Gov. Gavin Newsom signed legislation Thursday to allow mid-rise and high-rise housing near major transit stops, overriding local zoning rules in a move supporters say will boost housing production but critics warn could undermine community planning.
Senate Bill 79, authored by state Sen. Scott Wiener, D-San Francisco, permits residential buildings up to nine stories tall next to subway or heavy rail stations in California's eight largest urban counties. The measure allows five- to eight-story buildings near light rail lines and bus rapid transit corridors, upzoning areas within roughly a half-mile of transit hubs.
"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. "Thanks to Governor Newsom's leadership, today marks a new day for affordable housing and public transportation in California."
The bill, which takes effect July 1, 2026, represents one of the most aggressive state interventions into local land use authority in California history. It passed the state Senate 21-8 and the Assembly 43-19 in September after extensive amendments aimed at addressing concerns from local officials and community groups.
"All Californians deserve an affordable place to live — close to jobs, schools, and opportunity," Newsom said. "Housing near transit means shorter commutes, lower costs, and more time with family. 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."
Projects using SB 79 must meet certain requirements. Developments over 10 units must include a percentage of affordable units for low-income households, and taller projects must comply with labor standards such as prevailing wage rules.
The measure applies only to the state's largest urban counties with extensive transit networks, not statewide. Cities can defer upzoning in certain sensitive areas, including zones with very high wildfire risk and designated historic districts, for approximately five years.
Despite these safeguards, the bill generated fierce opposition from local governments. In August, the Los Angeles City Council passed a resolution denouncing SB 79 as "chaos" and urging a veto, arguing it would override the city's own housing plans.
The Los Angeles Conservancy said the bill undermines community-driven planning and local democracy by stripping cities of the ability to shape development in their neighborhoods. Preservationists warned the measure could put historic neighborhoods at risk, potentially leading to demolition of architectural landmarks.
Residents of Pacific Palisades recently railed against the measure at a Coastal Commission meeting saying it would destroy the character of the fire-scarred community by forcing development into the area against community wishes.
Critics also raised infrastructure and safety concerns, noting the bill does not require upfront upgrades to roads, water supply or sewers to support larger populations. Officials from wildfire-prone regions worried about evacuation challenges if tall buildings are eventually allowed in those areas.
State Sen. Ben Allen withheld support over what he called "the lack of guardrails for gentrification and displacement" in SB 79. Housing equity advocates fear the bill could accelerate gentrification in transit-adjacent areas, potentially displacing vulnerable residents as property values and rents rise.
Opponents argued the affordable unit set-aside — often around 10% for larger projects — is too low to meaningfully address housing affordability. Some legislators worried the measure might produce market-rate development with minimal benefits for low- and middle-income residents.
Supporters contend it will spur much-needed housing in a state facing an acute shortage. By enabling denser development near transit, advocates expect increased apartment supply could lower housing costs over time.
Pro-housing advocates emphasized environmental benefits, arguing that placing housing near transit will reduce long car commutes and greenhouse gas emissions. Streets for All and other transit proponents said SB 79 aligns housing policy with climate goals by encouraging smart growth in urban, transit-accessible areas.
“At the core of California’s homelessness crisis is the simple reality that we do not have enough affordable housing,” said Adam Murray, CEO of Inner City Law Center. “By signing SB 79, Governor Newsom has taken decisive action to open the door to more affordable homes where people need them most — near jobs, schools, and transit. This is a critical step forward that shows California is serious about finding solutions to homelessness.”
SB 79 joins other housing legislation Newsom signed Thursday aimed at accelerating permitting, streamlining production and strengthening enforcement of housing laws. The package includes measures to convert empty office buildings into housing and provide farmworkers with safe, affordable homes.
Since taking office, Newsom has made housing creation a state priority, signing groundbreaking reforms to break down systemic barriers that have stood in the way of building homes, including broad California Environmental Quality Act reforms.
The administration has paired housing efforts with addressing mental health and homelessness. In 2024, voters approved Proposition 1, which includes a $6.4 billion behavioral health bond for treatment settings and housing with services for veterans and people experiencing homelessness.
California has significantly slowed homelessness growth compared to national trends. In 2024, while homelessness increased nationally by over 18%, California limited its overall increase to 3% — a lower rate than 40 other states. The state held the growth of unsheltered homelessness to 0.45%, compared to a national increase of nearly 7%.
California also achieved the nation's largest reduction in veteran homelessness and made progress in reducing youth homelessness. This year, the state's largest communities reported substantial decreases in homelessness.