PLANNING COMMISSION MEETING DATE:
JUNE 15, 2026
SUBJECT:
Title
SENATE BILL 79 (SB 79) IMPLEMENTATION ORDINANCE FOR TRANSIT-ORIENTED DEVELOPMENT STANDARDS, SITE EXEMPTIONS, PHASED IMPLEMENTATION AREAS, AND ZONING MAP AMENDMENTS.
LOCATION/APN:
CITYWIDE
CASE NUMBER:
TEXT AMENDMENT (TA) 26-0001
Body
Recommendation
Recommend to the City Council ADOPTION and APPROVAL of the following, in the order set forth below:
1. ADOPT Notice of Exemption (EX26-041); and
2. APPROVE Resolution PC 26-5216 (Text Amendment TA 26-0001) Recommending approval of an ordinance implementing SB 79.
Body
Introduction
Senate Bill 79 (SB 79) was adopted by the State of California to allow more intensive residential development near qualifying transit stops by establishing minimum standards for residential density, building height, and floor area ratio on certain residential, commercial, and mixed-use sites located within one-half mile of transit. The proposed ordinance would implement SB 79 locally by exempting certain sites, phasing implementation on others, and establishing objective development standards, as authorized by state law, until the City completes the seventh Housing Element cycle. Without adoption of the proposed ordinance, SB 79 would take effect in San Marcos on July 1, 2026, and eligible sites would be subject to the provisions of state law without the exemptions, phased implementation measures, and local development standards provided by the ordinance.
Discussion
Senate Bill 79 (SB 79), the Abundant and Affordable Homes Near Transit Act (California Government Code Sections 65912.155 through 65912.162), was adopted by the California Legislature, signed into law by Governor Gavin Newsom on October 10, 2025, and becomes effective on July 1, 2026. The law establishes Transit-Oriented Development (TOD) Zones within a one-half-mile radius of qualifying TOD Stops and permits Transit-Oriented Housing Development Projects on parcels zoned for residential, commercial, or mixed-use development within those zones.
SB 79 establishes minimum standards for residential density, building height, and floor area ratio (FAR) based on the classification of the TOD Stop and the distance of a project site from the TOD Stop. In addition, the law authorizes local jurisdictions to exempt sites meeting specified criteria, phase implementation on certain sites, adopt objective development standards, and develop alternative TOD plans that may redistribute development capacity within TOD Zones while maintaining overall housing capacity established by SB 79. Alternative TOD plans may be adopted through the seventh Housing Element cycle, currently anticipated in 2031.
San Marcos TOD Stops
Based on guidance published by the California Department of Housing and Community Development (HCD) on March 20, 2026, and service levels provided by the North County Transit District (NCTD), the SPRINTER line qualifies as high-frequency commuter rail under SB 79. Accordingly, stations along the SPRINTER line are classified as Tier 2 Transit-Oriented Development Stops. Four SPRINTER stations have TOD Zones that are located in or extend into the City of San Marcos:
1. Palomar College
2. San Marcos Civic Center
3. California State University (CSU) San Marcos
4. Nordahl Road (located outside the San Marcos city limits, but with a TOD Zone that extends into the City)
Although SB 79 allows certain bus stops to qualify as TOD Stops, the law limits eligibility to bus service operating within dedicated transit lanes or a dedicated transit right-of-way and providing service at intervals of 15 minutes or less during peak commute periods. No bus facilities within San Marcos currently meet these criteria. As a result, the City's TOD Zones are associated exclusively with the four SPRINTER stations identified above.
Eligible Sites
SB 79 applies to parcels located within one-half mile of a TOD Stop that are zoned for residential, commercial, or mixed-use development. Within San Marcos, these areas include properties zoned R-1-20, R-1-10, R-1-7.5, R-2, R-3-6, R-3-10, MU-1, MU-2, C, and NC, as well as certain residential, commercial, and mixed-use districts within Specific Plan Areas. Pursuant to Government Code Section 65912.157, eligible sites may be developed as Transit-Oriented Housing Development Projects, subject to the applicable development standards established by state law and supplemented by the proposed ordinance. Properties zoned for industrial, public/institutional, business park, or agricultural uses are not eligible for Transit-Oriented Housing Development Projects under SB 79.
A Transit-Oriented Housing Development Project must contain a minimum of five residential dwelling units and achieve a minimum density of 30 dwelling units per acre. Eligible projects may be approved on sites otherwise zoned for residential, commercial, or mixed-use development, provided they satisfy the requirements of SB 79, including applicable affordability, labor, demolition, and anti-displacement provisions.
Because all TOD Stops affecting San Marcos are currently classified as Tier 2 Transit-Oriented Development Stops, only the development standards applicable to Tier 2 stops under SB 79 are summarized in Table 1 below.
|
Table 1: SB 79 Minimum Tier 2 Development Standards |
|
Development Standard |
Within ¼ Mile of TOD Stop |
Between ¼ mile and ½ mile of TOD Stop |
|
Minimum Project Size |
5 dwelling units |
5 dwelling units |
|
Minimum Density |
30 du/ac |
30 du/ac |
|
Maximum Density |
100 du/ac |
80 du/ac |
|
Maximum Building Height |
65 feet |
55 feet |
|
Maximum Residential FAR |
3.0 |
2.5 |
In addition, projects located immediately adjacent to a TOD Stop may qualify for an "adjacency intensifier" under Government Code Section 65912.157(e), allowing an additional 20 feet of building height (85 total feet), 40 dwelling units per acre (140 total du/ac), and 1.0 FAR (4.0 total FAR).
While SB 79 establishes minimum density, height, and floor area ratio standards for Transit-Oriented Housing Development Projects, the law also authorizes local jurisdictions to adopt objective development standards, provided those standards do not physically preclude achievement of the development intensity permitted by state law. The proposed ordinance incorporates the Tier 2 development standards applicable within San Marcos and establishes objective standards governing project design, open space, accessibility, parking, and mobility in order to provide a clear framework for future Transit-Oriented Housing Development Projects.
Proposed Transit-Oriented Development Standards
Government Code Section 65912.160(c) authorizes local jurisdictions to adopt objective development standards applicable to Transit-Oriented Housing Development Projects. The proposed ordinance establishes standards addressing density, building height, floor area ratio (FAR), open space, shadow and solar access, building articulation, parking and mobility, accessibility, and application procedures. These standards are intended to provide clarity and predictability for applicants, residents, and decision-makers while maintaining consistency with the requirements of SB 79.
The ordinance codifies the minimum Tier 2 development standards established by Government Code Section 65912.157 for all eligible sites within San Marcos as maximums. Consistent with state law, projects located within one-quarter mile of a TOD Stop may be developed at up to 100 dwelling units per acre, 65 feet in height, and a residential FAR of 3.0. Projects located between one-quarter mile and one-half mile of a TOD Stop may be developed at up to 80 dwelling units per acre, 55 feet in height, and a residential FAR of 2.5.
In addition to the density, height, and FAR standards established by state law, the ordinance includes objective standards for open space, building articulation, bicycle parking, pedestrian accessibility, and shadow and solar access. These standards are intended to promote project livability, accessibility, and compatibility with surrounding development patterns while remaining consistent with the requirements of SB 79. To ensure compliance with Government Code Section 65912.160(c), the ordinance expressly provides that development standards shall be interpreted and applied in a manner that does not physically preclude achievement of the density, height, or FAR otherwise permitted by state law.
Exempt Sites
Government Code Section 65912.160(e)(1) authorizes a local jurisdiction to exempt areas within a Transit-Oriented Development Zone if substantial evidence demonstrates that no walking path of less than one mile exists between the site and the applicable TOD Stop. The statute recognizes that certain properties may be located within a one-half-mile radius of a transit stop but remain functionally disconnected from transit facilities due to topography, transportation infrastructure, private property, or other physical barriers that limit pedestrian access.
To identify eligible exemption areas, City staff analyzed pedestrian access routes between properties located within TOD Zones and the nearest TOD Stop. The analysis utilized path data made available by San Diego Geographic Information Source (SanGIS) on sidewalks, pedestrian paths, multi-use trails, marked crossings, pedestrian bridges, and other publicly accessible pedestrian facilities. Consistent with the proposed ordinance, walking paths were measured using routes lawfully accessible to the public within that data and did not include travel through private property not subject to a public access easement or areas where pedestrian access is prohibited.
The analysis determined that several areas within the mapped TOD Zones do not have a publicly accessible walking path of less than one mile to a TOD Stop, despite being located within the one-half-mile radius established by SB 79. These areas are generally separated from transit facilities by roadway configurations (i.e. State Route 78), topographic constraints, railroad facilities, or other barriers that substantially increase walking distances beyond the direct radius measurement.
Pursuant to Government Code Section 65912.160(e)(1), the proposed ordinance identifies these areas as exempt from the provisions of SB 79. Properties within the exempt areas would remain subject to the City's underlying zoning regulations and would not be eligible for development as Transit-Oriented Housing Development Projects under Chapter 20.800.
Exhibit B of the Resolution identifies the exempt sites and the corresponding TOD Zone boundaries. The exemption areas were prepared using geographic information system (GIS) path analysis and are supported by the walking path methodology described above.
Excluded Sites and Phased Implementation
In addition to authorizing exemptions for sites lacking a qualifying walking path, SB 79 authorizes local jurisdictions to temporarily exclude certain sites from the law's provisions. Government Code Section 65912.161(b)(1)(D) permits jurisdictions to exclude sites located within a Very High Fire Hazard Severity Zone (VHFHSZ), as designated by the California Department of Forestry and Fire Protection (CAL FIRE), until one year following adoption of the jurisdiction's seventh Housing Element cycle, expected to be in 2031.
As seen in Exhibit C of the Resolution, portions of the TOD Zones overlap areas designated as Very High Fire Hazard Severity Zones. While these areas would otherwise be eligible for development under SB 79 based solely on their proximity to a TOD Stop, the Legislature expressly recognized the unique planning, infrastructure, evacuation, and public safety considerations associated with development in high fire hazard areas and provided local jurisdictions the option to defer implementation.
The proposed ordinance utilizes this statutory authority by excluding properties located within a Very High Fire Hazard Severity Zone from the provisions of Chapter 20.800 until one year following adoption of the City's seventh Housing Element cycle (2031), or until superseded by a future Transit-Oriented Development (TOD) Alternative Plan. During the exclusion period, affected properties would remain subject to the City's underlying General Plan land use designations, zoning regulations, and applicable state housing laws.
The exclusion is intended to provide the City with additional time to evaluate long-term land use, infrastructure, public safety, environmental, and evacuation considerations through the ongoing General Plan Update and future Housing Element planning efforts. This approach is consistent with the phased implementation provisions expressly authorized by SB 79 and does not permanently remove affected properties from future consideration under the law.
Government Code Section 65912.161(b)(1) authorizes local jurisdictions to temporarily exclude additional categories of sites from the provisions of SB 79 until one year following adoption of the jurisdiction's seventh Housing Element cycle. These include sites that already permit at least 50 percent of the density and residential floor area ratio required by SB 79; sites within transit-oriented development zones that satisfy specified aggregate density and floor area ratio thresholds; sites covered by a locally adopted Transit-Oriented Development Alternative Plan; sites vulnerable to one foot of sea level rise; and sites containing historic resources designated on a local register as of January 1, 2025. Staff evaluated these provisions and determined that they are not currently applicable within San Marcos. Accordingly, the proposed ordinance utilizes only the phased implementation authority provided by Government Code Section 65912.161(b)(1)(D) for sites located within a Very High Fire Hazard Severity Zone.
Other SB 79 Provisions and Relationship to Other State Laws
The proposed ordinance is intended to supplement, and not supersede, the requirements of SB 79 and other applicable provisions of state law. While Chapter 20.800 establishes local development standards, exemptions, exclusions, and administrative procedures for Transit-Oriented Housing Development Projects, SB 79 contains additional requirements that are not restated in the ordinance but nonetheless remain applicable to qualifying projects. These include, but are not limited to, affordability requirements, labor standards, demolition and anti-displacement protections, eligibility for streamlined ministerial approval, and the relationship between SB 79 and other state housing laws, including the Density Bonus Law and the Housing Accountability Act.
Among other requirements, SB 79 establishes affordability provisions that generally require rental housing projects to provide at least 15 percent of dwelling units affordable to lower-income households and for-sale housing projects to provide at least 30 percent of dwelling units affordable to moderate-income households in order to qualify as a Transit-Oriented Housing Development Project. The law also establishes affordability term requirements, replacement housing obligations, and anti-displacement protections applicable to certain projects. In addition, SB 79 includes labor standards applicable to certain projects, including prevailing wage and skilled and trained workforce requirements, depending on project size, affordability levels, and other project characteristics.
SB 79 further includes provisions intended to protect existing housing and prevent displacement. Projects utilizing SB 79 may be prohibited on sites containing certain existing residential units, units occupied by tenants within specified timeframes, or housing subject to affordability restrictions. The law also contains demolition and replacement housing requirements applicable to certain sites and circumstances.
Transit-Oriented Housing Development Projects remain subject to other applicable provisions of state law, including the Density Bonus Law (Government Code Section 65915), the Housing Accountability Act (Government Code Section 65589.5), the Permit Streamlining Act, fair housing requirements, building and fire codes (i.e., the City’s Midrise Ordinance), accessibility requirements, and other applicable federal, state, and local regulations. In particular, projects qualifying for a density bonus may be entitled to additional density, incentives, concessions, waivers, modifications of development standards, or height increases beyond those otherwise provided by SB 79.
The proposed ordinance is not intended to restate all requirements contained within SB 79 or other applicable state laws. Rather, it establishes the local development standards, exemptions, exclusions, and procedures necessary to implement SB 79 within San Marcos. Applicants remain responsible for demonstrating compliance with all applicable provisions of state law at the time an application for a Transit-Oriented Housing Development Project is submitted.
Application and Review Procedures
The proposed ordinance establishes objective application and review procedures for Transit-Oriented Housing Development Projects. Applicants seeking to utilize the provisions of Chapter 20.800 would be required to identify the project as a Transit-Oriented Housing Development Project and provide sufficient information to demonstrate compliance with the objective standards of the ordinance and applicable state law.
The ordinance authorizes the Planning Director to determine whether a property qualifies as an eligible site, whether any exemptions or exclusions apply, and which development standards are applicable based on the property's location within the TOD Zone. Application materials generally mirror those required for a Site Development Plan and include site plans, building elevations, project statistics, and supporting documentation necessary to demonstrate compliance with the ordinance.
Consistent with SB 79, projects seeking streamlined ministerial approval pursuant to Government Code Sections 65912.159 and 65913.4 would be processed in accordance with those provisions and applicable state regulations. Examples may include qualifying affordable or mixed-income housing developments that satisfy the eligibility requirements for streamlined ministerial approval established by state law. Projects not seeking ministerial approval would continue to be processed in accordance with the City's existing development review procedures. Examples may include projects requiring discretionary approvals, projects seeking entitlements not eligible for ministerial processing, or projects electing to utilize the City's standard development review process. All projects would remain subject to the requirements, protections, and limitations established by SB 79, the Housing Accountability Act, and other applicable state laws.
The ordinance further provides that review of Transit-Oriented Housing Development Projects shall be limited to determining compliance with objective standards and applicable state law. In addition, the ordinance contains provisions clarifying that state law controls in the event of a conflict and that local development standards must be interpreted in a manner consistent with Government Code Chapter 4.1.5. These procedures are intended to provide a clear and predictable review process for applicants while ensuring compliance with the requirements and limitations established by SB 79.
Future Transit-Oriented Development (TOD) Alternative Plan
Staff views the proposed ordinance as the first phase of a multi-year implementation strategy for SB 79. The ordinance establishes a local framework for immediate compliance with state law while preserving the City's ability to undertake a more comprehensive planning effort through future General Plan and Housing Element updates.
SB 79 authorizes local jurisdictions to prepare and adopt a TOD Alternative Plan that may redistribute development capacity within TOD Zones, provided the plan complies with applicable state law and maintains overall housing capacity. The City is preparing to initiate a comprehensive update to the General Plan and anticipates future updates to the Housing Element and related planning documents over the coming years. These planning efforts will provide an opportunity to comprehensively evaluate transit-oriented development, including land use patterns, infrastructure capacity, mobility and circulation, public facilities, environmental constraints, wildfire risk, economic development objectives, and community character.
Through these future planning efforts, the City may evaluate how a TOD Alternative Plan could more effectively direct development intensity to appropriate locations within TOD Zones while preserving overall housing capacity and community character, consistent with state law. Any future TOD Alternative Plan would be subject to public review, environmental review as required by law, and adoption by the City Council.
Until such time as an alternative plan is adopted, the proposed ordinance provides the development standards, exemptions, exclusions, and administrative procedures necessary to implement SB 79 within the City of San Marcos.
Environmental Review
The proposed ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Government Code Section 65912.160(c), which provides that an ordinance adopted by a local jurisdiction to implement Senate Bill 79, including ordinances identifying exempt or excluded sites and establishing objective development standards and administrative procedures, is not a project for purposes of CEQA.
The proposed ordinance implements Government Code Chapter 4.1.5 (commencing with Section 65912.155) by identifying exempt and excluded sites, establishing objective development standards, adopting administrative procedures, and otherwise providing for local implementation of SB 79 within the City of San Marcos. The ordinance does not approve any specific development project, authorize any site-specific physical change to the environment, or commit the City to any particular future development proposal.
Accordingly, the proposed ordinance is exempt from CEQA pursuant to Government Code Section 65912.160(c). In addition, the ordinance is exempt pursuant to CEQA Guidelines Section 15061(b)(3), the Common Sense Exemption, because it can be seen with certainty that there is no possibility that adoption of the ordinance may have a significant effect on the environment.
Public Comment
Consistent with state law requirements for land use changes, the City provided a 20-day public notice period for the proposed ordinance. Due to the large number of properties affected by the ordinance, public notice was provided through publication in a newspaper of general circulation (Union Tribune) on May 26, 2026, as permitted by state law.
The notice described the purpose of the ordinance, identified the affected Transit-Oriented Development Zones, and provided information regarding the Planning Commission public hearing and availability of the ordinance for public review. In addition, the proposed ordinance, maps, and supporting materials were made available for public review prior to the public hearing.
As of the date of preparation of this staff report, no written public comments regarding the proposed ordinance have been received by the City.
Attachment(s)
Resolutions:
1. Resolution PC 26-5216 (Text Amendment TA 26-0001) Recommending approval of San Marcos Municipal Code (SMMC) Chapter 20.800, an ordinance implementing SB 79
Exhibits:
A. Tier 2 Transit-Oriented Development Stops
B. Exempted Areas
C. Excluded Sites
D. Exempted Areas and Excluded Sites
E. San Marcos Municipal Code (SMMC) Chapter 20.800: Transit-Oriented Development Ordinance
Prepared by: Sean del Solar, Principal Planner / Sustainability Program Manager
Sarah Cluff, Senior Planner
James Crandall, GIS Program Manager
Julie Uhren, GIS Technician
Reviewed by: Punam Prahalad, Deputy City Attorney
Submitted by: Joesph Farace, Planning Division Director