SB 79

The Zoning Rules You’re Underwriting Against Won’t Exist In Two Months

SB 79 overrides local height and density limits near qualifying transit stops.

R1? Dead to me. R2? Nope. RD1.5? You’re too late.

With at least 5 units proposed, your density dreams are finally coming true. State-required adoption effective July 1.

Bill

SB 79 Transit-Oriented Development Law

Effective

July 1, 2026

Impact

Overrides local height/density limits (forced upzoning)

Review

Expected to be similar to existing paths, i.e., CHIPS & TOC

Senate Bill 79 changes the game for transit-adjacent development. Eligible projects must be on sites zoned for residential, mixed-use, or commercial development, must be within a TOD zone, and must include five or more units.

Depending on what city in LA County you’re working in, there’s adoption programming either already submitted (i.e., Beverly Hills) or a public hearing for adoption coming up (i.e., City of LA — May 14).

This is BIG news. And if you haven’t already been paying attention to bills we previously discussed, like AB 2097… property near transit lines is going to continue to get more valuable in California.

If you’re sitting on transit-adjacent land, the entitlement landscape is about to shift. Let’s talk strategy before July.

Expect the number of units to quadruple across these sites — allowing for not only more housing, but a faster entitlement path to get there.

Every development must include one of these housing options.

For developers with sites near qualifying transit stops: the entitlement math has changed.

For teams underwriting acquisitions in transit corridors right now: the question is whether the project has been modeled against what SB 79 actually allows, and whether that changes what the site is worth.

If you have a project in a transit corridor and haven’t mapped SB 79 eligibility yet, reach out. That analysis belongs in pre-diligence.