Tuesday

11-04-2025 Vol 2134

California Governor Gavin Newsom Signs Major Housing Bill, Aims to Increase Affordable Housing Near Transit

On October 10, 2025, Governor Gavin Newsom signed a significant housing bill aimed at facilitating the construction of larger multifamily residential projects near public transit hubs in California.

This legislation, known as Senate Bill 79, marks the culmination of state Senator Scott Wiener’s seven-year initiative to mandate city governments to upzone specific neighborhoods adjacent to major bus and train lines.

The newly signed law is set to take effect on July 1, 2026, and includes provisions that empower transit agencies to develop residential properties on their own land.

In a statement following the bill’s approval, Newsom emphasized the benefits of constructing housing near transit, highlighting the potential for shorter commutes, decreased living costs, and increased family time.

He stated, “When we invest in housing, we’re investing in people — their chance to build a future, raise a family and be part of a community.”

The framework established by SB 79 prioritizes housing developments near the busiest transit stops, particularly those served by BART and Caltrain, allowing for nine-story buildings adjacent to those stops, seven stories within a quarter-mile, and six stories within a half-mile radius.

For transit lines with lower passenger traffic, such as Muni, the legislation permits up to eight-story structures next to stops, six stories within a quarter-mile, and five stories within a half-mile.

Senator Wiener, in his remarks, described SB 79 as a crucial measure to address California’s ongoing affordability crisis, attributing the issue to a severe housing shortage and inadequate access to public transit.

He stated, “It’s been a long road to tackle these decades-old problems, but thanks to Governor Newsom’s leadership, today marks a new day for affordable housing and public transportation in California.”

Despite the potential benefits, the bill has sparked significant controversy, facing opposition from various cities and community organizations that argue it could lead to unchecked development and erosion of local zoning authority.

Los Angeles Mayor Karen Bass publicly urged Newsom to veto the bill, expressing her support for increased housing development but cautioning about the “unintended consequences for L.A.”

Earlier in the legislative process, a more stringent version of SB 79 had been approved by the state Senate, but subsequent amendments from the Assembly moderated its scope and reduced requirements for smaller cities.

The law specifically targets eight counties, including Los Angeles, Orange, San Diego, San Francisco, Alameda, Sacramento, Santa Clara, and San Mateo.

Cities that are making progress on their housing mandates have some leeway under SB 79. For instance, San Francisco’s Mayor Daniel Lurie has proposed a Family Zoning Plan, which would exempt certain neighborhoods from further upzoning until 2032, pending approval from the Board of Supervisors.

However, criticism of both SB 79 and Lurie’s enforcement plan has persisted, notably from former Board of Supervisors President Aaron Peskin.

Peskin raised questions regarding the necessity of the mayor’s upzoning proposal, arguing that state requirements already compel cities to plan for additional housing.

He cautioned San Franciscans against yielding to perceived threats, suggesting that such concessions could lead to further demands from state authorities.

Meanwhile, urbanist and pro-housing advocacy groups, including the Bay Area Council, California YIMBY, and SPUR, have expressed their support for the bill, citing the urgent need for more housing options in California’s densely populated regions.

Supporting stakeholders, such as developers and the California Apartment Association, also lauded the passing of SB 79, viewing it as a necessary step toward alleviating the housing crisis.

Brian Hanlon, CEO of California YIMBY, reflected on the bill’s passage as a pivotal moment in the fight for affordable housing in California, declaring Newsom’s signature a transformative endorsement for pro-housing efforts.

Before formalizing the legislation, Newsom participated in a discussion on the “Higher Learning” podcast, articulating his views on the state’s housing woes and the transition from a NIMBY (Not In My Backyard) mindset to a YIMBY (Yes In My Backyard) approach.

As the implementation date for SB 79 approaches, numerous stakeholders will be closely monitoring its effects and the broader implications for housing policy and urban development across California.

image source from:sfstandard

Abigail Harper