Gov. Gavin Newsom on Friday signed a major housing bill that will pave the way for construction of larger multifamily projects near transit hubs.
Senate Bill 79 (opens in new tab) concludes San Francisco state Sen. Scott Wiener’s seven-year battle to force cities to upzone certain neighborhoods near bus or train lines. The new law, which will go into effect July 1, 2026, also allows transit agencies to build homes on their land.
Newsom, who has signed a slew of YIMBY-backed bills during his time in office, said in a statement (opens in new tab) that “housing near transit means shorter commutes, lower costs and more time with family.”
“When we invest in housing, we’re investing in people — their chance to build a future, raise a family and be part of a community,” he wrote.
The new rules prioritize housing near stops with the most traffic, including BART and Caltrain lines. Zoning standards around those areas will allow for nine-story buildings next to the stop, seven stories within a quarter-mile and six stories within a half-mile.
For transit lines with smaller ridership, including Muni, projects can be up to eight stories next to the stop, six stories within a quarter-mile, and five stories within a half-mile.
“SB 79 is a historic step toward tackling the root cause of California’s affordability crisis — our profound shortage of homes and too few people having access to transit,” Wiener said in a statement. “It’s been a long road to tackle these decades-old problems, but thanks to Governor Newsom’s leadership, today marks a new day for affordable housing and public transportation in California.”
The law became one of the most controversial bills in the state Legislature this year amid intense opposition from dozens of cities and neighborhood organizations that expressed concerns about rampant development and loss of local zoning control.
Los Angeles Mayor Karen Bass asked Newsom to veto the bill (opens in new tab), arguing that while she supported more housing development, SB 79 “risks unintended consequences for L.A (opens in new tab).”
While a more aggressive version of SB 79 made its way out of the state Senate earlier this year, the Assembly added amendments (opens in new tab) to limit its scope and ease requirements on smaller cities.
The bill focuses on only eight counties: Los Angeles, Orange, San Diego, San Francisco, Alameda, Sacramento, Santa Clara and San Mateo.
Cities that are on track with their state-mandated housing plans have some flexibility with SB 79. San Francisco Mayor Daniel Lurie’s Family Zoning Plan, for instance, would exempt the affected neighborhoods from further upzoning until 2032 (opens in new tab) if it is approved by the Board of Supervisors.
But local critics of SB 79 and Lurie’s upzoning plan, including former Board of Supervisors President Aaron Peskin, raised concerns with how much more development they would collectively force on San Francisco.
Peskin questioned whether “the mayor’s upzoning plan is even necessary anymore” and criticized Lurie’s argument that San Francisco has no choice but to plan for more housing under his proposal, given state requirements.
“It also shows the emptiness of attempts to sell the mayor’s upzoning plan via blackmail — saying if we don’t upzone, the state will,” Peskin said. “My advice to San Franciscans is don’t give in to blackmail, because if you do, the blackmailers will always come back for more.”
The bill was supported by statewide and local urbanist and pro-housing groups, including the Bay Area Council, California YIMBY and SPUR. Developers and the California Apartment Association also backed SB 79.
“When I started California YIMBY, my goal was to make California affordable for everyone by legalizing more homebuilding — starting with homes near transit,” Brian Hanlon, CEO of California YIMBY, said in a statement. “With his signature on SB 79, Governor Newsom cements his legacy as one of the most transformative pro-housing leaders in California history. Now we begin the work of making sure its provisions are fully and fairly implemented.”
Before he signed the bill, Newsom appeared on the “Higher Learning” podcast (opens in new tab) to explain his position on the state’s housing shortage.
“We [as a state] are moving from a NIMBY mindset to a YIMBY mindset,” he said.