Author: Tiffany Christian

On October 11, Governor Newsom signed SB 79 into law. SB 79 is the latest arrow in the quiver of significant reforms to California’s Housing Laws and the California Environmental Quality Act (CEQA), which California has enacted in recent years to combat the State’s critical housing shortage.

SB 79 combats the State’s housing shortage by increasing residential density around Transit-Oriented Development Stops, which generally include train stations and major bus stops. SB 79 also aims to increase transit ridership throughout the State by concentrating new housing density within walking distance of Transit-Oriented Development Stops. SB 79 does this by providing a “floor” of housing density near transit that local governments cannot dip below.

SB 79 will take effect on July 1, 2026.

Key Provisions of SB 79

• Housing development is an allowed use on any site zoned for residential, mixed-use, or commercial development within one-half mile of Transit Oriented Development Stop. This includes sites zoned for single-family residential zones.
• Transit Oriented Development Stops are categorized between two tiers:
  • Tier 1: A Transit-Oriented Development Stop within an urban transit county [meaning a county with more than 15 passenger rail stations] served by heavy rail transit or very high frequency commuter rail.
  • Tier 2: A Transit-Oriented Development Stop (excluding Tier 1) within an urban transit county served by light rail transit, high-frequency commuter rail, or by Bus Rapid Transit (as defined in Public Resources Code section 21060.2).
• SB 79 Development Project Standards. SB 79 sets minimum development standards for eligible projects located within certain distances from transit stops, as follows:
  • Within a quarter mile of a Tier 1 stop, local governments cannot:
    • (1) impose a height limit less than 75 feet;
    • (2) impose a maximum density less than 120 dwelling units per acre; or
    • (3) impose development standards that would physically preclude a project from attaining a Floor Area Ratio (“FAR”) of 3.5:1. Development projects meeting a minimum density of 90 units per acre are eligible for additional concessions under California’s Density Bonus Law (Government Code § 65915.)
  • Between a quarter and one-half mile of a Tier 1 stop, or development projects within a quarter mile of a Tier 2 stop, local governments cannot:
    • (1) impose a height limit of less than 65 feet;
    • (2) impose a maximum density less than 100 dwelling units per acre; or
    • (3) impose development standards that would physically preclude a project from attaining a FAR of 3:1. Development projects meeting a minimum density of 75 units per acre are eligible for additional concessions under California’s Density Bonus Law.
  • Between a quarter and one-half mile of a Tier 2 stop, local governments cannot:
    • (1) impose a height limit less than 55 feet;
    • (2) impose a maximum density less than 80 dwelling units per acre; or
    • (3) impose development standards that would physically preclude a project from attaining a FAR of 2.5:1. Development projects meeting a minimum density of 60 units per acre are eligible for additional concessions under California’s Density Bonus Law.
  • For projects applying the State Density Bonus Law, the base density will be the density provided by SB 79. However, local governments are not required to grant additional height concessions in excess of the height minimums provided above, except as provided in Government Code section 65915(d)(2)(D).
• SB 79 does allow for:
  • An “adjacency intensifier” for SB 79 development projects adjacent to a Tier 1 or Tier 2 stop, allowing for an additional 20 feet in height, increased maximum density of an additional 40 dwelling units per acre, and an additional 1.0 FAR.

Key Restrictions of SB 79 on Developments and Considerations for Local Governments

• SB 79 development projects:
  • Must build at least 5 units of housing to a minimum density of 30 dwelling units per acre, or the minimum density required under local zoning, whichever is greater, and the average size of a unit cannot exceed 1,750 net habitable square feet.
  • Must provide low-income housing as part of the total unit count, at percentages provided in the statute.
• SB 79 cannot be:
  • used to develop hotels; or
  • used where the demolition of existing rent-controlled units would be required.
• The local government’s local objective general plan and zoning standards can be applied to the SB 79 development project provided they do not alone or in concert prevent achieving the SB 79 standards.
• All eligible SB 79 development projects are eligible for streamlined ministerial approval as long as the project can meet the requirements in Gov. Code Section 65913.4 [SB 35], and therefore may be exempt from CEQA.
• Regional transit agencies also may use SB 79 to develop housing on agency-owned land, and may adopt by resolution, their own zoning standards for SB 79 development projects, subject to specific requirements.

Have Questions?
For more information or for questions on whether SB 79 applies to your housing development project, please contact the authors of this article or any member of our Meyers Nave Land Use Team.

Time for a pop quiz!

What is the most important thing you can do as a business owner to set yourself up for compliance?

Hint. A compliant employee handbook is the first line of defense for any business in California.

For smaller businesses without a legal department, it may be your primary line of defense!

Yet, despite this knowledge, small and large businesses are notorious for trying to navigate the murky waters of California employment law without a handbook. “But we’re a family here, we don’t need formal rules!” is a common reason given. Spoiler alert: Families do not always get along. They can have trouble communicating, they can disagree, they can have expectations that are not met, they can separate. Think of your latest family drama – what if this was happening at work when there’s a business to run? You do not need disputes or legal threats dragging you down when running business in California is already challenging.

This is where the employee handbook comes in – with a single document, you can:

1. Communicate how your business operates and what to expect,
2. Plan for possible future situations, such as leaves or promotions,
3. Provide a consistent roadmap for navigating rules and procedures,
4. Protect your business’ legal rights, such as the right to terminate an at-will employee, and
5. Provide a legal defense in the event of a claim.

Further, our great state of California has required certain written policies be provided to employees; a handbook containing those policies all in one place makes compliance a breeze.

Connect with one of our labor and employment attorneys and let us set you up for success.

Our team is here to help you navigate California’s complex employment laws. If you have handbook questions or don’t have a handbook at all, contact us.

Imagine this: You have worked with your attorney on crafting the perfect arbitration agreement. You have an issue that goes to arbitration and are in the middle of arbitrating when you get notified that the arbitration is being cancelled for non-payment and you are headed back to court.  What!?!?

It’s true. If you’re in arbitration (an alternative to going to court), you have to pay certain fees to keep the process going. California law says those fees must be paid within 30 days of when they’re due—unless your arbitration agreement says otherwise.

If you don’t pay on time, arbitration can get shut down, and you could get dragged back into regular court even if you had a valid arbitration agreement. This statute was recently upheld by the California Supreme Court in Hohenshelt v. Superior Court (No. S284498, Aug. 11, 2025).

What this means for you:

• Don’t ignore invoices. Pay them right away, or make sure your team has a reliable system for tracking and paying.
• Build in flexibility. When you draft arbitration agreements, you can write in a little extra time for payments.
• If you miss a payment, act fast. Courts might give you a break if the missed payment wasn’t intentional and it didn’t hurt the other side, but you don’t want to count on that.

Our team is here to help you navigate California’s complex employment laws. If you have arbitration questions, need an arbitration agreement, or need legal assistance, contact us.

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Meyers Nave partners with California private, government, and non-profit employers to ensure compliance with evolving employment laws—from employee classification, wage and hour compliance, and workplace policies to required trainings, internal investigations, and dispute resolution.

Our team helps organizations proactively mitigate risk by drafting and updating employee handbooks, implementing arbitration agreements, and ensuring policies align with current legal requirements. When disputes arise, we provide strong legal advocacy in litigation. Stay ahead of legal challenges—contact us to ensure your organization is protected and prepared.

The California Legislature took another big swing to promote housing development in battling the continuing housing crisis when it passed Assembly Bill 130 (AB 130) and Senate Bill 131 (SB 131) earlier this year.

AB 130 and SB 131, signed into law on June 30, 2025, represent some of the most significant reforms to California Housing Law and the California Environmental Quality Act (CEQA) in recent years.

These laws took immediate effect upon signing, meaning housing providers and developers can begin using the new exemptions and streamlined processes as of July 1, 2025.

The key benefits for residential housing developers include a broader statutory CEQA exemption and streamlined approval under AB 130, as well as additional statutory exemptions and a “Near-Miss” provision under SB 131.

These benefits include:

AB 130 CEQA Exempt Projects

AB 130 contains streamlined review and a CEQA Exemption substantially broader than the Class 32 Infill CEQA Exemption routinely applied to infill housing development projects. The AB 130 Exemption applies to housing development projects, which include single-family developments, multifamily projects, mixed-use projects where at least two-thirds of the square footage of the project is dedicated to residential use, and transitional and supportive housing, that meet the following specific environmental and planning criteria.

• Urban Context Flexibility: The housing development infill site (which under Class 32 had to be within City limits) now includes any urban site previously developed or 75% surrounded by urban uses.
• Larger Project Size: AB 130 applies to project sites up to 20 acres in size (instead of the 5-acre maximum under Class 32). Builder’s Remedy projects using the AB 130 Exemption are capped at 5 acres.
• Applicable Housing Projects/State Density Bonus Law: AB 130 applies to all housing development projects, as defined above, and excludes only hospitality/lodging uses and designated historic structures. AB 130 does not affect the eligibility of a housing development project to receive a density bonus, concessions, incentives, or waivers under the State Density Bonus Law.
• Easier Approval Process: Applicable AB 130 Projects are subject to a Ministerial Review Process without CEQA review, but the project must be consistent with the applicable general plan and zoning ordinance, meet objective zoning and planning standards, not be located on historic or certain sensitive sites (e.g., floodways, prime farmland, wetlands, fire zones), and comply with labor requirements for projects of a certain size.
• Strict Timing Limits: Local governments must determine whether an application is complete within 30 days of submittal. Once the application is deemed complete, the agency must approve or disapprove the project within 60 days (the total maximum time from application submittal to final decision is 90-120 days depending on the size of the project).
• Other Tribal, Environmental Site Assessment, and Labor Requirements: Tribal consultation under AB 52 must begin early in the planning process to qualify for the AB 130 Exemption—specifically, within 14 days after the lead agency determines that a project application is complete. AB 130 requires all housing projects, as a condition of approval, to complete an environmental assessment for hazardous substances and implement measures to remove or reduce any discovered environmental conditions. In addition, 100% affordable housing projects must pay workers prevailing wages and projects with buildings over 85 feet in height must also use a skilled and trained workforce.
• Statutory Exemption: Further strengthening the impact of the AB 130 is that AB 130 is a Statutory CEQA Exemption. Unlike a Categorical Exemption (like Class 32) which can be challenged under certain conditions, CEQA does not apply at all for statutory exemptions and statutory exemptions generally receive substantial deference from courts, when challenged.

SB 131 CEQA Exemptions and “Near-Miss” Provision

• SB 131 also benefits developers by creating nine new CEQA exemptions for various infrastructure and public service projects, and introduces a “near-miss” provision allowing partial CEQA exemptions for projects, including housing development projects, that meet all but one exemption criterion for statutory exemptions or specified categorical exemptions (e.g., Classes 1 through 5, 12, 15, 20, 27, 30, or 32).
• “Near Miss” Provision: For a housing development project that meets a CEQA exemption for all but one criterion, any CEQA review for the project would focus only on the environmental impacts related to the missed criterion. An example of the “near miss” provision would be where a housing provider proposes a project that meets all aspects of the new infill exemption, except that the project would require demolition of a designated historic structure. In such case, any CEQA review would focus only on the environmental impacts related to the demolition of the historic structure.

Other CEQA Reforms

• AB 130 expands the method for mitigating significant Transportation/Vehicle Miles Traveled (VMT) impacts with an option to contribute to a state managed fund.
• A local government’s rezoning (typically upzoning) of land to implement its “approved” housing element is now exempt from CEQA.
• AB 130 strengthens the development of ADUs as part of a housing development project by prohibiting local governments from imposing standards on ADUs beyond state law requirements.

These new laws include additional CEQA reforms and further detail for implementation.

For more information or questions on whether AB 130 or SB 131 applies to your housing development project, please contact Blake Senet or Russell Morse or the rest of our Land Use Team.

See also: CEQA Reform Client Alert – July 1, 2025