California overrides local zoning near bus and train stops — here’s what changes

California sets new rules for housing near transit

California’s Senate Bill 79 takes effect July 1, 2026, and it changes the rules for what can be built near train stations and major bus lines across the state’s biggest counties.

Gov. Gavin Newsom signed the bill on Oct. 10, 2025, alongside more than 40 other housing bills. Sen. Scott Wiener of San Francisco wrote the law, which he calls the Abundant and Affordable Homes Near Transit Act.

It overrides local zoning rules that block denser housing near transit.

California has long struggled to build enough housing

California has faced a housing shortage since the 1970s.

The state ranks 49th out of 50 states in housing units per person, and as of 2025, the gap sat at roughly 3 million homes.

Builders have averaged fewer than 80,000 new homes per year over the past decade, well below the estimated need of 180,000.

Supporters of the law say strict local zoning has blocked millions of homes from being built near transit that taxpayers already paid for.

Eight counties fall under the new law

SB 79 applies only to counties with more than 15 passenger rail stations.

Eight counties currently qualify: Alameda, Los Angeles, Orange, Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara. Those are California’s most populated urban areas.

Orange County’s inclusion depends on the completion of the OC Streetcar. Regular bus stops do not qualify.

Only rail stations and bus rapid transit lines with dedicated lanes and frequent service meet the bar.

How the law decides what can be built

The law uses two tiers based on transit type and frequency.

Tier 1 covers heavy rail systems like BART and LA Metro, plus commuter rail running 72 or more daily trains. Tier 2 covers light rail, commuter rail with 48 or more daily trains, and bus rapid transit.

For bus rapid transit to qualify, the route needs a full-time dedicated bus lane and buses arriving every 15 minutes or less during peak hours. Standard bus routes do not count.

Height limits depend on location and transit type

Most projects under SB 79 will top out at 5 to 7 stories, with height limits ranging from 55 feet to 75 feet.

The highest allowed height, about 95 feet or roughly 9 stories, kicks in only for projects within 200 feet of a Tier 1 transit stop under a special adjacency intensifier. That bonus also adds 40 units per acre in allowed density.

In smaller cities with populations under 35,000, the law only applies within a quarter-mile of transit stops, not a half-mile.

Developers must include affordable units

Projects with more than 10 units must set aside homes for lower-income households.

Builders pick one of three options: 7% of units for extremely low-income residents, 10% for very low-income residents, or 13% for low-income residents.

Affordable rental units must stay affordable for at least 55 years, and ownership units must stay affordable for at least 45 years.

If a city already requires a higher share of affordable units, the stricter local rule applies.

Current renters get some protections

Buildings with three or more rent-controlled units cannot be torn down for SB 79 projects. That protection also covers any site where rent-controlled tenants lived within the past seven years.

Projects must follow local anti-displacement rules and meet standards related to historic preservation, wildfire risk, and sea level rise.

Cities can exempt lots in very high fire severity zones and sites with designated historic resources from the law’s requirements.

Cities can still shape how the law plays out

Local governments can write their own plans for how to spread required housing near transit. Those plans must allow at least as much total development as SB 79 would require.

No individual station area can have its allowed density cut by more than 50% under a local plan. The state Department of Housing and Community Development must approve any alternative plan.

Cities can also exempt certain already-upzoned sites from SB 79’s reach.

Labor rules apply to the tallest buildings

Buildings over 85 feet must meet prevailing wage requirements. That height roughly marks where construction shifts from wood-frame to steel-frame.

Those taller projects must also use a skilled and trained workforce under certain conditions.

Housing built on land owned by transit agencies must either hire union workers or sign a direct contract with labor unions. No special labor rules apply to buildings at or below 85 feet.

The bill barely made it through the legislature

SB 79 passed the State Assembly 43 to 19, with 18 members not voting. The State Senate agreed on Sept. 12, 2025, by a vote of 21 to 8, with 11 not voting.

Support and opposition crossed party lines. Nearly every city that weighed in on the bill opposed it, including Los Angeles.

Los Angeles Mayor Karen Bass asked Newsom to veto it.

The bill was Wiener’s third try at this type of law, after SB 827 failed in 2018 and SB 50 failed in 2020.

Why opponents pushed back so hard

Cities argued that the law hands zoning control to the state.

Some affordable housing advocates said the affordability requirements give too little back compared to what developers gain. Critics also raised concerns about traffic, parking, and strain on local infrastructure.

Anti-gentrification groups warned the law could push out low-income renters who rely on naturally affordable housing near transit.

Supporters responded that local control arguments have blocked housing for decades and made the shortage worse.

What cities face if they don’t comply

The law activates automatically on July 1, 2026, in incorporated cities within the eight qualifying counties. Unincorporated areas will not be affected until around 2030 or 2031.

The state Department of Housing and Community Development will oversee enforcement. Cities found in violation could face fines of $10,000 to $50,000 per month.

The law does not bypass environmental review under the California Environmental Quality Act, but qualifying projects may use existing streamlined approval processes.

This article was created with AI assistance and human editing.

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