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Item No. 2
Town of Atherton
CITY COUNCIL STAFF REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: BRITTANY BENDIX, TOWN PLANNER
MONA EBRAHIMI, CITY ATTORNEY
DATE: DECEMBER 3, 2025
SUBJECT: SENATE BILL 79 SUMMARY AND REQUEST FOR DIRECTION
RECOMMENDATION
Staff recommends that the City Council receive the presentation on Senate Bill 79 and provide staff with direction.
BACKGROUND
Senate Bill ("SB") 79 is a new housing law that focuses on residential developments near transit stops.
The bill requires that a housing development project, within a certain distance of a transit-oriented development stop, be a permitted use on any site zoned for residential, mixed, or commercial development, if the development complies with requirements from SB 79. SB 79 does not require ministerial approval of the development for purposes of the California Environmental Quality Act ("CEQA"). The Legislature found the issues addressed by SB 79 to be a matter of statewide concern, thereby making the bill applicable to all cities, including charter cities. The majority of the bill is effective July 1, 2026. Starting January 1, 2027, if a proposed project in a "high-resource area" meets the requirements of SB 79 and the Town denies it, the Town would be in violation of the Housing Accountability Act and immediately be liable for penalties. The Department of Housing and Community Development ("HCD") oversee compliance with SB 79, and the bill requires HCD to develop standards on how to comply with SB 79.
ANALYSIS
Development Requirements for a Project (Gov't. Code Section 65912.157):
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A housing development project shall be an allowed use as a transit-oriented housing development if it meets the following criteria:
Generally Applicable Standards
• A transit-oriented housing development project under SB 79 shall include at least five dwelling units and meet the greater of the following: (1) A minimum density of at least 30 dwelling units per acre; or (2) the minimum density required under local zoning, if applicable.
• The average total area of floor space for the proposed units in the transit-oriented housing development project shall not exceed 1,750 net habitable square feet.
Tier-Specific Standards
SB 79 creates two "tiers" of transit stops, which depend on the frequency/intensity of transit. Then, within each tier, different standards of development apply based on how far away the development will occur from the transit stop. Measuring distance from a transit stop is directly addressed in SB 79: "the distance of a transit-oriented housing development project from a transit-oriented development stop shall be measured in a straight line from the nearest edge of the parcel containing the proposed project to a pedestrian access point for the transit-oriented development stop." The table below lays out the tiers and applicable standards.
TOD Stop Type Dist. From Stop (TOD Zone) Standards for Project Tier 1:
Major transit stop, heavy rail
transit, or very high frequency
commuter rail
¼ mile from stop Height: Town cannot impose a
height limit of less than 75
feet. If project is adjacent1 to
transit stop, eligible for
additional 20 feet.
Density: Town cannot impose
a maximum density of less
than 120 du/a. If project is
adjacent to transit stop, eligible
for additional 40 du/a.
Floor Area Ratio: 3.5. If
project is adjacent to transit
stop, additional 1, so 4.5 total.
Additional Concessions2
1 "Adjacent" means within 200 feet of any pedestrian access point to a transit-oriented development stop. (Cal. Gov't.
Code § 65912.156(a)).
2 Generally, additional concessions include density bonus, incentives or concessions, waivers or reductions of November 25, 2025
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¼ - ½ mile from stop in a city
with population of at least
35,000 (this would not apply
to Atherton)
Height: Town cannot impose a
height limit of less than 65
feet. If project is adjacent to
transit stop, eligible for
additional 20 feet.
Density: Town cannot impose
a maximum density of less
than 100 du/a. If project is
adjacent to transit stop, eligible
for additional 40 du/a.
Floor Area Ratio: 3. If
project is adjacent to transit
stop, additional 1, so 4 total.
Additional Concessions5
Tier 2:
Not Tier 1 major transit stops
served by light rail transit,
high-frequency commuter rail,
or bus rapid transit
¼ mile from stop Height: Town cannot impose a
height limit of less than 65
feet. If project is adjacent to
transit stop, eligible for
additional 20 feet.
Density: Town cannot impose
a maximum density of less
than 100 du/a. If project is
adjacent to transit stop, eligible
for additional 40 du/a.
Floor Area Ratio: 3. If
project is adjacent to transit
stop, additional 1, so 4 total.
Additional Concessions6
7 5
Generally, additional concessions include density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios. Additionally, for each type of development based on their tier and distance from a transit stop, a minimum density threshold exists which entitles the project to additional concessions. (Cal. Gov't.
Code § 65912.157(a)(4)(D) and (d)).
6 Generally, additional concessions include density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios. Additionally, for each type of development based on their tier and distance from a transit stop, a minimum density threshold exists which entitles the project to additional concessions. (Cal. Gov't.
Code § 65912.157(a)(5)(D) and (d)).
development standards, and parking ratios. Additionally, for each type of development based on their tier and distance from a transit stop, a minimum density threshold exists which entitles the project to additional concessions. (Cal. Gov't.
Code § 65912.157(a)(3)(D) and (d)).
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¼ to ½ mile from stop in a city
with a population of at least
35,000 (this would not apply
to Atherton)
Height: Town cannot impose a
height limit of less than 55
feet. If project is adjacent to
transit stop, eligible for
additional 20 feet.
Density: Town cannot impose
a maximum density of less
than 80 du/a. If project is
adjacent to transit stop, eligible
for additional 40 du/a.
Floor Area Ratio: 2.5. If
project is adjacent to transit
stop, additional 1, so 3.5 total.
Additional Concessions10
The Town can still enact and enforce standards, including an inclusionary zoning requirement, but the local standards cannot, alone or in concert, prevent achieving the applicable development standards laid out above. The Town cannot adopt any requirement, including, but not limited to, increased fees or inclusionary zoning requirements, that applies to a project solely or partially on the basis that the project is seeking approval as a transit-oriented housing development, except as necessary for the requirements of SB 79.
Restrictions on Development, Affordability Requirements For sites that would require the demolition two existing units that are subject to any form of rent or price control that has been occupied by tenants within the last 7 years, or a site that formerly contained two units of housing demolished within seven years that was subject to rent or price control, development under SB 79 is prohibited.
SB 79 imposes affordability requirements. These affordability requirements do not apply to development of 10 units or less. If the local inclusionary housing requirement mandates a higher percentage of affordable units, then the local requirement shall trump the SB 79 requirements.
Development under SB 79 must meet one of the following:
• At least 7 percent of the total units are dedicated to extremely low income households.
10 Generally, additional concessions include density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios. Additionally, for each type of development based on their tier and distance from a transit stop, a minimum density threshold exists which entitles the project to additional concessions. (Cal. Gov't.
Code § 65912.157(a)(6)(D) and (d)).
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• At least 10 percent of the total units are dedicated to very low income households. • At least 13 percent of the total units are dedicated to lower income households.
Additional Requirements
If development under SB 79 is over 85 feet, it must meet SB35/SB 423 standards, which are prevailing wage standards with an additional skilled and trained workforce requirement.
Transit-Oriented Development Alternative Plan (Gov't. Code Section 65912.161) A Transit-Oriented Development Alternative Plan ("Alternate TOD Plan") is a plan adopted by the Town12 that brings the Town into compliance with SB 79. In short, the Alternate TOD Plan cannot reduce the amount of density or floor area available across all SB 79 areas in the Town, but it can move density around, so long as each SB 79 area has at least 50% of what SB 79 would allow and no single SB 79 area has more than 200% of what the underlying SB 79 rules would allow. An Alternate TOD Plan must be approved by HCD. If the Town adopts an Alternate TOD Plan, and it has been approved by HCD, the Section 65912.157 (Development Requirements/Standards) detailed above shall not apply. HCD's approval is valid through the jurisdiction’s next amendment to the housing element of its general plan. The Alternate TOD Plan must incorporate all of the following:
• The Alternate TOD Plan must maintain at least the same total net zoned capacity, in terms of both total units and residential floor area, as provided in SB 79 across all transit-oriented development zones within the Town;
• The Alternate TOD Plan shall not reduce the maximum allowed density for any individual site on which the plan allows residential use by more than 50 percent below that permitted under this chapter, except in limited circumstances;13
• The plan shall not reduce the capacity in any transit-oriented development zone in total units or residential floor area by more than 50 percent.
• A site’s maximum capacity counted toward the Alternate TOD Plan shall not exceed 200 percent of the maximum density established under this chapter. Any site excluded from the minimum density requirements pursuant to Section 65912.161(a)(2)(A) to (C) shall not be counted toward the Alternate TOD Plan's capacity. For purposes of this section, calculations 12 An Alternate TOD Plan can be adopted via the adoption of the housing element, a program to implement the housing element, the adoption of a specific plan, a zoning overlay, or enactment of an ordinance. (Cal. Gov't. Code § 65912.161(a)).
13 If the site is within a very high fire hazard severity zone; if the site is vulnerable to one foot of sea level rise; sites with a historic resource designated on a local register, so long as sites excluded from the density requirements of this paragraph on that basis do not cumulatively exceed 10 percent of the eligible area of any transit-oriented development zone; and sites within one-half mile of a Tier 2 transit-oriented development stop shall not have a density below 30 units per acre with a residential floor area ratio of 1.0, except for sites specified in subparagraphs (A) to (C), and should be considered for attached entry level owner occupied housing development opportunities. (Cal. Gov't. Code § 65912.161(a)(2)(A-D)).
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regarding capacity, density, and floor area shall include capacity, density, or floor area available under voluntary local housing incentive programs. • An Alternate TOD Plan may consist of an existing local transit-oriented zoning ordinance, overlay zone, specific plan, or zoning incentive ordinance, provided that it meets the requirements of SB 79.
Prior to one year following the seventh revision of the housing element, Section 65912.157 (Development Requirements/Standards) shall not apply to certain sites if the Town has adopted an ordinance pursuant to Section 65912.160 (detailed below) indicating the site's exclusion. If the Town enacts an ordinance exempting these sites, the Town shall indicate on its public zoning map which sites or transit-oriented development zones are and are not covered by Section 65912.157.
Starting with the seventh revision of the housing element, the Town may include an Alternate TOD Plan in either its housing element or a plan that has been deemed compliant by HCD. If the Alternate TOD Plan is included in the housing element, the Alternate TOD Plan must include an analysis of how it maintains "at least an equal feasible developable housing capacity as the baseline" established by SB 79.
Requirements of a Local Ordinance; HCD Has Strong Oversight (Gov't. Code Section 65912.160)
SB 79 gives HCD a lot of control and oversight over local government. SB 79 requires HCD to develop standards no later than July 1, 2026. The Town can enact an ordinance to make its code consistent with SB 79, and if the Town does so, the ordinance is subject to review by HCD. The ordinance may include objective development standards, conditions, and policies, applying to transitoriented housing developments, that are demonstrated by a preponderance of evidence to not physically preclude, alone or in concert, the applicable housing development standards of Section 65912.157. This ordinance is exempt from CEQA.
If the Town does decide to enact an ordinance, the Town must submit the ordinance to HCD at least 14 days prior to adoption. If the Ordinance is adopted, the ordinance must be submitted to HCD within 60 days of enactment. HCD then has 90 days to review the ordinance and make findings if the ordinance is compliant with SB 79. If HCD finds the ordinance is not compliant with SB 79, HCD shall notify the Town of its findings, and the Town shall consider HCD's findings and either amend the ordinance or enact the ordinance without changes with a resolution explaining why the Town believes the ordinance complies, despite HCD's findings.
The ordinance may designate areas within one-half miles of a transit-oriented development stop as exempt if: (1) the Town makes findings supported by substantial evidence that there exists no walking path of less than one mile from that location to the transit-oriented development stop; or (2) A local government with at least 15 transit-oriented development stops designates the area as an industrial employment hub.16
16 Cal. Gov't. Code § 65912.160(e). An "industrial employment hub" is a contiguous area of at least 250 acres designated in the jurisdiction’s general plan on or before January 1, 2025, as an employment lands area; the parcels November 25, 2025
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10 New Authority for Transit Agencies to Develop Infill Sites (Gov't. Code Section 65912.158) SB 79 contains a section (Section 65912.158) for "agency transit-oriented development projects", which authorizes transit agencies to adopt standards for development on infill sites owned by the transit agency. This expands transit agency's authority and ability to develop infill residential projects. For Atherton's purposes, this section is largely inapplicable.
Optional Streamlined Ministerial Approval (Gov't. Code Section 65912.159) Though SB 79 does not require streamlined ministerial approval, a project shall be eligible for streamlined ministerial approval pursuant to Section 65913.4, in accordance with the following:
• The proposed project shall be exempt from Section 65913.4(a)(4)(A) and (5). • The proposed project shall comply with the affordability requirements Section 65913.4(a)(4)(B)(i)(I)-(III).
• The proposed project shall comply with all other requirements of Section 65913.4, including, but not limited to, the prohibition against a site that is within a very high fire hazard severity zone, pursuant to Section 65913.4(a)(6)(D).
If a project is not submitted for streamlined approval under Section 65913.4, it shall be reviewed according to the Town's developmental review process. However, local zoning standards that conflict with SB 79 shall not apply.
Can the Town Require that the TOD Project Implement a Contiguous Accessible Pedestrian Pathway to the Transit Stop They are Associated With?
There is nothing in SB 79's language that indicates this requirement would be prohibited, unless the requirement would reduce the density to below what is permitted under SB 79. However, Alternate TOD Plans are subject to approval by HCD. HCD is required to release standards for SB 79, so those standards may more directly address this question.
What Properties in Atherton Could Take Advantage of SB 79? Data provided by Brittany Bendix, Consulting Town Planner, indicates the following properties would be eligible for SB 79 by distance:
110 Glenwood, 120 Glenwood, 124 Glenwood, 135 Laurel, 147 Laurel, 151 Laurel, 99 Victoria [MAP ON NEXT PAGE]
within it shall be primarily dedicated to industrial use as defined in Section 65912.121(f)(3); and housing shall not be a permitted use on any of the sites so excluded.
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POLICY FOCUS
Awareness and education of policy options related to SB 79 align with the Council’s priority focus on Land Use and Planning. By providing more information on this topic, the Council may give directions to staff on a preferred response to the land use changes enabled by the state legislature.
Direction could include updating or adopting new ordinances to address the potential development under SB 79, pursuing exploration of an alternative TOD plan, and/or changing the Town’s review processes to provide greater public awareness of projects.
FISCAL IMPACT
There are no fiscal impacts with consideration of this report.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• Preserve Small Town Character & Quality of Life
• Be Forward Thinking
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,600 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders – to include, but not limited to media outlets, school districts, Menlo Park Fire District, service providers (water, power, and sewer) and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item ____ has or __ has not been before a Town Committee or Commission. ____ Audit/Finance Committee (meets every other month)
____ Bicycle/Pedestrian Committee (meets as needed)
____ Civic Center Advisory Committee (meets as needed)
____ Environmental Programs Committee (meets every other month) ____ Park and Recreation Committee (meets each month)
____ Planning Commission (meets each month)
____ Rail Committee (meets every other month)
____ Transportation Committee (meets every other month) ____ Tree Committee (meets each month)
ATTACHMENTS
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