California Passes Historic Transit-Housing Bill
Published October 10, 2025
The Facts
Governor Newsom just signed Senate Bill 79 into law, marking a historic step toward addressing California's housing crisis by enabling denser development near public transit. The bill, written by State Senator Scott Wiener, will make it easier for homebuilders to create new homes near high-quality public transit, helping reduce greenhouse gas emissions, promoting sustainable growth, and making homes more affordable for young families.
SB 79 establishes state zoning standards that override local restrictions to allow denser housing near major transit stops. For Tier 1 stations like BART, buildings can reach nine stories within 1/4 mile of the station, and six stories within half a mile. Heights can be further increased if builders incorporate more low-income homes.
The Context
California has a shortage of over 3.5 million homes, driving the highest cost of living in the nation. Local zoning restrictions make it nearly impossible to build enough homes to meet demand. This shortage has led to skyrocketing rents and home prices, pushing many families out of their communities.
The California Legislature passed Senate Bill 79 on September 12, 2025, but it was pending the Governor's signature until today. The Senate passed the measure 21-8 after the Assembly approved it 41-17 the previous day. The bill, authored by Senator Scott Wiener, must be signed by October 12. The bill gained crucial momentum after the State Building and Construction Trades Council dropped its opposition in exchange for amendments requiring union labor on projects over 85 feet tall.
SB 79 is Senator Wiener's third attempt to pass similar legislation after previous versions failed in 2018 and 2020.
It's not yet 100% clear how SB 79 will interact with Mayor Lurie's Family Zoning Plan. Some analysts believe Lurie's plan will take precedence, while others think builders may be able to choose the more permissive standard between the two. The details will likely be worked out in future regulations and legal interpretations.
The new law takes effect on July 1, 2026.
The GrowSF Take
SB 79 provides a powerful, state-level antidote to the local obstructionism that has fueled California's affordability crisis. This is a victory for every young family looking for an affordable home.
When local governments fail to act, the state must step in with solutions that put families' needs above neighborhood politics. After years of persistence, Senator Wiener has delivered a bill that will unlock hundreds of thousands of new homes where people want to live.
Our hats are off to Senator Wiener for his tenacity and vision. This is a landmark moment in California housing policy, and we look forward to seeing the positive impact it will have on communities across the state.