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ARTICLE · 27 OCTOBER 2025

SB 79 – Major Changes To Transit-Oriented Development In California

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After months of high drama, California Senate Bill 79 ("SB 79") was signed by Governor Newsom on October 10—the latest salvo in a year of ambitious...

United StatesReal Estate and Construction

After months of high drama, California Senate Bill 79 (“SB 79”) was signed by Governor Newsom on October 10—the latest salvo in a year of ambitious legislation to increase housing supply in California. Effective July 1, 2026 (within incorporated cities1), the new law opens new residential building opportunities near existing rail and bus stations in California's most populous metropolitan areas.

Application and Key Provisions for Local Governments

SB 79 applies to and upzones “urban transit counties”—those with 15 or more passenger rail stations. Currently, only eight California counties meet this description – Alameda, San Francisco, San Mateo, Santa Clara, and Sacramento in Northern California; and Los Angeles, Orange, and San Diego Counties in the Southern half of the state.

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