista has engaged Carrier Johnson to explore the feasibility of developing a 20-acre site for an education and business hub. It is expected that three development plans will be presented, with the goal of attracting a full-service university, tech, and housing. The effort follows the city's unsuccessful negotiations with San Diego State University regarding expansion efforts. 

ELECTION UPDATE

STORMWATER PARCEL TAX MEASURE OFFICIALLY WITHDRAWN

During a meeting of the City of San Diego Rules Committee this week, Council President Sean Elo-Rivera announced that he has withdrawn the 7-cent per square foot parcel tax measure that would have provided revenue for city stormwater improvements. As a result, it will no longer appear on the November ballot.  According to the Council President, the reason stems from amendments made to the former ACA 1, which would have lowered the vote threshold for certain local tax measures from 2/3rds to 55%, which would have included things like the parcel tax for stormwater improvements. ACA 1 was amended and folded into ACA 10 (now known as Prop 5), which no longer includes provisions that might have been helpful to the stormwater tax.  Acknowledging that his proposed parcel tax would have a difficult time reaching a 2/3rds threshold, Elo-Rivera withdrew the measure. To learn more about Proposition 5, click HERE.

SAN DIEGO JOINS REGIONAL CITIES IN PLACING SALES TAX MEASURE ON THE NOVEMBER BALLOT

The San Diego City Council voted unanimously to place the “Penny for Progress” sales tax measure on the November ballot. The measure, if approved by voters, would raise San Diego’s sales tax rate from 7.75% to 8.75%. City officials claim Penny for Progress would bring in an estimated $400 million per year at a time when San Diego finds itself facing a $1 billion budget deficit. The measure will appear on the City of San Diego ballot alongside a countywide sales tax measure to fund transit projects, as well as two statewide bond measures. To learn more about the City of San Diego’s sales tax measure, please click HERE.

San Diego joins a growing list of regional cities with sales tax measures that have qualified for or been placed on the the November ballot:

• County of San Diego: Measure A would raise the sales tax countywide by 1 cent to pay for regional transportation and transit projects
• Santee: Measure S would raise the sales tax rate from 7.75% to 8.25% for 15 years
• Chula Vista: Measure P would renew its current sales tax rate, which is set to expire in 2027
• Encinitas: Proposal to raise sales tax from 7.75% to 8.75%
• La Mesa: Extension of Measure L to continue paying a 3/4 -cent sales tax
• Escondido: The “Escondido Community Investment Measure” would be a 20-year 1-cent sales tax
• National City: Proposal to establish a parcel tax on residential and commercial buildings
• Oceanside: 10-year Extension of Measure X, a half-cent sales tax
• San Marcos: One-cent sales tax measure

COUNCILMEMBER VON WILPERT CONSIDERING 2026 STATE SENATE RUN