Zoning Amendments to
Implement SB 79
City Council
July 14, 2026
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
SB 79 Overview and Updates
• Went into effect July 1, 2026
• Upzones housing development projects within ½ mile of a TOD stop if the project complies with certain requirements. • Provides guaranteed height, density and FAR standards for eligible housing projects near a TOD stop and additional concessions beyond State Density Bonus Law
• Provides opportunity for local control through alternative implementation options
• SCAG adopted official map identifying TOD stops on July 2, 2026
• TOD stops are divided into Tier 1 or Tier 2, depending on transit type and volume. Santa Monica only has Tier 2 TOD stops:
• All 3 Expo Light Rail stations in Santa Monica
• Bundy/Expo station in Los Angeles
• 3 Downtown Bus stops adjacent to full time transit lanes and 15 min or less service intervals in combined AM and PM Peak hours are Tier 2 TOD Stops
SB79
Info Page
https://www.santamonica.gov/
sb79-transit-oriented-development
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Consistent with SCAG
adoption of final map
on July 2
Downtown
17th St/SMC
Bergamot
Expo/Bundy All properties
within ½ mile of
the TOD stop:
Adjacent to TOD
stop (200 ft)
¼ mile
½ mile
SB 79 TOD Zones
The distance is measured in a
straight line from the nearest
edge of the parcel to a
pedestrian access point for
the TOD stop. Gov. Code, §
65912.157, subd. (b)
Santa
Monica/3rd
Santa Monica/4th
Ocean/Broadway
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
SB 79 Project Eligibility Criteria
Location: within ½ mile of a TOD stop.
Housing Project: Doesn’t include any portion designated for hotel, motel, or transient lodging. Number of Units: At least 5 dwelling units.
Minimum Density: The greater of either of 30 units per acre or minimum density allowed under local zoning.
Average Unit Size: Maximum average total floor area 1,750 net square feet. Anti-Displacement: Not located on a site with more than 2 units where project would require demolition of rent controlled or affordable units occupied by tenants within the last 7 years or have had more than 2 rent controlled or affordable units demolished within 7 years of application. Affordability: If 10 units or more, complies with affordability requirements specified in SB 79 (7% ELI, or 10% VLI, or 13% lower income ) or local inclusionary requirements (AHPP) if it mandates higher percentage or deeper affordability. Rental units must be deed restricted for 55 years and ownership units must be deed restricted for 45 years.
Labor Standards: Complies with labor standards if over 85 feet in height.
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
SB 79 Guaranteed Standards
Location Minimum Permitted
Development
Minimum Density to Qualify for
Additional Concessions
Additional Concessions
Beyond SDBL
Tier 2 Stop
Adjacent
• Height: 85 ft
• Density: 140 du/ac
• FAR: 4.0
75 units/acre
• 3 for projects
providing housing
for extremely lowincome households
• 2 for projects
providing housing
for very lowincome households
• 1 for projects
providing housing
for low-income
households
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 units/acre
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Planning Commission and Council
April 15, 2026 - Planning Commission SB79 study session • Recommended two-track approach to implement a Temporary Exclusion of Sites Until 2030 (Approach 2) and return at a later date with a TOD Alternative Plan (Approach 3) April 28, 2026 - City Council SB79 study session
• Direction to proceed with PC recommendation on temporary exclusion ordinance and as part of future TOD alternative plan:
• Investigate right-to-return policies
• Explore inter-parcel transfer of density within TOD Zones • Prioritize the Expo/Bundy TOD Zone in a TOD Alternative Plan June 17, 2026 - Planning Commission public hearing
• Recommended adoption of zoning amendments that would:
• Temporarily exclude qualified sites from SB 79 until one year following the adoption of the 7th Cycle Housing Element
• Upzone R2/R3 parcels within ½ mile of the Expo/Bundy Station in order exclude all parcels within the Expo/Bundy TOD zone
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Council-Directed SB 79 Alternative Options
• Enact ordinance temporarily excluding TOD Zones from SB79 in order to allow comprehensive planning to occur with forthcoming LUCE update and 7th Cycle Housing Element update
1. Implementation with Excluded
Sites Until 2030 (1 year after 7th
Cycle HE adoption)
Adopt an ordinance to temporarily exclude sites from SB 79 until 2030 per the criteria in SB 79:
• Site is located in a TOD Zone that has 33% of sites offering 50% of SB 79’s density and permitted FAR and 75% overall TOD Density
• Already allow at least 50% of SB 79’s densities and FAR (SM commercial zone parcels)
• Sites with locally designated historic resources before January 1, 2025 *Note that other kinds of sites (e.g. Very High Fire Hazard Severity Zones, vulnerable to 1 ft of sea level rise) are not shown as they are not located in Santa Monica
2. Prepare TOD Alternative Plan
as part of forthcoming
comprehensive planning (General
Plan Update, 7thCycle Housing
Element)
• TOD alternative plan allows cities to adopt their own SB 79 plan and reallocate housing capacities across TOD Zones or TOD sites, subject to certain rules • Must be adopted by Ordinance, and reviewed by HCD (can also be included in 7th Cycle Housing Element)
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Exclusion Ordinance Methodology
To determine which sites are eligible for exclusion, staff applied the following steps to the modeling:
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
TOD Zone Exclusion Results
• All TOD Zones in Santa
Monica meet criteria to
be excluded from SB79
except for Expo/Bundy
• City’s local upzoning
from 6th Cycle Housing
Element implementation
already exceeds SB79
density
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
SB79 Potential Displacement Impact Expo/Bundy
381 parcels total in TOD Zone
• 89 parcels that are not eligible to use SB79
• 49 parcels located also in Bergamot TOD Zone (already qualifies for exclusion) • 36 Parcels that have 3 or more units and at least 1 rent-controlled unit – project-level exclusion
• 4 parcels with deed-restricted affordable units – project-level exclusion • 54 commercially zoned parcels - already have local standards that are equal or more than SB79 standards
• 233 Residentially-zoned parcels that likely do not have involuntary displacement risk • 212 R1 parcels - ownership units
• 5 parcels with no existing units
• 16 multi-unit zoned – ownership units (e.g. single-unit dwelling, TORCA) • 5 parcels with potential involuntary displacement impact • 2 parcels with 2 or fewer units
• 3 parcels with 3 or more units and no rent-controlled units Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Expo/Bundy TOD Zone
• Expo/Bundy TOD Zone presents
unique circumstances
• Majority of the zone (approximately
75%) lies in the City of Los Angeles
• Commercially zoned parcels in Santa
Monica portion of TOD Zone are
significantly larger than the rest of the
city meaning there are fewer total
sites to qualify the TOD zone for
exclusion
• Need at least 33% of sites to be zoned
for at least 50% of SB79 standards to
qualify for TOD zone exclusion
• 74 commercially-zoned parcels
already meet or exceed SB79
standards
• Need 52 additional parcels
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Expo/Bundy Targeted Upzoning
R2 Parcels
R3 Parcels
• 66 multi-unit zoned parcels located
within ½ mile of Expo/Bundy Station
are proposed to be upzoned in
order to qualify the Expo/Bundy
TOD Zone for temporary exclusion
from SB79
• 60 R2-zoned parcels would be
upzoned from 1.0 FAR and 29 du/ac
to 1.25 FAR and 40 du/ac
• 6 R3-zoned parcels (which already
has FAR of 1.5) would be upzoned
only in terms of density from 35
du/ac to 40 du/ac
R2 parcels overlap
with Bergamot TOD
Zone
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
R2 Parcels – Comparison with Existing Standards
Hypothetical Site Characteristics
• R2 Zone
• Typical 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
Targeted 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 Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
R3 Parcels - Comparison with Existing Standards
Hypothetical Site Characteristics
• R3 Zone
• Typical 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 Santa Monica
Zoning
1.5 40 ft 1 du/1,250 sf (~35 du/ac) 5 du
Existing State Law:
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
Proposed 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 Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Targeted Upzoning – Assessment of Displacement Risk
• Considered likelihood of turnover based
on the following:
• Existing Use
• Comparison of existing units to potential
upzoned density
• Comparison of upzoning to existing State
law
• Combination of State and local
requirements
R2 Parcels
R3 Parcels
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Targeted Upzoning – Assessment of Displacement Risk
Analysis concluded there would be No or Low Displacement Risk for all 66 parcels proposed for upzoning
• No Displacement Risk – 30 parcels:
• No existing units (e.g. surface parking lot)
• Ownership housing (e.g. single-unit dwelling, condos) • More existing units than potential upzoned density
• Existing affordable deed-restricted units
• Low Displacement Risk – 36 parcels unlikely to redevelop:
• More than 50% of total potential upzoned density would be replacement units • Potential upzoned density is substantially the same as what is allowed under existing State housing laws
• Replacement unit requirements under State law + City’s inclusionary housing requirements (AHPP) + Rent Control provisions make redevelopment unlikely Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Expo/Bundy TOD Zone Exclusion Option
If targeted upzoning of 66
multifamily zoned parcels occurs: If NO upzoning occurs:
Exclusion Criteria Expo/Bundy TOD Zone will meet the
33% criteria for temporary exclusion
from SB 79.
Expo/Bundy TOD Zone will NOT meet
the 33% criteria for temporary
exclusion from SB 79.
Displacement Risk Minimized Substantially increased especially for rent-controlled parcels with 2 or fewer
units
Effect All parcels in the Expo/Bundy TOD
zone, including 212 R1 zoned parcels,
can be temporarily excluded from SB
79 standards until 2030.
All parcels located in the Expo/Bundy
TOD zone, including 212 R1 zoned
parcels, would be subject to SB 79
standards (which guarantees densities
of 80 du/ac or 100 du/ac, depending on
distance to station).
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Summary of Potential Options for Expo/Bundy
• Recommendation: Adopt Ordinance
to exclude Expo/Bundy TOD Zone
• Direction to upzone 66 R2 & R3
zoned-parcels
• Alternative: Upzone 212 R1 parcels
• Would qualify TOD Zone for
exclusion
• Alternative: Take No Action
• Allows SB79 to take effect
• Involuntary displacement risk to 5
parcels
• Only upzoning parcels in ¼ mile
radius would not upzone sufficient
number of parcels to meet criteria
R1 Parcels
R2 Parcels
R3 Parcels
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Next Steps for SB 79
• June 30 - Staff submitted draft SB 79 Exclusion Ordinance to HCD • If adopted by Council:
• Within 60 days of adoption, Staff will submit SB 79 Exclusion Ordinance to HCD for review period (up to 120 days)
• Ordinance becomes effective 30 days after Second Reading (even if HCD review is not completed), anticipated end of August
• SB 79 is already in effect as of July 1 and will continue until the effective date of SB 79 Exclusion Ordinance
• City staff to continue work on TOD Alternative Plan
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Recommended Actions
Staff Recommends that 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
Minor Correction to Table 9.06.030 title to read: DEVELOPMENT STANDARDS FOR HOUSING PROJECTS—
MULTI-UNIT RESIDENTIAL PARCELS EXCLUSIVELY WITHIN ONE-HALF MILE OF EXPO/BUNDY METRO E STATION Additional Direction:
• Direct City Manager to proactively engage with parcels at risk of involuntary displacement not covered by SB79’s displacement protections
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026
Questions?
Questions?
Item 12-B
July 14, 2026
Item 12-B
July 14, 2026