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Two California CEQA bills could narrow lawsuits against housing projects
The bills, including Senate Bill 344 aimed at the nearly $4 billion Midway Rising case, face a Sept. 30 decision by Gov. Gavin Newsom.
HousingWire reports that California Gov. Gavin Newsom has two housing-focused bills on his desk that would limit how CEQA lawsuits can be used to delay or block housing developments. The measures are designed to reduce the leverage of environmental legal challenges, including by limiting height-based CEQA claims and addressing legal tactics after an environmental review is certified.
The bills are tied to litigation that delayed San Diego’s Midway Rising, a nearly $4 billion redevelopment project that would add thousands of housing units. A coastal advocacy nonprofit successfully sued the city over the development, and HousingWire says the setback became a catalyst for the new legislation.
If signed, Senate Bill 344 would directly target Midway Rising and would be the first state law of its kind aimed at a single development. Senate Bill 958 would affect the project as well, and it would also have broader statewide impact by addressing building height.
Newsom must sign, veto, or allow the bills to take effect without signing by Sept. 30, because unsigned bills automatically become law. HousingWire notes San Diego positioned itself as an aggressive builder of ground-up housing, permitting nearly 8,800 homes in 2024, and it issued about 14,500 permits the prior year.