A new state law in California will permit denser housing development near major transit stops starting in July. This law aims to create over 1 million new housing units in urban areas. The Abundant and Affordable Homes Near Transit Act, known as Senate Bill 79, mandates cities approve taller apartment and condominium projects near rail stations, ferry terminals, and rapid transit bus stops. This overrides previous local restrictions. It is a state effort to tackle the ongoing housing shortage in California.
Developers are planning new projects following the relaxed regulations. State Sen. Scott Wiener, who introduced the bill in 2025, argues the law provides needed certainty in the approval process of housing projects. Sean Burton, Chief Executive of Cityview, supports the law, stating it will accelerate new housing production, especially in Los Angeles.
The law changes local control, allowing midrise and high-rise multifamily developments. Zoning could result in up to 1.5 million new units in major cities, including Los Angeles. Developers can construct up to nine-story buildings adjacent to certain transit stops, seven stories within a quarter-mile, and six stories within a half-mile. Height limits depend on proximity to transit hubs, with different Tiers outlining specific allowances. Tier 1 includes heavy-rail lines like L.A.’s Metro B and D lines, allowing six- to nine-story projects. Tier 2 includes lighter rail lines and bus routes with dedicated lanes, permitting five- to eight-story buildings.
The bill applies to counties with at least 15 passenger rail stations, including Los Angeles, Orange, San Diego, Alameda, San Francisco, San Mateo, Santa Clara, and Sacramento. Los Angeles, with over 150 transit stops affected, will feel the biggest impact.
Real estate developers have shown interest in new projects, as indicated by Los Angeles architecture firm SPF:architects, which plans to reveal residential projects under the new law. Nonetheless, some city officials, such as in Los Angeles, are seeking to delay the law’s effects by 2030 by adopting local density plans. A recent strategy upzones 55 single-family and low-density areas, allowing four- to 16-unit buildings up to four stories. This plan aims to temporarily delay SB 79’s application.
Developers express frustration with the delays. They argue that while city officials claim to want more housing, they oppose necessary laws. Other state actions, including changes in environmental regulations, are also expected to foster growth in the housing sector. However, new developments might bypass Los Angeles due to the ‘mansion tax,’ which imposes additional taxes on high-value real estate transactions. Instead, other areas like Santa Monica and Glendale might benefit more from SB 79.
Efforts to increase density around transit hubs face challenges, which state intervention seeks to address. Jonathan Curtis, a developer, views this as essential in combating the housing crisis. Billions invested in rail infrastructure require corresponding density at transit stations, preventing missed opportunities for growth.
Leave a Reply