DATE: May 20, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: CONSIDERATION OF AN ORDINANCE DEFERRING IMPLEMENTATION OF THE AFFORDABLE HOMES NEAR TRANSIT ACT (SB 79) INCLUDING EXEMPTIONS - SB 79 ORDINANCE
RECOMMENDATION
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Staff recommends that the City Council:
1) Confirm issuance of a statutory exemption per the CEQA Guidelines under Sections 15378(b)(5) and 15060(c)(3); and
2) Introduce a phasing ordinance, as authorized under SB 79, to exclude and exempt eligible sites, and defer implementation of SB 79 on qualifying sites, as authorized under Government Code Sections 65912.157(h), 65912.160(e)(1) and 65912.161(b)(1).
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BACKGROUND AND ANALYSIS
On October 10, 2025, SB 79 was signed into law (Government Code Section 65912.155 et seq.), with its provisions implementing zoning density capacity slated to take effect on July 1, 2026. SB 79 is intended to increase housing stock within local jurisdictions with qualified transit-oriented housing developments. The bill would permit low-rise and mid-rise housing on sites within one half mile of designated major transit stops within an urban transit county. Only eight counties in the state meet the criteria for such designation, as they contain more than 15 passenger rail stations: Alameda, Los Angeles, Orange, Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara. All other counties are exempt from SB 79.
In order to utilize the provisions of SB 79, a site must be located within one half mile of a transit-oriented development (TOD) stop, as defined by GOV ? 65912.156(p). Such stops are defined as follows: "means a major transit stop, and also including stops on a route for which a preferred alternative has been selected or which are identified in a regional transportation improvement program, that is served by heavy rail transit, very high frequency commuter rail, high frequency commuter rail, light rail transit, or bus service within an urban tr...
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