Proposed Amendments to
Increase Development
Standards on Select Parcels in
SB 79 Expo/Bundy TOD zone
City Council
September 8, 2026
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
Recap
April 15, 2026 – Planning Commission SB 79 Study Session • Informational presentation regarding SB 79 impacts in Santa Monica and implementation options
April 28, 2026 - City Council SB 79 Study Session
• Directed staff to return with an ordinance temporarily excluding TOD Zones from SB 79 in order to allow comprehensive planning to occur with forthcoming General Plan and 7th Cycle Housing Element update
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
Increase development standards for 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
September 8, 2026
Item 12-B
September 8, 2026
Recap – July 14, 2026 Council Meeting
• Adopted a SB 79 Exclusion
Ordinance to temporarily exclude qualifying sites from
SB 79 until 2030 with an
effective date of August 27,
2026
City has received 3 applications
for SB 79 projects that are
“vested”
• Effective August 27, 2026, SB
79 no longer applies to Santa
Monica’s TOD zones, except for Expo/Bundy TOD Zone
• Expo/Bundy TOD zone does
not have enough sites that
are zoned for high housing
density to qualify for exclusion
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
Why is Expo/Bundy Not Yet Eligible for Exclusion?
To qualify for temporary exclusion from SB 79, the TOD
zone must satisfy 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
× Currently, only 74 of the 381 parcels (19.4%) meet
this threshold
• 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
AND
2. The permitted densities in the TOD zone cumulatively allow at least 75% ofthe aggregate density specified by SB 79 Existing zoning provides approximately 123% of the
aggregate density required by SB 79
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
Recap – July 14, 2026 Council Meeting
• Reviewed Planning Commission’s recommendation to increase development standards for 66 multi-unit zoned parcels (R2/R3) in Expo/Bundy TOD zone to delay SB 79 applicability in this zone
• Reviewed displacement risk factors for these 66 R2/R3 parcels Existing Use
Comparison of existing units to potential upzoned density Comparison of upzoning to existing State law
Combination of State and local requirements
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
R2/R3 Parcels – Assessment of Displacement Risk
Analysis concluded there would be no or low displacementrisk 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
September 8, 2026
Item 12-B
September 8, 2026
Recap – July 14, 2026 Council Meeting
• After review of displacement risks on multi-unit zoned parcels, Council instead directed staff to return with options to increase development standards for all, or a selected group, of Single-Unit Residential (R1) zoned parcels within the Expo/Bundy TOD zone Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
Recap – July 28, 2026 Council Meeting
• Reviewed 3 potential options for increasing development standards for select parcels within the Expo/Bundy TOD Zone
Option Parcels
Affected
Resulting % of Sites
Meeting 50% SB 79
Criteria
Basis for Option
Option 1 89
R1 parcels 42.7%
• Focused on parcels generally closest in walking
distance to station meeting the intent of SB 79
• Provides a clear geographical boundary.
Option 2 212
R1 parcels 75.5% • Uniform upzoning of all R1 parcels within SB 79 onehalf mile radius of station Option 3
66 R2/R3
parcels
36.7%
• Planning Commission recommendation
• Least amount of parcels
• Uniform upzoning for all multi-unit parcels within
TOD zone;
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
• Option 1 - Targeted increase in square
footage and density for select R1-zoned
parcels so that the entire Expo/Bundy TOD
zone can qualify for SB 79 temporary
exclusion
• Applies to 89 R1 zoned parcels within area
bounded by:
I-10 Freeway – south
Dorchester Avenue – west
Exposition Boulevard – north
Centinela Avenue – east
Recap – July 28, 2026 Council Direction
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
Community Meetings
• City staff participated in and conducted two community meetings on August 20th and 25th to provide information on SB 79 and the proposed amendments • Community requested data on the 89 R1-zoned parcels that are proposed for increased development standards, particularly rental data • Community also suggested a “Dual Ordinance” approach by:
1. Initially adopting an ordinance increasing standards for the minimum number of parcels needed (approx. 36 parcels) when accounting for all parcels within the entire Expo/Bundy TOD Zone (both SM and LA parcels)
2. If initial ordinance if determined insufficient or invalid (e.g.: HCD determines Santa Monica cannot use parcels within LA), adopt a backup ordinance to include additional parcels (approx. 53 parcels) to ensure Expo/Bundy TOD Zone remains excluded
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
R1 Parcels – Assessment of Displacement Risk
• 5 of 89 R1-zoned parcels are registered under rent control (all developed with single-unit dwellings)
• City does not have a rental registry that identifies all rental units in the City • Data on business licenses indicate there are two single dwelling units currently rented
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
Assessment of Alternative Dual Ordinance
• Staff does not recommend this approach because SB 79 is silent on how to calculate capacity in a multi-jurisdictional TOD zone.
HCD has not yet provided formal technical guidance, and implementation would depend partly on Los Angeles' related ordinances and HCD review. • Housing projects could face uncertainty about which development standards legally apply.
• Qualifying SB 79 projects in high-resource areas that are denied are rebuttably presumed unlawful with significant penalties.
• If the City later determined that this approach is insufficient, prior project denials could expose the City to liability.
Staff's recommended 89-parcel approach provides greater certainty, reduces litigation exposure, and minimizes displacement risk.
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
Proposed Amendments
• Establishes a minimum required density of 1 unit per 1,080 sf of parcel area (40 du/acre) – Minimum required density for multiple unit dwelling projects • Provides a FAR of 1.25 for multiple-unit dwelling projects that meet the above density standard of 40 du/acre – Ensures that an owner would only be able use higher FAR by adding housing
• No change to existing 28 ft maximum height for the R1 zoning district Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
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
(square footage) 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 28 ft 40 du/ac 6 units
*application of standard cannot physically preclude project achieving the density and size permitted by State law; Excludes State density bonus
Comparison of Existing State Law to Proposed Increases
of Local Development Standards
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
Staff Recommendations
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 Chapter 9.06, Transit Oriented Development Zones, to Increase Development Standards for Parcels Located Within the R1 (Single-Unit Residential Zoning District) and the Area Bounded by the I-10 Freeway to the South, Dorchester Avenue to the West, Exposition Boulevard to the North, and Centinela Avenue to the East to Allow for the Exclusion of Certain Sites that are Located Within One-Half Mile of the Expo/Bundy Station from Senate Bill (SB) 79 Implementation Until One Year Following the Adoption of the 7th Cycle (2029-2037) Housing Element of the City’s General Plan.
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026
Displacement Risk Comparison
R2/R3 – 66 parcels R1 – 89 parcels
Involuntary displacement risks Voluntary displacement risk 36 parcels with low displacement
risk, comprising approximately
200 rental units
Based on business license data, 2
parcels are developed with single
units that are rentals
Item 12-B
September 8, 2026
Item 12-B
September 8, 2026