Second Reading
Amendments to Increase
Development Standards
on Select Parcels in
SB 79 Expo/Bundy TOD Zone
City Council
September 22, 2026
Item 4-N
September 22, 2026
Item 4-N
September 22, 2026
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
• FAR – 1.25
• Density – 40 dwelling unit per acre
• Applies only to projects
maximizing density for subject
parcel
Applies to 89 R1 zoned parcels within
area bounded by:
• I-10 Freeway – south
• Dorchester Avenue – west
• Exposition Boulevard – north
• Centinela Avenue – east
Increased Development Standards
Item 4-N
September 22, 2026
Item 4-N
September 22, 2026
September 8 - Council Action & Direction
Council introduced for first reading an…
• Ordinance amending the text of the Zoning Ordinance 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. In response to public testimony, Council gave additional direction to:
• Explore an alternative exclusion ordinance that incorporates the City of Los Angeles and also consider the possibility of excluding from targeted “upzoning” specific uses such as daycares.
• Explore a generally applicable citywide anti-displacement overlay for R1 rentcontrolled homes, which will return to Council as a separate matter at a future date.
Item 4-N
September 22, 2026
Item 4-N
September 22, 2026
HCD Response
On September 17, City staff met with HCD staff, and HCD provided the following responses:
Santa Monica Cannot Use City of Los Angeles Parcels or Data for SB 79 • HCD informed staff that based on their review of the legislative history of the statute and considering the practical implementation challenges, HCD’s position is that jurisdictions may only consider the parcels and data within their own jurisdictional boundaries. • Other jurisdictions with cross-jurisdictional TOD zones (e.g.: Culver City) also have only relied on parcels and data within their own jurisdiction.
• Santa Monica cannot consider parcels located within or data from Los Angeles for the purposes of meeting qualifying thresholds, including those required for Exclusion Ordinances and/or TOD Alternative Plans.
Excluding Daycares Could be Possible
• HCD indicated that they would likely review what the underlying zoning allows in terms of base standards and uses.
• Therefore, it appears possible that a targeted “upzoning” could exclude specific uses such as daycares so long as the SB 79 thresholds for exclusion were still met.
Item 4-N
September 22, 2026
Item 4-N
September 22, 2026
Preliminary Assessment of Written Comments
Overview
Correspondence received requesting whether there would be an alternative way to minimize the number of parcels that are “upzoned” (i.e., as close to 52 parcels as possible) Summary of request includes:
• Not proceeding with introducing ordinance for 2nd reading • Directing staff to return with an emergency ordinance that minimizes the number of “upzoned” parcels
• Basing parcel selection on:
o Assessing tenant displacement risk - include 30 multi-unit zoned parcels that were identified to have no displacement risk + 22 more R1-zoned parcels o Sites where new development would be most in balance with the allowable height and scale of the parcels around them
Item 4-N
September 22, 2026
Item 4-N
September 22, 2026
Preliminary Assessment of Written Comments
Staff’s Preliminary Assessment
Additional information regarding 30 parcels in R2/R3 zones with no displacement risk:
• No existing units (e.g., surface parking lot) – 4 parcels • Ownership housing:
o Condo/TORCA conversion – 8 parcels
o Single Unit Dwelling – 11 parcels
• More existing units than potential upzoned density – 3 parcels • Existing affordable deed-restricted units – 4 parcels Using tenant displacement risk to select parcels in order to qualify for exclusion is a new concept that would need to be discussed with HCD (proposed ordinance relied primarily on basis of increased standards on parcels most in proximity to transit stop) Staff is aware that at least 3 cities have been sued on SB 79, therefore litigation risk remains Concerns that adopting an emergency ordinance for only Expo/Bundy TOD zone would not be consistent with the City’s record of having adopted other ordinances by regular ordinance and that the City has been discussing this issue for the past 9 months Item 4-N
September 22, 2026
Item 4-N
September 22, 2026
Staff Recommendation & Next Steps
Proceed with adopting second reading of the ordinance presented on September 8 • Consistent with the goal of closing the door on SB 79 as quickly as possible • Council can still direct staff to return with additional direction on options to minimize the number of parcels that need to be “upzoned” which could include a mix of residentially zoned parcels
Next Steps:
• Upon adoption, staff will submit a revised SB 79 Ordinance, including the targeted increases to development standards, to HCD for a 90-day review (which may be extend an additional 30 days)
• Expo/Bundy TOD Zone will become excluded from SB 79 starting October 23 Item 4-N
September 22, 2026
Item 4-N
September 22, 2026