Gov. Gavin Newsom (D-CA) signed into law on Friday a bill loosening zoning regulations critics contend have contributed to California’s housing crisis. 

Democratic state Sen. Scott Wiener’s Senate Bill 79 is viewed as one of the most sweeping state-imposed housing reforms in California’s recent history. The measure, opposed by some Democrats such as Los Angeles Mayor Karen Bass, allows the construction of buildings up to nine stories near major transit stops in eight California counties, overriding local zoning restrictions. 

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“All Californians deserve an affordable place to live — close to jobs, schools, and opportunity. Housing near transit means shorter commutes, lower costs, and more time with family. When we invest in housing, we’re investing in people — their chance to build a future, raise a family, and be part of a community,” Newsom said in a statement.

Wiener called Newsom’s signature a “historic step” toward addressing the state’s housing shortage.

“In California, we talk a lot about where we don’t want to build homes, but rarely about where we do — until now,” he said. “SB 79 unwinds decades of overly restrictive policies that have driven housing costs to astronomical levels, forcing millions of people away from jobs and transit and into long commutes from the suburbs or out of the state entirely.”

The new law, which takes effect July 1, 2026, will apply only to counties with at least 15 passenger rail stations: Los Angeles, Orange, San Diego, Alameda, San Francisco, San Mateo, Santa Clara, and Sacramento. 

It will override local zoning standards, which critics say have helped make California have some of the highest construction and housing costs in the country.

Developers will now be permitted to build multifamily units as high as nine stories directly adjacent to major transit hubs, such as subways, light rail, and dedicated bus lanes. The new law will prioritize residential buildings near stops with the most traffic, including BART and Caltrain lines. It also seeks to streamline stringent permitting requirements for projects within a half-mile of major public transit stops.

Bass, who leads Los Angeles, the area most impacted by SB 79, urged Newsom to reject the measure in September. Cities need to create more housing, but they need to do it “in a way that does not erode local control, diminish community input on planning and zoning, and disproportionately impact low-resource neighborhoods,” the mayor wrote in a letter to the governor. 

Her action came after the Los Angeles City Council passed a resolution in August urging Newsom to veto the bill. SB 79 “undermines local governance, circumvents local decision-making processes and imposes unintended burdens on communities,” they alleged. 

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California YIMBY, known as the driving force behind the bill, argued that the new law is warranted  because high housing costs have “pushed families farther and farther away from good jobs and transportation options.” 

“SB 79 holds local governments accountable to approving new housing where we need it most,” said Laura Foote, executive director of YIMBY Action.