HCD releases SB 79 clarifications, but cities need more direct guidance

By Brady Guertin, legislative advocate (housing)

Last month, the Department of Housing and Community Development (HCD), in consultation with four major councils of government, released advisory clarifications and definitions on SB 79 (Wiener, 2025). Gov. Gavin Newsom signed the transit-oriented development bill last year after 13 rounds of changes — with promises from lawmakers to further refine it this year.

The guidance is intended to help metropolitan planning organizations develop maps showing where SB 79 will apply statewide. Although the guidance includes some helpful clarifications, many cities will need more direct guidance or technical assistance before they begin implementing SB 79 on July 1.

For example, cities need guidance on how to comply with the state’s anti-discrimination housing law under SB 79, adopt alternative plans, and determine the income levels associated with SB 79 projects due to the affordability requirements that SB 79 projects must comply with.

The document does confirm which counties, and the cities therein, need to comply with SB 79 if they have qualifying transit stops: Alameda, Los Angeles, Sacramento, San Francisco, San Mateo, Santa Clara, and San Diego. Analysts last year were unsure which areas the bill would impact.

The guidance also provides some examples of eligible rail types and public transit, which, according to HCD, might help local jurisdictions implement the new law. However, the guidance is at minimum, confusing, and potentially contradictory — especially as it pertains to future rail stops.

HCD also notes on its website that a submittal checklist and transit-oriented development site templates are forthcoming, re-emphasizing the fact that neither the state nor local governments are prepared for the July 1 deadline.

What exactly does SB 79 do?

SB 79 requires cities in seven counties to approve residential development projects near specific transit stops under one-size-fits-all development standards, unless HCD approves an alternative plan or ordinance, starting July 1. The alternative plan and ordinance option were major selling points for proponents of SB 79; however, local agencies don’t have nearly enough information to begin these plans, adopt ordinances, and secure state approval before the fast-approaching deadline.

This year, lawmakers are advancing five clean-up measures, but cities need more help to properly implement SB 79. Cal Cities is urging lawmakers to delay the law until the 7th Regional Housing Needs Allocation Cycle, ensure HCD provides ongoing technical assistance, and create a deadline for the maps so local agencies can understand how to incorporate SB 79 into their planning efforts. 

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