What is SB 79?  

Senate Bill 79 (SB 79) is a California law signed on October 10, 2025, and becomes effective on July 1, 2026. This State law supersedes local zoning and allows housing on sites currently designated for residential, mixed-use, or commercial development within one-half mile and one-quarter mile of “transit-oriented development (TOD) stop” in urban transit counties. Typically, a TOD stop is a major transit station served by heavy rail, high or very high frequency rail, light rail, or bus rapid transit with a dedicated lane.  

Pursuant to Government Code Sections 65912.155 through 65912.162.1, SB 79 establishes minimum residential density and height standards for qualifying housing development projects that a local jurisdiction must comply with. More specifically, SB 79 permits higher density, greater heights, and a higher floor area ratio for qualifying projects within ½-mile of qualifying transit stops.  

*The dates for the Planning Commission and City Council hearings on this ordinance item are March 11, 2026, and March 17, 2026, respectively.  

City of San José SB 79 Project Scope:  

On January 27, 2026, City Council directed staff to:  

1. Designate qualifying industrial areas identified in the General Plan as Employment Areas as ‘industrial employment hubs’ (IEH) and exempting nonresidential sites within those areas from the provisions of Senate Bill 79; and 

1. Exempt sites where there is no walking path less than one-mile from the location of the transit-oriented development; and  

1. Summarize the CEQA process for historic resources under AB 130 and SB 79; and 

1. Create a timeline for returning to Council with an ordinance to increase minimum densities in the downtown core and other growth areas, based on further analysis.  

Planning staff are currently conducting an analysis on the above City Council directed items and will share additional updates on this webpage once they are available.  

The proposed Ordinance would address Item A to exclude specific parcels designated as “Industrial Employment Hub” (IEH) pursuant to Government Code Section 65912.160.  IEH is defined as a contiguous area of at least 250 acres designated in the jurisdiction’s general plan on or before January 1, 2025, that consists of parcels primarily dedicated to industrial use. The City of San José designates Employment Areas in the Envision San José 2040 General Plan Planned Growth Areas Diagram map as amended on September 22, 2022, for the purpose of preserving industrial land and employment uses. These employment areas are further categorized as IEH boundaries for qualifying parcels consistent with the above definition According to Gov Code 65912.160 (e)(2) of SB 79, a local agency with over 15 Transit-Oriented Development stops may designate areas within one-half mile of a TOD stop as exempt from the provisions if the IEH boundary is a contiguous area of at least 250 acres designated in the City’s General Plan on or before January 1, 2025, as employment lands area.   

The City of San Jose presently includes 56 transit stations and would qualify for the IEH exclusion in accordance with the urban transit county requirement with more than 15 passenger rail stations.  

The Envision San José 2040 General Plan (GP 2040) established Employment Lands in anticipation for significant job growth. There are three primary categories designated as Employment Centers because of their proximity to regional transportation infrastructure:   

1. North San José Core Area along North First Street
2. Berryessa/International Business Park in close proximity to the Milpitas BART station and existing Capitol Avenue Light Rail stations

3. Old Edenvale area  

Resources and links 

• Senate Bill 79 Legislative Bill Text

• SB 79 Applicability citywide draft map: (pending) https://experience.arcgis.com/experience/203caa65a0a9413983f6b0059a9c7c89.
  • Disclaimer: The draft map is in a draft format and intended for exploratory purposes only, based on an initial analysis of the language contained in Senate Bill 79. The map compares SB 79 eligible sites to the City of San José’s Envision 2040 General Plan Land Use/Transportation Designation Diagram.  
• Planned Growth Area Map
• SB 79 Application Checklist   

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