June 9, 2026

California’s New Housing Development Law at Transit Stops

A new California state law promotes denser housing near major transit stops starting in July. The Abundant and Affordable Homes Near Transit Act, also known as Senate Bill 79, aims to generate over 1 million new housing units in the state’s urban centers. This law mandates cities approve taller apartment and condominium complexes near rail stops, ferry terminals, and rapid transit bus stops. It removes previous local restrictions that limited development.

Senate Bill 79 represents one of the most assertive actions by the state’s legislators to address California’s significant housing shortage. The bill was introduced in 2025 by Sen. Scott Wiener of San Francisco, who has long advocated for immediate state intervention. Sean Burton, Chief Executive of Cityview, one of the largest apartment developers in California, expressed optimism about the potential increase in housing production due to the law.

The bill preempts local controls, legalizing mid-rise and high-rise multifamily housing by unlocking zoning for up to 1.5 million units in cities like Los Angeles. Height regulations for developments depend on proximity to transit hubs. Developers can build up to nine stories for buildings next to certain transit stops, seven stories within a quarter-mile, and six stories within a half-mile.

The zoning is divided into tiers with varying height restrictions. Tier 1, including heavy-rail lines like the Metro B and D lines, permits constructions between six to nine stories. Tier 2, comprising light-rail lines such as the A, C, E, and K lines, as well as bus routes with dedicated lanes, allows five- to eight-story buildings. Single-family neighborhoods within a half-mile of transit stops will adhere to these new zoning rules.

The law applies to counties with at least 15 passenger rail stations. These include Los Angeles, Orange, San Diego, Alameda, San Francisco, San Mateo, Santa Clara, and Sacramento. Los Angeles, with roughly 150 transit stops, is expected to feel the most substantial impact. Real estate developers plan to announce new projects once the law is active.

SPF:architects of Los Angeles has two residential projects ready for Southern California, awaiting the law’s activation. Renzo Pali, the firm’s director of operations, remains discreet about their locations, anticipating opposition from local officials.

Cities can postpone the new zoning law until 2030 by introducing their own density plans. However, those without plans by July 1 must comply with SB 79. Proposals submitted before completing a plan will be subjected to the bill, potentially leading to a surge in submissions, according to Pali.

Los Angeles has temporarily weakened SB 79’s requirements. The City Council proposed an upzoning strategy for 55 single-family and low-density areas to allow four- to 16-unit buildings up to four stories high. This would delay SB 79 implementation until 2030 if not contested by Sacramento.

Developers expressed frustration over L.A.’s delay tactics. Burton criticized how council members claim to want more housing but oppose laws facilitating it. Despite this, he expects SB 79 and previous amendments to the California Environmental Quality Act to foster growth.

Measure ULA, a ‘mansion tax’ imposing further transfer taxes on high-value property sales, remains another hurdle for Los Angeles developers. Burton believes cities like Santa Monica, Pasadena, and West Hollywood will benefit from SB 79. The Southern California Association of Governments unveiled a preliminary transit hub map aligning with Metro’s rapid transit map through Los Angeles County.

Jonathan Curtis from Cedar Street Partners acknowledges reluctance from some city leaders to increase density around transit hubs. Citing the housing crisis, Curtis finds state intervention necessary and efficient as billions invested in rail need accompanying housing density.

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