October 23, 2025
California Senate Bill 79, the Abundant and Affordable Homes Near Transit Act, introduces a statewide zoning framework that enables mid-rise residential development near major transit stops. The legislation establishes clear, tiered standards for height, density, and floor area ratios, while overriding restrictive local limits within designated transit areas. SB 79 is designed to align housing growth with existing infrastructure, reduce car dependence, and expand supply in high-opportunity neighborhoods. By standardizing entitlements across qualifying corridors, the law provides developers and investors with greater clarity, predictability, and the potential for value creation around transit-oriented locations.
This insight report examines the statewide framework created under SB 79 and its implications for entitlement, feasibility, and investment. Featuring Los Angeles as a case study, the report illustrates how local implementation could reshape land use patterns along key Metro corridors, including the B, D, A, E, and K lines. As the policy takes effect in mid-2026, SB 79 is expected to drive renewed interest in infill development, strengthen collaboration between cities and transit agencies, and advance the next generation of sustainable, transit-connected communities across California.
