On October 10, 2025, Governor Gavin Newsom signed into law Senate Bill 79 (SB 79), also known as the “Abundant & Affordable Homes Near Transit Act.”
This landmark housing legislation makes two major changes that will reshape California’s housing, construction, and rental industries starting in 2026:
Below, we break down how each of these provisions affects California property owners, developers, and landlords — and how SKS Construction can help you prepare.
Purpose of the Law
SB 79 aims to increase housing supply and affordability by promoting higher-density, transit-oriented housing in key urban areas across California.
The law overrides certain local zoning codes in designated “urban transit counties”, encouraging development of midrise multifamily housing (4–9 stories) near major public transit stops.
By establishing statewide zoning standards within a half-mile of train stations and major bus stops, the law is designed to create more housing options in walkable, transit-accessible communities.
The new zoning provisions under SB 79 will take effect on July 1, 2026.
Between now and then, the state will develop official zoning maps to determine which parcels qualify for upzoning under the new law.
SB 79 introduces a two-tier system that defines different zoning allowances based on a parcel’s proximity to a transit stop:
The exact height and density limits depend on how close the parcel is to the transit stop and whether it meets other criteria outlined in the bill.
Under SB 79, qualifying projects can benefit from faster approval timelines by bypassing certain local reviews and restrictions.
Developers who include affordable housing units can also access density bonuses, allowing for more units per project and improved project feasibility.
These streamlined measures make it easier to develop multi-story housing near transit, reducing red tape and encouraging investment in underutilized urban parcels.
A unique feature of SB 79 is that it allows local transit agencies to develop housing on land they already own.
This opens new opportunities for public-private partnerships, where developers and construction firms like SKS Construction can collaborate with transit agencies to create affordable, mixed-use housing near stations and stops.
While SB 79 establishes a statewide framework, multiple exemptions and implementation details remain unclear.
Cities and counties across California are currently awaiting the official SB 79 zoning map, which will define Tier 1 and Tier 2 transit zones and specify which properties qualify for the new development standards.
Because of these complexities, developers and property owners should begin assessing now whether their properties are near eligible transit corridors and consider potential redevelopment or upzoning opportunities.
In addition to its zoning reforms, SB 79 also updates California’s landlord-tenant habitability standards under Civil Code Section 1941.1.
Starting January 1, 2026, all new, extended, and renewed residential leases in California must comply with the following appliance requirements:
The appliance requirement applies to all new leases, renewals, or extensions entered into on or after January 1, 2026.
Existing leases are not immediately affected, but landlords should prepare now to ensure compliance before new lease terms begin.
These new requirements raise the standard of habitability in California rental housing.
For landlords, this means:
At SKS Construction, we help California property owners and developers stay compliant with new housing regulations while modernizing their buildings for long-term success.
Our services include:
Whether you’re preparing your rentals for the new habitability standards or exploring multi-story housing opportunities near transit, our expert team can guide you through every step of planning, compliance, and construction.
California’s SB 79 represents one of the most significant housing reforms in recent years — affecting developers, landlords, and property owners alike.
By preparing now, you can take advantage of the new opportunities this law brings while ensuring your properties remain compliant and market-ready.
📞 Contact SKS Construction today to learn how SB 79 impacts your property or development plans.
🌐 Visit www.sksconstruction.com to explore our full range of construction and compliance services.
info@sksconstruction.comCA CSLB License #AB720390(818) 855-1181