If Gov. Gavin Newsom signs Senate Bill 79, developers may have a streamlined approval pathway for mid- to high-density housing projects near high-frequency transit stops.
After years of controversy and negotiations, the version of SB 79 that finally passed the legislature would apply to counties with more than 15 passenger rail stations. Accordingly, the counties that would be immediately affected include California’s most populous areas: San Francisco, San Mateo, Santa Clara, Alameda, Sacramento, Los Angeles, San Diego, and Orange. Other counties would not be subject to SB 79’s upzoning provisions unless future amendments expand the scope of the bill, or the county’s transit infrastructure changes.
SB 79 introduces state-level zoning standards that would override local restrictions, allowing for mid- to high-density housing (between four and nine stories) within a half mile of high-frequency transit stops, overriding local zoning restrictions. The bill mandates affordability standards (7-13% subsidized units, if the project includes more than 10 units), enables development on transit agency-owned land, and offers a streamlined approval process, provided all environmental and labor criteria are met.
Key Provisions and Challenges of SB 79
Approved projects must comply with specified fire safety, noise, demolition, and anti-displacement rules. Development projects cannot be built on recently demolished or rent-controlled housing sites. It is important to note that the bill includes limited mechanisms for local governments to protect cultural and historical assets.
If signed by the Governor on or before October 12, implementation would begin July 1, 2026, for incorporated cities, while unincorporated county areas would see changes aligned with the seventh regional housing needs allocation (RHNA) cycle.
While SB 79 narrowly passed the legislature with bipartisan support, and Governor Newsom is expected to sign, controversy surrounding the bill means a veto cannot be entirely ruled out. Local leaders in the Los Angeles City Council have argued that the bill has unintended consequences, and Los Angeles Mayor Karen Bass has formally requested a veto. The controversy focuses on the role of local control and community input in the planning process.
How SB 79 Supports Transit-Oriented Development
The bill would unlock significant housing opportunities near transit locations. SB 79 mainly impacts transit-oriented development (TOD) projects, which create dense, walkable, mixed-use communities near public transit hubs. Their purpose is to integrate residential, commercial, and office spaces to reduce car dependency and create vibrant neighborhoods. Typically, these projects focus on pedestrian-friendly design, mixed-use land uses, and density to increase transit use and support community goals, such as increased affordable housing.
Under SB 79, environmental compliance would be addressed through a combination of existing state laws and streamlining provisions, but the bill would not introduce a new exemption, and the California Environmental Quality Act (CEQA) would still apply, unless a project qualifies for an existing exemption. For example, projects that meet the labor, environmental, and affordability standards of SB 35 or SB 423 may qualify for ministerial (streamlined) approval, bypassing discretionary review and CEQA.
If the bill goes into effect, developers and stakeholders may see an increased need for compliance support, fire safety analysis, and planning services, even if the project qualifies for streamlined review. Additionally, there may be a greater demand for technical documentation and expert analysis. Working with a third-party consulting firm can provide the services and expertise necessary to ensure compliance in these areas, including noise management, cultural awareness, and hazard regulation.
FirstCarbon Solutions (FCS), an ADEC Innovation, has extensive experience in navigating streamlining legislation and can help stakeholders ensure they are compliant amidst evolving regulations.
FCS comprises over 100 individuals offering due diligence, technical analysis, planning, environmental compliance, permitting, and mitigation/monitoring services for public and private projects. FCS has more than 40 years of experience navigating environmental complexities and securing project approvals. Contact us for a free consultation to learn more about how we can help with your specific requirements.
This blog provides general information and does not constitute the rendering of legal, economic, business, or other professional services or advice. Consult with your advisors regarding the applicability of this content to your specific circumstances.
