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Various state housing bills are currently making their way through the California State Legislature that are expected to benefit mixed-income multifamily housing developers. The following summaries reflect the status of the pending legislation as of June 6, 2025. Future amendments are expected. Important upcoming dates in the legislative process include:
SB 79 (Wiener) would provide for the approval of qualifying housing development projects within close proximity to a transit-oriented development (TOD) stop, provided that specified requirements are met.
TOD stop is defined to mean a major transit stop (as defined in Public Resources Code § 21155) served by heavy rail transit, very high frequency commuter rail, high frequency commuter rail, light rail transit, bus service (meeting the standards of Public Resources Code § 20160.2(a)(1)), frequent commuter rail service, or ferry service, or “otherwise so designated by the applicable authority” (as each is defined and specified).
As currently proposed, SB 79 provides:
As currently proposed, SB 79 provides:
As currently proposed, SB 79 provides:
As currently proposed, SB 79 would allow a local government to enact a local TOD alternative plan as an amendment to the housing element and land use element of its general plan, subject to review by the California Department of Housing and Community Development (HCD), as specified.
The TOD alternative plan may include amendments to the local zoning ordinance, which, among other things, may reduce the SB 79 residential density for any individual TOD site by up to 50%. However, the TOD alternative plan must maintain at least an equal feasible development capacity (total units and residential floor area) as the baseline established under SB 79 across all TOD zones (i.e., eligible areas around qualifying TOD stops) within the jurisdiction.
The TOD alternative plan may also designate any other major transit stop or stop along a high-quality transit corridor that is not already identified as a Tier 3 TOD stop.
As currently proposed, SB 79 would create a new CEQA exemption for a private project or public project (i.e., a project ultimately operated by a public agency) that proposes residential, commercial or mixed-uses and meets specified requirements. Please see our separate article titled “Pending State Housing Laws: New CEQA Exemptions & Expanded Opportunities for Streamlined Ministerial Approval” for more information about the new CEQA exemption proposed under SB 79.
As explained by Senator Wiener: “California needs to build millions of new homes in sustainable locations to meet state housing goals, slash climate emissions, and reduce the cost of living, but overly restrictive zoning codes make building such homes illegal” and accordingly, “SB 79 allows building more homes near transit to lower costs for families while bolstering public transit use and supporting cash-strapped agencies.” SB 79 would effectively eliminate single-family zoning districts within ½ mile of any qualifying TOD stop by imposing state-mandated minimum density requirements.
Please note that SB 79 includes provisions that allow for some local flexibility, including the ability to enact an ordinance to revise applicable zoning requirements on individual sites within a TOD zone, which could result in up to a 50% reduction in permitted residential density. Other properties in a TOD zone could benefit from up to a 200% increase in permitted residential density to compensate for any such reductions.
SB 79 was passed by the Senate Appropriations Committee on June 3, 2025, and has been ordered to the Assembly.
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