Item No. 17. Page 1 of 2
City Council
Supplemental Report
From: Jonathan Lait, Planning and Development Services Director Meeting Date: June 1, 2026
Item Number: 17
Report #:2605-6428
TITLE
Receive Update and Provide Direction to Staff on the Implementation of Senate Bill 79 (SB 79) and the Work Related to the Downtown Housing Plan. Adoption of Two Temporary Ordinances Implementing SB 79, Adopting a Transit Oriented Development Combining District, Excluding Certain Sites from Government Code Section 65912.157, and Authorizing the Planning and Development Services Director to Make Corresponding Updates to the Zone Map. CEQA Status:
Exempt Under Government Code section 65912.161(c)(2).
RECOMMENDATION
Staff and the SB 79 / Downtown Housing Plan Ad Hoc recommend that the City Council:
1. Receive an update on the approaches for the implementation of Senate Bill (SB) 79 (2025) and work related to the Downtown Housing Plan;
2. Introduce a temporary ordinance (revised Attachment B) excluding historic resources designated on the City’s local register as of January 1, 2025, from the development standards otherwise applicable under SB 79, through one year following adoption of the City’s 7th Housing Element;
3. Introduce a temporary ordinance (revised Attachment C) establishing development standards for all transit-oriented development (TOD) eligible parcels subject to SB 79 at 50 percent of the otherwise allowable development capacity authorized under State law, and simultaneously exempting those properties from default SB 79 standards through one year following adoption of the City’s 7th Cycle Housing Element;
4. Direct staff to return with interim urgency versions of the above ordinances to be introduced and adopted on June 15, 2026, when the above ordinances are agendized for second reading.
5. Direct staff to prepare permanent ordinances to be presented to the Planning and Transportation Commission, incorporating the provisions of the interim ordinances and any additional provisions necessary and beneficial in implementation of SB 79.
Item No. 17. Page 2 of 2
6. Direct staff to continue work to advance and complete the Downtown Housing Plan and amend the scope of work as appropriate to take into consideration implementation of SB 79.
BACKGROUND
Following publication of the staff report for this item, staff discovered that preliminary draft documents had been inadvertently included as Attachments B and C. These documents were incomplete and included internal comments that were not intended for publication. The correct attachments are provided with this supplemental memo.
The correct documents include the following, minor changes to regulations for the proposed TOD Combining District, which were not part of the preliminary drafts:
1. The district does not apply to City-owned properties. Although this allows SB 79’s default standards to go into effect for such sites, the City retains ultimate control as the property owner.
2. The ordinance clarifies that the alternative development standards are for transit- oriented housing development projects and adds a minimum density of 30 du/ac or 5 units, consistent with SB 79 requirements. This makes clear that the overlay standards cannot be used to construct a single family home.
Notably, the correct attachments are temporary ordinances proposed for two readings, not interim, urgency ordinances that become effective immediately. While staff does recommend that the City Council also adopt urgency ordinances, these are proposed to be introduced and adopted on June 15, 2026.
These attached ordinances are substantially similar to the drafts that were submitted to HCD on May 28, 2026, in accordance with Government Code section 65912.160(d)(1)(A).
ATTACHMENTS
Supplemental Attachment B: Revised Draft Ordinance Historic Resource Exemption Supplemental Attachment C: Revised Draft Ordinance 50 Percent SB 79 Development Standards APPROVED BY:
Jonathan Lait, Planning and Development Services Director