SB 79 and transit-oriented development in LA are transforming multifamily investment opportunities near Metro stations. This landmark legislation creates new possibilities for property owners and developers.
What Is SB 79?
Senate Bill 79, signed by Governor Newsom in October 2025, represents a major shift in SB 79 transit development in LA and is one of the most significant housing bills in California history. It makes multi-family housing legal near transit stops throughout the state—including in areas where such development was previously banned or severely restricted.
For Los Angeles, with its extensive Metro rail and rapid bus network, SB 79 could unlock significant new housing development opportunities.
The Problem SB 79 Addresses
Despite billions invested in public transit, many California cities—including parts of LA—continue to ban most housing near transit stations. This creates several problems:
- Underutilized transit: Stations without nearby housing have lower ridership
- Housing shortage: The best locations for housing remain off-limits
- Traffic and pollution: People drive because they can’t live near transit
- Inequity: Transit-rich areas remain exclusive due to low-density zoning
What SB 79 Does
Creates Two Development Tiers
SB 79 establishes development standards based on transit quality:
Tier 1 (High-Frequency Transit):
- Rail stations (Metro, Metrolink)
- Bus Rapid Transit stops
- High-frequency bus lines (15-minute or better service)
Tier 2 (Moderate-Frequency Transit):
- Standard bus stops with regular service
- Planned transit stations
Applies to Transit-Adjacent Sites
- Half-mile radius from qualifying transit stops for most cities
- Quarter-mile radius for very small cities
- Applies to sites zoned residential, mixed-use, or commercial
Sets Minimum Development Standards
Within transit zones, SB 79 establishes:
- Minimum density requirements
- Height allowances
- Residential floor area ratios
- Reduced parking requirements
Key Provisions for Property Owners
Affordability Requirements
All SB 79 projects must include affordable housing:
- Minimum affordability standards for all projects
- Density bonuses available for deeper affordability
- Specific requirements vary by project size and location
Tenant Protections
SB 79 includes strong anti-displacement provisions:
- Cannot demolish rent-stabilized housing of 3+ units
- Cannot demolish multifamily housing that had tenants in the last 7 years
- Existing tenant protection laws still apply
Labor Standards
For larger projects:
- Buildings over 85 feet must meet skilled and trained workforce requirements
- Projects on transit agency land must meet prevailing wage standards
Fire Safety Flexibility
In areas overlapping with very high fire severity zones:
- Local governments have 3+ years to adopt fire-safe plans
- Density can be shifted away from high-risk areas
- Community protection remains a priority
What This Means for LA
Affected Areas
SB 79 will impact areas near:
- All Metro Rail stations (Red, Purple, Blue, Expo, Gold lines, etc.)
- Metrolink stations
- Metro Rapid bus stops
- High-frequency local bus routes
This includes major corridors like Wilshire, Vermont, Western, Santa Monica Blvd, and many others.
Development Opportunities
Property owners near transit may be able to:
- Build more units than current zoning allows
- Build taller than current height limits
- Provide less parking than currently required
- Obtain streamlined, ministerial approval
Existing Building Considerations
If you own an existing apartment building near transit:
- Your land may be worth more due to increased development potential
- Replacement requirements still apply if you demolish existing units
- ADU additions may be a better strategy than redevelopment
- Hold value increases as surrounding development occurs
Timeline and Implementation
When It Takes Effect
- July 1, 2026: Applies to most local agencies
- Later for unincorporated areas: Applies starting with 7th RHNA cycle
Local Flexibility
Cities can adopt “TOD Alternative Plans” that:
- Maintain equivalent overall density
- Customize standards for local conditions
- Must be approved by HCD
Investment Implications
For Buyers
- Transit proximity premium: Properties near transit may command higher prices
- Development upside: Land value may increase with SB 79 potential
- Due diligence: Understand what’s actually buildable under new rules
For Sellers
- Timing considerations: Wait for SB 79 to take effect to capture value?
- Buyer pool expansion: Developers may compete with traditional investors
- Marketing strategy: Highlight development potential where applicable
For Holders
- Surrounding development: New construction nearby affects your property
- Amenity improvements: More housing = more retail and services
- Rent pressure: New supply could moderate rent growth in some areas
Combining SB 79 with Other Laws
SB 79 works alongside other recent housing legislation:
- SB 1211: More ADUs on multifamily properties
- SB 423: Streamlined approval for qualifying projects
- AB 2011: Housing on commercial sites
- Density bonus law: Additional incentives for affordable housing
Quick FAQs
Q: Does SB 79 eliminate local zoning?
A: No, but it sets minimum standards that override more restrictive local rules in transit zones.
Q: Can I tear down my RSO building and rebuild under SB 79?
A: Generally no—SB 79 prohibits demolition of rent-stabilized housing of 3+ units.
Q: When can I start a project under SB 79?
A: The law takes effect July 1, 2026 for most areas.
Q: Does this apply to my property?
A: Check if you’re within a half-mile of qualifying transit. Metro’s maps can help identify eligible areas.
Want to understand how SB 79 affects your property? Request a valuation and let’s discuss the implications.
SB 79’s impact on transit development in LA could significantly affect your property’s development potential. Contact me to discuss how this legislation affects your building.