On October 11, Governor Newsom signed SB 79 into law. SB 79 is the latest arrow in the quiver of significant reforms to California’s Housing Laws and the California Environmental Quality Act (CEQA), which California has enacted in recent years to combat the State’s critical housing shortage.

SB 79 combats the State’s housing shortage by increasing residential density around Transit-Oriented Development Stops, which generally include train stations and major bus stops. SB 79 also aims to increase transit ridership throughout the State by concentrating new housing density within walking distance of Transit-Oriented Development Stops. SB 79 does this by providing a “floor” of housing density near transit that local governments cannot dip below.

SB 79 will take effect on July 1, 2026.

Key Provisions of SB 79

  • Housing development is an allowed use on any site zoned for residential, mixed-use, or commercial development within one-half mile of Transit Oriented Development Stop. This includes sites zoned for single-family residential zones.
  • Transit Oriented Development Stops are categorized between two tiers:
    • Tier 1: A Transit-Oriented Development Stop within an urban transit county [meaning a county with more than 15 passenger rail stations] served by heavy rail transit or very high frequency commuter rail.
    • Tier 2: A Transit-Oriented Development Stop (excluding Tier 1) within an urban transit county served by light rail transit, high-frequency commuter rail, or by Bus Rapid Transit (as defined in Public Resources Code section 21060.2).
  • SB 79 Development Project Standards. SB 79 sets minimum development standards for eligible projects located within certain distances from transit stops, as follows:
    • Within a quarter mile of a Tier 1 stop, local governments cannot:
      • (1) impose a height limit less than 75 feet;
      • (2) impose a maximum density less than 120 dwelling units per acre; or
      • (3) impose development standards that would physically preclude a project from attaining a Floor Area Ratio (“FAR”) of 3.5:1. Development projects meeting a minimum density of 90 units per acre are eligible for additional concessions under California’s Density Bonus Law (Government Code § 65915.)
    • Between a quarter and one-half mile of a Tier 1 stop, or development projects within a quarter mile of a Tier 2 stop, local governments cannot:
      • (1) impose a height limit of less than 65 feet;
      • (2) impose a maximum density less than 100 dwelling units per acre; or
      • (3) impose development standards that would physically preclude a project from attaining a FAR of 3:1. Development projects meeting a minimum density of 75 units per acre are eligible for additional concessions under California’s Density Bonus Law.
    • Between a quarter and one-half mile of a Tier 2 stop, local governments cannot:
      • (1) impose a height limit less than 55 feet;
      • (2) impose a maximum density less than 80 dwelling units per acre; or
      • (3) impose development standards that would physically preclude a project from attaining a FAR of 2.5:1. Development projects meeting a minimum density of 60 units per acre are eligible for additional concessions under California’s Density Bonus Law.
    • For projects applying the State Density Bonus Law, the base density will be the density provided by SB 79. However, local governments are not required to grant additional height concessions in excess of the height minimums provided above.
  • SB 79 does allow for:
    • An “adjacency intensifier” for SB 79 development projects adjacent to a Tier 1 or Tier 2 stop, allowing for an additional 20 feet in height, increased maximum density of an additional 40 dwelling units per acre, and an additional 1.0 FAR.

Key Restrictions of SB 79 on Developments and Considerations for Local Governments

  • SB 79 development projects:
    • Must build at least 5 units of housing to a minimum density of 30 dwelling units per acre, or the minimum density required under local zoning, whichever is greater, and the average size of a unit cannot exceed 1,750 net habitable square feet.
    • Must provide low-income housing as part of the total unit count, at percentages provided in the statute.
  • SB 79 cannot be:
    • used to develop hotels; or
    • used where the demolition of existing rent-controlled units would be required.
  • The local government’s local objective general plan and zoning standards can be applied to the SB 79 development project provided they do not alone or in concert prevent achieving the SB 79 standards.
  • All eligible SB 79 development projects are eligible for streamlined ministerial approval as long as the project can meet the requirements in Gov. Code Section 65913.4 [SB 35], and therefore may be exempt from CEQA.
  • Regional transit agencies also may use SB 79 to develop housing on agency-owned land, and may adopt by resolution, their own zoning standards for SB 79 development projects, subject to specific requirements.