Housing Opportunities on the Horizon: Transit, ADUs, and Small-Lot Development
California continues to pursue legislation aimed at increasing housing opportunities at both the community and neighborhood scale. While SB 79 has received significant attention for encouraging housing near transit, several newly adopted laws are also making it easier to build accessory dwelling units and create small-lot development opportunities. Taken together, these measures reflect the state’s continued effort to address housing supply through a variety of approaches.
SB 79 The Abundant & Affordable Homes Near Transit Act:
What does it do? Eliminates single-family zoning near transit hubs. Promotes high-density development to address the state’s housing crisis and improve public transit use.
When? As of July 1st, 2026
Additional Notes: This significantly increases densities for areas adjacent to, within a quarter mile of, or within a half mile of one of two tiers of transit facilities in eight “urban” counties. Such properties can attain significant densities for ministerial approval.
Labor requirements only apply if a project is greater than 85’ in height.
This bill has been highly controversial, most notably opposed by the City of Los Angeles over concerns about infringement on historic buildings and neighborhoods and whether aging infrastructure can support such significant upzoning. Los Angeles has now enacted a local implementation strategy (as permitted under SB 79), the “Low-Rise Ordinance,” to boost density in select areas, rather than allowing the default rules to take effect. SCAG was to provide maps for eligible radius locations, but so far, only for Los Angeles County. Orange County maps will come out in 2027. In the Bay Area, many cities and projects are gearing up for this.
Ron’s Take: Personally, I’ve been concerned about San Juan Capistrano, where a (min.) 85’ tall building of a (min.) density of 140 du/ac could be built in the parking lot of the station or in the Los Rios historic district (California’s oldest neighborhood)!
Breaking AB2576:
What does it do? Thankfully, for the Preservation community, this law provides substantial protection for historic resources. It is considered a “clean-up” bill to SB79 to extend exemptions and expand protections for historic resources by extending exemptions beyond locally designated sites to include state and national historic districts, as well as individually listed historic resources.
When? On September 14, Governor Newsom signed AB 2576 into law
AB 462 Coastal ADUs:
What does it do? Establishes review timelines and allows ADUs to be constructed before the primary residence in certain fire-rebuilding areas.
AB 1154 Jr. ADU:
What does it do? Removes owner-occupancy requirements for certain junior ADUs when a bathroom is provided.
SB 543 ADU Measurement:
What does it do? Clarifies ADU measurement standards by allowing exterior walls to be excluded from calculations and may help reduce certain school and development impact fees for smaller units.
From transit-oriented housing to expanded ADU opportunities and small-lot development, California continues to explore a variety of approaches to increasing housing supply. While each of these measures addresses the challenge differently, they share a common goal: creating more housing opportunities throughout the state. How communities implement these changes will be an important story to watch in the years ahead.
While I am not a land use attorney, you can contact me if you have any questions.
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