California Governor Signs Bills to Streamline Housing Development, Target San Diego’s Midway Rising Project

California Governor Gavin Newsom has signed two pivotal bills, Senate Bill 344 and Senate Bill 958, designed to expedite housing development by curbing litigation under the California Environmental Quality Act (CEQA). These new laws build on previous reforms, targeting the common tactic of using environmental reviews to delay or halt residential projects.

SB 344 specifically addresses the $3.9 billion Midway Rising redevelopment of San Diego's Sports Arena site, a project embroiled in lawsuits for years. Once the city certifies its environmental review, this bill will prevent further CEQA challenges to the project. The Midway Rising plan includes over 4,000 new homes, with 2,000 designated as deed-restricted affordable units, alongside new park space and a world-class arena.

Complementing this, SB 958 establishes a statewide precedent by prohibiting increased building height from being considered a determining environmental impact factor for qualifying infill projects. Both bills were authored by San Diego-area Senator Akilah Weber Pierson and sponsored by Mayor Todd Gloria, passing the Senate unanimously.

The legislation directly responds to challenges faced by Midway Rising, where court rulings, including an appellate decision in October 2025 and a California Supreme Court denial in December 2025, reinstated a 30-foot height cap on the district. Opponents, such as the coastal advocacy nonprofit Save Our Access, continue to voice concerns about congestion and coastal access, with the project's ground lease terms set for a council committee review on October 8. For developers, these bills offer critical relief from protracted legal battles and provide greater certainty for large-scale urban infill developments.