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26 June 2026

Sustainable Development And Land Use Update

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Allen Matkins Leck Gamble Mallory & Natsis

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Allen Matkins, founded in 1977, is a California-based law firm with more than 200 attorneys in four major metropolitan areas of California: Los Angeles, Orange County, San Diego, and San Francisco. The firm's areas of focus include real estate, construction, land use, environmental and natural resources, corporate and securities, real estate and commercial finance, bankruptcy, restructurings and creditors' rights, joint ventures, and tax; labor and employment, and trials, litigation, risk management, and alternative dispute resolution in all of these areas. For more information about Allen Matkins please visit www.allenmatkins.com.
California's housing and development landscape faces significant shifts as Senate Bill 79 approaches its 2026 effective date, while cities like Palo Alto and Los Angeles grapple with implementation strategies. Meanwhile, new legislation targeting pharmaceutical facilities, wildfire recovery zones, and coastal development threatens to reshape workforce requirements and local planning authority across the state.
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Focus

Palo Alto nixes ‘urgency’ measure to limit impact of housing law

Palo Alto Online – June 16

Senate Bill 79, a contentious state bill allowing for greater height and housing density near qualifying public transit stations, will become effective on July 1, 2026. The Palo Alto City Council on June 15 voted against an ordinance that would have taken effect immediately to blunt the majority of the bill’s impacts once it goes into effect, with officials citing concerns about the legality of doing so via an urgency ordinance. Instead, the City Council passed ordinances to temporarily exclude certain properties from SB 79, but those ordinances will not go into effect until July 16, 2026.

As discussed in our recent legal alert, the City of Los Angeles is considering two ordinances that would delay SB 79 citywide until likely 2030, permanently exclude other parcels, upzone certain properties now, and buy the city time to prepare an alternative plan.

Please see our SB 79 legal alert for more information about the bill.

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News

Pending state law: New labor requirements for pharmaceutical research, development, and production facilities

Allen Matkins – June 11

The State Legislature is considering legislation that would extend skilled workforce, prevailing wage, and labor reporting requirements to privately owned facilities used for pharmaceutical research, development, or production (Covered Facilities). If approved, SB 1185 (Cortese, Arreguín, Becker, Grayson, and Bryan) would not only apply to Covered Facilities during construction, but would also affect subsequent tenant improvements, equipment installation, repairs, and maintenance work.

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Proposed bill would pause density laws in fire-scarred Altadena

Pasadena Now – June 14

State Sen. Sasha Renée Pérez this week unveiled amendments to a wildfire recovery bill that would temporarily block California’s state housing density laws in Altadena. SB 1090 would impose a five-year moratorium on the ministerial approvals required by Senate Bills 9 and 1123 for projects in Altadena ZIP codes 91001 and 91003, covering applications filed from Jan. 7, 2025 through Jan. 7, 2030. 

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Controversial coastal development bill washes ashore with radically reduced scope and impact

Santa Monica Daily Press – June 16

A state bill that once threatened to strip the California Coastal Commission of significant permitting authority over Santa Monica has been fundamentally rewritten into a narrower measure designed to hold the commission accountable to a defined timeline for certifying the city’s long-delayed Local Coastal Program (LCP). Assembly Bill 1740 requires Santa Monica to submit a complete proposed LCP to the commission by Jan. 1, 2029.

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Humboldt group files ballot measure to restrict large warehouses in Coastal Zone

Times-Standard – June 15

Humboldt County residents have filed a ballot initiative that would ban large industrial warehouses and distribution centers from the county’s Coastal Zone. The county has two weeks from the filing date to determine whether the initiative meets legal standards and to assign it a ballot title and measure letter.

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San Francisco supervisor proposes ballot measure fighting food deserts, zombie stores

SFGate – June 16

San Francisco Supervisor Bilal Mahmood this week announced plans for a November ballot measure seeking to tackle the city’s growing grocery access crisis. One component of the ballot measure would reward businesses that reopen vacant storefronts as groceries or pharmacies through tax credits and a permitting process that cuts more than six months off the timeline.

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