Newsom signs historic housing bill to densify transit hubs

During his election campaign eight years ago, Governor Newsom promised to support the construction of 3.5 million new housing units in California by the end of this year. He will likely be short millions, but his latest move reaffirms that effort.

Newsom signed Senate Bill 79 into law Friday. The landmark bill, which aims to increase the density of transit centers across California, is one of the most ambitious state-imposed housing efforts in recent memory.

“All Californians deserve affordable housing, close to jobs, schools and opportunity. Housing near public transportation means shorter commutes, lower costs and more time with family. When we invest in housing, we invest in people – their chance to build a future, raise a family and be part of a community,” Newsom said in a statement.

The ambitious bill – which takes effect July 1, 2026 – increases zones across California, overriding local zoning laws to allow taller, denser projects near transit hubs such as subway stations, light rail stops and bus stops with dedicated lanes.

Developers will be allowed to build up to nine stories of residential buildings adjacent to subway stations, seven stories within a quarter-mile of them, and six stories within a half-mile. The bill will also allow five- to eight-story residential buildings near light rail and bus lanes, based on a property’s proximity to a particular train station or bus stop.

This is the second major housing reform Newsom has greenlighted this year. In June he signed a historic bill which streamlines housing construction and reduces regulatory red tape imposed by the California Environmental Quality Act (CEQA).

Newsom’s decision caps months of debate and weeks of advocacy from residents, advocacy groups and cities imploring him to sign or veto.

It’s a massive victory for YIMBY groups and developers, who say the quickest way to solve California’s housing crisis is to build housing, especially near transit stops, to encourage mass transit and reduce automobile pollution.

“With his signing of SB 79, Governor Newsom cements his legacy as one of the most transformative pro-housing leaders in California history,” Brian Hanlon, CEO of California YIMBY, said in a statement. “Now we begin to ensure that its provisions are fully and fairly implemented. »

It’s a blow to some cities, including Los Angeles, which argue the bill brings a one-size-fits-all approach to a problem that requires local control. Mayor Bass asked Newsom to veto the bill, and the Los Angeles City Council passed a motion opposing it.

NOW, the chaotic stampede begins as cities, developers and residents try to determine who is affected by the bill – and who is exempt.

Sen. Scott Wiener (D-San Francisco) introduced the bill in January, emphasizing the need for immediate action to resolve the housing crisis. But as the bill moved through the Legislature, a multitude of amendments, exemptions and exclusions were added in order to get enough votes to pass the Assembly and Senate.

What remained was a wordy and sometimes confusing bill. Wiener spokesman Erik Mebust acknowledged that it’s “incredibly difficult to visualize.”

First, the scope of the bill was narrowed across California to only counties with at least 15 passenger rail stations, leaving only eight: Los Angeles, Orange, San Diego, Alameda, San Francisco, San Mateo, Santa Clara and Sacramento.

The biggest impact will likely be felt in Los Angeles, which has about 150 transit stops covered by the bill, according to the city’s preliminary assessment.

Then, lawmakers added several deferral options, allowing cities to delay implementation in selected areas until around 2030 — a year after submitting their latest plan to boost new housing construction and support growth.

Over the next five years, cities will be able to exempt properties located in high fire hazard areas, historic preservation zones and low-resource areas — an attempt to mitigate the bill’s effect on gentrification in low-income neighborhoods.

Additionally, to get the votes of lawmakers representing small towns, SB 79 zones were reduced to a quarter-mile in towns with fewer than 35,000 residents, compared to a half-mile everywhere else.

Under the amendment, the bill only affects a quarter-mile around transit-adjacent properties in South Pasadena, which has a single A Line subway station, but a half-mile in its adjacent communities — Pasadena and the Highland Park neighborhood of Los Angeles.

Other oddities abound. For example, a city may exempt a particular property that is a half mile from a transit station as the crow flies, but has physical barriers (railroads, highways) that actually make it more than a mile walk away.

Several online maps have attempted to show which areas would be increased under SB 79, but no one has produced a parcel-specific overview. Los Angeles planning officials recently released a draft map showing locations they say would be increased under SB 79. But they cautioned that the online tool is intended for “exploratory purposes only” — and that a binding eligibility map will eventually be released by the Southern California Assn. governments.

Cities, developers and property owners will have to wait until this map is clearer. Meanwhile, YIMBY groups hope the bill will spur multifamily development in Los Angeles, which has decreased in recent years due to an unprofitable economic situation and regulatory uncertainty.

“A lot of people don’t want California to change, but California is changing whether they like it or not,” said Matt Lewis, a spokesman for California YIMBY, one of the bill’s sponsors. “The question is whether we allow these changes to be sustainable and affordable, or rather chaotic and costly. »