Historic Bill to Enhance Housing Density in Transit Areas Approved
Despite not meeting the ambitious target of constructing 3.5 million new homes in California he set eight years ago, the state's Governor continues to push for more housing. His latest step has seen the signing of a groundbreaking bill into law, which aims to increase housing density around transit hubs.
"Every Californian deserves affordable housing near jobs, schools and opportunity. Shorter commutes, lower costs, more family time - these are the benefits of housing near transit. Investing in housing is investing in people, their future, their families and their communities," the Governor said.
Details of the New Law
The new law, which comes into effect on July 1, 2026, will change zoning laws across California, allowing for taller, denser projects near transit hubs like subway stops, light rail stops, and bus stops with dedicated lanes. This means developers can build up to nine-story residential buildings next to subway stops, seven stories within a quarter-mile, and six stories within a half-mile. The same law will also permit residential buildings of five to eight stories near light rail and dedicated bus lanes, depending on the proximity to a station or bus stop.
This is the second significant housing reform approved by the Governor this year. Earlier, he signed a landmark bill that makes housing construction easier by cutting through regulatory red tape.
Reactions to the Bill
The decision to sign the bill follows intense debates and appeals from residents, advocacy groups, and cities urging the Governor to either approve or reject the bill. Advocacy groups and developers are celebrating the bill as a significant victory, arguing that the quickest solution to California's housing crisis is to build more housing, especially near transit stops, to promote public transportation and reduce vehicle pollution.
However, some cities, including Los Angeles, view the bill as a one-size-fits-all solution to a problem that requires local control. The Mayor of Los Angeles requested the Governor to veto the bill, and the City Council voted against it.
Understanding the Impact of the Bill
Now, the scramble starts as cities, developers, and residents try to understand who will be affected by this bill and who will be exempted. The legislation was initially introduced to address the immediate housing crisis in California, but as it progressed through the Legislature, many amendments and exemptions were added to secure enough votes for its passage.
Firstly, the scope of the bill was narrowed down to include only counties with at least 15 passenger rail stations, leaving eight counties: Los Angeles, Orange, San Diego, Alameda, San Francisco, San Mateo, Santa Clara, and Sacramento. Los Angeles is expected to see the most significant effect, with an estimated 150 transit stops covered by the bill.
Additional deferral options were also added, allowing cities to delay implementation in selected areas until around 2030, a year after they must submit their latest plan for encouraging new housing construction and accommodating growth. Over the next five years, cities can exempt properties in high-risk fire areas, historic preservation zones, and low-resource areas, reducing the bill's impact on gentrification in low-income neighborhoods.
Discrepancies in the New Legislation
The law has some inconsistencies, too. For example, in cities with fewer than 35,000 residents, the zoning area was reduced to a quarter-mile, compared to a half-mile everywhere else. This means that affluent cities like Beverly Hills and South Pasadena will have smaller upzoning responsibilities than larger cities. This has led to some peculiar situations, like in the case of South Pasadena where the law will only affect areas within a quarter-mile of the Metro A Line station, while the half-mile rule applies to adjacent communities.
There are other oddities too. For instance, a city can exempt a property that is half a mile from a transit station as per a straight line but has physical barriers like railroad tracks or freeways making it more than a mile away by foot.
As of now, no one has produced a parcel-specific overview of the areas that will be upzoned under the new law. Until a binding eligibility map is published, cities, developers, and homeowners will have to wait for clarity. Meanwhile, advocacy groups hope the bill will encourage multifamily development in Los Angeles, which has declined in recent years due to unprofitable economics and regulatory uncertainty.
Despite resistance, change is inevitable, and California is indeed changing. The question is whether these changes can be sustainable and affordable, or chaotic and costly.