Senate Bill 79, Statewide Standards for
Transit-Oriented Development Report and
Implementation
City Council
January 27, 2026
Item 8.1
Chris Burton, Director, Planning, Code and Building Enforcement Jerad Ferguson, Principal Planner, Planning, Code and Building Enforcement
1 Background
2 • Signed October 10, 2025 – takes effect July 1, 2026 • Supersedes local zoning and allows residential on all sites that currently allow residential and commercial uses within ½-mile radius of “transit-oriented development (TOD) stops”
• All zoning districts except light industrial, heavy industrial, agriculture, and open space
• 56 stations in or adjacent to City = ~40,152 parcels
• ½ mile measured from “pedestrian access points”
• Applies in urban counties (Bay Area = Santa Clara, Alameda, San Mateo and San Francisco)
TOD Stop Tiers
3 TOD Stop Tier Transit Type Applicability in San
José
Number of Current or
Future Stations
in/adjacent to San José
Tier 1 • Heavy Rail Transit
• Very-High Frequency
Commuter Rail (72
trains per day)
• Caltrain (electrified)
• BART
• Planned BART
• 4 Caltrain
• 6 BART
10 total stations
Tier 2 • Light Rail
• High Frequency
Commuter Rail (48
trains per day)
• Bus Rapid Transit
with dedicated land
• VTA light rail
• Bus Rapid Transit
with dedicated lane
• 44 VTA light rail
• 2 Bus Rapid Transit
46 total stations
TOD Stop Tiers
4 Citywide SB 79
TOD Stations
(draft map)
Development Standards
5 Distance Tier 1 Tier 2
Adjacent to TOD Stop
(within 200 feet of pedestrian
access point)
• Height: 95 feet
• Density: 160 DU/AC
• Residential FAR: 4.5
• Height: 85 feet
• Density: 140 DU/AC
• Residential FAR: 4.0
¼-mile from TOD stop • Height: 75 feet
• Density: 120 DU/AC
• Residential FAR: 3.5
• Height: 65 feet
• Density: 100 DU/AC
• Residential FAR: 3.0
½-mile from TOD stop • Height: 65 feet
• Density: 100 DU/AC
• Residential FAR: 3.0
• Height: 55 feet
• Density: 80 DU/AC
• Residential FAR: 2.5
Other Provisions
6 • Affordability and Demolition
• Onsite affordable units required in projects with 11 or more units • Cannot use on sites with 3+ rent or price-controlled units • State Density Bonus Law – eligible except for increased height • Transit Agency TOD Projects
• Agency sets development standards for sites owned prior to July 1, 2025 • Approval Pathway
• Site Development Permit – approved at Director’s Hearing • Eligible for SB 35/SB 423 streamlining
• Eligible for CEQA exemptions including AB 130 and SB 131 Implementation Options
7 1. Permanent Exemptions
2. “Delayed Effectuation” – delays effects of SB 79 until one-year following next Housing Element (2032)
3. TOD Alternative Plan “Alt Plan” – Permanent modification of SB 79
1. Permanent Exemptions
8 “Industrial Employment Hubs”
Contiguous area of at least 250 acres designed as employment land in General Plan prior to January 1, 2025.
Primarily dedicated to industrial use
Must “opt-in” through ordinance approved by HCD
Name of Employment Lands Area Size in Areas
Berryessa International Business
Park/Lundy/Milpitas BART
663
North San José / Industrial Core Area 4,169
Monterey Business Corridor 453
Old Edenvale / Old Edenvale Transit
Employment Center
612
East Gish 495
Mabury 290
9 Proposed
Industrial
Employment
Hubs
1. Permanent Exemptions
10 No One-Mile Walking Path
Sites where no walking path of less than one mile to the TOP stop exists
Must “opt-in” through ordinance approved by HCD
Estimate over 2,000 parcels in San José could be eligible Need to conduct further analysis of sites and situation Need further guidance on methodology for measuring and defining walking path
1. Permanent Exemptions
11 “Industrial Employment Hubs”
Contiguous area of at least 250 acres designed as employment land in General Plan prior to January 1, 2025.
Must “opt-in” through ordinance approved by HCD
2. Delayed Effectuation
12 • Allows temporary exemptions of individual sites, TOD Zones/Stations, or low-resource areas • Must “opt-in” through ordinance approved by HCD
• TOD zone–level exemption (must meet all):
• At least 1/3 of sites allow at least 50% of SB 79 density • TOD zone cumulatively allows greater than 75% of SB 79 average density • Site-level exemption (any):
• Site allows more than 50% of SB 79 density
• Located in: Very High Severity Zone, or vulnerable to 1 ft sea level rise • Contains locally designated historic resources (pre-1/1/2025) • Low-resource area exemption (TCAC maps) (either one):
• Citywide level: TOD zones in low-resource areas allow greater than 50% of SB 79 density • At station level: TOD Zone must be primarily in low-resource area and allow greater than 40% of SB 79 density
2. Delayed Effectuation
San José Analysis
13 • Three station areas meant to be representative sample; high, medium, small • Berryessa BART, Tamien Station Area, and Snell Light Rail Station Area TOD Station 75% of allowed density
under SB 79
% of sites allowing 50%
of SB 79 density
Berryessa BART Station
(Tier 1)
Tamien Station
(Tier 1)
Snell Station
(Tier 2)
2. Delayed
Effectuation -
Snell Station
Area Map
14 3. TOD Alternative Plan “Alt Plan”
15 • Allows cities to modify or exempt SB 79 standards on certain sites or areas • May apply per TOD stop, multiple stops, or citywide
• May adopt at any time. Must be re-evaluated in the next Housing Element cycle • Alt Plans must be submitted to and approved by HCD
Alt Plan requirements:
• At citywide level must maintain equal or greater net zoned capacity must account for existing developed units and FAR
• At site-level it cannot reduce SB 79 density by more than 50% or increase more than 200% on a individual site, except for:
• Very High Fire Severity Zones
• Sea level rise risk (1 ft)
• Historic sites
• At station level cannot reduce any TOD station by more than 50% Industrial Employment Hubs Timeline
16 Review Timeline Defined in SB 79:
• At least 14 days before Council adoption of an
ordinance – submit draft to HCD
• Within 60 days of enactment – submit copy to
HCD
• Within 90 days – HCD reviews ordinance for
substantial compliance.
o HCD may request additional 30 days to make
findings
Employment Hub Ordinance Timeline
Monday, March 2, 2026 DRAFT Referral to HCD
(14 days before adoption)
Wednesday, March 11, 2026 Planning Commission hearing
Tuesday, March 17, 2026 City Council Hearing (Adoption) Tuesday, March 24, 2026 City Council second reading
Thursday, April 23, 2026 Ordinance Effective and Referral to HCD (Enactment)
Wednesday, July 1, 2026 SB 79 Effective Date
Recommendations
17 a) Accept the report on Senate Bill 79, including a summary of its provisions, an initial San José specific analysis, and options for implementation. b) Direct staff to return to City Council in March 2026 with a draft ordinance designating qualifying industrial areas identified in the General Plan as Employment Areas as “industrial employment hubs” and exempting nonresidential sites within those areas from the provisions of Senate Bill 79. c) Direct staff to return to City Council with an ordinance exempting sites where there is no walking path less than one-mile from the location of transit- oriented development after further analysis of those sites is completed. d) Direct staff to return to City Council with an ordinance temporarily exempting designated historic resources contained in the San José Historic Resources Inventory
17 Senate Bill 79, Statewide Standards for
Transit-Oriented Development Report and
Implementation
City Council
January 27, 2026
Item 8.1
Chris Burton, Director, PBCE
Jerad Ferguson, Principal Planner, PBCE
18