Â鶹AV

On October 10, 2025, Governor Gavin Newsom signed Senate Bill (SB) 79 (2025) into law. The law is codified in Government Code Sections 65912.155 through 65912.162.1

SB 79 makes qualified transit-oriented housing developments an allowed use on sites zoned for residential, mixed-use, or commercial development that are located near specified transit stops in counties with more than 15 passenger rail stations. In the Bay Area, eligible counties include San Francisco, Alameda, San Mateo and Santa Clara. SB 79 also sets statewide standards for height, density, and residential floor area ratios (FAR) for such housing developments, which vary based on how close a project is to the stop and how the stop is classified. This document summarizes the key provisions of SB 79 that are most relevant to local governments.

Download the full SB 79 Summary.

Key takeaways include:

• SB 79 makes housing meeting specified standards an allowed use on residential, mixed-use, or commercial sites located within one-quarter or one-half mile (depending on city size) of a qualifying transit-oriented development (TOD) stop, and makes such housing eligible for state-set standards for building height, density and FAR. These standards vary based on how close the project is to the stop (one-quarter mile versus one-half mile) and the level of transit service (Tier 1 versus Tier 2).
• SB 79 generally goes into effect on July 1, 2026, and in the Bay Area is currently only applicable in the counties of Alameda, San Francisco, San Mateo and Santa Clara.
• SB 79 does not include a ministerial review process or amend the California Environmental Quality Act (CEQA) itself, although qualifying SB 79 projects may use the ministerial review process under SB 35/SB 423, if otherwise eligible. SB 79 projects that are ineligible for streamlined approval are to be reviewed under the jurisdiction’s standard review process and the Housing Accountability Act (HAA).
• SB 79 allows for some local flexibility. Cities and counties may exempt certain areas from the law, exclude certain sites from the law until the 7th Housing Element Cycle, or adopt their own local TOD alternative plan that provides the same overall housing capacity. Any such local measures must be reviewed and approved by the Department of Housing and Community Development (HCD).