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    Home»Real Estate News»Newsom warns cities of lawsuits over California SB 79 law

    Newsom warns cities of lawsuits over California SB 79 law

    Team_WorldEstateUSABy Team_WorldEstateUSAMarch 27, 2026No Comments3 Mins Read
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    California Gov. Gavin Newsom is threatening authorized motion towards cities and counties that don’t adjust to a 2025 housing reform regulation that enables larger density close to public transit.

    Throughout a Wednesday press convention, Newsom said his administration has warned 15 cities and counties that they’ve 30 days to adjust to Senate Invoice 79 or face authorized motion.​

    Newsom’s transfer mirrors tactics different governors have used when native governments resist state zoning pre-emption. Colorado Gov. Jared Polis, for instance, threatened to withhold grants and different funding from noncompliant cities.​

    Newsom additionally mentioned his administration plans to make use of monetary stress on cities and counties.​

    “You don’t construct, we aren’t going to fund,” he mentioned on the press convention.​

    California cities and counties have been racing to undertake native zoning ordinances by the top of March so state officers have sufficient evaluation time earlier than the regulation takes impact July 1.​

    Legislation expands density close to transit

    Lawmakers passed SB 79 final yr regardless of stiff opposition from native governments and neighborhood teams.​

    SB 79 requires giant transit counties to permit taller house buildings close to rail and speedy bus stops. The regulation targets underused parcels already zoned residential, mixed-use or business inside a brief stroll of main transit stops.​

    The regulation units minimal peak, density and floor-area ratios for qualifying websites round these stations, overriding stricter native zoning guidelines. To qualify for SB 79 incentives, builders should embody on-site inexpensive housing and keep away from demolishing occupied or rent-stabilized properties.

    Tasks nonetheless undergo native evaluation, however cities can not reject proposals that meet SB 79 necessities primarily based on obscure considerations about neighborhood character or scale.

    Cities and counties could undertake tailor-made transit plans in the event that they match or exceed SB 79’s total housing capability round coated transit stops. Jurisdictions can even delay full implementation till 2030 in the event that they create new transit zoning for roughly half of SB 79’s models and undertake a capacity-neutral native plan.

    Los Angeles votes to restrict density

    Newsom’s warning comes as Los Angeles lawmakers — who opposed the reform — voted this week to restrict the regulation’s full density necessities.

    The ordinance permits buildings as much as 4 tales with 4 to 16 models, a much less aggressive strategy than SB 79’s six- to nine-story allowance close to coated transit stops.

    Gradual housing building, regardless of state housing legal guidelines, has emerged as a serious situation within the metropolis’s mayoral race.

    Los Angeles Metropolis Council member Nithya Raman, who helps SB 79, is working on a platform targeted on accelerating housing manufacturing. In a social media publish, Raman pointed to a 350-unit inexpensive housing venture town blocked.

    The town has additionally confronted lawsuits from teams comparable to YIMBY Legislation. When Los Angeles loses, town pays its personal authorized charges and people of the prevailing occasion.

    YIMBY Legislation mentioned in a social media publish that it has gained all 4 of its accomplished lawsuits as a result of the Metropolis Council didn’t observe its personal land-use legal guidelines.

    “The overall payout — simply to us — is about $500,000,” the group wrote.

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