I'm not sure what place you are describing but a place like Chico could easily double their population, and should do so. There are a string of silly towns that are squatting on ideal locations (Chico is one). The state should use its budget to incentivize growth in those places. A town like Chico, or Lodi, or Stockton, or even Sacramento should get slathered in cash if it builds housing in a smart way. The state should pick up the tab for things like pipes and roads and utility undergrounding in smart growth cities.
No. Established cities tend to be not in flood plains due to survivor effect. Chico, Lodi, Sacramento, and even Stockton are above 100-year floor areas for the most part. Typically the most flood-prone areas are the oldest parts of old downtowns and the newest sprawl where they are gobbling up marginal land.
