WHAT YOU NEED TO KNOW: The third project to be certified by the Governor since the new infrastructure law was signed would create more than 1,500 new homes and up to 10,000 union jobs, providing a critical post-pandemic boost to downtown Los Angeles.

March 7, 2024 - SACRAMENTO – Today, Governor Gavin Newsom announced that he took action to accelerate a housing project in downtown Los Angeles that, if ultimately approved, is expected to deliver more than 1,500 new homes, office space and retail all centrally located near transit and jobs. The 10-building project is anticipated to pump $2 billion into the California economy and create up to 10,000 union jobs.

The Governor certified the Fourth and Central Project utilizing tools to build more faster that were extended in the historic infrastructure package passed last year with the support of the Legislature. The text of the certification is here.

The Governor’s action means that any legal challenges brought against the project must be heard within 270 days to the extent feasible – reduced from the typical timeline of three to five years. This is the third project and the first housing project to be streamlined since the Governor signed the infrastructure package into law.

WHY IT’S IMPORTANT: 

• The Fourth and Central Project is a mixed-use residential project between Little Tokyo, the Arts District and Skid Row in downtown Los Angeles that would replace a current cold storage facility.
• The 10-building project – centrally located near transit and jobs – includes 1,521 residential units (including at least 214 affordable units), 411,113 square feet of office space, 101,088 square feet of restaurant/retail space, and 68 hotel rooms.
• The project is anticipated to create up to 10,000 union construction jobs and will support downtown’s post-pandemic recovery.

HOW IT WORKS:

• SB 7 (2021) allows the Governor to certify eligible clean energy and green housing projects for judicial streamlining under the California Environmental Quality Act (CEQA). This key tool to cut red tape was extended last year with the enactment of SB 149.
• Courts must decide CEQA challenges to certified projects within 270 days to the extent feasible – saving months or even years of litigation delays after a project has already passed environmental review, while still allowing legal challenges to be heard.

“For decades, we’ve let red tape stand in the way of these kinds of critical housing projects – and the consequences are in plain view all around us.

Now we’re using California’s infrastructure law to build more housing, faster.”

Governor Gavin Newsom

HOW WE GOT HERE:

• In July, Governor Newsom signed into law a package of bills to accelerate critical infrastructure projects across California that will help build our 100% clean electric grid, ensure safe drinking water and boost the state’s water supply, and modernize our transportation system.
• By streamlining project reviews, cutting red tape, and allowing state agencies to use new project delivery methods, these new laws will maximize taxpayer dollars and accelerate timelines of projects throughout the state, while ensuring appropriate environmental review and community engagement.
• These project streamlining tools will take full advantage of an unprecedented $180 billion in state, local, and federal infrastructure funds over the next ten years while creating an estimated 400,000 good-paying jobs.

Find more projects that are building California’s future at build.ca.gov.
Source: Office of the Governor