Newsom Signs Historic Housing Density Bill Against L.A.’s Wishes

Against the wishes of leaders in Los Angeles, California Gov. Gavin Newsom on Friday approved a landmark housing law that will override some local zoning laws to spur more density at major transit hubs.

Senate Bill 79, the Abundant & Affordable Homes Near Transit Act, also allows local transit agencies to develop housing on land they own.

Sen. Scott Wiener, the bill’s author, said SB 79 unwinds decades of overly restrictive land use policies that have “driven housing costs to astronomical levels,” and forced millions of people to move far from their jobs, or to leave California entirely rather than hold out in the state with the highest cost of living. Further, Wiener said the targeted density will strengthen transit systems and reduce traffic congestion.

“SB 79 is a historic step toward tackling the root cause of California’s affordability crisis — our profound shortage of homes and too few people having access to transit,” Wiener said in a statement. “In California, we talk a lot about where we don’t want to build homes, but rarely about where we do — until now.”

SB 79 takes effect July 1, 2026, for eight counties: Los Angeles, Orange, San Diego, Alameda, San Francisco, San Mateo, Santa Clara and Sacramento. The law establishes new zoning standards to allow for mid-rise homes within a half-mile of major transit stops in those counties. Low-frequency bus stops will not be affected by the law.

Transit-oriented housing developments under SB 79 will also be eligible for the streamlined ministerial approvals process under Wiener’s Senate Bill 423 from 2023, assuming they meet environmental, labor and affordability standards.

“For too long, California has poured billions into transit without building the housing density needed for those systems to reach their potential,” Newsom said in a letter to the state Senate. “This approach not only strengthens neighborhoods anchored by transit, it also protects taxpayer investments and begins to break the cycle of asking Californians to subsidize underutilized systems.”

In a separate statement released Friday, Newsom said 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,” the statement read. “When we invest in housing, we’re investing in people — their chance to build a future, raise a family, and be part of a community.”

Newsom’s press office was more animated on social media.

“YIMBY’S REJOICE!! California is making historic strides today as @CAGovernor Gavin Newsom signs #SB79 — streamlining the building of more housing all across the Golden State,” the spokespeople posted on X. “No, it does not supersede local control as some have falsely claimed. No, it is not one size fits all. And no, this is not some ‘land-grab’ by the state.”

The bill was approved after many concessions. It was originally intended to include all of California, but now affects only the eight counties with at least 15 passenger rail stations. (L.A. County will likely see the most impact because it has roughly 150 transit stops in areas that could see zoning changes.)

Some cities can also delay or exempt implementation in some areas that have high fire risk or are in historic preservation zones (both of which are littered across Los Angeles). Another amendment allows cities with less than 35,000 residents to shrink their SB 79 zones to a quarter-mile as opposed to a half-mile.

L.A. Mayor Karen Bass, however, pushed for Newsom to veto the bill, and the L.A. City Council passed a resolution opposing SB 79 because it doesn’t exempt cities that have state-approved housing development plans, and because it risks “unintended consequences,” according to a social media post from Bass in August. 

Bass’s office did not immediately respond to a request for comment following the approval.

Wiener said Friday that local governments will have flexibility to tailor their SB 79 zones in an alternative plan subject to oversight from the Department of Housing and Community Development (HCD).

Further, the standards will be tiered to allow more height and density in the immediate vicinity of the transit stop. For Tier 1 stops — which include heavy rail lines like Caltrain, and L.A. Metro’s B and D Lines — the law allows for structures up to nine stories adjacent to the stop, up to seven stories within a quarter-mile, and six stories between going out to a half-mile from the transit stop.

For Tier 2 stops, the state zoning standards will allow up to eight stories adjacent to the stop, six stories within a quarter-mile, and five stories going out to a half-mile away.

“And, far from limiting local control, the bill strengthens it,” Newsom’s letter to the State Senate read. “Cities and counties can craft their own alternative plans tailored to their communities or build on existing local policies, so long as they meet the baseline housing capacity required by this measure. This gives local governments the tools to take ownership of outcomes, with state law serving as a backstop if they fail to act.”

Opponents also argued SB 79 would hinder residents’ ability to rebuild after the devastating wildfires in January. 

“There are no qualifying transit stops within the burn scars of the Palisades or Eaton fires,” Newsom’s letter added. “Even if a qualifying transit stop were added in the future, local governments still retain discretion to shift density elsewhere in their jurisdictions.”

SB 79’s approval follows the landmark reforms passed earlier this year to the state’s restrictive environmental regulation law known as CEQA (the California Environmental Quality Act). Those new laws are aimed at accelerating housing, infrastructure and climate-related projects.

“And we’re not slowing down,” Newsom said Friday on his personal X account.

Those reform bills, Assembly Bill 130 and Senate Bill 131, introduce 10 new exemptions for developments such as infill housing, health clinics, child care centers and wildfire mitigation efforts. Newsom framed the overhaul as essential to restoring public trust in the state’s ability to deliver housing and infrastructure, arguing that the 55-year-old CEQA framework (originally signed into law by Gov. Ronald Reagan) had become “too often misused to block exactly the kinds of infill, affordable and sustainable housing our communities need.”

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.