A new California state law goes into effect in July, allowing denser housing development near major transit stops. This legislation aims to enable the construction of over one million new housing units in the state’s urban centers. It mandates cities to approve taller apartment and condominium buildings near rail stops, ferry terminals, and rapid transit bus stops. The law supersedes local restrictions that previously hindered such developments.
The legislation, known as the Abundant and Affordable Homes Near Transit Act or Senate Bill 79, is among the most assertive measures addressing California’s housing shortage. Real estate developers are keen to start new projects under these relaxed regulations once the law is in effect.
Senator Scott Wiener (D-San Francisco) introduced the bill in 2025, emphasizing the urgent need to tackle the housing shortage. “This removes a bunch of uncertainty about whether proposed projects will get approved,” stated Sean Burton, CEO of Cityview, a leading apartment developer. “We’re very excited about it,” he added, indicating the law’s potential to accelerate housing production in Los Angeles and other areas.
The law preempts local controls, legalizing midrise and high-rise multifamily housing, with zoning for up to 1.5 million new units in major cities, including Los Angeles. Developers can build up to nine-story buildings next to certain transit stops, seven stories within a quarter-mile, and six stories within a half-mile. Height limits depend on proximity tiers to transit hubs, affecting various lines in Los Angeles.
The law applies only to counties with at least 15 passenger rail stations. These include Los Angeles, Orange, San Diego, Alameda, San Francisco, San Mateo, Santa Clara, and Sacramento. Los Angeles, with approximately 150 transit stops covered by the law, will likely feel the greatest impact. Architectural firms, like SPF:architects, are readying projects to unveil once the new law takes effect.
Cities can delay the new zoning law until 2030 by increasing density on their own. Without a density plan by July 1, they must follow SB 79 terms. This provision may lead to a rush of proposals before planning is completed.
Los Angeles has sought to mitigate SB 79’s requirements, opposing it in a resolution stating it undermines local governance. The City Council plans to delay SB 79 citywide by upzoning 55 single-family and low-density areas, temporarily altering regulations until 2030.
Developers are frustrated by the delay. Burton criticized it, noting that while city leaders express a desire for more housing, they resist laws promoting it. Yet, he expects laws like SB 79 and a rollback of the California Environmental Quality Act last year to lead to more housing construction statewide.
The “mansion tax,” also known as Measure ULA, presents a significant barrier to new housing in Los Angeles, though neighboring areas like Santa Monica and Culver City could reap benefits from SB 79. Recently, the Southern California Assn. of Governments released a map of affected transit hubs in Los Angeles County, aligning with Metro’s rapid transit map.
Jonathan Curtis, head of developer Cedar Street Partners, argues that state intervention is necessary due to city leaders’ hesitance to densify around transit hubs. He stressed the ongoing housing crisis and the missed opportunity if transit stations are not utilized effectively.
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