California SB 79: What Developers Need to Know About the State's Biggest TOD Opportunity
On October 10, 2025, Governor Gavin Newsom signed Senate Bill 79 into law, marking what housing advocates are calling the most significant land use reform in California history. The bill—officially named the "Abundant and Affordable Homes Near Transit Act"—takes effect July 1, 2026 and fundamentally changes what developers can build near transit in California's largest urban markets.
For developers, SB 79 isn't just policy news. It's a map rewrite. Sites that yesterday allowed two stories and 20 units per acre may tomorrow allow seven stories and 120 units per acre. That kind of overnight capacity change creates opportunities—and risks—that require immediate attention.
This guide breaks down what SB 79 actually does, which sites qualify, what you can build, and how to position your portfolio before the law takes effect.
Secondary Markets Are Hiding in Plain Sight
Real estate developers have a dirty secret: we're gambling $50,000 just to find out if a site is worth pursuing.
That's not an exaggeration. A traditional feasibility study—zoning analysis, site capacity, market research, construction estimates, pro forma modeling—runs anywhere from $30,000 to $75,000. It takes 60 to 90 days. And at the end, there's a decent chance the answer is "no."
This is the math that kills projects before they start.
The $50,000 Question You Shouldn't Have to Pay to Answer
Real estate developers have a dirty secret: we're gambling $50,000 just to find out if a site is worth pursuing.
That's not an exaggeration. A traditional feasibility study—zoning analysis, site capacity, market research, construction estimates, pro forma modeling—runs anywhere from $30,000 to $75,000. It takes 60 to 90 days. And at the end, there's a decent chance the answer is "no."
This is the math that kills projects before they start.
Why It Takes 90 Days to Get to a ‘No’ That Should Take 3 Days
The most expensive word in real estate development isn't "yes" - it's "maybe." And our entire industry is built to manufacture maybes. Not because anyone wants it that way, but because critical information lives in silos that take months to unlock.
The Feasibility Catch-22: Needing Expert Analysis To Justify Expert Analysis
You've identified a promising site. Now you need architects to confirm buildable density, engineers to assess site conditions, market analysts to validate rents, contractors to estimate costs, and attorneys to navigate zoning.
The paradox? You need this analysis to know if spending on these services makes sense.
The 90-Day Sprint Through Molasses: Feasibility's Timeline Paradox
You have 90 days to make a million-dollar decision. Every professional you need measures time in months. This isn't poor planning—it's systematic misalignment between deal velocity and service provider capacity.
The 6-Week Site Plan — When Architects Became the Bottleneck
Real estate developers, you need a site plan in days. Your architect delivers in 6-8 weeks. This isn't about incompetent architects or unreasonable developers. It's about a structural misalignment that has transformed architecture firms into unwitting gatekeepers of deal velocity.