On July 1, 2026, SB 79—the Abundant and Affordable Homes Near Transit Act—will take full effect, facilitating the development of dense, multi-family housing near transit-rich areas in eight California counties [1]. Despite hopes that this bill can meaningfully address housing shortages in California’s most densely populated cities, major transportation agencies and leaders in Los Angeles have pushed to exempt the City from the bill [2]. To be successful, SB 79 advocates must capitalize on the momentum created by the passage of other key bills to speed up housing development—including AB 130 and SB 423, which aim to accelerate the administrative approval process for new housing developments.

Despite Los Angeles’ overall population decreasing, housing demand continues to rise, while housing production declines. California has a shortage of 1.3 million affordable housing units, necessitating the development of more housing projects, especially in the state’s most populous cities [3]. Currently, Los Angeles is short 270 thousand affordable housing units relative to current demand [4]. In October 2025, Governor Gavin Newsom signed SB 79, which is designed to incentivize more households to use California’s existing transit infrastructure, improve walkability, and reduce vehicle miles traveled [5]. The bill green-lights the creation of transit-oriented development (TOD) neighborhoods within a half-mile radius of public transportation hubs. 

SB 79 has the potential to aid the fight for affordable housing development in LA. As one of a long series of reforms from the California state legislature to incentivize multifamily housing development, SB 79 will have significant impacts on the future of LA’s housing landscape. Its success depends on aligning housing production with the priorities of LA Metro and other transit agencies serving LA County. 

What’s in SB 79 and other relevant housing development bills? 

SB 79 permits TODs up to nine stories tall near train stations, with slightly shorter limits near bus stops [6]. It preempts cities’ zoning requirements by setting mandatory density and height requirements for TOD projects. The bill currently applies only to “transit counties” with 15 or more passenger rail stations, including Alameda, San Francisco, San Mateo, Santa Clara, Sacramento, Los Angeles, Orange, and San Diego Counties [7]. Additionally, for every TOD project with more than 10 units, each development must designate seven percent of the total units as extremely low income, 10 percent as very low income, or 13 percent as lower income [8]. The relatively low percentage of units required to be designated for low-income usage has led to pushback from affordable housing advocates [9]. As a result of this criticism, cities may choose to designate more low-income units to appease these concerns, which have the potential to delay the construction of TODs. SB 79 also “prohibits demolishing existing rent-controlled or deed-restricted housing,” helping to curb affordable housing advocates’ concerns [10].

Previous large-scale housing development projects frequently ran into problems with the California Environmental Quality Act (CEQA), which requires state and local agencies to provide an Environmental Impact Report (EIR) that assesses the possible environmental impacts of discretionary projects [11]. Under CEQA, lobbying groups frequently stall housing development projects by suing developers, arguing that the EIR did not properly evaluate environmental harms [12]. Although CEQA was intended to ensure that environmental impacts are carefully considered when building large-scale developments, it has essentially served as a veto point. Lobbying groups have often used lawsuits to prevent sizable projects from being developed in their communities or to delay timelines significantly [13]. 

AB 130 and SB 423 provide a fast track through the CEQA process by waiving certain CEQA requirements [14]. AB 130 simplifies CEQA review for urban developments of fewer than 20 acres, while SB 423 streamlines the review process for infill projects, making these projects exempt from CEQA  [15]. SB 423 also allows eligible multi-family housing projects to bypass CEQA review processes until January 1, 2036 [16]. With bills like these providing multiple avenues to bypass CEQA requirements, California’s administrative barriers to TODs are less impactful.

Why is LA fighting against SB 79? 

SB 79 will have an especially profound impact on LA. In a 2025 report, Streets for All found that 45 percent of potential residential parcels near LA Metro stops are limited by zoning to either single-family homes, duplexes, or parking lots [17]. The organization also determined that SB 79 would impact around 7.5 percent of residential zoning in LA and 3.3 percent of the City’s total land area. Additionally, upon the full spread of SB 79 developments across LA’s land, revenues from TODs would grow the City’s annual property tax income to nearly $1 billion [18]. In addition, SB 79 is projected to increase transit ridership throughout LA and California [19]. 

In September 2025, the LA City Council voted to oppose SB 79, fearing that its passage would take away local authority over zoning and housing development because state law preempts local zoning requirements [20]. In a presser, one City Council member, Traci Park, argued that she opposed SB 79 because it would allow corporate developers to build unaffordable housing while ignoring safety concerns about the developments  [21]. Ironically, while the video was intended to provoke opposition toward SB 79, Park’s constituents overwhelmingly expressed outrage in the video’s comment section over her disregard for the housing crisis and her representation of not-in-my-backyard culture. “NIMBY,” a term associated with wealthier communities, describes individuals who oppose local developments, such as multi-family housing projects. The divide between city officials and constituents made evident by Park’s video and its comment section demonstrates a clear difference in attitudes toward SB 79 across Los Angeles communities.

LA Mayor Karen Bass urged Governor Newsom to veto SB 79, arguing that the bill “risks significant unintended consequences for many of Los Angeles’ diverse communities,” including increased strain on LA’s existing utilities [22]. Moreover, LA Metro has been highly vocal in its opposition to SB 79. Metro staff contend that LA should be exempt from the bill and that it should only apply to Bay Area counties [23]. In a recent report, LA Metro wrote that TODs would “harm [Metro]’s expansion goals by galvanizing housing opponents against new light rail stations and dedicated bus lanes” [24]. While it is likely that LA Metro’s projects would take longer to develop under SB 79 due to the adoption of a more thorough planning process, Metro is equally concerned with NIMBY individuals pushing back against its $120 billion in proposed expansions. NIMBY resistance may jeopardize support from city officials for Metro’s future projects.

Another stakeholder concerned with SB 79 is the Westwood Neighborhood Council, which opposed the bill due to concerns about losing local control over zoning [25]. Westwood contains six bus stops that could be subject to TODs under SB 79, including one at UCLA’s Ackerman Union [26]. These developments could benefit UCLA students greatly, giving them new, affordable housing options that were previously restricted by zoning. The new rail line from the San Fernando Valley to UCLA—the Sepulveda Transit Corridor—will be another TOD-eligible site [27]. Ongoing delays in LA Metro’s projects, which may postpone TODs near the Westwood area, make it unlikely that Westwood will have TODs before the Olympics. However, Westwood will likely be a prominent subject when deciding which areas in LA will have TODs due to the area’s need for housing and its concentration of high-usage transit stops. 

Can SB 79 be successful?

Given that SB 79 passed despite opposition from Mayor Bass and other LA City Council leaders, Los Angeles is unlikely to receive an exemption from the bill. However, LA Public Works is already developing a TOD toolkit localized to LA that considers existing plans and policies. The toolkit will provide a framework for future projects, offering design guidelines that improve multimodal mobility and built form for TODs and transit extensions that intersect with TODs [28]. 

Notably, State Senator Scott Weiner is currently working on a new bill: SB 908. This bill will aim to clean up SB 79 by authorizing local governments to enact ordinances that make their zoning codes consistent with TOD provisions [29]. It will also require each metropolitan planning organization to create a map of TOD stops and zones within its region [30]. This stipulation will encourage planners to begin working on developments around areas SB 79 determines to be TOD-eligible, smoothing the bill’s implementation. Although advocates such as YIMBY have displayed continued interest in SB 79’s success, effective TODs in Los Angeles and Westwood will require local officials to cooperate, along with careful planning and the alignment of zoning codes with TOD provisions. 

For optimal implementation, urban planners and real estate developers must coordinate closely with transit agencies when planning TODs to ensure that existing transit infrastructure functions harmoniously with the new developments. Although transit agencies will likely continue to delay SB 79 TOD projects due to fears of stalling rail and bus corridor development, a potential solution for SB 79 advocates is to create financial incentives for TODs. One such financial incentive program is establishing tax increment financing districts along transit corridors to allow revenue sharing among the city, transit agency, and developer. This program would incentivize transit agencies such as Metro to cooperate with TODs by offering financial incentives for participation [31]. Community members who support SB 79 can engage with LA Metro officials by attending town hall events to encourage Metro to reverse its strong opposition to SB 79. Pro-SB 79 community members must also convince transit agencies that the bill will help agencies increase ridership. Ultimately, SB 79’s success in LA depends on all stakeholders—developers, government officials, community members, and transit agencies—working together to identify potential sites for development and using best practices, as identified by LA Public Works, to create these projects.