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Legal Alert

The City of Los Angeles Seeks to Delay Implementation of Senate Bill 79 (SB 79) Until 2030

Real Estate

6.08.26

Enacted on October 10, 2025, SB 79 effectively upzoned properties within half a mile of certain transit stops — generally, heavy and light rail stops and bus lines with dedicated lanes (TOD Stops) — allowing qualifying residential projects to supersede local land use regulations. The bill takes effect on July 1, 2026. However, SB 79 includes alternative compliance pathways for cities to either delay implementation on certain properties, adopt a “transit-oriented development alternative plan” that maintains the same total net zoned capacity, or both.

The City of Los Angeles is in the process of doing both. If adopted and approved, two proposed ordinances — a “Phased Implementation Ordinance” and a “Low-Rise Ordinance” — would delay SB 79 Citywide until likely 2030, permanently exclude other parcels, upzone certain properties now, and buy the City time to prepare an alternative plan.

This alert explains the City’s local SB 79 implementation ordinances and identifies practical considerations and open questions for Los Angeles property owners and developers.

SB 79 at a Glance

SB 79 allows a maximum density of between 80 and 160 dwelling units per acre, a maximum floor area ratio (FAR) of 2.5 to 4.5, and a maximum height of 55 to 95 feet on properties within a half a mile of a qualifying transit stop, depending on the transit type and the property’s distance therefrom. Cities may not impose development standards that physically preclude achieving these standards so long as projects meet on-site affordable housing and other requirements. Projects may still require discretionary entitlements and compliance with the California Environmental Quality Act, although SB 79 allows optional ministerial approval to projects that provide additional affordable housing and meet labor standards. While it automatically applies to all “urban transit counties,” including Los Angeles, SB 79 includes options for cities to delay implementation and/or establish alternative plans. For more information, please see our prior alert.

The City’s Phased Implementation Strategy

The City seeks to delay implementation by adopting the Phased Implementation Ordinance and the Low-Rise Ordinance rather than allowing SB 79 to take effect on July 1, 2026. The Phased Implementation Ordinance would allow the City to temporarily exempt sites from SB 79 until a year after the next Housing Element is adopted, likely in 2030, and the Low-Rise Ordinance would upzone properties that otherwise do not qualify for temporary exemption in order to exempt them under the Phased Implementation Ordinance.

The City Planning Commission initially voted to approve both ordinances on May 14, 2026, the City Council’s Planning and Land Use Management (PLUM) Committee recommended approval to the City Council on May 26, 2026, and the City Council approved the ordinances on June 3, 2026.

Following Los Angeles's adoption of the Phased Implementation Ordinance and the Low-Rise Ordinance, the California Department of Housing and Community Development (HCD) has up to 120 days to review the Phased Implementation Ordinance. If HCD determines the Phased Implementation Ordinance does not comply with SB 79, the City has 60 days to revise it or make findings justifying why the City believes it complies. Based on the SB 79 statute, the Phased Implementation Ordinance may need to be adopted and “deemed compliant by [HCD],” before July 1, 2026.

The Phased Implementation Ordinance

The Phased Implementation Ordinance temporarily pauses SB 79 for properties that:

  • Already permit a density and residential FAR at half or more of SB 79’s standards.
  • Are located in a TOD zone in which at least one third of sites can achieve a density and residential FAR at half or more of SB 79’s standards and which include sites with densities that cumulatively allow for at least 75% of the aggregate density in SB 79, with modifications for designated low resource areas.
  • Are located in designated low resource areas.
  • Are within a very high fire hazard severity zone.
  • Are vulnerable to one foot of sea level rise.
  • Include a historic resource designated as of January 1, 2025, on a local register.

Additionally, the Phased Implementation Ordinance would permanently exclude certain sites located within industrial employment hubs and/or that are more than a one-mile walk from a qualifying TOD stop. The City estimates that approximately 90% of anticipated sites are currently eligible for temporary exemptions, and 2.2% of anticipated sites qualify for permanent exemptions.  

The Low-Rise Ordinance

The City’s Low-Rise Ordinance would amend the City’s existing Mixed Income Incentive Program (MIIP) to extend low-rise, missing-middle housing incentives to certain single-family and lower-density zones. Adoption would render, in conjunction with the Phased Implementation Ordinance, 100% of sites Citywide eligible for temporary exemption from SB 79. The program would establish development incentives in one of 57 new “Opportunity Station Areas,” which are TOD Zones in majority Moderate and Higher Opportunity Areas as defined. Essentially, the Low-Rise Ordinance would upzone properties in moderate and high-income areas that otherwise do not qualify for SB 79 implementation delays so that they qualify under the Phased Implementation Ordinance.

Outstanding Questions and Next Steps

Some questions remain about the City’s implementation of SB 79:

  • Based on the City’s legislative schedule and the statutory allowance of 180 days for review, HCD is unlikely to deem the Phased Implementation Ordinance compliant before July 1, 2026. Whether and how this will impact its implementation is unclear.
  • Each metropolitan planning organization must create a map of SB 79-eligible sites with a “rebuttable presumption of validity.” The Southern California Association of Governments (SCAG), which is the organization preparing a map that governs SB 79 eligibility in the City, released a draft map on June 1, 2026. SCAG’s map differs from the working map the City has used in its preparation of the Phased Implementation Ordinance and Low-Rise Ordinance; significantly, the City assumed that stops on the K Line Northern Extension and Sepulveda Transit Corridor would be included, whereas the SCAG map does not include these stops. SCAG’s Community, Economic, and Human Development Committee recommended approval of the draft SCAG map at its June 4, 2026, meeting, and the Regional Council will take final action on July 2, 2026. Whether this map is finalized in this version and how it impacts the City’s draft ordinances and timing should be monitored.
  • Assuming the Phased Implementation Ordinance and Low-Rise Ordinance are adopted and HCD approves them, the City must develop and adopt an alternative plan before the temporary exemption expires approximately in 2030 or else SB 79 will take full effect across all TOD zones.

While some property owners and developers expecting to use SB 79 on TOD sites in Los Angeles starting July 1, 2026 may have to wait several years, those within the Low-Rise Ordinance’s new Opportunity Station Areas could benefit from increased density once adopted. Further, the City expects to add SB 79 eligibility to its Zone Information and Map Access System (ZIMAS) within 60 days after enacting the Phased Implementation Ordinance. This will allow property owners and developers to assess whether their properties or projects could benefit from SB 79, although the forthcoming alternative plan could modify these projections. Finally, property owners and developers should monitor the City’s alternative plan, particularly in the context of its forthcoming Housing Element and ongoing updates to its Community Plans, to assess development potential.

Allen Matkins will continue to monitor developments as the ordinances move through the City and HCD’s approval process, and as SCAG finalizes its mapping.

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Authors

Spencer B. Kallick

Partner

Century CityT(310) 788-2417skallick@allenmatkins.com
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Korinna "Kori" Anderson

Associate

Century CityT(310) 788-2419kanderson@allenmatkins.com
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