A Major Shift in Transit Corridor Development Across Los Angeles

California lawmakers have passed SB-79, a sweeping land use bill that sets a statewide baseline for height and density within roughly half a mile of rail stations and bus rapid transit stops. For the first time, California is establishing a uniform floor for housing production around major transit. Height limits may reach up to 75 feet depending on proximity to stations, and local zoning rules that once limited density may no longer apply.

This is a significant shift for Los Angeles multifamily transit oriented development, which has traditionally relied on a complex mix of TOC incentives, discretionary approvals, and city specific bonus programs. SB-79 creates predictable outcomes where developers once navigated uncertainty.

SB-79 Goes Further Than TOC and Simplifies the Approval Process

Los Angeles has operated under TOC guidelines for years. The system worked, but it required applicants to blend incentives, bonuses, affordability set-asides, and stakeholder approvals. Many projects stalled when community opposition, council offices, or political shifts interrupted the process.

SB-79 removes a large part of that friction. It creates a clear baseline for mid-rise construction by right. If a parcel sits within the designated half mile radius and meets the criteria, the developer can move forward without the same degree of discretionary review.

For investors underwriting deals, this does two important things.
It reduces entitlement risk and it improves the reliability of long term development assumptions. These two factors have been growing concerns in the Los Angeles multifamily transit oriented development market.

Where SB-79 Will Have the Biggest Impact in Los Angeles

Several corridors are positioned to benefit immediately:

Red Line: Hollywood and East Hollywood
These neighborhoods already attract institutional level demand because of strong employment anchors such as Netflix and Paramount. SB-79 will expand the development envelope even further.

Purple Line: Koreatown, Mid Wilshire, Beverly Hills
This corridor has some of the highest transit ridership and strongest renter demand in the entire region. Height increases and density allowances will amplify land values.

Expo Line: West Adams, Culver City, Santa Monica
Already a hotspot for creative office and high income renters. SB-79 adds clarity and predictability to one of the most active Los Angeles multifamily transit oriented development zones.

Across all three corridors, the combination of transit access, employment clusters, and now uniform development rules creates a clearer growth story for long term investors.

Why SB-79 Matters for Multifamily Owners and Landholders

SB-79 shifts the development landscape in several meaningful ways:

Land That Did Not Pencil May Now Qualify for Redevelopment
Sites that were previously constrained by local zoning may now support mid-rise construction. This increases residual land value and broadens disposition strategies for owners.

Higher Predictability Improves Underwriting
Investors often discount land heavily when entitlement risk is high. SB-79 reduces that discount and strengthens the financial case for acquisition.

A New Form of Leverage in a Slow Market
With interest rates still high and buyers cautious, owners need new framing strategies. Demonstrating SB-79 development potential is a powerful way to reintroduce value into stalled negotiations.

Clearer Pathways to Density
The law removes the ambiguity that has defined Los Angeles multifamily transit oriented development for years. Certainty itself becomes a form of value.

What Multifamily Owners Should Do Now

Owners near Metro corridors should begin reviewing their strategy immediately. Priority steps include:

• Verifying if parcels fall within SB-79’s half mile radius
• Running new development scenarios based on increased height and density allowances
• Evaluating whether existing structures support long term hold strategies under the new rules
• Reassessing land value with the updated entitlement framework
• Positioning the property with brokers or advisors who understand SB-79 modeling

In a market where deal volume is slow and rates remain elevated, SB-79 offers owners a new way to reframe their position and unlock value that was previously limited by zoning.

Conclusion

SB-79 represents one of the most significant land use shifts in recent California history. By standardizing height, density, and development expectations near transit, the law strengthens the foundation for Los Angeles multifamily transit oriented development and creates new clarity for owners, buyers, and developers.

Sites that once sat in limbo may now qualify for meaningful redevelopment potential. Parcels that struggled to pencil may suddenly fit mid-rise assumptions. And owners who have been waiting for a policy change that provides leverage now have one that is direct, statewide, and actionable.

If you own near transit, this is the moment to reassess your long term plan. The rules have changed, and the opportunities have widened.