City Council
Report
City Council Meeting: April 28, 2026
Agenda Item: 11.A
1 of 11
To: Mayor and City Council
From: Jing Yeo, Director, Administration
Subject: Overview of Implementation Options for Senate Bill 79 and Adoption of a Resolution of Intention to Direct the Planning Commission to Initiate the Process of Amending the Text of the Zoning Ordinance to Implement Senate Bill (SB) 79
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant environmental effects pursuant to Section 15061(b)(3) (Common Sense Exemption);
2. Direct staff to implement Approach 2 and Approach 3 as shown in Table 2 of the staff report; and
3. Adopt a Resolution of Intention Directing the Planning Commission to Initiate the Process of Amending the Text of the Zoning Ordinance to Implement Senate Bill
79. Summary
Senate Bill 79 (SB 79), the Abundant and Affordable Homes Near Transit Act, was signed by Governor Newsom on October 10, 2025. The new legislation establishes minimum guaranteed development standards for qualified housing projects located near specified transit stops in urban transit counties. SB 79 requires certain affordability commitments for housing projects utilizing the benefits of SB 79, and projects of more than 85 feet must meet heightened labor requirements. SB 79 restricts eligibility on industrial land, housing projects that include hotel components, and parcels with three or more rent-controlled or affordable units that have been occupied in the last seven years.
2 of 11
The provisions of SB79 take effect on July 1, 2026. The California Department of Housing and Community Development (HCD) is currently developing guidance on SB 79 implementation; however, it is unclear whether this guidance will be available prior to the law’s implementation date. Accordingly, information related to SB 79 will continue to evolve as additional guidance and resources are released.
Discussion
Overview of SB 79
• What is SB 79?
SB 79 (California Government Code Sections 65912.155–65912.162) is a state law that increases allowable height, density, and floor area for qualifying housing projects located within a half mile of a transit-oriented development (TOD) stop.
The law is intended to promote higher-density housing near transit, reducing reliance on cars and supporting more sustainable urban growth. • Where Can SB 79 Be Used?
SB 79 uses a tiered system based on the type of transit service nearby. Tier 1 includes high-capacity transit such as heavy rail or very high-frequency commuter rail, while Tier 2 includes light rail, frequent commuter rail, or highfrequency bus service with dedicated lanes. The Metro E Line light rail stations have been confirmed by HCD to be light rail and thus, Tier 2 TOD stops. The law applies to areas within a half mile of these stops, and regional agencies like the Southern California Association of Governments (SCAG) are required to map these zones, although cities may create interim maps based on current guidance.
SCAG has not completed its mapping process, so City staff has prepared a draft preliminary SB 79 map based on initial analysis of the legislation and the most recent HCD SB 79 Advisory (Attachment E), including parcels within a half-mile of the Expo / Bundy station that are located in Santa Monica. Until SCAG issues its official map as required by SB 79, staff will continue to update this map based on changing conditions and additional guidance from HCD as it becomes available.
3 of 11
Preliminary Map of TOD Zones within ¼ and ½ Mile of Each Metro E Line Station • Which Projects are Eligible?
Pursuant to Government Code Section 65912.157(a), transit-oriented housing development projects that meet all of the following requirements are permitted to utilize SB 79:
✓ Location: Is located within ½ mile of a TOD stop;
✓ Uses Prohibited in the Housing Project: Does not include any portion designated for hotel, motel, or transient lodging;
✓ Number of Units: Includes at least 5 dwelling units;
4 of 11
✓ Minimum Density: Has the greater of either a minimum density of 30 units per acre or the minimum density allowed under local zoning; ✓ Average Unit Size: Has an average total floor area for units not exceeding 1,750 net square feet;
✓ Anti-Displacement: Is not located on a site with three or more units where the project would require demolition of rent controlled or affordable units occupied by tenants within the last 7 years or have had three or more rent controlled or affordable units demolished within 7 years of an application; ✓ Affordability: If the project is 10 units or more, it shall be required to comply with local inclusionary requirements (Santa Monica’s Affordable Housing Production Program (AHPP)) if they mandate a higher percentage or deeper affordability than that specified in SB 79 (7% Extremely Low-Income, or 10% Very Low-Income, or 13% Low income). Affordable rental units must be deed restricted for 55 years and ownership units must be deed restricted for 45 years.
\
✓ Labor Standards: Complies with certain labor standards if over 85 feet in height.
• What Benefits do SB 79 Projects Receive?
Eligible projects will receive guaranteed minimum standards for height, density, and floor area ratio, which increase the closer a site is to a transit stop. Tier 2 TOD zones, as in Santa Monica, can allow buildings up to 85 feet tall directly adjacent to the transit stop, with decreasing allowances farther away.
Projects can also access benefits under State Density Bonus Law (SDBL). The density permitted under SB 79 can serve as the project’s base density. Housing projects utilizing SB 79 in conjunction with the SDBL may be eligible for up to 5 of 11
three additional concessions if they meet minimum density requirements and depending on the measure of affordability provided, as outlined in Table 1, below. SB 79 does not specify an amount or percentage of how many extremely low, very low, or low-income units are required in order to receive additional concessions. Local governments are not required to grant additional height increases through SDBL beyond those already authorized under SB 79, except for 100% affordable projects.
Transit agencies may also set their own zoning rules for land they own near stations, as long as those rules meet or exceed SB 79 minimums. Table 1 shows the development standards guaranteed by SB 79.
Table 1
SB 79 Guaranteed Development Standards for Housing Projects in TOD Zone Location
Minimum
Permitted
Development
Minimum Density
to Qualify for
Additional
Concessions
Additional
Concessions Beyond
SDBL
Tier 1
Stop
(Does
not
apply in
Santa
Monica)
Adjacent*
(within 200 ft)
Height: 95 ft
Density: 160 du/ac
FAR: 4.5
90 du/acre • 3 for projects
providing
housing for
extremely lowincome
households
• 2 for projects
providing
housing for very
low-income
households
• 1 for projects
providing
housing for lowincome
households
Within ¼ mile
Height: 75 ft
Density: 120 du/ac
FAR: 3.5
Within ½ mile
Height: 65 ft
Density: 100 du/ac
FAR: 3.0
100 du/acre
Tier 2
Stop
Adjacent*
(within 200 ft)
Height: 85 ft
Density: 140 du/ac
FAR: 4.0
75 du/acre
Within ¼ mile
Height: 65 ft
Density: 100 du/ac
FAR: 3.0
Within ½ mile
Height: 55 ft
Density: 80 du/ac
FAR: 2.5
60 du/acre
* Per Government Code Section 65912.156, “Adjacent” means within 200 feet of any pedestrian access point to a transit-oriented development stop. 6 of 11
SB 79 Implementation Options
SB 79 offers three potential pathways to jurisdictions on how to implement SB 79. The three approaches to implementing SB 79 are summarized in Table 2, below. SB 79 becomes effective on July 1, 2026 (even if the City takes no action) and will allow for the guaranteed minimum development standards for eligible housing projects located within ½ mile of the City’s four TOD zones unless and until an alternative approach is implemented. The City may, but is not required to, adopt a local ordinance to implement the provisions of SB 79.
The City’s growth strategy is adopted in the Land Use and Circulation Element (LUCE) and seeks to preserve residential neighborhoods and focus new development along commercial boulevards. As SB 79 allows the creation of an alternative TOD plan (Approach 3) to be adopted as part of the 7th Cycle Housing Element update, staff recommends that Council direct staff to bring back an ordinance implementing Approach 2 – while also directing the development of a TOD Alternative Plan via Approach 3 – as it allows the deferral of the full SB 79 height and density standards until one year following the 7th Cycle Housing Element Update (i.e. 2030). This would allow the City to holistically plan for housing capacity in the next housing element, inclusive of what SB 79 allows. It should be noted that SB 79 requires HCD review and approval prior to effectiveness of any ordinance implementing Approach 2. Thus, starting July 1, 2026, the guaranteed minimum development standards for eligible housing projects will be in effect until the City adopts an ordinance implementing Approach 2 that has been approved by HCD.
Table 2
SB 79 Implementation Options
Approach 1 –
State Law
Implementation
Covers all eligible parcels within ½ mile of Metro E Light Rail Stations. • Effective July 1, 2026
• Adoption of SB 79 Ordinance is not required; however, if ordinance is adopted, it is subject to HCD review
7 of 11
• Can exclude certain sites if located more than 1 mile walking distance of the TOD stop (requires adoption of ordinance to exclude)
Approach 2 –
Phased
Implementation
with Excluded
Sites Until
2030 (1 year
after 7th Cycle
Housing
Element
adoption)
Per Government Code Section 65912.161(b), the City can adopt an ordinance to temporarily exclude certain sites until 2030. Sites that may be excluded include those that meet any of the following conditions:
• Located in a TOD Zone that has 33% of sites offering 50% of SB 79’s density and permitted FAR and the TOD zone currently provides 75% of overall SB 79 TOD density
• Already allow at least 50% of SB 79’s densities and FAR • Located in Very High Fire Hazard Severity Zones
• Located in area vulnerable to 1 ft of sea level rise
• Sites with locally designated historic resources before January 1, 2025, with flexibility
• Site located in a low-resource area as published by the California Tax Credit Allocation Committee
• Site in a TOD alternative plan (see Approach 3)
An Ordinance implementing this approach is subject to HCD review.
Approach 3 –
TOD
Alternative
Plan
Per Government Code Section 65912.161(a), the City can adopt a TOD Alternative Plan that would transfer density across SB 79 TOD zones (i.e., areas within ½ mile of the TOD stop) and/or TOD sites subject to these rules:
1. Must maintain the same total net zoned unit capacity across all TOD zones in the City, in terms of both total units and residential floor area, as what is available under SB 79
2. At TOD Zone level, cannot reduce density by more than 50%
3. At site level, capacity cannot be decreased by more than 50% except at certain sites (e.g., locally designated historic sites) and must have minimum density of
1.0 FAR and 30 du/acre to support home ownership opportunities, and cannot be increased by more than 200%
An Ordinance implementing this approach is subject to HCD review. Alternatively, a TOD Alternative Plan can also be included in 7th Cycle Housing Element.
Overview of Potential Santa Monica Impacts
SB 79 would have limited impact on Santa Monica’s non-residential zoning districts because most already allow floor area ratios (FAR) and building heights equal to or greater than those required by the law, and they generally lack density limits, meaning housing projects already exceed SB 79’s minimums Any benefits to non-residential 8 of 11
parcels would primarily be minor increases in allowable concessions under State Density Bonus Law (i.e.; modification of development standards or requirements for financial feasibility.).
Table 3
Comparison of Capacity Between Existing Zoning and SB79 and Assessment of Applicability of Approach 2
Downtown 17 St/SMC Bergamot Expo/Bundy
# of sites with 50% of
SB 79 standards 736 758 435 77
Eligible SB 79 parcels 935 1,141 792 380
% of Sites with 50% of
SB 79 standards
(minimum 33%)
79% 66% 55% 20%
Permitted Capacity
under Existing Zoning 55,263 du 58,599 du 72,873 du 5,906 du SB 79 Capacity 47,223 du 55,255 du 80,738 du 12,669 du
Permitted Capacity as
% of SB 79 Capacity
(minimum 75%)
117% 106% 90% 47%
Meets Criteria for
Exclusion till 2030? Yes Yes Yes No
In contrast, the law will have a much greater impact on residential zones near transit, largely within Pico Neighborhood and the mid-city area, where current density and FAR limits are much lower. The guaranteed development standards could result in projects more than double the current allowable development intensity, depending on proximity to transit-oriented development (TOD) stops, and will enable projects – especially in single-unit residential (R1) zones – to qualify for density bonus programs that were previously out of reach. Based on early preliminary analysis, approximately 856 parcels in Pico Neighborhood are within a TOD zone. Staff estimates that approximately 2/3 of these parcels (545 parcels) would be eligible to use SB 79, with 311 parcels being ineligible because they are either a parcel that contains affordable deed restricted units, three or more units that are rent controlled, or units that are designated historic resources. Attachments C and D show the comparison between existing zoning standards and SB 79 standards.
9 of 11
SB 79 allows capacity to be moved between TOD Zones through an alternative plan.
Should Santa Monica pursue this Approach 3, it is important to note that removing units from a TOD Zone with high capacity, such as the Bergamot Station, does not have the effect of downzoning that TOD Zone because SB 79 does not change the underlying development standards of the zoning districts. Moreover, SB 79 standards are dependent on the site’s distance to the TOD stop, which in some cases means the commercial zoned parcels may actually receive lower FAR standards than the current zoning.
Planning Commission Recommendation & HCD Technical Assistance Request The Planning Commission held an informational study session at their April 15, 2026 meeting. The study session was held at the request of the Commission in order to receive more information from staff on the details of the bill and its potential impact on Santa Monica. The Commission voted 7-0 to recommend that the City Council direct staff to implement a two-track approach which would involve putting in place Option 2 while staff returns at a later date with Option 3 to implement a TOD alternative plan.
The Commission also included in their recommendation that as part of future work on Option 3, staff should be directed to:
1) Investigate the disparate impact on Pico Neighborhood and explore constitutional, legal, and general law conflicts from applying SB 79 on Affirmatively Furthering Fair Housing;
2) Consider right to return policies in implementation of SB 79; 3) Ensure that existing Landmarks are excluded up to the time of adoption of any TOD alternative plan; and
4) Explore the inter-parcel transfer of density within zones. 10 of 11
The Commission also included in their recommendation that staff should be directed to request technical assistance from HCD regarding questions on bus stop eligibility. The Commission’s recommendation and more detailed context of their discussion is on tonight’s agenda.
As a result of technical and interpretation questions raised through public comment, the Commission’s discussion, and staff’s own analysis, staff submitted a letter to HCD requesting technical assistance on four aspects of the bill (Attachment F).
Environmental Review
This Resolution of Intention is the formal initiation of the process to consider permanent amendments to the Zoning Ordinance in accordance with the formal procedures of the SMMC and as such, is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines which states that CEQA does not apply “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The Resolution of Intention is a required step that is administrative in nature. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future.
Prepared By: Ross Fehrman, Planning Manager
Approved Forwarded to Council
11 of 11
Attachments:
A. SB 79 Resolution of Intention
B. SB 79 Informational Website (Web Link)
C. Non-Residential Zones Standards Comparison
D. Residential Zones Standards Comparison
E. HCD SB 79 Advisory Clarifications (Web Link)
F. SB 79 HCD Technical Assistance Letter - Santa Monica G. Written Comments