The Brief

L.A. Mayor Karen Bass has made speeding up the development of new affordable housing a centerpiece of both her successful campaign and her time in office.

During her first week on the job, Bass signed an executive order streamlining the approval of new affordable housing. Executive Directive One, or ED1, represents her biggest step toward making good on those promises. And exempting new affordable housing from lengthy environmental reviews has been a key pillar of ED1.

Now, about a year after her swearing in, LAist has found that city officials have quietly started accepting environmental challenges from groups opposed to new apartments.

One developer aiming to construct a four-story apartment building for low and moderate-income renters in the Westside neighborhood of Sawtelle was assured in writing by the L.A. Planning Department in mid-December that their project was exempt from the California Environmental Quality Act (CEQA). Two weeks later, the same department accepted a CEQA appeal from opponents of the development.

Steven Scheibe — co-founder of Generation Real Estate Partners, the company behind the development — said the city signing off on a CEQA challenge was “highly unexpected.”

“It's pretty frustrating,” he said. “It has obviously delayed the start of construction, which we were expecting to do in the middle of February. We're unlikely to be able to start at that time period.”

Scheibe and his partners submitted the project through ED1, which promises to speed up the construction of 100% affordable housing projects by approving applications within 60 days, and issuing building permits within five days.

Exempting projects from CEQA allows developers to avoid lengthy environmental impact studies that can delay new housing construction, often for a year or more. So far, the city has fast-tracked dozens of projects under ED1 that bypass CEQA.

The Planning Department’s guidelines continue to say that ED1 projects are “exempt” from environmental review. A letter of compliance Scheibe received on Dec. 12 explicitly says his project “is statutorily exempt” from CEQA. Scheibe was surprised to see the city sign off on a CEQA appeal on Dec. 27, because he was counting on ED1’s guarantees.

Standing in a dirt parcel where two single-family homes were recently torn down to make way for the 44-unit project, Scheibe said, “We would not have acquired this lot if it wasn't for ED1.”

So far, affordable housing plans have nearly doubled

L.A. housing advocates have generally cheered ED1, saying it has convinced many private developers to build affordable housing without taxpayer funding.

The planning department reported in late November that in ED1’s first year, the program had received proposals for more than 9,000 units of new affordable housing, almost double the amount proposed the previous year.

But some housing advocates now worry that the Sawtelle project’s appeal could open the floodgates for all ED1 projects to be delayed.

“I think it was a bad decision. I think the city should have not accepted the appeal,” said Scott Epstein, the policy director for the pro-housing group Abundant Housing L.A. “This appeal directly attacks ED1 and its legitimacy.”

A street sign designating this neighborhood as “Sawtelle Japantown” hangs above a busy intersection on L.A.’s Westside.

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In response to questions from LAist, the mayor’s office said they’re currently working with the city attorney on how to handle the appeal moving forward.

“CEQA should not be used as a strategy to block affordable housing projects from moving forward,” said Clara Karger, a spokesperson for the mayor’s office, via email. She said ED1 “cuts through red tape and breaks down bureaucratic barriers.”

Could environmental appeals derail new low-income housing?

If time-consuming CEQA appeals are allowed to move forward, L.A. could struggle to meet obligations under state law to plan for nearly 185,000 new low-income homes by 2029.

City planning officials also recently accepted a CEQA appeal for an ED1 project in the San Fernando Valley’s Sherman Oaks neighborhood. Land use attorney Dave Rand, who represents the developers behind the project, described the appeal as a “Hail Mary” attempt by opponents.

Rand believes city officials’ hands were tied by opponents’ interpretation of state law, essentially forcing them to accept the CEQA appeals. But he expects the city to bat down the challenges.

“Even though this is an annoyance and a slight hiccup in the process, this by no means undercut the substantial benefit of ED1,” Rand said.

It’s unclear what happens next for the projects facing CEQA challenges. Typically, these appeals go to the city council, where public commenters will have a chance to express opposition or support for new housing projects. Affordable housing developers expected their ED1 projects to proceed without contentious public hearings and council votes.

“All of this is very new for both us and for the city,” said Scheibe. “We're unsure as to what it means. But we do know that we're going to be delayed.”

Why opponents are fighting new housing on L.A.’s Westside

State lawmakers passed the California Environmental Quality Act in 1970, and it was signed into law by Gov. Ronald Reagan. The law requires studies and disclosures of possible environmental harms from various development projects.

A fierce debate has raged over the years about CEQA’s role in slow-rolling, and even killing, new housing. Local governments exempt many projects from CEQA. The California Legislative Analyst’s Office has concluded that CEQA is often used to delay or scale down housing projects, and can result in years of review for projects in the state’s largest cities.

A “now leasing” sign advertises apartments for rent in L.A.’s Sawtelle neighborhood.

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Opponents of the Sawtelle project have raised some familiar objections to new housing, including concerns about street parking. Located about a mile from two Metro stops on the Gold Line, the project includes no on-site parking.

Other complaints have centered on perceived impacts to nearby property values and neighborhood crime levels. Manhattan Beach resident Allen Pachtman owns an apartment building next to the proposed 44-unit building. He helped organize the CEQA appeal filed by a group calling itself Missouri Avenue Neighbors.

“I can just picture somewhere down the line that it's going to end up being a high-crime neighborhood,” Pachtman said. “People will be leaving, and it'll just ratchet downwards.”

Pachtman, a doctor, said he’s relying on the apartment building on Missouri Avenue to help fund his retirement. But he worries new low-income apartments next door will harm that investment.

“It’s going to degrade the value of my building,” Pachtman said. “I don't know if that's environmental enough. I don’t know that you're going to be able to measure, like, air pollution is any worse. But the quality of life is certainly going to decline.”

Such concerns about the impact of low-income housing on neighborhoods have been studied, with academic researchers finding that these projects do not hurt nearby property values and do not increase crime. When LAist asked Pachtman by phone to elaborate on his concerns about increased crime, he hung up and ended the interview.

One-bedroom apartments near UCLA for under $1,900

The proposed Sawtelle project consists mainly of one-bedroom apartments. Most of the units will be restricted to tenants in the city who qualify as low-income (the cut-off is currently $70,640 for a one-person household).

The project also includes a few studios and two-bedroom apartments. Some units will be reserved for moderate-income tenants (those earning up to $82,500 for a one-person household).

If the apartments were being rented today, most one-bedroom units in the building would rent for no more than $1,892 per month.

“If you go two blocks over, you're looking at $3,000 rents for a one-bedroom,” said Scheibe. “We saw this as a really good opportunity to provide affordable housing that is at a major discount.”

Unlike other ED1 projects in areas such as South L.A., where existing renters are now facing relocation, no tenants were displaced for this project. Scheibe said many of the prospective tenants will likely be students and staff commuting to the nearby UCLA campus without a car.

Should ED1 projects be stopped in cultural districts?

Some opponents of the Sawtelle project have argued the entire neighborhood should be off-limits to ED1 projects. They’ve said it’s unfair that Bass banned ED1 projects in single-family neighborhoods, while allowing developments in designated ethnic enclaves such as Sawtelle’s Japantown.

“What we foresee is that this will be of catastrophic effect to us,” said Cesar Aranguri during a recent planning and land use committee meeting of the West Los Angeles Sawtelle Neighborhood Council. “It’s striking right at our core in terms of our culture and our history.”

A hand-written sign calls on residents to help “save Sawtelle” by weighing in on plans for a new affordable housing project in the neighborhood.

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Aranguri presented a plan calling on Bass to exclude all named cultural districts from ED1, just as she did back in June for single-family neighborhoods. California housing advocates have already sued over the city’s decision to halt projects in single-family zones, which make up 74% of the city’s residential land.

Scheibe says affordable housing benefits communities. In Sawtelle, he says new low-income housing could provide a place for aging Japanese American residents to live.

“A lot of seniors who want to stay in their neighborhood feel like they're being priced out,” he said. “This would provide an opportunity for them.”

Where lawmakers stand on the appeals

The district’s council member, Traci Park, said she has not yet taken a position on whether the CEQA appeal should move forward.

“I was surprised that it had been accepted,” Park told LAist. “Now that it’s there, and the question exists, it's going to have to be answered. I don't know that there is any kind of process to roll back the appeal.”

Kristina Kropp, the attorney helping opponents of the Sawtelle and Sherman Oaks projects pursue the CEQA appeals, declined to comment for this story.

Councilmember Nithya Raman, who represents Sherman Oaks, has supported the ED1 project in that neighborhood. The full council is currently considering a plan to transform ED1 from a mayoral directive into a permanent ordinance.

What happens next?

Meanwhile, L.A. faces a lawsuit aiming to overturn ED1 in its entirety. The Westside nonprofit Fix The City, which frequently sues the city over land use issues, filed the complaint in December, claiming ED1 “eliminates public hearings, due process and the right of appeal.”

The developers behind the Sawtelle project have sent the city a letter demanding a dismissal of the CEQA appeal. They said if the city fails to overturn the challenge within 90 days, it will be in violation of the state’s Housing Accountability Act.

The legal sparring is playing out against the backdrop of a worsening housing crisis. Most L.A. County tenants pay more than 30% of their income on rent according to the U.S. Census Bureau, a level deemed unaffordable by federal government standards. The number of people experiencing homelessness in the city of L.A. increased 10% last year to 46,260.

Scott Epstein with Abundant Housing L.A. said environmental challenges, which he sees as often abuses of CEQA’s original intent, are slowing down much-needed new housing.

“We need to shift our attitude away from the notion that housing is an impact, and toward the notion that housing is a benefit,” Epstein said.

If voters were confused about who to support in California’s wide-open race for governor, Rep. Eric Swalwell’s exit amid allegations of sexual assault and misconduct may leave them as mystified as ever.

Swalwell suspended his campaign Sunday evening and resigned from Congress Monday afternoon — a swift fall from power for one of the state’s leading candidates for governor.

He said he would “fight the serious, false allegation made against me. However, I must take responsibility and ownership for the mistakes I did make.”

In theory, one fewer Democratic candidate in the race should help liberal voters consolidate the field. But in a race that was already anyone’s to win, Swalwell’s exit has only “caused more confusion,” said political strategist Marva Diaz, who primarily works with Democrats but is not involved in any gubernatorial campaign.

“I’ve never seen something so in flux while ballots are about to drop,” she said.

Where things stand

Because Swalwell dropped out after a statutory deadline to formally withdraw from an election, his name will still appear on the June 2 primary election ballot. That makes it possible he’ll still get some votes, but his rivals are already seeking to scoop up as many of his supporters as possible.

Both billionaire climate advocate Tom Steyer and law professor and former Rep. Katie Porter circulated polls indicating they could both pick up a sizable portion of Swalwell’s potential voters. Pollsters with the Public Policy Institute of California and UC Berkeley both agreed Steyer and Porter were the most likely to benefit from prior Swalwell supporters.

But they may not be the only ones, and it’s not clear that either one of them will immediately surge into the lead. An independent campaign committee supporting San Jose Mayor Matt Mahan pulled in $12 million million in new and previously committed contributions from wealthy donors since Friday, committee spokesperson Matt Rodriguez said, indicating his backers see an opening.

They’re launching $4.5 million worth of TV and digital ads Tuesday. Mahan is one of the race’s lower-polling candidates, getting 3% of likely voters’ support in a poll commissioned last week by the state Democratic Party.

Until the San Francisco Chronicle and CNN last Friday published stories with explosive sexual misconduct allegations from four women, including a former staff member, Swalwell had consistently polled ahead of most other Democrats in the race for governor. He was often in a three-way tie for lead Democrat alongside Porter and Steyer, with each of them getting between 10% and 15% of voters polled, tied with or trailing the two leading Republicans, Steve Hilton and Chad Bianco.

What happens to his endorsments?

And though Swalwell counted among his supporters a sizable share of the Democratic establishment — his colleagues in Congress, major labor unions and other Sacramento interest groups — it was by no means a consensus. Now, after those groups have scrambled through emergency weekend meetings to pull their endorsements, they’ll have to slog through their internal procedures if they want to back another candidate for governor.

That gives voters fewer pointers on which candidate to back, Diaz said. Some organizations, she added, may be hesitant to endorse another candidate out of concern they, too, could have damaging backgrounds.

“Most people look to labor for guidance, especially on the Democratic side,” Diaz said. “When labor organizations are not working in tandem, it causes a lot of confusion.”

Swalwell was one of four Democrats the California Labor Federation jointly endorsed for governor, along with Porter, Steyer and former Los Angeles Mayor Antonio Villaraigosa. The federation, which could not reach consensus on any individual candidate, likely won’t be revisiting its other endorsements with Swalwell gone, president Lorena Gonzalez said.

But the Service Employees International Union, California Teachers Association and other heavyweights in Democratic politics which had endorsed Swalwell and then withdrew their support may not have time to go back to the drawing board to pick a new candidate. The teachers’ union’s endorsement process, for example, required a vote among hundreds of members from across the state; the union’s next such meeting isn’t scheduled until after the June 2 primary.

Representatives of both unions said they did not have any campaign updates Monday. A spokesperson for the California Professional Firefighters, another major Swalwell supporter, did not respond to inquiries.

Where his backers may throw their support

The effects of Swalwell’s exit on public polling of the race may not be seen for weeks. Donors often look to such measures of a candidate’s performance to decide who to back.

In the last survey UC Berkeley’s Institute of Governmental Studies conducted of the governor’s race, in March, Swalwell’s supporters leaned more liberal and progressive, said institute co-director Eric Schickler. Swalwell also did better than other candidates among older voters and white voters.

Those voters cut a similar profile to Porter’s supporters, Schickler said, lending credence to the idea that his supporters would start following her.

“On the other hand, Porter has had trouble, for a visible politician, has had trouble winning over a lot of Democratic establishment figures in her own right,” he said. “If you look at the support, it’s a little more similar, but not so striking to say these supporters automatically go there.”

What about Swalwell's seat in Congress?

As for Swalwell’s congressional seat, it’s not clear when he’s stepping down. But he said he would work with his congressional staff to ensure they are able to meet the needs of his San Francisco East Bay district, where he was first elected in 2013.

Swalwell’s resignation Monday leaves the call for a special election to finish his term entirely at Newsom’s discretion, since the candidate filing deadline for the June primary has passed, according to the state election code.

Newsom’s office would not say Monday whether the governor will do so.

But if he calls for the election, the earliest date it could be held would be in mid-August, since state law requires it to take place between 126 and 140 days after the proclamation. If Newsom declines to call a special election, Swalwell’s seat will remain vacant until mid-January 2027, dealing a blow to the U.S. House Democrats who are already outnumbered by the Republican majority.

Because Swalwell opted to run for governor instead of retaining his seat in Congress, there are already seven candidates in the running to replace Swalwell in the 14th Congressional District.

CalMatters’ Yue Stella Yu contributed to this story.

New data from the Port of L.A. for March released on Monday shows a 7% increase in exports compared to the same month last year, with 132,000 containers leaving the port despite the turmoil in the Middle East.

“That's the highest output number for the export containers that we've seen in nearly two years,” Gene Seroka, the executive director of the Port of L.A. “While encouraging, we have much more work to do to develop a consistent upward trend."

The overall percentage change in container traffic in and out of the port in March is in the single digits, a 3% drop compared to the same month last year. Seroka said that’s because uncertainty over tariffs a year ago led companies to scramble to get their products through ports.

The longstanding trade deficit continues

However, while there’s an upward trend in exports, the data confirms something that’s been true for years: the U.S. is in a trade deficit. In March, overseas companies sent about three times more goods to consumers here than were sent out of the port by American companies. Last month, the port processed over 380,000 incoming containers, mostly from China, Vietnam and Japan.

That trans-Pacific commerce is insulating the Port of L.A. container volume from one of the most consequential geopolitical conflicts in recent memory — the war with Iran.

“So far, it's a concern, but it's not a worry,” Seroka said.

An electric top handler moves cargo off of semi-trucks at the Port of Los Angeles.

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Foreign shipping companies that do business with the Port of L.A., as well as ports in the Middle East, are doing what they can to protect their trade with the U.S., Seroka said.

“The transpacific business is the most lucrative of any east west [trade] for the service providers and shipping lines… they'll go to great lengths to make sure those supply chains remain intact,” he said.

The port is the busiest in the Western hemisphere, generating more than $300 billion in trade last year, making it an important regional and national economic engine.

But the war is affecting shipping companies and consumers in other ways. The price of gasoline has gone up, as well as cargo ship fuel, which will likely be passed on to consumers.

The directors of a beloved Los Angeles puppetry institution said Monday their theater is here to stay now that they’ve worked out a plan to buy their building.

The Bob Baker Marionette Theater has been delighting L.A. kids — and kids at heart — since 1963. But in 2019, a landlord’s redevelopment plans forced the theater to move from its original location near downtown L.A. to its current venue in Highland Park.

Co-executive director Mary Fagot said discussions to purchase the building began in 2024. Those talks have culminated in a deal to buy the building for $5 million from its owner, Capstone Equities.

Once the sale is complete, Bob Baker will be able to redirect rent money to new programming, field trips and special events, Fagot said.

“Buying the building means that we won't be subject to rent increases or even another displacement in the future,” she said. “We'll be able to go on presenting our special brand of magic, creativity and imagination, here in this location, forever.”

How puppetry lovers can help secure the deal

The theater said it has already raised $4.5 million for the purchase from organizations such as the Perenchio Foundation, the Kohl Family Foundation and the Ahmanson Foundation, as well as philanthropists and celebrities, including Wallis Annenberg, Jack Black and Tanya Haden.

Now the theater is asking the public for help raising the last $500,000, so it can close the deal without carrying debt into the future.

The news comes as new audiences have been getting to see White Cat, Skateboarding Clown, Gorgeous and all of the theater’s other distinctive puppets in action.

Bob Baker puppeteers brought their talents to Coachella last weekend. They’ll be there again this weekend, adding a dash of whimsy to a lineup that includes headliners Sabrina Carpenter, Justin Bieber and Karol G.

What’s next?

The theater is also prepping to debut its first new show in 40 years, an hour-long train-themed adventure called Choo Choo Revue.

Fagot said L.A. families are always bringing new generations of kids to their regular shows in Highland Park.

“To be able to say with certainty that this theater will be here for my kids and my kids' kids, and really for the cultural landscape of Los Angeles for generations to come — it feels like a really big deal, not just for us, but for L.A.,” Fagot said.