Senate Bill 79 Industrial Ordinance and
Analysis on Senate Bill 79/Assembly Bill 130
and Historic Resources
City Council
March 17, 2026
Item 10.2 and 10.3
Chris Burton, Director, Planning, Building, and Code Enforcement Manira Sandhir, Deputy Director, Planning, Building, and Code Enforcement Jerad Ferguson, Principal Planner, Planning, Building, and Code Enforcement Dana Peak, Principal Planner, Planning, Building, and Code Enforcement
www.sanjoseca.gov/planning2
Background
Source: https://www.hcd.ca.gov/about-hcd/newsroom/new-transit-oriented-supportive-housing-opens-san-jose Senate Bill 79 (SB 79)
Signed on October 10, 2025
Effective July 1, 2026
• Streamlines housing development
• Any site zoned for:
• Residential
• Mixed-use
• Commercial
• Within ½ mile of qualifying transit
stops
City Council Direction SB 79
www.sanjoseca.gov/planning3
City Council Direction (January 27, 2026):
1. Designate qualifying industrial areas
identified in the GP2040 as Employment
Areas as ‘industrial employment hubs’ (IEH)
and exempt nonresidential sites within those
areas from the provisions of SB 79
2. Future ordinance to exempt sites with no
walking path less than one-mile from the
location of the TOD stop based on further
analysis.
3. Future action to add minimum densities in the
downtown core and explore in other growth
areas, based on further analysis.
4. Analysis of adequacy of CEQA to protect
historic resources under SB 79 given
new CEQA exemption under AB 130.
Source: Google Maps Image of Industrial Building in North San Jose, Captured September 2025, retrieved March 4, 2026 www.sanjoseca.gov/planning4
Background
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
• Future
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 lane
• VTA light rail
• Bus Rapid
Transit with
dedicated
lane
• 44 VTA light rail
• 2 Bus Rapid
Transit
46 total stations
SB 79 Transit Stops
www.sanjoseca.gov/planning5
Background
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
SB 79 Standards
Source: 808 West Apartments retrieved March 6, 2026
SB 79 Industrial Employment Hub Exclusion
www.sanjoseca.gov/planning6
Name of Employment Lands Area
1) North San José
2) Berryessa International Business Park, Lundy/Milpitas BART
3) East Gish, Mabury
4) Monterey Business Corridor
5) Old Edenvale, Old Edenvale Transit Employment
Center
Gov Code 65912.160 (e)(2)
Exclusion Provision Criteria: at least 250 acres of
contiguous employment lands area with parcels
primarily dedicated to industrial use
SB 79 Industrial Employment Hub Exclusion
www.sanjoseca.gov/planning7
Identified Employment Area
boundaries
Total
Parcels
Total
Acreage
*Industrial GP % Industrial
GPParcels Acreage
1) North San José 2,264 3,206 794 2,335 72.8
2) Berryessa International Business
Park/Lundy/Milpitas BART 311 632 298 596 94.2
3) East Gish/Mabury 471 780 401 638 81.8
4) Monterey Business Corridor 414 421 324 388 92
5) Old Edenvale/Old Edenvale
Transit Employment Center 678 537 234 491 91.3
SB 79 Industrial Employment Hub Exclusion
North San José / Berryessa International Business Park / Lundy/Milpitas BART / East Gish / Mabury www.sanjoseca.gov/planning8
SB 79 Industrial Employment Hub Exclusion
Monterey Business Corridor
www.sanjoseca.gov/planning9
SB 79 Industrial Employment Hub Exclusion
Old Edenvale / Old Edenvale Transit Employment Center
www.sanjoseca.gov/planning10
Industrial Employment Hub
Ordinance Timeline
• March 17, 2026 – City Council Hearing
• March 24, 2026 – City Council Second Reading
• March 25, 2026 – Submittal to Department of Housing and Community Development (HCD) for Review (90 days)
• April 23, 2026 – Effective Date of Ordinance
(30 days following second reading)
• July 1, 2026 – SB 79 Effective Date
11 www.sanjoseca.gov/planning
www.sanjoseca.gov/planning13
SB 79 and Historic Resources
• 17 of 56 TOD areas contain
designated historic resources.
• Highest concentration of historic
resources in downtown.
• Historic resources within TOD
areas face new development
pressure due to the upzoning
provided in SB 79.
www.sanjoseca.gov/planning14
CEQA and AB 130
Demolition More than 50% – NOT EXEMPT
• AB 130 cannot be used to
demolish a historic structure
• Demolition Definition - removal
of more than 50% of exterior
walls. Does not factor in
significant historic features or
façade elements.
• "Placed on a national, state, or
local historic register ....."
www.sanjoseca.gov/planning15
Implications of Relying on CEQA
CEQA is a potential deterrent
but provides no formal protection
from demolition or alteration.
Process with procedural
requirements to study
and disclose impacts, and to
mitigate where feasible.
www.sanjoseca.gov/planning16
Significant Alterations - EXEMPT
• Significant alterations of historic
resources are CEQA exempt
under AB 130
• May compromise historic integrity
of structure and setting
• No Historic Preservation Permit if
not a landmark or landmark
district
Example: East Santa Clara Street – National Register
Historic District
www.sanjoseca.gov/planning17
Unlisted Eligible Historic Resources - Exempt
• Significant properties not listed
on the Historic Resources
Inventory could be demolished
under AB 130
• No CEQA review required so
would not identify historic
resources
Example: Sakauye Farm House
www.sanjoseca.gov/planning18
Staff Recommendation
Add Demolition Definition for Historic Resources
Direct staff to return to City Council with a draft ordinance adding a definition for “demolition” of historic resources applicable to Assembly Bill 130 projects in Title 20 (Zoning Ordinance) of the San José Municipal Code.
Temporary Exemption Ordinance for Historic Resources
Adopt an ordinance to temporarily exempt sites from SB 79 with a historic resource designated on a local register as of January 1, 2025 until one year following the adoption of the next Housing Element.
Additional Option
www.sanjoseca.gov/planning19
Additional Options Needing Resource Allocation
Alternative Plan
Develop an alternative plan for TOD areas
with a high concentration of historic
resources to redistribute housing density.
Historic Resources Survey and Historic
Resources Inventory Clean Up
Continue to identify, evaluate,
and designate historic properties
to proactively plan for their incorporation
into the City’s growth and development.
Senate Bill 79 Industrial Ordinance and
Analysis on Senate Bill 79/Assembly Bill 130
and Historic Resources
City Council
March 17, 2026
Item 10.2 and 10.3
Chris Burton, Director, Planning, Building, and Code Enforcement Manira Sandhir, Deputy Director, Planning, Building, and Code Enforcement Jerad Ferguson, Principal Planner, Planning, Building, and Code Enforcement Dana Peak, Principal Planner, Planning, Building, and Code Enforcement