City Council
Report
City Council Meeting: July 28, 2026
Agenda Item: 11.C
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To: Mayor and City Council
From: Jing Yeo, Director, Administration
Subject: Options for Increased Development Standards within the Expo/Bundy TransitOriented Development Zone to Qualify for Temporary Exclusion from Senate Bill (SB) 79 Implementation
Recommended Action
Staff recommends that the City Council Provide Direction on Increasing Development Standards for Residentially Zoned Parcels within One-Half Mile of the Metro E Expo/Bundy Station to Qualify the Expo/Bundy Transit-Oriented Development Zone to Allow for Exclusion from Senate Bill (SB) 79 Implementation Until One Year Following the Adoption of the 7th Cycle Housing Element.
Background
On July 1, 2026, Senate Bill 79 (SB 79), the Abundant and Affordable Homes Near Transit Act, went into effect across the State, including in Santa Monica. The new legislation establishes minimum guaranteed development standards (density, floor area ratio (FAR), and height) for qualified housing projects located within one-half mile of specified transit stops in urban transit counties. In Santa Monica, qualifying projects within these transit-oriented development (TOD) zones are eligible for those standards unless the site is covered by a compliant exclusion ordinance that delays SB 79’s implementation or a TOD alternative plan is adopted that redistributes SB 79’s residential capacity within Santa Monica’s TOD zones.
On July 14, 2026, the City Council introduced for first reading an Ordinance to temporarily delay applicability of SB 79 on qualifying sites until one year following adoption of the 7th Cycle Housing Element (anticipated in 2030) (the “Exclusion Ordinance”). Through this Exclusion Ordinance, Santa Monica is able to delay 2 of 15
implementation of SB 79 in six out of seven TOD zones located within the City due to existing development capacity, allowing the City to holistically plan for future housing and incorporate a future TOD alternative plan into future work efforts such as the 7th Cycle Housing Element or Land Use and Circulation Element (LUCE) update.
In addition, the Council reviewed the Planning Commission’s recommendation to increase development standards for 66 multi-unit zoned parcels (R2/R3 zoned parcels) located exclusively within the Expo/Bundy TOD zone, which is located partially in Santa Monica, and partially in the City of Los Angeles. This increase in development potential would allow this remaining TOD zone to qualify for temporary exclusion from SB 79, allowing for consistency across all TOD zones in the City. However, after consideration of potential displacement risks on these parcels, Council directed staff to return with options to instead increase development standards for all, or a selected group, of Single-Unit Residential (R1) zoned parcels within the Expo/Bundy TOD zone to satisfy the criteria for temporary exclusion. Council also directed that information regarding the rent control status of the R1-zoned parcels should be provided to inform potential tenant displacement risks. This report presents options for Council’s consideration.
Santa Monica’s SB 79 TOD Zones
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Discussion
Pursuant to Government Code Section 65912.161(b)(1), sites in a TOD zone may be temporarily excluded from SB 79 if the zone satisfies both of the following criteria:
1. At least 33% of sites in the TOD zone permit density and residential FAR that are no less than 50% of the applicable SB 79 standards; AND
2. The permitted densities in the TOD zone cumulatively allow at least 75% of the aggregate density specified by SB 79.
The Expo/Bundy TOD zone contains a total of 381 parcels. Existing zoning provides approximately 123% of the aggregate density required by SB 79, and therefore, the Expo/Bundy TOD zone satisfies the aggregate density of Criterion 2, above. However, the TOD zone does not satisfy the requirements of Criterion 1, above, regarding percentage of sites that permit at least 50% of the density and residential floor area guaranteed under SB 79. Currently, only 74 of the 381 parcels (19.4%) meet this 4 of 15
threshold and at least 126 parcels (33%) are necessary to qualify the TOD zone for exclusion. Therefore, at least 52 additional parcels would need to have an increase in development standards to satisfy Criterion 1 for temporary exclusion.
At the July 14, 2026 Council meeting, staff presented the following information on the Expo/Bundy TOD zone to inform Council discussion regarding displacement risks. 381 Expo/Bundy TOD Zone Parcels
➢90 parcels not eligible for SB 79
❖ 49 also located in Bergamot TOD zone
❖ 37 with three or more units and at least one rent-controlled unit ❖ 4 with deed-restricted affordable
➢ 54 commercially zoned parcels that already have local standards equal or greater than SB 79 standards
➢ 237 residentially zoned parcels
❖ 232 parcels with unlikely displacement risk
├── 212 R1-zoned parcels (ownership)
├── 5 parcels that are vacant
└── 15 multiple-unit zoned parcels with ownership units (e.g., condos) ❖ 5 potential involuntary displacement risk
├── 2 with two or fewer units
└── 3 with three or more units (no rent-controlled units) R1 Development Potential
To assist Council in their discussion regarding potential increase in development standards of R1 parcels, the following table provides a comparison of maximum development potential under existing State laws as they apply to typical R1 parcels in the Expo/Bundy TOD zone and what the maximum development potential would be after the proposed change in order to meet SB 79’s exclusion requirements. As shown in the table below, the proposed targeted increase in development standards is aligned with existing development potential already permitted by various State laws.
Table 1 - Existing State Law vs Potential Increase in Development Standards for a Typical R1-Zoned Parcel in the Expo/Bundy TOD Zone
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Typical Site Characteristics:
• R1 Zone
• Parcel Size: 6,500 sf
• Vacant/No Affordable or Rent Controlled Units
• Located within ½ mile of Expo/Bundy Station
State Law FAR Height Density Max Units
Existing R1 Base
Standards
0.50 28 ft 1 unit per
parcel
1 unit
Accessory Dwelling
Unit(s)
Exempt • Attached
ADUs –
Same as
underlying
zoning
district;
• Detached
ADUs – 24 ft
• 1 ADU
through
conversion
• 1 detached
ADU
• 1 attached
ADU
• 1 Junior ADU
5 units (1
single-unit
dwelling + 4
ADUs
SB 9 (Duplexes/Lot
Splits
Same as
underlying;
800 sf per
unit
guaranteed
Same as
underlying
zoning district*
4 units or 2
units per
resulting
parcel
4 units
SB 1123 (Small Lot
Subdivisions)
• 3-7
units: 1.0
• 8-10
units: 1.25
Same as
underlying
zoning district*
Min. 1,200 sf
per resulting
parcel or 30
du/ac
(10 units max)
5 units
SB 79 2.5 55 ft 80 du/ac 12 units
Targeted Increase
in Development
Standards for SB
79 Temporary
Exclusion
1.25 30 ft 40 du/ac 6 units
*application of standard cannot physically preclude project achieving the density and size permitted by State law
Proposed Options to Increase Development Standards to Allow for Expo/Bundy TOD Exclusion
The following options are presented for Council consideration along with the requested information regarding rent-controlled status and displacement risk. The provisions of SB 79 are not available for projects on a site containing three or more units where the project would require the demolition of rent control or affordable housing. Therefore, 6 of 15
staff has included data regarding parcels that are subject to rent control or affordable housing and the number of units on each parcel. Attachment A provides a detailed list of all affected parcels for each option.
➢ Option 1: Increase Development Standards for 89 R1-Zoned Parcels in the Expo/Bundy TOD Zone Located North of the I-10 Freeway
Option 1 provides a focused approach that groups together 89 R1-zoned parcels in the Expo/Bundy TOD zone located north of the I-10 Freeway, east of Dorchester Avenue, south of Exposition Boulevard, and west of Centinela Avenue. These 89 parcels include two parcels also located in the Bergamot TOD zone that are eligible for SB 79 temporary exclusion. This group of parcels generally has a more direct geographic relationship to the Expo/Bundy Station, as they are within a shorter walking distance to the station and are also nearer to the higher-intensity commercially zoned parcels in the Bergamot Area, such as the Mixed Use Creative zoned parcels. Furthermore, this grouping is geographically distinct from the southern parcels in the TOD zone by census block boundaries (i.e., the parcels are located in census block group ID 060377018012).
Increasing development potential for these parcels would also be consistent with the general intent of SB 79 for parcels close to a TOD stop having higher densities, providing a rational basis along with its clear boundaries. This option would minimize the potential for tenant displacement associated with existing multi-unit zoned properties. However, while there are no parcels deed restricted as affordable housing, five of the 89 parcels contain rent-controlled units. All five parcels are developed with a single dwelling unit and, therefore, are not protected by SB 79’s displacement provisions (which establishes a project level exclusion on sites with three or more units that has rent control or affordable housing)
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Table 2 - R1-Zoned Parcels North of I-10 Freeway in the Expo/Bundy TOD Zone Total RentControlled
Affordable
Housing
89 5 0
➢ Option 2: Increase Development Standards for 212 R1-Zoned Parcels Exclusively in the Expo/Bundy TOD Zone
Option 2 proposes to increase development standards for all 212 R1-zoned parcels located exclusively in the Expo/Bundy TOD zone. Increasing development potential for all these parcels would be more than sufficient to meet the exclusion criteria of 33%. As discussed by Council on July 14, 2026, increasing development potential for the R1 parcels would avoid potential displacement risk of existing tenants on multi-unit zoned 8 of 15
parcels. Since this option is based on SB 79’s defined one-half-mile TOD boundary, this option provides the simplest and most uniform approach. This option also would substantially exceed the minimum number of qualifying parcels needed for exclusion while minimizing the potential for tenant displacement associated with existing multiunit zoned properties. However, while there are no parcels developed with affordable housing, 20 of the 212 parcels contain rent-controlled units. Five of these 20 parcels contain three or more units, and, therefore, are protected by SB 79’s displacement provisions.
Table 3 - R1 Zoned Parcels Exclusively in the Expo/Bundy TOD Zone Total RentControlled
Affordable
Housing
212 20 0
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➢ Option 3: Increase Development Standards for 66 R2/R3-Zoned Parcels in the Expo/Bundy TOD Zone (Planning Commission Recommendation) Option 3 would revert to the June 17, 2026, Planning Commission recommendation to increase development standards for parcels located within the Expo/Bundy TOD zone that are zoned multi-unit residential (R2/R3 parcels). This targeted approach would increase the allowable density and FAR on a total of 66 multi-unit zoned parcels, consisting of 60 R2-zoned parcels and six R3-zoned parcels.
This option represents the approach that would affect the least number of parcels, while still meeting the 52 parcels needed to meet the 33% criteria for TOD zone exclusion. As previously indicated in the July 14 Council staff report, this approach 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 the provisions of Senate Bill 684, which permits up to 10 units multi-unit zoned parcels.
Table 4 - Option 3 Existing State Law vs Potential Increase Development Standards for a Typical R2-Zoned Parcel in the Expo/Bundy TOD Zone Typical Site Characteristics:
• R2 Zone
• Parcel Size: 6,500 sf
• Vacant/No Affordable or Rent Controlled Units
• Located within ½ mile of Expo/Bundy Station
FAR Height Density Max Units
Existing R2
Base
Standards
1.0 30 ft 1 unit/1,500 sf (~29
units/acre)
4 units
SB 684
(Small Lot
Subdivisions)
• 3-7 units:
1.0 • 8-10 units:
1.25 Same as
underlying
zoning district*
Min. 600 SF per
Resulting Parcel or
30 du/acre (10
units max)
10 units
SB 79 2.5 55 ft 80 du/acre 12 units
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Targeted
Increase in
Development
Standards
1.25 30 ft 40 du/acre 6 units
*application of standard cannot physically preclude project achieving the density and size permitted by State law
Table 5 – R2/R3 Zoned Parcels Exclusively in the Expo/Bundy TOD Zone Total RentControlled
Affordable
Housing
66 44 4
Of the 66 R2/R3 zoned parcels, there are 44 parcels with rent-controlled units and four parcels with affordable units (three parcels contain both rent-controlled units and affordable units). As detailed in the July 14, 2026 Council staff report, based on Staff’s 11 of 15
detailed review of the parcels, there would be no or low displacement risk for all 66 parcels proposed for an increase in development standards:
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 increased density
• Existing affordable deed-restricted units
Low Displacement Risk – 36 parcels unlikely to redevelop:
• More than 50% of total potential increased density would be replacement units
• Potential increased 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 ➢ Options Considered but Rejected
The following briefly summarizes options that have been analyzed by staff and discussed with the Planning Commission and Council. These are provided as background information as to the selection of proposed options to increase development standards.
• Increase in Development Standards for Parcels within the SB 79 ¼ Mile Radius of the Expo/Bundy Station – There are 20 parcels located within ¼ mile of the Expo/Bundy Station established by SB 79 for the greatest increase in standards, of which 19 are zoned R1 and 1 is zoned R2. Implementing this option would increase the number of parcels meeting the 50% capacity threshold from 74 to approximately 94 parcels, representing approximately 24% of all parcels within the TOD zone.
o Why Rejected? Although this approach would result in additional housing development potential closest to transit, it would not satisfy the 33% 12 of 15
statutory criterion required for temporary exclusion. Therefore, it would result in increased development capacity but no exclusion from SB 79 standards, which would not accomplish the City's implementation objective. For this reason, this option was rejected by the Planning Commission at its June 14, 2026 meeting and therefore not presented to Council.
• Increase in Development Standards for 52 R1-Zoned Parcels within the 1/3 Mile Radius of the Expo/Bundy Station – In response to Council’s initial discussion regarding increasing concentric circles around the Expo/Bundy station, staff reviewed a radius between the ¼ mile and ½ mile tiers established in SB 79.
There are 52 R1-zoned parcels located within 1/3-mile radius of Expo/Bundy station. This option would result in the number of parcels meeting the 50% capacity threshold from 74 to approximately 126 parcels, representing approximately 33% of all parcels within the TOD zone – just sufficient to qualify the Expo/Bundy TOD zone for exclusion.
o Why Rejected? This approach would result in a geographic radius of 1/3 mile, which is not contemplated under SB 79, and does not otherwise increase development standards that are in closest proximity to the Expo/Bundy station. Since this approach is based on a single geometric measurement (radius) rather than physical boundaries, this option is not reflective of actual pedestrian routes and walking distance to the station.
Furthermore, a radius-based approach would cross multiple neighborhood boundaries and does not consider existing local land use patterns. • Increase in Development Standards for R1-Zoned Parcels Located South of the I-10 Freeway within the Expo/Bundy TOD Zone – There are 125 R1-zoned parcels located south of the I-10 freeway within the Expo/Bundy TOD zone. This approach would exceed the minimum number of parcels necessary to qualify the TOD zone for exclusion.
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o Why Rejected? The majority of these parcels are located at a greater walking distance from the Expo/Bundy Station than the parcels north of the I-10 freeway and therefore, would expand rezoning farther from the station than necessary to achieve the City's implementation objectives. • No Increase in Development Standards – If Council takes no action, the Expo/Bundy TOD zone will not meet the 33% criteria for temporary exclusion from SB 79. All parcels exclusively located in the Expo/Bundy TOD zone would continue to be subject to SB 79 (which guarantees densities of 80 du/ac or 100 du/ac, depending on distance to station).
o Why Rejected? SB79’s proposed densities are higher than existing State and local law and contradicts the City’s overall strategy to direct development pressures to commercial zones and to protect residential neighborhoods from displacement risks. With the forthcoming 7th Cycle Housing Element and General Plan Update, enacting an ordinance that would temporarily exclude parcels in the Expo/Bundy TOD zone would support future comprehensive planning and also be consistent with actions already taken for all other TOD zones within Santa Monica.
Summary
Below is a summary of the three potential options for Council’s consideration and direction.
Table 6 - Summary of Potential Increase in Development Standards Options Option Parcels
Affected
Resulting % of
Sites Meeting
50% SB 79
Criteria
No. of Parcels
Affected with
Rent Controlled
or Affordable
Units
No. of
Parcels with
Rent
Controlled or
Affordable
Housing Not
Protected by
SB 79
Displacement
Provisions
Basis for Increase
in Development
Standards
Option
1 89 R1
parcels
42.7% 5 with rentcontrolled units5 Focused on parcels
generally closest in
walking distance to
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station meeting the
intent of SB 79;
Provides a clear
geographical
boundary.
Option
2 212 R1
parcels
75.5% 20 with rentcontrolled units15 Uniform increase in development
standards for all R1
parcels within SB
79 one-half mile
radius of station
Option
3 66 R2/R3
parcels
36.7% 44 with rentcontrolled units
and 4 with
affordable units,
3 of which
overlap
4 Least amount of
parcels; Uniform
increase in
development
standards for all
multi-unit parcels
within TOD zone;
Aligns with density
potential already
provided by other
State laws.
In terms of displacement risk, Option 1 would affect the fewest parcels with rent controlled units – however, all five parcels with rent controlled units are developed with single dwelling units and are not protected by SB 79’s displacement protections. Option 2 would affect 20 parcels with rent-controlled units – of which 15 parcels have fewer than three units and therefore, are not protected by SB 79’s displacement protections.
Under Option 3, 44 parcels are developed with rent control or affordable units – however, 40 of the 44 parcels have three or more units and therefore, four parcels would not be protected by SB 79’s displacement protections.
Anticipated Timeline
Based on Council direction, staff will prepare and present Zoning Ordinance text amendments and will return to Council after completing all procedural and public noticing requirements.
Environmental Review
The discussion of options for satisfying the criteria for exclusion from SB 79 standards is not a “project” within the meaning of CEQA because no action is proposed that would result in a direct or reasonably foreseeable indirect physical change in the environment (Public Resources Code Section 21065). The item consists solely of policy discussion 15 of 15
and direction and therefore, falls within the activities excluded from the definition of a project under CEQA Guidelines Section 15378(b). Accordingly, no environmental review is required at this time.
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: Rachel Kwok, Environmental Planner
Approved Forwarded to Council
Attachments:
A. July 14, 2026 Council Meeting SB 79 Exclusion Ordinance (Web Link) B. Upzoning Options - Parcel Tables
C. Written comments
D. PowerPoint Presentation