City Council
Report
City Council Meeting: July 14, 2026
Agenda Item: 12.B
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To: Mayor and City Council
From: Jing Yeo, Director, Administration
Subject: Introduction and First Reading of an Ordinance to Amend the Text of The Zoning Ordinance to Exclude Certain Sites from Senate Bill (SB) 79 Implementation Until One Year Following Adoption of the 7th Cycle (2029- 2037) Housing Element and to Increase Development Standards for Parcels Zoned Multi-Unit Residential That Are Located Within One-Half Mile of the Metro E/Expo Bundy Station
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of statutory exemption from the California Environmental Quality Act pursuant to Government Code Section 65912.160(c); and
2. Introduce for First Reading an Ordinance to Amend the Text of the Zoning Ordinance to Exclude Certain Sites from Senate Bill (SB) 79 Implementation Until One Year Following the Adoption of the 7th Cycle (2029-2037) Housing Element and to Increase Development Standards for Parcels Zoned Multi-Unit Residential That Are Located Within One-Half Mile of the Metro E Expo/Bundy Station.
Summary
On July 1, 2026, Senate Bill 79 (SB 79), the Abundant and Affordable Homes Near Transit Act, went into effect throughout California. The new legislation establishes minimum guaranteed development standards for qualified housing projects located within one-half mile of specified transit stops in urban transit counties. Within Santa Monica, qualified housing projects within ½ mile of a Transit-Oriented Development (TOD) stop are now eligible for the minimum development standards outlined in Table 1 below. Additionally, SB 79 projects meeting established minimum density requirements are also eligible for additional development concessions beyond State Density Bonus Law.
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Table 1 – SB 79 Standards for Housing Projects in Santa Monica Tier 2 TOD Zones Santa Monica
TOD Stop Location Minimum Permitted Development Standards Tier 2 Stop
Adjacent* (within 200 ft)
Height: 85 ft
Density: 140 du/ac
FAR: 4.0
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
* Per GCS 65912.156, “Adjacent” means within 200 feet of any pedestrian access point to a transit-oriented development stop.
SB 79 provides alternative options for implementation, including an option for cities to temporarily exclude eligible sites until one year following the adoption of the 7th Cycle Housing Element. The City is scheduled to adopt the 7th Cycle Housing Element in 2029, which would allow for a temporary exclusion of eligible sites until 2030.
At its meeting on April 28, 2026, the City Council directed staff to prepare amendments to the Zoning Ordinance that would delay applicability of SB 79’s provisions for qualifying sites. Pursuant to City Council direction, staff has drafted proposed text amendments to the Zoning Ordinance that would allow the City to temporarily delay application of SB 79 provisions for certain eligible sites. Staff also is recommending that the City Council increase development standards for approximately 65 parcels that are zoned multi-unit residential and located within one-half mile of the Metro E Expo/Bundy station. Increasing development standards on these limited parcels will allow for temporary exclusion from SB 79 standards for the parcels with the increased standards, as well as all other parcels located within the Expo/Bundy transit-oriented development (TOD) zone, which is only partially located within the City of Santa Monica. This proposed targeted approach would apply to 65 multi-unit residential parcels, establishing development standards generally comparable to those currently allowed in the City's R3 and R4 zoning districts and small lot subdivision projects utilizing the 3 of 11
provisions of SB 684. Analysis indicates that redevelopment potential is unlikely to occur for many of the parcels that would receive increased development potential because existing development includes rent-controlled or affordable housing and SB 79 includes displacement protections that prohibit use of parcels with more than two units that were subject to price or rent control within the previous seven years. Of the 59 R2-zoned parcels, 26 contain three or more rent-controlled units and 4 include affordable units. Of the six R3-zoned parcels, two contain three or more rent-controlled units, making redevelopment under SB 79 unlikely. As summarized in the table below, the proposed increase in development standards would result in only a modest increase in development capacity for R2 and R3 parcels while remaining below the development intensity permitted under SB 79.
Background
On April 15, 2026, the Planning Commission held a study session to receive more information from staff on the details of SB 79 and its potential impact on Santa Monica.
The Commission discussed three implementation options for SB 79:
1) State Law Implementation
2) Temporary Exclusion of Sites Until 2030, one year after adoption of the 7th Cycle Housing Element; and
3) Adoption of an Alternative TOD Plan
On April 28, 2026, a follow-up study session on SB 79 was held at the City Council meeting to receive Council direction on SB 79 implementation. City Council voted unanimously to direct staff to proceed with Option 2 by returning with an ordinance to temporarily exclude certain eligible sites from SB 79 implementation until Option 3 could be implemented by adoption of an Alternative TOD Plan. Council also directed Staff to return in six months with an update on the California Department of Housing and Community Development (HCD) Technical Assistance request and progress in implementation of SB 79. The Council further directed that as part of future work on Option 3, staff should:
• Investigate right to return policies in implementation of SB 79; • Explore the inter-parcel transfer of density within zones; and 4 of 11
• Prioritize the Expo/Bundy TOD Zone.
Pursuant to Government Code Section 65912.160(f), SCAG is required to create a SB 79 map identifying TOD stops and zones in the Los Angeles Region. On June 1, 2026, SCAG released its draft SB 79 map on-line for initial public review. Under SB 79, SCAG’s map has the rebuttable presumption of validity, meaning that the map is considered valid unless there is a successful legal challenge. Following the release of SCAG’s SB 79 draft map on June 1, 2026, the City had follow-up discussions with SCAG regarding the draft map. On June 11, 2026, staff submitted formal written comments to SCAG regarding qualifying TOD bus stops on their preliminary map (see Attachment B). Additional revisions to SCAG’s map, taking into account City comments, were incorporated prior to its consideration and final adoption by the Regional Council on July 2, 2026.
On June 17, 2026, the Planning Commission conducted a duly-noticed public hearing to make a formal recommendation to the City Council on a proposed ordinance that would exclude eligible sites from SB 79 implementation until 2030. The Commission also considered two policy questions related to upzoning areas of the Expo/Bundy TOD Zone to allow for eligibility into the Exclusion Ordinance and voted 4-2 to recommend that the Council amend the text of the city’s zoning ordinance to exclude eligible sites from SB 79 implementation until 2030, adding that a mutual sunset date should be entered that corresponds to the termination date of SB 79 and other relevant state laws.
The Planning Commission also recommended targeted upzoning in order to qualify the Expo/Bundy TOD stop for the exclusion ordinance.
Discussion
Proposed SB 79 Exclusion Ordinance
Pursuant to Council direction given on April 28, 2026, consistent with authority granted in Government Code Section 65912.161(b)(1), staff has prepared an Ordinance that will enable the City to temporarily exclude certain sites from the applicability of SB 79 until 5 of 11
one year after the adoption of the 7th Cycle Housing Element (estimated to be 2030 for the City of Santa Monica):
1. Site is 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
2. Site already allows at least 50% of SB 79’s densities and FAR
3. Site is a locally designated historic resources before January 1, 2025
4. Site is located in Very High Fire Hazard Severity Zones
5. Site is located in area vulnerable to 1 ft of sea level rise
6. Site is located in a low-resource area as published by the California Tax Credit Allocation Committee
7. Site is identified in a TOD alternative plan
Because the City does not have any TOD sites that are in a Very High Fire Hazard Severity Zone, in an area vulnerable to sea level rise, in a low-resource area, or identified in a local TOD alternative plan, the proposed Ordinance focuses on the first three types of sites related to density and designated historic resources.
To identify sites that may be eligible for temporary exclusion based on the criteria in Government Code Section 65912.161(b)(1), staff conducted updated modeling using the SCAG’s SB 79 map adopted on July 2, 2026. The potential SB 79 TOD stops and associated TOD Zones in the City of Santa Monica are available online on SCAG’s SB 79 map webpage and at the City’s SB 79 webpage https://www.santamonica.gov/sb79- transit-oriented-development. Staff will continue to update its own local SB 79 map if and when any changes to SCAG’s map become available. Staff is also awaiting written guidance from HCD on a number of SB 79 interpretations. As such, the SB 79 map and accompanying information analysis within this report is subject to further modification.
The proposed Ordinance is based on a model that utilizes the following methodology to identify the sites that would be eligible for temporary exclusion:
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• Step 1 Identify SB 79 Sites: Identify the SB 79 sites located within each TOD zone. SB 79 does not provide a definition for “site”; therefore, for the purposes of the City’s analysis, a “site” is interpreted to be an individual parcel.
• Step 2 Calculate Local Capacity: Within each TOD Zone, establish the existing local capacity of the sites (density and permitted FAR) based on their current underlying zoning.
• Step 3 Calculate SB 79 Capacity: Apply SB 79 Tier 2 TOD development standards for density and FAR to establish SB 79 capacity. • Step 4 Analysis of Temporary Exclusion Eligibility: Determine whether sites are eligible for temporary exclusion until 2030 pursuant to the criteria under Government Code Section 65912.161(b)(1) at either the individual site level or TOD zone level.
For further detail on the methodology used in the modeling, refer to the methodology report in Attachment C.
Results of the Modeling
The modeling conducted for the proposed Ordinance determined that on an individual site level, all of the City’s commercially zoned parcels already permit at least 50% of SB 79’s densities and residential FAR. Therefore, pursuant to Government Code Section 65912.161(b)(1)(A), these parcels are eligible for exclusion. Furthermore, there are 44 designated Landmarks in the TOD zones that are completely within the City’s boundaries, and as such may also be temporarily excluded.
At the TOD zone level, all of the City’s TOD zones – except the Expo/Bundy TOD zone – have at least 33% of sites allowing 50% of SB 79’s density and residential FAR and also have at least 75% of the aggregate TOD zone density. Therefore, these TOD zones (including all the sites within) are eligible for temporary exclusion until 2030 pursuant to the criteria in Government Code Section 65912.161(b)(1)(B)(i). 7 of 11
The Expo/Bundy TOD zone, which is only partially located within the City of Santa Monica, does not meet the criteria for temporary exclusion. Specifically, while the modeling shows that local zoning for this TOD zone provides sufficient capacity (123% of SB 79’s aggregate TOD zone density), only 74 parcels within this zone— approximately 19.4 percent of all parcels in the TOD Zone—currently permit at least 50 percent of the density and floor area ratio (FAR) allowed by SB 79. This falls substantially below the 33 percent threshold required for temporary exclusion.
The Expo/Bundy TOD Zone presents unique circumstances because a majority of the zone (approximately 75%) lies in the City of Los Angeles. Furthermore, a large number of the commercially zoned parcels within Santa Monica boundaries are significantly larger than other typical parcels in the City. For example, parcels zoned as Mixed-Use Creative in the Expo/Bundy TOD zone range from approximately 1 to 5 acres. While these parcels accommodate substantial development capacity, their large size reduces the overall number of sites that qualify as high-capacity sites, making it more difficult to identify enough individual sites to satisfy the 33% of all parcels threshold required for temporary exclusion.
TOD Zone Name1
Local and SB 79 Capacity
Summary of Sites
Eligible for Phased
Implementation
TOD Z
(GCS
Min
33%
TOD
Sites
Eligible
for SB
793
Total
Land
Area
(Acres)
Local Max
Residential
Floor Area
Local
Max
Units SB 79 Max
Residential
Floor Area
SB 79
Max
Units
Sites with
>=50% SB
79 Capacity2
Landmark
Sites
% of
Sites
with
>=50%
SB 79
capaci
Downtown 1,020 310 33,956,557 47,311 36,273,144 27,115 641 32 63% 17th St/SMC 1,274 365 37,277,023 47,833 42,385,627 31,615 591 4 46% Bergamot 1,046 423 43,399,883 57,154 50,341,196 37,762 366 0 35% Expo/Bundy 381 100 7,948,950 10,096 11,116,506 8,208 74 0 19% Santa Monica
Eastbound/ 4th St 896 286 32,917,112 43,583 33,377,983 24,932 563 36 63% 8 of 11
Santa Monica
Eastbound/3rd St 753 253 29,604,190 39,928 29,372,331 21,919 512 36 68% Broadway/Ocean 537 204 24,464,250 34,201 23,772,581 17,743 436 31 81% 1 Many parcels fall within multiple TOD zones - as a result of this overlap, the sum of parcels across the TOD zones does not equal the overall total number of parcels that are affected by SB 79. 2 Parcels with 50% of SB 79 standards include commercial zoned parcels and R4 zoned parcels. 3 Excludes parcels zoned open space and public lands.
Proposed Targeted Upzoning for the Expo/Bundy TOD Zone
To increase the likelihood that the Expo/Bundy TOD Zone qualifies for temporary exclusion under Government Code Section 65912.161(b)(1)(B)(i), the Planning Commission recommended that the City Council adopt amendments to the Zoning Ordinance that would increase development standards for parcels located within the Expo/Bundy TOD Zone that are zoned multi-unit residential. This targeted approach would increase the allowable density and FAR on 59 R2-zoned parcels that are located exclusively within the Expo/Bundy TOD Zone to 1.25 FAR and 40 dwelling units/acre (i.e., at least 50 percent of the standards established by SB 79). The density for 6 parcels that are currently zoned R3 within the Expo/Bundy TOD zone would be increased to 40 dwelling units/acre (from 35 dwelling units/acre) since existing zoning standards already allow for 1.5 FAR.
This targeted approach, which would affect a total of 65 multi-unit zoned parcels, would effectively establish development standards comparable to those currently permitted in the City's R3 and R4 zoning districts, and what is permitted for small lot subdivision projects utilizing SB 684. Analysis indicates that redevelopment potential is unlikely to occur for many of these parcels because existing development includes rent-controlled or affordable housing, and SB 79 contains displacement protections that prohibit use of sites that include more than two units subject to price or rent control within the previous seven years. Specifically, the model identifies that of the 59 R2-zoned parcels, 26 parcels are developed with three or more rent-controlled units and 4 parcels have affordable units.1 Additionally, of the six R3-zoned parcels, two are developed with three or more rent-controlled units, thus making them unlikely to redevelop utilizing the 1 Two of these parcels have both rent-controlled and affordable units 9 of 11
provisions of SB 79. As shown in the table below, the proposed upzoning would marginally increase the capacity of R2 and R3 parcels but would be lower than SB79 standards.
Comparison of Existing Development Standards and State Law Allowance for R2 Parcels to SB79 and Proposed Option 2 Upzoning
Site Characteristics
• R2 Zone
• Parcel Size: 6,500 sf
• Vacant/No Affordable or Rent Controlled Units
• Located within ½ mile of Expo/Bundy Station
• Exclude ADUs and State Density Bonus
FAR Height Density Max Units
Existing 1.0 30 ft 1 du/1,500 sf (~29
du/ac)
4 du
SB 684 (Small Lot
Subdivisions)
• 1.0 (3-7 du)
• 1.25 (8-10 du)
Same as
underlying*
Min. 600 SF per
Resulting Parcel or
30 du/ac
(10 du max)
10 du
SB 79 2.5 55 ft 80 du/ac 12 du
Option 2
Upzoning
1.25 30 ft 40 du/ac 6 du
*application of standard cannot physically preclude the construction of 2 units at least 800 sf on each parcel With this targeted approach, to increase development standards for 65 parcels in the Expo/Bundy TOD zone, approximately 139 parcels of the total TOD Zone would meet the 50 percent capacity threshold, representing approximately 35 percent of all parcels within the TOD Zone. As a result, this TOD Zone would have more than 33 percent of sites providing at least 50 percent of SB 79 capacity. This would, therefore, provide a clearer path toward satisfying the statutory exclusion criteria of SB 79 and would allow the City to delay application of SB 79 development standards to the Expo/Bundy TOD zone until 2030. Furthermore, this targeted approach would represent a modest increase in density of a limited number of R2 and R3 parcels while preserving existing zoning standards of the R1 parcels.
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Summary of Analysis
If the City does not increase development standards as proposed, the parcels located within the City and the Expo/Bundy TOD zone that do not meet any of the City’s other temporary exclusion criteria (i.e., residentially zoned parcels exclusively in Expo/Bundy TOD zone) will remain eligible for SB 79 development standards, until the City adopts a TOD Alternative Plan. Sites that have been determined to be eligible for temporary exclusion are listed in Attachment D.
As SB 79 eligibility mapping is at the discretion of SCAG and could be updated at any time, the ordinance authorizes the Director of Community Development to prepare maps indicating a site's eligibility for SB 79 and temporary exclusions based on the criteria in the statute. Consistent with Government Code Section 65912.161(b)(1), the sites eligible for temporary exclusion will be indicated on the City’s zoning map.
By enacting temporary exclusions to SB 79, the Exclusion Ordinance provides the City an option for complying with SB 79 and allows the City to maintain greater local land use control in the short-term while ensuring continued progress toward housing production goals. Under this phased implementation approach, the City can defer application of SB 79 standards in areas that already support substantial housing development while easing displacement pressures on the Pico Neighborhood. The additional time provided under this approach would allow the City to make more informed, long-term land use decisions pending completion of a TOD Alternative Plan or the 7th Cycle Housing Element.
Environmental Review
The adoption of the amendments to the Zoning Ordinance is statutorily exempt from CEQA pursuant to Government Code Section 65912.160(c) which states that an ordinance enacted pursuant to SB 79 shall not be considered a project under CEQA.
Past Council Actions
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Meeting Date Description
04/28/26
(attachment A)
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
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of these recommendations. Staff will return to Council if specific budget actions are required in the future.
Prepared By: Rachel Kwok, Environmental Planner
Approved Forwarded to Council
Attachments:
A. https://santamonicacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1482 B. SB 79 Exclusionary Ordinance Model Methodology
C. Inventory of Sites Eligible for Temp Exclusion
D. CDD-ORD-SB 79 Deferral 07.14.2026
E. Attachment B - SM_SCAG_Letter_6.11.26
F. SCAG SB 79 TOD Map
G. Santa Monica SB 79 Webpage and Map
H. Written Comments
I. PowerPoint Presentation