California Forces Dense Housing Near Transit

 

But Is Public Transportation Ready?

Governor Gavin Newsom signed controversial legislation Friday that will allow buildings up to eight stories tall near transit stations statewide, overriding local zoning in single-family neighborhoods—but critics question whether California's public transportation systems are robust enough to support the influx of new residents the law envisions.

Senate Bill 79, the Abundant and Affordable Homes Near Transit Act, represents the culmination of an eight-year fight to legalize homes near transit that began in 2017. The law affects every stop on the San Diego Trolley and Sprinter, along with major transit systems in Los Angeles, the Bay Area, and Sacramento.

The Transit-First Question

The legislation's central premise—that building dense housing near transit will reduce car dependency and fight climate change—faces a fundamental challenge: many California transit systems lack the frequency, coverage, and reliability that make car ownership truly optional.

San Diego's public transportation exemplifies the problem. The Metropolitan Transit System operates primarily during morning and evening rush hours along major commute corridors. Evening and weekend service is limited, cross-town trips often require multiple transfers and lengthy waits, and shopping trips can become ordeals involving hauling bags through multiple connections. For residents venturing out at night, expensive Uber rides home are often the only realistic option when transit service ends.

This stands in stark contrast to truly transit-rich cities like New York, where 24/7 subway service makes car ownership unnecessary for most residents. The COVID-19 pandemic further exposed public transit's vulnerability, as ridership plummeted and many systems still haven't recovered to pre-pandemic levels.

The sequencing problem is significant: SB 79 mandates dense housing now, hoping increased ridership will eventually justify improved service. A more logical approach might improve transit first, demonstrate its viability, then build density around proven systems—creating a virtuous cycle rather than a leap of faith.

What the Law Requires

The bill applies to any qualifying site zoned for residential, mixed-use or commercial properties within a half-mile of qualifying transit, or within a quarter-mile for small cities under 35,000 residents. Projects directly adjacent to stations can reach eight stories, with heights stepping down to six stories within a quarter-mile and five stories up to a half-mile away.

For the highest-frequency transit—routes with 72 or more trains daily—buildings can reach nine stories at stations, seven stories within a quarter-mile, and six stories up to a half-mile.

The legislation only applies to eight counties with at least 15 passenger rail stations: Los Angeles, San Diego, Orange, Santa Clara, Alameda, Sacramento, San Francisco and San Mateo. Late amendments exempted commuter rail lines like the Coaster and Amtrak, sparing coastal North County cities including Carlsbad, Encinitas, Solana Beach and Del Mar. Rapid bus lines were also excluded unless they have dedicated lanes and 15-minute frequencies, exempting most of MTS route 225 in Chula Vista.

The law takes effect July 1, 2026.

Affordability and Protections

Every SB 79 development must designate 7% of units for extremely low income residents, 10% for very low income, and 13% for low income. Buildings over 85 feet must meet SB 423 labor standards requiring skilled and trained workers or prevailing wage.

Anti-displacement measures prohibit developments on sites with rent-controlled housing occupied within the past five years. Projects cannot require demolition of rent-stabilized buildings with three or more units or multifamily housing occupied within the last seven years.

Cities retain some flexibility. They can phase in density requirements over three years, with longer allowances for lower-resource areas. Exemptions exist for historic preservation and wildfire risk, and cities can require developer fees for schools, parks and infrastructure.

The Long Political Battle

The journey began at a San Francisco bar in 2017, when California YIMBY CEO Brian Hanlon pitched the idea to co-founders Zack Rosen and Nat Friedman. That conversation led to SB 827 in 2018, which failed in committee despite being seen as an opening salvo in national efforts to unlock housing growth.

Senator Scott Wiener's SB 50 in 2019-2020 met a similar fate, failing on the Senate floor on January 31, 2020. Rather than give up, California YIMBY pivoted to incremental wins. The group passed laws legalizing accessory dwelling units, 'missing-middle' housing like duplexes, and in 2022 scored a major victory with AB 2097, which ended parking mandates statewide.

When SB 79 was introduced, it was crafted as a "clean" transit-oriented housing bill, benefiting from groundwork laid by earlier legislation. The proposal underwent 13 rounds of amendments—more than any other policy bill—with many changes made to convince interest groups to drop opposition.

The final votes were narrow: 21-13 in the Senate and 41-17 in the Assembly. San Diego's delegation split along predictable lines, with Democrats Alvarez, Ward, Sharp-Collins and Patel voting yes, Republicans DeMaio and Davies voting no, along with Democrat Tasha Boerner. Senator Steve Padilla voted yes while Catherine Blakespear voted no.

Fierce Opposition

Beverly Hills Mayor Sharona Nazarian warned that "in a built-out, compact city like Beverly Hills, SB 79 would have far-reaching and disruptive consequences" and undermine years of planning. Los Angeles Mayor Karen Bass asked Newsom to veto the bill, arguing it "risks unintended consequences for L.A."

The League of California Cities and California State Association of Counties opposed the legislation, as did North County coastal leaders. Encinitas Mayor Bruce Ehlers called it an "overreaching effort" that forces transit-oriented development "without regard to the community's needs, environmental review or public input."

Pacific Beach resident Marcella Bothwell, chair of Neighbors for a Better California, said "SB 79 overrides well-thought-out housing plans people have spent years developing. It's a top-down mandate that kills local control."

Western Center on Law & Poverty and 29 other nonprofits initially opposed the bill over affordability and displacement concerns for low-income communities of color, though they later moved to neutral after amendments.

Opposition included advocates for historic preservation, tenant rights, local control and affluent neighborhood groups, along with Republican gubernatorial candidate Steve Hilton and reality TV star Spencer Pratt, who flooded the governor's office with calls and emails.

Support From Housing Advocates

San Diego Mayor Todd Gloria praised the legislation: "This will help make way for more housing near public transit and ensure that cities with this infrastructure do their part to address California's housing crisis." He noted San Diego has already anticipated such changes through recent housing policy reforms.

"California's severe housing shortage makes it difficult for working families to stay housed and for our homeless neighbors to find a place to call home," said Mahdi Manji of Inner City Law Center. "By ensuring housing for all Californians is built near publicly funded transit infrastructure, SB 79 puts California on track to meet our state's housing needs".

Newsom stated: "All Californians deserve an affordable place to live—close to jobs, schools, and opportunity. Housing near transit means shorter commutes, lower costs, and more time with family".

Streets for All claimed SB 79 will bring up to $1 billion to Los Angeles alone through projected property tax revenue from new construction.

The Revenue Puzzle

The legislation allows transit agencies to develop their own land, potentially opening new revenue sources. This model has proven successful in Hong Kong and other East Asian cities where transit systems are largely self-sustaining through property development.

However, this creates another sequencing problem: transit agencies need revenue to improve service, but they'll only get that revenue after housing is built—and that housing may fill with car-dependent residents if service doesn't improve first.

Variable Impact Expected

Impact will vary dramatically by location. Neighborhoods like Little Italy and Mission Valley in San Diego already have dense development and aggressive zoning, so they'll see minimal change. But cities like Santee and El Cajon could see dramatic transformation, as their trolley stops currently have little nearby development, said Saad Asad of California YIMBY.

Asad expects SB 79 to have bigger impact in Los Angeles and San Francisco than San Diego, where less development currently exists along transit lines.

North County's Sprinter stations show mixed development levels, with some stops already surrounded by apartments while others remain largely undeveloped. South Bay trolley stops in National City and Chula Vista similarly vary from high-density to virtually empty.

Implementation Ahead

The Department of Housing and Community Development must issue implementation standards by July 1, 2026, and will oversee compliance. Cities can adopt alternative transit-oriented development plans that meet minimum density requirements, subject to HCD approval.

Whether the law produces significant new housing remains uncertain. High interest rates, unpredictable tariffs and constrained labor markets have recently slowed building permits.

Alongside SB 79, Newsom signed bills to fast-track accessory dwelling units, simplify development processes and let developers hire third-party plan checkers instead of relying on city staff.

"It's by far the biggest housing bill the California Legislature has passed," said Matthew Lewis of California YIMBY. "There's more to do, but it's a major, major step".

The law's ultimate success may hinge on whether California can solve the transit quality problem as quickly as it's mandating transit-oriented density—or whether it will simply create expensive apartments full of frustrated residents still dependent on their cars.

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Sources

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