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With SB 79, California makes transit-oriented development law

By Joseph Mendonca, October 10, 2025

With Governor Newsom’s signature today, California’s SB 79, the Abundant and Affordable Homes Near Transit Act, is now law, opening up opportunities to build more multifamily housing in connected and convenient places across the state. SB 79 is part of a larger trend of state-level land use reform taking place around the U.S.; these policies can help advance efforts to unlock much-needed housing in other states working to address the housing shortage and high housing costs.

SB 79, the latest of the California legislature’s efforts to ease the state’s housing shortage, establishes standard zoning requirements (particularly height and density limits) within 1/4 to 1/2 mile of major transit stops across the state, with the goal of boosting housing development in areas of the state with access to high quality public transit (defined as certain metro, light rail, commuter rail, and bus rapid transit systems). This means that duplexes, townhomes, and other forms of Missing Middle Housing, as well as smaller apartment buildings, can now more easily be built close to transit stops. SB 79 also allows local transit agencies to zone and develop the land they own, which opens up opportunities for the redevelopment of underutilized sites, including parking lots.

With the passage of SB 79, California joins states like Massachusetts and Washington in promoting transit-oriented development (TOD) via land use reform at the state level. In encouraging the building of more homes near transit, communities can boost housing supply, support housing affordability, and provide more people with more transportation options. This approach increases access to jobs and amenities, helps to house a growing population, and minimizes impacts on traffic congestion and parking availability. This approach also promotes development largely within existing communities—which often face less wildfire risk than the urban fringe—and promotes less emissions-heavy transportation modes, like walking, biking, and of course, taking public transit.

With a national housing shortage affecting every state in the U.S., efforts like those in California, Massachusetts, and Washington can help show a path forward for other states looking to address high housing costs, while improving mobility and boosting resilience at the same time.

Smart Growth America advocates for land use strategies, like SB 79, that help create more homes and supports states and communities in overcoming zoning barriers to housing. Our Center for Zoning Solutions works with community-based organizations, local governments, states, and other stakeholders to develop and highlight zoning best practices, with the goal of boosting housing production and affordability.

This bill was endorsed by Smart Growth Roundtable member, the Greenbelt Alliance.

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