AGENDA REPORT
DATE: April 14, 2025
TO: Honorable Mayor and City Council
FROM: Joe Pradetto, Director of Governmental Affairs
SUBJECT: Oppose SB 79 (Wiener) Transit -oriented Development Item No. 8
RECOMMENDATION:
That the City Council oppose SB 79 and authorize the Mayor to issue a letter in opposition.
BACKGROUND/DISCUSSION:
SB 79 requires cities to ministerially approve higher -density residential projects —up to 7 stories and 120 units per acre —near transit -oriented development stops, regardless of zoning codes. SB 79 limits the use of local development standards and allows transit agencies full land -use authority over residential and commercial development on property they own or lease.
State law defines a transit -oriented development stop as one with rail service with 10 or more daily train stops and defines three tiers, which generally consist of train or bus rapid transit. At present, there are no transit -oriented development stops of any tier in the City of Yucaipa.
Although Yucaipa is not threatened by SB 79 at present, this bill represents a threat to local control, and the League of California Cities is mobilizing cities to oppose it. Since Yucaipa is home to a bus stop, opposing SB 79 will help fight the erosion of local control that may affect it in the future.
FISCAL IMPACT:
None.
Attachment(s):
1. SB 79 current bill language
2. Draft opposition letter
Approved by:
ATTACHMENT 1
AMENDED IN SENATE MARCH 5, 2025
SENATE BILL No. 79
Introduced by Senator Wiener
January 15,2025
An act to amend Section 54221 of, and to add Chapter 4.1.5 (commencing with Section 65912.155) to Division 1 of Title 7 of, the Government Code, and to add Section 21080.26.5 to the Public Resources Code, relating to land use.
LEGISLATIVE COUNSEL'S DIGEST
SB 79, as amended, Wiener. Planning and zoning: housing development: transit -oriented development.
(1) Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines "surplus land" for these purposes to mean land owned in fee simple by any local agency for which the local agency's governing body takes formal action declaring that the land is surplus and is not necessary for the agency's use.
Existing law defines "agency's use" for these purposes to include land that is being used for agency work or operations, as provided. Existing law exempts from this definition of "agency's use" certain commercial or industrial uses, except that in the case of a local agency that is a district, except a local agency whose primary purpose or mission is to supply the public with a transportation system, "agency's use" may include commercial or industrial uses or activities, as specified.
This bill would additionally include land leased to support public transit operations in the definition of "agency's use," as described above. The bill would also revise the definition of "agency's use" with respect to commercial or industrial uses to instead provide that a district 98 SB79 —2—
or a public transit operator may use land for commercial or industrial uses or activities, as described above.
(2) Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that contains certain mandatory elements, including a housing element. Existing law requires that the housing element include, among other things, an assessment of housing needs and an inventory of resources and constraints that are relevant to the meeting of these needs, including an inventory of land suitable for residential development, as provided. Existing law, for the 4th and subsequent revisions of the housing element, requires the Department of Housing and Community Development to determine the existing and projected need for housing for each region, as specified, and requires the appropriate council of local governments, or the department for cities and counties without a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each locality in the region.
Existing law, the Housing Accountability Act, among other things, requires a local agency that proposes to disapprove a housing development project, as defined, or to impose a condition that the project be developed at a lower density to base its decision on written findings supported by a preponderance of the evidence that specified conditions exist if that project complies with applicable, objective general plan, zoning, and subdivision standards and criteria in effect at the time that the application was deemed complete. The act authorizes the applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization may bring an action to enforce, as provided, and provides for penalties if the court finds that the local agency is in violation of specified provisions of the act.
This bill would require that a residential development proposed within a specified distance of a transit -oriented development (TOD) stop, as defined, be an allowed use on any site zoned for residential, mixed, commercial, or light industrial development, if the development complies with applicable requirements, as specified. The bill would establish requirements concerning height limits, density, and floor area ratio in accordance with a development's proximity to specified tiers of TOD stops, as provided. The bill would provide that a local government that denies a project meeting the requirements of these provisions located 98 -3— SB79
in a high -resource area, as defined, would be presumed in violation of the Housing Accountability Act, as specified, and liable for penalties, as provided. The bill would specify that the a development proposed pursuant to these provisions is eligible for streamlined, ministerial approval pursuant to specified law, except that the bill would exempt a project under these provisions from specified requirements under that law.
The bill would require a proposed development to comply with specified requirements under existing law relating to the demolition of existing residential units. The bill would also authorize a transit agency to adopt objective standards for both residential and commercial development proposed pursuant to these provisions if the development would be constructed on land owned by the transit agency or on which the transit agency has a permanent operating easement, provided that the objective standards allow for the same or greater development intensity as allowed by local standards or applicable state law.
The bill would require the Department of Housing and Community Development to oversee compliance with the bill's provisions, including, but not limited to, promulgating specified standards relating to the inventory of land included within a county's or city's housing element.
The bill would permit a local government to adopt an ordinance to implement these provisions, as provided, and would require the local government to submit a copy of this ordinance to the department within 60 days of adoption and the department to review the ordinance for compliance, as specified. If the department finds an ordinance is out of compliance, and a local government does not take specified steps to address compliance, the bill would require the department to notify the local government in writing and authorize the department to notify the Attorney General, as provided.
The bill would define various terms for its purposes and make related findings and declarations.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (3) Existing law, the California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires 98 SB79 —4—
a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA, until January 1, 2030, exempts from its requirements certain transportation -related projects if specified requirements are met, as provided. CEQA includes within these exempt transportation -related projects a public project for the institution or increase of bus rapid transit, bus, or light rail service, or other passenger rail service, that will be exclusively used by low -emission or zero -emission vehicles, on existing public rights -of -way or existing highway rights -of -way.
This bill would exempt from CEQA a public or private residential, commercial, or mixed -used project that, at the time the project application is filed, is located entirely or principally on land owned by a public transit agency, or fully or partially encumbered by an existing operating easement in favor of a public transit agency, and meets specified requirements. The bill would provide that, for a project that requires the construction of new passenger rail storage and maintenance facilities at a publicly or privately owned offsite location distinct from the principal project site, that project would be considered a wholly separate project from the project described in these provisions and shall not be exempt from CEQA.
(4) By increasing the duties of local officials, this bill would impose a state -mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, thc Planning and Zoning Law, requires each city, county, or city and county to prcparc and adopt a general plan for its jurisdiction that contains ccrtain mandatory elements, including a housing cicmcnt.
Undcr cxisting law, a part of thc housing cicmcnt is an assessment of housing needs, which includes thc locality's sharc of thc regional housing nccd. Undcr existing law, thc appropriate council of local govcrnmcnts, or for cities without a council of govcrnmcnts, the 98 -5— SB79
nccd to cach locality in thc region. Existing law rcquircs thc Board of by ordinancc transit-oricntcd dcvclopmcnt (TOD) zoning standards for each station that establish minimum zoning rcquircmcnts for hcight, dcnsity, parking, and floor arca ratio that apply to an cligiblc TOD projcct, as providcd, and authorizcs developers of certain cligiblc TOD projccts to submit an application for a dcvclopmcnt that is subjcct to a spccificd streamlined, ministerial approval proccss, as providcd.
This bill would dcclarc thc intent of thc Legislature to cnact legislation that would make housing more affordable for California families, reduce greenhouse gas cmissions, and cnhancc public transit systems by, among othcr things, requiring thc upzoning of land ncar rail stations and rapid bus lincs to encourage transit -oriented dcvclopmcnt. The bill would makc related findings and declarations.
Vote: majority. Appropriation: no. Fiscal committee: eyes.
State -mandated local program: eyes.
The people of the State of California do enact as follows:
1 SECTION 1. Section 54221 of the Government Code is
2 amended to read:
3 54221. As used in this article, the following definitions shall 4 apply:
5 (a) (1) "Local agency" means every city, whether organized 6 under general law or by charter, county, city and county, district, 7 including school, sewer, water, utility, and local and regional park 8 districts of any kind or class, joint powers authority, successor 9 agency to a former redevelopment agency, housing authority, or 10 other political subdivision of this state and any instrumentality 11 thereof that is empowered to acquire and hold real property. 12 (2) The Legislature finds and declares that the term "district" 13 as used in this article includes all districts within the state, 14 including, but not limited to, all special districts, sewer, water, 15 utility, and local and regional park districts, and any other political 16 subdivision of this state that is a district, and therefore the changes 17 in paragraph (1) made by the act adding this paragraph that specify 18 that the provisions of this article apply to all districts, including 19 school, sewer, water, utility, and local and regional park districts 20 of any kind or class, are declaratory of, and not a change in, 21 existing law.
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1 (b) (1) "Surplus land" means land owned in fee simple by any 2 local agency for which the local agency's governing body takes 3 formal action in a regular public meeting declaring that the land 4 is surplus and is not necessary for the agency's use. Land shall be 5 declared either "surplus land" or "exempt surplus land;' as 6 supported by written findings, before a local agency may take any 7 action to dispose of it consistent with an agency's policies or 8 procedures. A local agency, on an annual basis, may declare 9 multiple parcels as "surplus land" or "exempt surplus land." 10 (2) "Surplus land" includes land held in the Community 11 Redevelopment Property Trust Fund pursuant to Section 34191.4 12 of the Health and Safety Code and land that has been designated 13 in the long-range property management plan approved by the 14 Department of Finance pursuant to Section 34191.5 of the Health 15 and Safety Code, either for sale or for future development, but 16 does not include any specific disposal of land to an identified entity 17 described in the plan.
18 (3) Nothing in this article prevents a local agency from obtaining 19 fair market value for the disposition of surplus land consistent with 20 Section 54226.
21 (4) Notwithstanding paragraph (1), a local agency is not required 22 to make a declaration at a public meeting for land that is "exempt 23 surplus land" pursuant to subparagraph (A), (B), (E), (K), (L), or 24 (Q) of paragraph (1) of subdivision (f) if the local agency identifies 25 the land in a notice that is published and available for public 26 comment, including notice to the entities identified in subdivision 27 (a) of Section 54222, at least 30 days before the exemption takes 28 effect.
29 (c) (1) Except as provided in paragraph (2), "agency's use" 30 shall include, but not be limited to, land that is being used, or is 31 planned to be used pursuant to a written plan adopted by the local 32 agency's governing board, for agency work or operations, 33 including, but not limited to, utility sites, property owned by a port 34 that is used to support logistics uses, watershed property, land 35 being used for conservation purposes, land for demonstration, 36 exhibition, or educational purposes related to greenhouse gas 37 emissions, sites for broadband equipment or wireless facilities, 38 land leased to support public transit operations, and buffer sites 39 near sensitive governmental uses, including, but not limited to, 40 waste disposal sites, and wastewater treatment plants. "Agency's 98 -7— SB79
1 use" by a local agency that is a district shall also include land 2 disposed for uses described in subparagraph (B) of paragraph (2). 3 (2) (A) "Agency's use" shall not include commercial or 4 industrial uses or activities, including nongovernmental retail, 5 entertainment, or office development. Property disposed of for the 6 sole purpose of investment or generation of revenue shall not be 7 considered necessary for the agency's use.
8 (B) In the case of a local agency that is a district, cxccpting 9 thosc whose primary mission or purposc is to supply the public 10 , district or a public transit operator,
11 "agency's use" may include commercial or industrial uses or 12 activities, including nongovernmental retail, entertainment, or 13 office development or be for the sole purpose of investment or 14 generation of revenue if the agency's governing body takes action 15 in a public meeting declaring that the use of the site will do one 16 of the following:
17 (i) Directly further the express purpose of agency work or 18 operations.
19 (ii) Be expressly authorized by a statute governing the local 20 agency, provided the district complies with Section 54233.5 if 21 applicable.
22 (d) (1) "Dispose" means either of the following:
23 (A) The sale of the surplus land.
24 (B) The entering of a lease for surplus land, which is for a term 25 longer than 15 years, inclusive of any extension or renewal options 26 included in the terms of the initial lease, entered into on or after 27 January 1, 2024.
28 (2) "Dispose" shall not mean either of the following:
29 (A) The entering of a lease for surplus land, which is for a term 30 of 15 years or less, inclusive of any extension or renewal options 31 included in the terms of the initial lease.
32 (B) The entering of a lease for surplus land on which no 33 development or demolition will occur, regardless of the term of 34 the lease.
35 (e) "Open -space purposes" means the use of land for public 36 recreation, enjoyment of scenic beauty, or conservation or use of 37 natural resources.
38 (f) (1) Except as provided in paragraph (2), "exempt surplus 39 land" means any of the following:
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1 (A) Surplus land that is transferred pursuant to Section 25539.4 2 or 37364.
3 (B) Surplus land that is less than one-half acre in area and is 4 not contiguous to land owned by a state or local agency that is 5 used for open -space or low- and moderate -income housing 6 purposes.
7 (C) Surplus land that a local agency is exchanging for another 8 property necessary for the agency's use. "Property" may include 9 easements necessary for the agency's use.
10 (D) Surplus land that a local agency is transferring to another 11 local, state, or federal agency, or to a third -party intermediary for 12 future dedication for the receiving agency's use, or to a federally 13 recognized California Indian tribe. If the surplus land is transferred 14 to a third -party intermediary, the receiving agency's use must be 15 contained in a legally binding agreement at the time of transfer to 16 the third -party intermediary.
17 (E) Surplus land that is a former street, right-of-way, or 18 easement, and is conveyed to an owner of an adjacent property. 19 (F) (i) Surplus land that is to be developed for a housing 20 development, which may have ancillary commercial ground floor 21 uses, that restricts 100 percent of the residential units to persons 22 and families of low or moderate income, with at least 75 percent 23 of the residential units restricted to lower income households, as 24 defined in Section 50079.5 of the Health and Safety Code, with 25 an affordable sales price or an affordable rent, as defined in Section 26 50052.5 or 50053 of the Health and Safety Code, for 55 years for 27 rental housing, 45 years for ownership housing, and 50 years for 28 rental or ownership housing located on tribal trust lands, unless a 29 local ordinance or a federal, state, or local grant, tax credit, or other 30 project financing requires a longer period of affordability, and in 31 no event shall the maximum affordable sales price or rent level be 32 higher than 20 percent below the median market rents or sales 33 prices for the neighborhood in which the site is located. 34 (ii) The requirements of clause (i) shall be contained in a 35 covenant or restriction recorded against the surplus land at the time 36 of sale that shall run with the land and be enforceable against any 37 owner who violates the covenant or restriction and each successor 38 in interest who continues the violation.
39 (G) (i) Surplus land that is subject to a local agency's open, 40 competitive solicitation or that is put to open, competitive bid by 98 -9— SB79
1 a local agency, provided that all entities identified in subdivision 2 (a) of Section 54222 will be invited to participate in the process, 3 for a housing or a mixed -use development that is more than one 4 acre and less than 10 acres in area, consisting of either a single 5 parcel, or two or more adjacent or non -adjacent parcels combined, 6 that includes not less than 300 residential units, and that restricts 7 at least 25 percent of the residential units to lower income 8 households, as defined in Section 50079.5 of the Health and Safety 9 Code, with an affordable sales price or an affordable rent, as 10 defined in Sections 50052.5 and 50053 of the Health and Safety 11 Code, for 55 years for rental housing, 45 years for ownership 12 housing, and 50 years for rental or ownership housing located on 13 tribal trust lands, unless a local ordinance or a federal, state, or 14 local grant, tax credit, or other project financing requires a longer 15 period of affordability.
16 (ii) The requirements of clause (i) shall be contained in a 17 covenant or restriction recorded against the surplus land at the time 18 of sale that shall run with the land and be enforceable against any 19 owner who violates the covenant or restriction and each successor 20 in interest who continues the violation.
21 (H) (i) Surplus land totaling 10 or more acres, consisting of 22 either a single parcel, or two or more adjacent or non -adjacent 23 parcels combined for disposition to one or more buyers pursuant 24 to a plan or ordinance adopted by the legislative body of the local 25 agency, or a state statute. That surplus land shall be subject to a 26 local agency's open, competitive solicitation process or put out to 27 open, competitive bid by a local agency, provided that all entities 28 identified in subdivision (a) of Section 54222 will be invited to 29 participate in the process for a housing or mixed -use development. 30 (ii) The aggregate development shall include the greater of the 31 following:
32 (I) Not less than 300 residential units.
33 (II) A number of residential units equal to 10 times the number 34 of acres of the surplus land or 10,000 residential units, whichever 35 is less.
36 (iii) At least 25 percent of the residential units shall be restricted 37 to lower income households, as defined in Section 50079.5 of the 38 Health and Safety Code, with an affordable sales price or an 39 affordable rent pursuant to Sections 50052.5 and 50053 of the 40 Health and Safety Code, for a minimum of 55 years for rental 98 SB79 —10-
1 housing, 45 years for ownership housing, and 50 years for rental 2 or ownership housing located on tribal trust lands, unless a local 3 ordinance or a federal, state, or local grant, tax credit, or other 4 project financing requires a longer period of affordability. 5 (iv) If nonresidential development is included in the 6 development pursuant to this subparagraph, at least 25 percent of 7 the total planned units affordable to lower income households shall 8 be made available for lease or sale and permitted for use and 9 occupancy before or at the same time with every 25 percent of 10 nonresidential development made available for lease or sale and 11 permitted for use and occupancy.
12 (v) A violation of this subparagraph is subject to the penalties 13 described in Section 54230.5. Those penalties are in addition to 14 any remedy a court may order for violation of this subparagraph. 15 A local agency shall only dispose of land pursuant to this 16 subparagraph through a disposition and development agreement 17 that includes an indemnification clause that provides that if an 18 action occurs after disposition violates this subparagraph, the 19 person or entity that acquired the property shall be liable for the 20 penalties.
21 (vi) The requirements of clauses (i) to (v), inclusive, shall be 22 contained in a covenant or restriction recorded against the surplus 23 land at the time of sale that shall run with the land and be 24 enforceable against any owner who violates the covenant or 25 restriction and each successor in interest who continues the 26 violation.
27 (I) A mixed -use development, which may include more than 28 one publicly owned parcel, that meets all of the following 29 conditions:
30 (i) The development restricts at least 25 percent of the residential 31 units to lower income households, as defined in Section 50079.5 32 of the Health and Safety Code, with an affordable sales price or 33 an affordable rent, as defined in Sections 50052.5 and 50053 of 34 the Health and Safety Code, for 55 years for rental housing, 45 35 years for ownership housing, and 50 years for rental or ownership 36 housing located on tribal trust lands, unless a local ordinance or a 37 federal, state, or local grant, tax credit, or other project financing 38 requires a longer period of affordability.
98 -11— SB79
1 (ii) At least 50 percent of the square footage of the new 2 construction associated with the development is designated for 3 residential use.
4 (iii) The development is not located in an urbanized area, as 5 defined in Section 21094.5 of the Public Resources Code. 6 (J) (i) Surplus land that is subject to a valid legal restriction 7 that is not imposed by the local agency and that makes housing 8 prohibited, unless there is a feasible method to satisfactorily 9 mitigate or avoid the prohibition on the site. A declaration of 10 exemption pursuant to this subparagraph shall be supported by 11 documentary evidence establishing the valid legal restriction. For 12 the purposes of this section, "documentary evidence" includes, 13 but is not limited to, a contract, agreement, deed restriction, statute, 14 regulation, or other writing that documents the valid legal 15 restriction.
16 (ii) Valid legal restrictions include, but are not limited to, all of 17 the following:
18 (I) Existing constraints under ownership rights or contractual 19 rights or obligations that prevent the use of the property for 20 housing, if the rights or obligations were agreed to prior to 21 September 30, 2019.
22 (II) Conservation or other easements or encumbrances that 23 prevent housing development.
24 (III) Existing leases, or other contractual obligations or 25 restrictions, if the terms were agreed to prior to September 30, 26 2019.
27 (IV) Restrictions imposed by the source of funding that a local 28 agency used to purchase a property, provided that both of the 29 following requirements are met:
30 (ia) The restrictions limit the use of those funds to purposes 31 other than housing.
32 (ib) The proposed disposal of surplus land meets a use consistent 33 with that purpose.
34 (iii) Valid legal restrictions that would make housing prohibited 35 do not include either of the following:
36 (I) An existing nonresidential land use designation on the surplus 37 land.
38 (II) Covenants, restrictions, or other conditions on the property 39 rendered void and unenforceable by any other law, including, but 40 not limited to, Section 714.6 of the Civil Code.
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1 (iv) Feasible methods to mitigate or avoid a valid legal 2 restriction on the site do not include a requirement that the local 3 agency acquire additional property rights or property interests 4 belonging to third parties.
5 (K) Surplus land that was granted by the state in trust to a local 6 agency or that was acquired by the local agency for trust purposes 7 by purchase or exchange, and for which disposal of the land is 8 authorized or required subject to conditions established by statute. 9 (L) Land that is subject to either of the following, unless 10 compliance with this article is expressly required:
11 (i) Section 17388, 17515, 17536, 81192, 81397, 81399, 81420, 12 or 81422 of the Education Code.
13 (ii) Part 14 (commencing with Section 53570) of Division 31 14 of the Health and Safety Code.
15 (M) Surplus land that is a former military base that was 16 conveyed by the federal government to a local agency, and is 17 subject to Article 8 (commencing with Section 33492.125) of 18 Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, 19 provided that all of the following conditions are met:
20 (i) The former military base has an aggregate area greater than 21 five acres, is expected to include a mix of residential and 22 nonresidential uses, and is expected to include no fewer than 1,400 23 residential units upon completion of development or redevelopment 24 of the former military base.
25 (ii) The affordability requirements for residential units shall be 26 governed by a settlement agreement entered into prior to September 27 1, 2020. Furthermore, at least 25 percent of the initial 1,400 28 residential units developed shall be restricted to lower income 29 households, as defined in Section 50079.5 of the Health and Safety 30 Code, with an affordable sales price or an affordable rent, as 31 defined in Sections 50052.5 and 50053 of the Health and Safety 32 Code, for 55 years for rental housing, 45 years for ownership 33 housing, and 50 years for rental or ownership housing located on 34 tribal trust lands, unless a local ordinance or a federal, state, or 35 local grant, tax credit, or other project financing requires a longer 36 period of affordability.
37 (iii) Before disposition of the surplus land, the agency adopts 38 written findings that the land is exempt surplus land pursuant to 39 this subparagraph.
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1 (iv) Before disposition of the surplus land, the recipient has 2 negotiated a project labor agreement consistent with the local 3 agency's project stabilization agreement resolution, as adopted on 4 February 2, 2021, and any succeeding ordinance, resolution, or 5 policy, regardless of the length of the agreement between the local 6 agency and the recipient.
7 (v) The agency includes in the annual report required by 8 paragraph (2) of subdivision (a) of Section 65400 the status of 9 development of residential units on the former military base, 10 including the total number of residential units that have been 11 permitted and what percentage of those residential units are 12 restricted for persons and families of low or moderate income, or 13 lower income households, as defined in Section 50079.5 of the 14 Health and Safety Code.
15 A violation of this subparagraph is subject to the penalties 16 described in Section 54230.5. Those penalties are in addition to 17 any remedy a court may order for violation of this subparagraph 18 or the settlement agreement.
19 (N) Real property that is used by a district for an agency's use 20 expressly authorized in subdivision (c).
21 (0) Land that has been transferred before June 30, 2019, by the 22 state to a local agency pursuant to Section 32667 of the Streets 23 and Highways Code and has a minimum planned residential density 24 of at least 100 dwelling units per acre, and includes 100 or more 25 residential units that are restricted to persons and families of low 26 or moderate income, with an affordable sales price or an affordable 27 rent, as defined in Sections 50052.5 and 50053 of the Health and 28 Safety Code, for 55 years for rental housing, 45 years for ownership 29 housing, and 50 years for rental or ownership housing located on 30 tribal trust lands, unless a local ordinance or a federal, state, or 31 local grant, tax credit, or other project financing requires a longer 32 period of affordability. For purposes of this subparagraph, not 33 more than 20 percent of the affordable units may be restricted to 34 persons and families of moderate income and at least 80 percent 35 of the affordable units must be restricted to lower income 36 households as defined in Section 50079.5 of the Health and Safety 37 Code.
38 (P) (i) Land that meets the following conditions:
39 (I) Land that is subject to a sectional planning area document 40 that meets both of the following:
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1 (ia) The sectional planning area was adopted prior to January 2 1, 2019.
3 (ib) The sectional planning area document is consistent with 4 county and city general plans applicable to the land. 5 (II) The land identified in the adopted sectional planning area 6 document was dedicated prior to January 1, 2019.
7 (III) On January 1, 2019, the parcels on the land met at least 8 one of the following conditions:
9 (ia) The land was subject to an irrevocable offer of dedication 10 of fee interest requiring the land to be used for a specified purpose. 11 (ib) The land was acquired through a land exchange subject to 12 a land offer agreement that grants the land's original owner the 13 right to repurchase the land acquired by the local agency pursuant 14 to the agreement if the land will not be developed in a manner 15 consistent with the agreement.
16 (ic) The land was subject to a grant deed specifying that the 17 property shall be used for educational uses and limiting other types 18 of uses allowed on the property.
19 (IV) At least 25 percent of the units are dedicated to lower 20 income households, as defined in Section 50079.5 of the Health 21 and Safety Code, at an affordable rent, as defined by Section 50053 22 of the Health and Safety Code, or an affordable housing cost, as 23 defined by Section 50052.5 of the Health and Safety Code, and 24 subject to a recorded deed restriction for a period of 55 years for 25 rental units and 45 years for owner -occupied units, unless a local 26 ordinance or a federal, state, or local grant, tax credit, or other 27 project financing requires a longer period of affordability. 28 (V) The land is developed at an average density of at least 10 29 units per acre, calculated with respect to the entire sectional 30 planning area.
31 (VI) No more than 25 percent of the nonresidential square 32 footage identified in the sectional planning area document receives 33 its first certificate of occupancy before at least 25 percent of the 34 residential square footage identified in the sectional planning area 35 document has received its first certificate of occupancy. 36 (VII) No more than 50 percent of the nonresidential square 37 footage identified in the sectional planning area document receives 38 its first certificate of occupancy before at least 50 percent of the 39 residential square footage identified in the sectional planning area 40 document has received its first certificate of occupancy. 98 -15— SB79
1 (VIII) No more than 75 percent of the nonresidential square 2 footage identified in the sectional planning area document shall 3 receive its first certificate of occupancy before at least 75 percent 4 of the residential square footage identified in the sectional planning 5 area document has received its first certificate of occupancy. 6 (ii) The local agency includes in the annual report required by 7 paragraph (2) of subdivision (a) of Section 65400 the status of 8 development, including the total square footage of the residential 9 and nonresidential development, the number of residential units 10 that have been permitted, and what percentage of those residential 11 units are restricted for persons and families of low or moderate 12 income, or lower income households, as defined in Section 50079.5 13 of the Health and Safety Code.
14 (iii) The Department of Housing and Community Development 15 may request additional information from the agency regarding 16 land disposed of pursuant to this subparagraph.
17 (iv) At least 30 days prior to disposing of land declared "exempt 18 surplus land;' a local agency shall provide the Department of 19 Housing and Community Development a written notification of 20 its declaration and findings in a form prescribed by the Department 21 of Housing and Community Development. Within 30 days of 22 receipt of the written notification and findings, the department 23 shall notify the local agency if the department has determined that 24 the local agency is in violation of this article. A local agency that 25 fails to submit the written notification and findings shall be liable 26 for a civil penalty pursuant to this subparagraph. A local agency 27 shall not be liable for the civil penalty if the Department of Housing 28 and Community Development does not notify the agency that the 29 agency is in violation of this article within 30 days of receiving 30 the written notification and findings. Once the department 31 determines that the declarations and findings comply with 32 subclauses (I) to (IV), inclusive, of clause (i), the local agency 33 may proceed with disposal of land pursuant to this subparagraph. 34 This clause is declaratory of, and not a change in, existing law. 35 (v) If the local agency disposes of land in violation of this 36 subparagraph, the local agency shall be liable for a civil penalty 37 calculated as follows:
38 (I) For a first violation, 30 percent of the greater of the final 39 sale price or the fair market value of the land at the time of 40 disposition.
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1 (II) For a second or subsequent violation, 50 percent of the 2 greater of the final sale price or the fair market value of the land 3 at the time of disposition.
4 (III) For purposes of this subparagraph, fair market value shall 5 be determined by an independent appraisal of the land. 6 (IV) An action to enforce this subparagraph may be brought by 7 any of the following:
8 (ia) An entity identified in subdivisions (a) to (e), inclusive, of 9 Section 54222.
10 (ib) A person who would have been eligible to apply for 11 residency in affordable housing had the agency not violated this 12 section.
13 (ic) A housing organization, as that term is defined in Section 14 65589.5.
15 (id) A beneficially interested person or entity.
16 (ie) The Department of Housing and Community Development. 17 (V) A penalty assessed pursuant to this subparagraph shall, 18 except as otherwise provided, be deposited into a local housing 19 trust fund. The local agency may elect to instead deposit the penalty 20 moneys into the Building Homes and Jobs Trust Fund or the 21 Housing Rehabilitation Loan Fund. Penalties shall not be paid out 22 of funds already dedicated to affordable housing, including, but 23 not limited to, Low and Moderate Income Housing Asset Funds, 24 funds dedicated to housing for very low, low-, and
25 moderate -income households, and federal HOME Investment 26 Partnerships Program and Community Development Block Grant 27 Program funds. The local agency shall commit and expend the 28 penalty moneys deposited into the local housing trust fund within 29 five years of deposit for the sole purpose of financing newly 30 constructed housing units that are affordable to extremely low, 31 very low, or low-income households.
32 (VI) Five years after deposit of the penalty moneys into the 33 local housing trust fund, if the funds have not been expended, the 34 funds shall revert to the state and be deposited in the Building 35 Homes and Jobs Trust Fund or the Housing Rehabilitation Loan 36 Fund for the sole purpose of financing newly constructed housing 37 units located in the same jurisdiction as the surplus land and that 38 are affordable to extremely low, very low, or low-income 39 households. Expenditure of any penalty moneys deposited into the 40 Building Homes and Jobs Trust Fund or the Housing Rehabilitation 98 -17— SB79
1 Loan Fund pursuant to this subdivision shall be subject to 2 appropriation by the Legislature.
3 (vi) For purposes of this subparagraph, the following definitions 4 apply:
5 (I) "Sectional planning area" means an area composed of 6 identifiable planning units, within which common services and 7 facilities, a strong internal unity, and an integrated pattern of land 8 use, circulation, and townscape planning are readily achievable. 9 (II) "Sectional planning area document" means a document or 10 plan that sets forth, at minimum, a site utilization plan of the 11 sectional planning area and development standards for each land 12 use area and designation.
13 (vii) This subparagraph shall become inoperative on January 1, 14 2034.
15 (Q) Land that is owned by a California public -use airport on 16 which residential uses are prohibited pursuant to Federal Aviation 17 Administration Order 5190.6B, Airport Compliance Program, 18 Chapter 20 -- Compatible Land Use and Airspace Protection. 19 (R) Land that is transferred to a community land trust, and all 20 of the following conditions are met:
21 (i) The property is being or will be developed or rehabilitated 22 as any of the following:
23 (I) An owner -occupied single-family dwelling.
24 (II) An owner -occupied unit in a multifamily dwelling. 25 (III) A member -occupied unit in a limited equity housing 26 cooperative.
27 (IV) A rental housing development.
28 (ii) Improvements on the property are or will be available for 29 use and ownership or for rent by qualified persons, as defined in 30 paragraph (6) of subdivision (c) of Section 214.18 of the Revenue 31 and Taxation Code.
32 (iii) (I) A deed restriction or other instrument, requiring a 33 contract or contracts serving as an enforceable restriction on the 34 sale or resale value of owner -occupied units or on the affordability 35 of rental units is recorded on or before the lien date following the 36 acquisition of the property by the community land trust. 37 (II) For the purpose of this clause, the following definitions 38 apply:
39 (ia) "A contract or contracts serving as an enforceable restriction 40 on the sale or resale value of owner -occupied units" means a 98 SB79 —18-
1 contract described in paragraph (11) of subdivision (a) of Section 2 402.1 of the Revenue and Taxation Code.
3 (ib) "A contract or contracts serving as an enforceable restriction 4 on the affordability of rental units" means an enforceable and 5 verifiable agreement with a public agency, a recorded deed 6 restriction, or other legal document described in subparagraph (A) 7 of paragraph (2) of subdivision (g) of Section 214 of the Revenue 8 and Taxation Code.
9 (iv) A copy of the deed restriction or other instrument shall be 10 provided to the assessor.
11 (S) (i) For local agencies whose primary mission or purpose is 12 to supply the public with a transportation system, surplus land that 13 is developed for commercial or industrial uses or activities, 14 including nongovernmental retail, entertainment, or office 15 development or for the sole purpose of investment or generation 16 of revenue, if the agency meets all of the following conditions:
17 (I) The agency has an adopted land use plan or policy that 18 designates at least 50 percent of the gross acreage covered by the 19 adopted land use plan or policy for residential purposes. The 20 adopted land use plan or policy shall also require the development 21 of at least 300 residential units, or at least 10 residential units per 22 gross acre, averaged across all land covered by the land use plan 23 or policy, whichever is greater.
24 (II) The agency has an adopted land use plan or policy that 25 requires at least 25 percent of all residential units to be developed 26 on the parcels covered by the adopted land use plan or policy made 27 available to lower income households, as defined in Section 50079 28 of the Health and Safety Code, at an affordable sales price or rented 29 at an affordable rent, as defined in Sections 50052.5 and 50053 of 30 the Health and Safety Code, for 55 years for rental housing and 31 45 years for ownership housing, unless a local ordinance or the 32 terms of a federal, state, or local grant, tax credit, or other project 33 financing requires a longer period of affordability. These terms 34 shall be included in the land use plan or policy and dictate that 35 they will be contained in a covenant or restriction recorded against 36 the surplus land at the time of disposition that shall run with the 37 land and be enforceable against any owner or lessee who violates 38 the covenant or restriction and each successor in interest who 39 continues the violation.
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1 (III) Land disposed of for residential purposes shall issue a 2 competitive request for proposals subject to the local agency's 3 open, competitive solicitation process or put out to open, 4 competitive bid by the local agency, provided that all entities 5 identified in subdivision (a) of Section 54222 are invited to 6 participate.
7 (IV) Prior to entering into an agreement to dispose of a parcel 8 for nonresidential development on land designated for the purposes 9 authorized pursuant to this subparagraph in an agency's adopted 10 land use plan or policy, the agency, since January 1, 2020, must 11 have entered into an agreement to dispose of a minimum of 25 12 percent of the land designated for affordable housing pursuant to 13 subclause (II).
14 (ii) The agency may exempt at one time all parcels covered by 15 the adopted land use plan or policy pursuant to this subparagraph. 16 (2) Notwithstanding paragraph (1), a written notice of the 17 availability of surplus land for open -space purposes shall be sent 18 to the entities described in subdivision (b) of Section 54222 before 19 disposing of the surplus land, provided the land does not meet the 20 criteria in subparagraph (H) of paragraph (1), if the land is any of 21 the following:
22 (A) Within a coastal zone.
23 (B) Adjacent to a historical unit of the State Parks System. 24 (C) Listed on, or determined by the State Office of Historic 25 Preservation to be eligible for, the National Register of Historic 26 Places.
27 (D) Within the Lake Tahoe region as defined in Section 66905.5. 28 (g) "Persons and families of low or moderate income" has the 29 same meaning as provided in Section 50093 of the Health and 30 Safety Code.
31 SEC. 2. Chapter 4.1.5 (commencing with Section 65912.155) 32 is added to Division 1 of Title 7 of the Government Code, to read:
33 34 CHAPTER 4.1.5. TRANSIT -ORIENTED DEVELOPMENT
35 36 65912.155. The Legislature finds and declares all of the 37 following:
38 (a) California faces a housing shortage both acute and chronic, 39 particularly in areas with access to robust public transit 40 infrastructure.
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1 (b) Building more homes near transit access reduces housing 2 and transportation costs for California families, and promotes 3 environmental sustainability, economic growth, and reduced traffic 4 congestion.
5 (c) Public transit systems require sustainable funding to provide 6 reliable service, especially in areas experiencing increased density 7 and ridership. The state does not invest in public transit service 8 to the same degree as it does in roads, and the state funds a smaller 9 proportion of the state's major transit agencies' operations costs 10 than other states with comparable systems. Transit systems in 11 other countries derive significant revenue from transit oriented 12 development at and near their stations.
13 65912.156. For purposes of this chapter, the following 14 definitions apply:
15 (a) "Adjacent" means sharing a property line with a transit 16 station or stop, including any parcels that serve a parking or 17 circulation purpose related to the station or stop.
18 (b) "Department" means the Department of Housing and 19 Community Development.
20 (c) "Floor area ratio" means the ratio of net habitable square 21 footage dedicated to residential use to the area of the lot. 22 (d) "High frequency commuter rail" means a commuter rail 23 service operating a total of at least six trains per hour during 24 weekday peak periods at any point in the past three years, or with 25 a service plan to implement that frequency in the next three years. 26 (e) "High -resource area" means a high -resource neighborhood 27 opportunity area, as used in the opportunity area maps published 28 annually by the California Tax Credit Allocation Committee and 29 the department.
30 (f) "Moderate frequency commuter rail" means a commuter 31 rail service with a total of at least 24 daily trains per weekday and 32 service frequency below a total of 6 trains per hour during weekday 33 peak periods at any point in the past three years, or with a service 34 plan to implement that frequency in the next three years. 35 (g) "Net habitable square footage" means the finished and 36 heated floor area fully enclosed by the inside surface of walls, 37 windows, doors, and partitions, and having a headroom of at least 38 six and one-half feet, including working, living, eating, cooking, 39 sleeping, stair, hall, service, and storage areas, but excluding 98 -21— SB79
1 garages, carports, parking spaces, cellars, half -stories, and 2 unfinished attics and basements.
3 (h) "Rail transit" has the same meaning as defined in Section 4 99602 of the Public Utilities Code.
5 (i) "Tier 1 transit -oriented development stop" means a 6 transit -oriented development stop served by rail transit, as defined 7 in Section 99602 of the Public Utilities Code, including, but not 8 limited to, high frequency commuter rail and light rail transit that 9 uses fixed guideway facilities immediately adjacent to the 10 transit -oriented development stop, excluding those rail transit 11 services defined as part of Tier 2 or 3.
12 (j) "Tier 2 transit -oriented development stop" means a 13 transit -oriented development stop served by light rail transit run 14 by a public transit operator that uses fixed guideway facilities that 15 are not grade separated immediately adjacent to the
16 transit -oriented development stop, or fixed guideway or nonfixed 17 guideway bus service with frequencies of 15 minutes or better that 18 uses transit priority lanes for some or all of the route. 19 (k) "Tier 3 transit -oriented development stop" means a 20 transit -oriented development stop served by moderate frequency 21 commuter rail service or ferry service.
22 (l) "Transit -oriented development stop" means a major transit 23 stop, as defined by Section 21155 of the Public Resources Code, 24 excluding any stop served by rail transit with a frequency of fewer 25 than 10 total trains per weekday.
26 65912.157. (a) A residential development within one-half or 27 one -quarter mile of a transit -oriented development stop shall be 28 an allowed use on any site zoned for residential, mixed, 29 commercial, or light industrial development, if the development 30 complies with the applicable of all of the following requirements:
31 (1) For a residential development within one -quarter mile of a 32 Tier 1 transit -oriented development stop, all of the following apply:
33 (A) A development may be built up to 75 feet high, or up to the 34 local height limit, whichever is greater.
35 (B) A local government shall not impose any maximum density 36 of less than 120 dwelling units per acre. The development 37 proponent may seek a further increased density in accordance 38 with applicable density bonus law.
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1 (C) A local government shall not enforce any other local 2 development standard or combination of standards that would 3 prevent achieving a floor area ratio of up to 3.5.
4 (D) A development that otherwise meets the eligibility 5 requirements of Section 65915, including, but not limited to, 6 affordability requirements, shall be eligible for three additional 7 concessions pursuant to Section 65915.
8 (2) For a residential development within one-half mile of a Tier 9 1 transit -oriented development stop, all of the following apply:
10 (A) A development may be built up to 65 feet high, or up to the 11 local height limit, whichever is greater.
12 (B) A local government shall not impose any maximum density 13 standard of less of less than 100 dwelling units per acre. The 14 development proponent may seek a further increased density in 15 accordance with applicable density bonus law.
16 (C) A local government shall not enforce any other local 17 development standard or combination of standards that would 18 prevent achieving a floor area ratio of up to 3.
19 (D) A development that otherwise meets the eligibility 20 requirements of Section 65915, including, but not limited to, 21 affordability requirements, shall be eligible for two additional 22 concessions pursuant to Section 65915.
23 (3) For a residential development within one -quarter mile of a 24 Tier 2 transit -oriented development stop, all of the following apply:
25 (A) A development may be built up to 65 feet high, or up to the 26 local height limit, whichever is greater.
27 (B) A local government shall not impose any maximum density 28 standard of less than 100 dwelling units per acre. The development 29 proponent may seek a further increased density in accordance 30 with applicable density bonus law.
31 (C) A local government shall not enforce any other local 32 development standard or combination of standards that would 33 prevent achieving a floor area ratio of up to 3.
34 (D) A development that otherwise meets the eligibility 35 requirements of Section 65915, including, but not limited to, 36 affordability requirements, shall be eligible for two additional 37 concessions pursuant to Section 65915.
38 (4) For a residential development within one-half mile of a Tier 39 2 transit -oriented development stop, all of the following apply:
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1 (A) A development may be built up to 55 feet high, or up to the 2 local height limit, whichever is greater.
3 (B) A local government shall not impose any maximum density 4 standard of less than 80 dwelling units per acre. The development 5 proponent may seek a further increased density in accordance 6 with applicable density bonus law.
7 (C) A local government shall not enforce any other local 8 development standard or combination of standards that would 9 prevent achieving a floor area ratio of up to 2.5.
10 (D) A development that otherwise meets the eligibility 11 requirements of Section 65915, including, but not limited to, 12 affordability requirements, shall be eligible for one additional 13 concession pursuant to Section 65915.
14 (5) For a residential development within one -quarter mile of a 15 Tier 3 transit -oriented development stop, all of the following apply:
16 (A) A development may be built up to 55 feet high, or up to the 17 local height limit, whichever is greater.
18 (B) A local government shall not impose any maximum density 19 standard of less than 80 dwelling units per acre. The development 20 proponent may seek a further increased density in accordance 21 with applicable density bonus law.
22 (C) A local government shall not enforce any other local 23 development standard or combination of standards that would 24 prevent achieving a floor area ratio of up to 2.5.
25 (D) A development that otherwise meets the eligibility 26 requirements of Section 65915, including, but not limited to, 27 affordability requirements, shall be eligible for one additional 28 concession pursuant to Section 65915.
29 (6) For a residential development within one-half mile of a Tier 30 3 transit -oriented development stop, all of the following apply:
31 (A) A development may be built up to 45 feet high, or up to the 32 local height limit, whichever is greater.
33 (B) A local government shall not impose any maximum density 34 standard of less than 60 dwelling units per acre. The development 35 proponent may seek a further increased density in accordance 36 with applicable density bonus law.
37 (C) A local government shall not enforce any other local 38 development standard or combination of standards that would 39 prevent achieving a floor area ratio of up to 2.
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1 (b) Notwithstanding any other law, a parcel that meets any of 2 the eligibility criteria under subdivision (a) and is immediately 3 adjacent to a Tier 1, Tier 2, or Tier 3 transit -oriented development 4 stop shall be eligible for an adjacency intensifier to increase the 5 height limit by an additional 20 feet, the maximum density standard 6 by an additional 40 dwelling units per acre, and the floor area 7 ratio by 1.
8 (c) A development proposed pursuant to this section shall 9 comply with the antidisplacement requirements of Section 66300.6. 10 This subdivision shall apply to any city or county.
11 (d) A local government that denies a project meeting of the 12 requirements of this section that is located in a high -resource area 13 shall be presumed to be in violation of the Housing Accountability
14. Act (Section 65589.5) and liable for penalties pursuant to 15 subparagraph (B) of paragraph (1) of subdivision (k) of Section 16 65589.5, unless the local government demonstrates substantial 17 evidence that it has a health, life, or safety reason for denying the 18 project.
19 65912.158. Notwithstanding any other provision of this chapter, 20 a transit agency may adopt objective standards for both residential 21 and commercial developments proposed to be constructed on land 22 owned by the transit agency or on which the transit agency has a 23 permanent operating easement, if the objective standards allow 24 for the same or greater development intensity as that allowed by 25 local standards or applicable state law.
26 65912.159. A development project proposed pursuant to Section 27 65912.157 shall be eligible for streamlined ministerial approval 28 pursuant to Section 65913.4 in accordance with both of the 29 following:
30 (a) The proposed project shall be exempt from subparagraph 31 (A) of paragraph (4) of, paragraph (5) of, and clause (iv) of 32 subparagraph (A) of paragraph (6) of, subdivision (a) of Section 33 65913.4.
34 (b) The project shall comply with all other requirements of 35 Section 65913.4, including, but not limited to, the prohibition 36 against a site that is within a very high fire hazard severity zone, 37 pursuant to subparagraph (D) of paragraph (6) of subdivision (a) 38 of Section 65913.4.
39 65912.160. (a) The department shall oversee compliance with 40 this chapter, including, but not limited to, promulgating standards 98 -25— SB79
1 on how to account for capacity pursuant to this chapter in a city 2 or county's inventory of land suitable for residential development, 3 pursuant to Section 65583.2.
4 (b) (1) A local government may adopt an ordinance to
5 implement the provisions of this chapter, which may include 6 revisions to applicable zoning requirements on individual sites 7 within a transit -oriented development zone, provided that those 8 revisions maintain the average density allowed for the applicable 9 tier, or up to a 100-percent increase, subject to review by the 10 department pursuant to paragraph (3).
11 (2) An ordinance adopted to implement this section shall not 12 be considered a project under Division 13 (commencing with 13 Section 21000) of the Public Resources Code.
14 (3) (A) A local government shall submit a copy of any ordinance 15 adopted pursuant to this section to the department within 60 days 16 of adoption.
17 (B) Upon receipt of an ordinance pursuant to this paragraph, 18 the department shall review that ordinance and determine whether 19 it complies with this section. If the department determines that the 20 ordinance does not comply with this section, the department shall 21 notify the local government in writing and provide the local 22 government a reasonable time, not to exceed 30 days, to respond 23 before taking further action as authorized by this section. 24 (C) The local government shall consider any findings made by 25 the department pursuant to subparagraph (B) and shall do one of 26 the following:
27 (i) Amend the ordinance to comply with this section. 28 (ii) Adopt the ordinance without changes. The local government 29 shall include findings in its resolution adopting the ordinance that 30 explain the reasons the local government believes that the 31 ordinance complies with this section despite the findings of the 32 department.
33 (D) If the local government does not amend its ordinance in 34 response to the department's findings or does not adopt a 35 resolution with findings explaining the reason the ordinance 36 complies with this chapter and addressing the department's 37 findings, the department shall notify the local government and may 38 notify the Attorney General that the local government is in violation 39 of this section.
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1 65912.161. The Legislature finds and declares that the state 2 faces a housing crisis of availability and affordability, in large 3 part due to a severe shortage of housing, and solving the housing 4 crisis therefore requires a multifaceted, statewide approach, 5 including, but not limited to, encouraging an increase in the overall 6 supply of housing, encouraging the development of housing that 7 is affordable to households at all income levels, removing barriers 8 to housing production, expanding homeownership opportunities, 9 and expanding the availability of rental housing, and is a matter 10 of statewide concern and is not a municipal affair as that term is 11 used in Section 5 of Article XI of the California Constitution. 12 Therefore, this chapter applies to all cities, including charter cities. 13 SEC. 3. Section 21080.26.5 is added to the Public Resources 14 Code, to read:
15 21080.26.5. (a) For the purposes of this section, "public 16 project" means a project constructed by either a public agency or 17 private entity, that, upon the completion of the construction, will 18 be operated by a public agency.
19 (b) This division shall not apply to a public or private 20 residential, commercial, or mixed -used project that, at the time 21 the project application is filed, is located entirely or principally 22 on land owned by a public transit agency, or fully or partially 23 encumbered by an existing operating easement in favor of a public 24 transit agency, and that includes at least one of the following:
25 (1) A project component identified in paragraphs (1) to (5), 26 inclusive, or paragraph (7) of subdivision (b) of Section 21080.25. 27 (2) A public project for passenger rail service facilities, other 28 than light rail service eligible under paragraph (5) of subdivision 29 (b) of Section 21080.25, including the construction, 30 reconfiguration, or rehabilitation of stations, terminals, rails, 31 platforms, or existing operations facilities, which will be exclusively 32 used by zero -emission or electric trains. The project shall be 33 located on land owned by a public transit agency, or land fully or 34 partially encumbered by an existing operating easement in favor 35 of a public transit agency, at the time the project application is 36 filed.
37 (3) An agreement between the project applicant and public 38 transit agency that owns the land or has the permanent operating 39 easement to finance transit capital infrastructure, transit 40 maintenance, or transit operations, including through a proposed 98 -27— SB79
1 public financing district, community financing district, or tax 2 increment generated by the project.
3 (c) If a project described in subdivision (b) requires the 4 construction of new passenger rail storage and maintenance 5 facilities at a publicly or privately owned offsite location distinct 6 from the principal project site, then that project shall be considered 7 a wholly separate project from the project described in subdivision 8 (b) and shall not be exempt from this division. Any required 9 environmental review shall not affect or render invalid the 10 exemption provided in subdivision (b), regardless of whether the 11 project described in subdivision (b) cannot proceed unless the 12 offsite facilities are constructed.
13 SEC. 4. No reimbursement is required by this act pursuant to 14 Section 6 of Article XIII B of the California Constitution because 15 a local government or school district has the authority to levy 16 service charges, fees, or assessments sufficient to pay for the 17 program or level of service mandated by this act, within the 18 meaning of Section 17556 of the Government Code.
19 SECTION 1. (a) It is thc intcnt of thc Lcgislaturc to cnact 20 legislation that makes housing morc affordable for California 21 families, rcduccs grccnhousc gas emissions, and cnhanccs public 22 transit systcms.
23 (b) Specifically, it is the intcnt of thc Lcgislaturc that the 24 legislation dcscribcd in subdivision (a) do all of thc following:
25 (1) Rcquirc thc upzoning of land near rail stations and rapid bus 26 lines to cncouragc transit-oricntcd development.
27 (2) Ensurc that thc degree of upzoning is proportional to the 28 capacity of thc adjacent transit nctwork and thc distance to transit 29 stations, thcrcby maximizing thc use of public transit infrastructurc. 30 (3) Intcgratc upzoning provisions into local jurisdictions' 31 housing cicmcnts to align with statewide housing goals and 32 promote compliancc with thc regional housing nccd allocation 33 process.
34 (4) Support transit agencies in incrcasing and divcrsifying their 35 rcvcnuc sources bcyond cxisting public subsidics and farc rcvcnuc 36 tither in this bill or in subsequent legislation, cnsuring sustainable 37 funding for operational and capital improvements ncccssary to 38 meet increased dcmand resulting from upzoning initiatives. 39 SEC. 2. (a) The Lcgislaturc finds and dcclarcs the following:
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1 (1) California faces a housing shortage both acutc and chronic, 2 particularly in areas with access to robust public transit 3 infrastructure.
4 (2) Building morc homcs ncar transit acccss rcduccs housing 5 and transportation costs for California familics, and promotcs 6 environmental sustainability, cconomic growth, and rcduccd traffic 7 congestion.
8 (3) Public transit systems require sustainable funding to provide 9 reliable scrvicc, cspccially in arcas cxpericncing incrcascd dcnsity 10 and ridcrship. The state docs not invcst in public transit scrvicc to 11 thc same degree as it docs in roads, and thc statc funds a smaller 12 proportion of the statc's major transit agcncics' operations costs 13 than othcr statcs with comparablc systems.
14 (b) Therefore, it is thc intcnt of the Lcgislaturc to address thcsc 15 challenges by cnacting legislation to do the following:
16 17 sensitive to thc capacity of cxisting and planned transit 18 infrastructure.
19 (2) Supporting local jurisdictions in intcgrating thcsc upzoning 20 requirements into thcir housing elements as part of thcir general 21 p
22 (3) Allowing local jurisdictions to be exempt from thc upzoning 23 provisions if thcy adopt highcr intensity or more permissive zoning 24 standards than thosc sct by statc law.
25 (4) Ensuring that all eligible parccls may also bcncfit from thc 26 streamlining provisions under Scction 65913.4 of thc Government 27 Code, provided they meet thc labor, environmental, and othcr 28 relevant standards outlincd in thc statute.
29 (5) Granting transit agencies the authority to sct rcsidcntial and 30 commcrcial zoning standards on properties thcy own or havc a 31 permanent operating cascmcnt on, providcd that thc residcntial 32 and commcrcial zoning standards arc highcr intcnsity and more 33 permissive than thc zoning standards sct by the local government. 34 SEC. 3. In cnacting thc legislation described in Section 1, it is 35 further the intent of thc Lcgislaturc to do thc following:
36 (a) Consult with local governments, rcgional planning agencies, 37 ,
38 othcr stakcholdcrs to develop effective and cquitablc upzoning 39 criteria.
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1 (b) Rcquirc local jurisdictions to adopt and implcmcnt thcsc 2 transit-bascd upzoning policics in a timcly and effective manncr. 3 (c) Monitor and cvaluatc thc outcomcs of transit-bascd upzoning 4 policics to cnsurc alignmcnt with thc statc's housing, 5 environmental, and transportation goals.
0 98
ATTACHMENT 2
April 14, 2025
The Honorable Scott Wiener
Senator, California State Senate
1021 0 St, Suite 8620
Sacramento, CA 95814
RE: Notice of Opposition SB 79 (Wiener) Transit -oriented Development Dear Senator Wiener,
I write in opposition to SB 79, which would erode local control, disregard state -certified housing elements, and grant land use authority to transit agencies.
SB 79 doubles down on the recent trend of the state overriding its own mandated local housing elements. This latest overreaching effort forces cities to approve transit -oriented development projects near specified transit stops —up to seven stories high and a density of 120 homes per acre — without regard to the community's needs, environmental review, or public input.
The City of Yucaipa is a rural community and values local control. Many of Yucaipa's residents have moved here to escape the pattern of land use in larger cities, including those continuing to be forced upon us by Sacramento. We stand opposed to any state action that removes the rights of the citizens of Yucaipa to determine their own fate through local land use control.
SB 79 defies cities' general plans and provides transit agencies unlimited land use authority on property they own or have a permanent easement, regardless of the distance from a transit stop.
Transit agencies would have the power to determine all aspects of the development including height, density, and design, without any regard to local zoning or planning.
Sincerely,
Jon Thorp
Mayor
cc. Senator Rosalice Ochoa Bogh
Assemblyman Greg Wallis
Laura Varela, Cal Cities, Regional Public Affairs Manager League of California Cities, citvletters(c cacities.org City of Yucaipa
34272 Yucaipa Blvd, Yucaipa, CA 92399
909-797-2489