The City Council voted unanimously Tuesday to pursue a two-track strategy for implementing a sweeping new state housing law, seeking to delay its effects on the city's most displacement-vulnerable neighborhoods while developing a longer-term plan to redirect density toward commercial corridors.
The action targets Senate Bill 79, the Abundant and Affordable Homes Near Transit Act, signed by Gov. Gavin Newsom on Oct. 10, 2025, and set to take effect July 1. The law guarantees minimum development standards — including building heights of 55 feet, densities of 80 dwelling units per acre and a floor area ratio of 2.5 — for qualifying housing projects within a half-mile of major transit stops.
In Santa Monica, the law applies to areas surrounding three Metro E Line light rail stations — Downtown, 17th Street/SMC and Bergamot — as well as the Expo/Bundy station in Los Angeles, whose half-mile radius extends into the city's Pico neighborhood.
Mayor Caroline Torosis emphasized that the city has limited room to maneuver before the deadline. "SB 79 full steam ahead is going to be implemented July 1," she said, pressing staff on why the matter had not come before the council sooner. "This bill was signed. This was not a surprise."
The council directed staff to draft an ordinance implementing what planners call "Approach 2," which would temporarily exclude qualifying sites from SB 79 standards until 2030. Concurrently, staff will prepare a "TOD Alternative Plan" under "Approach 3," which functions like a transfer of development rights, allowing the city to shift density across transit zones while maintaining the same total zoned capacity of roughly 251,000 units.
Council Member Dan Hall, who pushed for prioritizing the Expo/Bundy area, said he had been clear from the outset about his preferred path. "I am not interested in approach one," Hall said, referring to default state implementation. "I personally think we should do this as fast as possible."
The strategy follows a 7-0 recommendation from the Planning Commission, which warned that automatic state implementation would raise serious fair housing concerns in the Pico neighborhood, identified in the city's 6th Cycle Housing Element as carrying the highest displacement risk and the highest concentration of lower-income residents and people of color in Santa Monica.
"The Commission is concerned that full implementation of SB 79 on its July 1, 2026 effective date would raise serious fair housing issues because of its impact on the Pico Neighborhood," Planning Commissioner Leslie Lambert wrote in comments submitted to the council.
According to the staff report prepared by Planning Manager Ross Fehrman, approximately 856 parcels in the Pico neighborhood fall within a transit-oriented development zone, with about 545 eligible to use SB 79 benefits. The remaining parcels are protected because they contain rent-controlled units, affordable deed-restricted units or designated historic resources.
Staff analysis found that three of the four affected zones — Downtown, 17th Street/SMC and Bergamot — likely qualify for the 2030 deferral because existing zoning already provides at least 75 percent of SB 79's capacity. The Expo/Bundy zone, however, currently provides only 47 percent of that capacity and does not meet the exclusion criteria.
Public comment reflected sharp divisions over how aggressively the city should implement the law.
Friends of Sunset Park urged the council to adopt the Planning Commission's framework in full, calling SB 79 "a deeply troubling piece of legislation" that strips local control. The group endorsed the two-track approach and pressed the council to resolve whether transit agencies could trigger new SB 79 eligibility by adjusting bus headways.
Santa Monica Forward supported moving quickly to an alternative plan but urged the council to keep any delay short. The group asked that an Approach 3 plan be completed by the end of 2026 and warned against placing new residents adjacent to the 10 Freeway in the Pico area, citing pollution concerns.
Abundant Housing LA took the opposite position, urging the council not to pursue broad deferrals based on existing zoned capacity. Policy and Research Director Scott Epstein wrote that Santa Monica has permitted just 13 percent of its housing allocation in the first three years of the current Regional Housing Needs Assessment cycle. The group supported exempting only 43 verified historic sites and otherwise urged full state implementation until a local alternative plan takes effect.
The council also directed staff to prioritize protections for the Expo/Bundy zone, investigate potential conflicts with Affirmatively Furthering Fair Housing obligations, study right-to-return policies, ensure existing landmarks remain excluded, and seek technical guidance from the California Department of Housing and Community Development on bus stop eligibility and inter-jurisdictional transit rules.
Council Member Jesse Zwick recused himself from the discussion, citing his employment with a housing advocacy organization that supported SB 79.
Any ordinance implementing Approach 2 requires HCD review and approval. Until that approval is secured, SB 79's guaranteed minimum development standards will take effect July 1 across all eligible parcels in the city's four transit zones.