While the Midway Rising bills have captured the most attention due to their specific nature, they are part of a much larger legislative package aimed at the state’s housing shortage.
At the center of this package is SB 1116, which expands the state’s "starter home" rules. Previously, these rules applied only to smaller developments, but SB 1116 lifts a five-acre cap on qualifying projects, allowing for more substantial developments to benefit from streamlined approvals. The bill also places limits on local standards that can be used to artificially reduce the number of housing units a developer can build on a site.
Other notable bills in the package include:
- AB 1294: This bill creates a pilot program for property-tax incentives for apartment rentals aimed at low- and moderate-income residents in Alameda County, Sacramento County, and San Francisco.
- SB 328: Similar to the Midway legislation, this bill accelerates the environmental review process for the redevelopment of the former Concord Naval Weapons Station in Contra Costa County. This site is a massive undertaking, with plans for at least 10,000 new homes.
- AB 1815: This legislation targets the emerging market of factory-built housing. It prohibits cities from imposing building standards on these homes that exceed the requirements of the state code, preventing local governments from using "boutique" building codes to block prefabricated housing.
San Diego’s Aggressive Stance on Growth
The city of San Diego has positioned itself as a leader in California’s push for increased housing production. Under Mayor Gloria’s administration, the city permitted nearly 8,800 homes in 2024 alone. To maintain this momentum, Gloria issued an executive order requiring the city to process qualifying permit applications within 30 days, a move intended to cut through the notorious "red tape" that often delays construction by months or years.
The Midway Rising project is the centerpiece of this aggressive strategy. However, the signing of these bills does not mean the controversy is over. Save Our Access and residents in the nearby Point Loma neighborhood remain steadfast in their opposition. They continue to argue that the project’s environmental impact report is fundamentally flawed, particularly regarding its analysis of traffic congestion and its impact on coastal access.
The next critical moment for the project will occur on October 8, when the real estate terms of the ground lease are scheduled to go before a San Diego City Council committee. This meeting will likely serve as another public forum for the heated debate between those who see the project as a vital solution to the housing crisis and those who see it as an overdeveloped threat to their quality of life. Following that, the full City Council must still certify the final environmental review and provide the ultimate green light for construction to begin.
As California continues to navigate its housing crisis, the fate of Midway Rising and the impact of the new CEQA-blunting laws will be watched closely by developers, environmentalists, and policymakers across the state. The battle for the Midway District is no longer just a local land-use dispute; it is a test case for whether the state can successfully reform its most powerful environmental law to make room for a growing population.
