Attempts to thwart higher residential density levels near California public transit systems failed to stop an accelerating legislative bus, with the state’s “yes-in-my-backyard” supporters at the wheel.

In the final days of the session, both state legislative houses voted to enact Senate Bill 79 before adjourning on Friday.

The newly passed bill proposes to override existing local zoning restrictions to permit by-right construction of multifamily housing in areas where it is currently prohibited. Proponents say the measure will lower housing costs, boost public transit usage, and alleviate traffic congestion.

If signed into law, California would join a growing list of states – including Massachusetts, Colorado, Maryland, and Rhode Island – that mandated provisions for increased housing density near public transit.

The move is all the more meaningful in that California is often seen as a legislative bellwether for other state lawmakers.

Gov. Gavin Newsom, who has been pushing reforms to address the state’s housing crisis, is expected to sign the bill. One of his biggest wins this year was rolling back rigorous environmental reviews required under the 1970 California Environmental Quality Act that had become a significant impediment to building infill housing.

SB 79, authored by Bay Area Sen. Scott Wiener, marks another big win. The bill is the result of an eight-year legislative effort.

It faced stiff opposition, particularly from local Los Angeles elected officials and community activists. Lawmakers amended the bill more than a dozen times to overcome opposition, securing the 21 votes needed for passage in the Senate. Nine senators chose not to vote, while eight voted against the bill.

United Neighbors, a coalition of neighborhood organizations, ranked among the staunchest opponents, arguing that the bill would lead to unchecked density in single-family neighborhoods.

After the vote, the group lamented losing the support of two lawmakers swayed by last-minute changes to the bill's affordability requirements. It also noted the abstention of another key senator, according to an email the group sent out and posted on social media.

We didn’t expect to lose them,” the group’s leadership wrote. “We now have to put up with Senator Wiener and his sponsors taking a very public victory lap.”

United Neighbors plans another last-gasp attempt to derail the legislation. In the email, the leadership said it would be crafting a letter to the governor urging a veto.

We must save our neighborhoods [from] rezoning,” they wrote. “That’s the goal.”

A veto is considered unlikely. California YIMBY, one of the organizations that sponsored the bill, has scored many wins on housing reform in California.

Key Provisions of SB 79

The bill's central components establish a tiered system for development based on proximity to transit.

• Tier 1 Development: This tier applies to areas near heavy rail lines, such as the Los Angeles Metro's B and D lines or Bay Area Rapid Transit (BART) stations. It permits the construction of buildings between six and nine stories high. The most significant density, up to roughly seven stories, is allowed for projects within a quarter-mile of these major transit hubs.
• Tier 2 Development: This category covers areas near light rail lines and bus routes with dedicated lanes. In these zones, new buildings can be between five and eight stories tall.

The law applies to residential, mixed-use, or commercial properties located within a half-mile of a qualifying transit station. However, its application is currently limited to eight counties with significant rail infrastructure: Alameda, Los Angeles, Orange, Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara.

Affordability, Labor, and Anti-Displacement Rules

To address concerns about affordability and displacement, SB 79 includes several protective measures.

• Affordability Requirements: All projects developed under the bill must meet a minimum affordability standard, and developers are offered incentives for including more affordable units.
• Anti-Displacement Protections: The bill incorporates existing anti-displacement rules from SB 330. It also prohibits projects that would demolish more than two rent-controlled units occupied within the last five years, or any multi-family building that has been tenanted within the past seven years.
• Labor Standards: For projects exceeding 85 feet in height, or those built on land owned by transit agencies, developers must adhere to specific labor standards, such as paying prevailing wages or hiring from a "skilled and trained" workforce. This provision was crucial in securing the support of the State Building and Construction Trades Council.

Local Flexibility and Other Features

While the bill centralizes some zoning authority, it also provides local governments with options to tailor its implementation.

• Local Alternative Plans: Municipalities can develop their own transit-oriented development plans, provided they achieve the same overall increase in housing density mandated by SB 79.
• Implementation Deferrals: Cities can postpone implementation in sensitive areas, including very high fire severity zones, areas at risk of sea-level rise, and sites with designated historic resources.
• Development on Transit Agency Land: The bill empowers transit agencies to develop housing on land they own near transit stops, creating a potential revenue stream to support public transportation systems. For mixed-use projects on this land, at least 50% of the square footage must be for residential use.
• Unit Size Limits: The average size of new residential units in an SB 79 project is capped at 1,750 net habitable square feet.