MEETING DATE:
July 14, 2026
SUBJECT:
Title
URGENCY ORDINANCE NO. 2026-1580 AND ORDINANCE NO. 2026-1581 - IMPLEMENTING SENATE BILL 79 (SB 79) FOR TRANSIT-ORIENTED DEVELOPMENT STANDARDS, SITE EXEMPTIONS, PHASED IMPLEMENTATION AREAS, AND ZONING MAP AMENDMENTS.
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Recommendation
Recommendation
ADOPTION of the following, in the order set forth below:
1. ADOPT Notice of Exemption (EX26-041); and
2. ADOPT an Urgency Ordinance No. 2026-1580 adding Chapter 20.280 to the San Marcos Municipal Code to adopt and implement SB79 (Four Votes Required); and
3. INTRODUCE Ordinance No. 2026-1581 (Text Amendment TA 26-0001) adding Chapter 20.280 to the San Marcos Municipal Code to adopt and implement SB79.
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Board or Commission Action
On June 15, 2026, the Planning Commission met and considered the proposed ordinance. The Commission voted 7-0 recommending approval and adoption of the proposed Text Amendment to the City Council. The Planning Commission Draft Meeting Minutes are provided as Attachment F.
Executive Summary
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 qualifying transit stops. The proposed ordinance would implement SB 79 locally, enact provisions of the law 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.
SB 79 became effective on July 1, 2026, and eligible sites in San Marcos are now subject to the provisions of state law. Adoption of the proposed ordinance, together with the companion urgency ordinance providing for its immediate effectiveness, would implement the exemptions, phased implementation measures, and local objective development standards authorized by SB 79, ensuring a clear and consistent local framework for administering the law immediately upon adoption.
Discussion
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 took effect on July 1, 2026. The law establishes Transit-Oriented Development (TOD) Zones within a one-half-mile radius of qualifying transit stops (TOD Stops) and permits Transit-Oriented Housing Development Projects on parcels zoned for residential, commercial, or mixed-use development within TOD 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 the San Diego Association of Governments (SANDAG) draft map identifying TOD Stops and Zones within the San Diego region, published on June 18, 2026, 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 within 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 Transit-Oriented Development (TOD) Stops, eligibility is limited 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 the City of San Marcos currently meet these statutory criteria, and no facilities are planned that would meet them. Accordingly, 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, R-MHP, 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 density of 30 dwelling units per acre (du/ac) and no less than 5 dwelling units. 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. Consistent with state law, the proposed ordinance codifies the Tier 2 minimum development standards for density, building height, and FAR as maximums and establishes objective standards for 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.
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 City’s ordinance must expressly provide that development standards are to 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, using the methodology described in Attachment B. 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.
As seen in Attachment A, 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 20.280.
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 Figure 20.280-1 of Attachment C, 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 SB 79 until one year following adoption of the City's seventh Housing Element cycle, 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, SMMC Chapter 20.280, is intended to supplement, and not supersede, the requirements of SB 79 and other applicable provisions of state law. While Chapter 20.280 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 20.280 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, civil plans, 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.
Urgency Ordinance
Government Code Section 36937 authorizes the City Council to adopt an urgency ordinance that takes effect immediately upon adoption when it is necessary for the immediate preservation of the public peace, health, or safety, provided the ordinance contains a declaration of the facts constituting the urgency and is approved by a four-fifths vote of the City Council.
An urgency ordinance is proposed to ensure that the City's implementing regulations become effective immediately upon adoption. Senate Bill 79 became operative on July 1, 2026 and without an urgency ordinance, the implementing ordinance would not become effective until 30 days after adoption pursuant to Government Code Section 36937(a), creating a period during which SB 79 would apply within the City without locally adopted procedures, objective development standards, and mapped exemptions and exclusions expressly authorized by Government Code Sections 65912.160 and 65912.161, specifically parcels without a walking path and parcels in Very High Fire Hazard Zones. Immediate effectiveness is necessary to preserve the public peace, health, and safety by providing regulatory certainty for applicants, City staff, and the public, ensuring the orderly and consistent administration of SB 79, and avoiding uncertainty regarding the applicability of the City's state-authorized implementation measures during the period between adoption and the ordinance's otherwise effective date.
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 Commonsense 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.
Planning Commission Meeting and Public Comment
Due to the large number of properties affected by the proposed ordinance, 20-day notice of the Planning Commission and City Council public hearings was provided through publication in a newspaper of general circulation on May 26, 2026, and June 24, 2026, respectively, in accordance with applicable state law. Although staff received inquiries regarding the proposed ordinance prior to the hearings, no public comments were submitted.
During the Planning Commission hearing, there was one speaker. They expressed general support for the proposed ordinance while encouraging the City to consider a Very High Fire Hazard Severity Zone (VHFHSZ) deferment approach similar to that adopted by the City of San Diego. Following the hearing, staff reviewed the City of San Diego's SB 79 implementing ordinance and confirmed that both cities utilize the same VHFHSZ deferment method authorized under state law. The Planning Commission also asked clarifying questions regarding the ordinance and generally expressed support for the City's ordinance, while acknowledging reservations regarding certain requirements established by the state legislation. Draft Planning Commission meeting minutes are included as Attachment F.
The ordinance has also been updated from the version recommended by the Planning Commission to include the addresses of the Tier 2 TOD Stops and to add the R-MHP zone to the list of eligible zones. At this time, mobilehome parks remain subject to SB 79. However, pending legislation (SB 722) would likely remove them from the applicability of SB 79. Currently, two resident-owned mobilehome parks in the city are subject to SB 79.
Fiscal Impact
The proposed ordinance is not anticipated to have a direct fiscal impact on the City's General Fund. The ordinance implements the requirements of Senate Bill 79 by establishing local procedures, objective development standards, exemptions, and phased implementation measures authorized by state law. Any future fiscal impacts associated with development occurring under SB 79 will depend on the number, location, timing, and scale of individual projects, all of which are currently unknown. Future development would continue to be subject to applicable development impact fees, permit fees, and other fees authorized by law, and individual projects would be evaluated for compliance with applicable infrastructure, public facility, and service requirements through the City's established development review processes.
Implementation of SB 79 is expected to require additional staff resources to administer the requirements of state law during the review and processing of qualifying development applications. In addition, the City will incur direct costs associated with evaluating TOD zone densities during the General Plan update process, Housing Element update, or in the development of TOD Alternative Plans.
Attachment(s):
• Urgency Ordinance 2026-1580 adding Chapter 20.280 to the San Marcos Municipal Code to adopt and implement SB79, including site exemptions, phased implementation areas, and zoning map amendments.
• Ordinance 2026-1581 (TA26-0001), a non-urgency ordinance, adding Chapter 20.280 to the San Marcos Municipal Code to adopt and implement SB79, including site exemptions, phased implementation areas, and zoning map amendments.
A. Transit-Oriented Development Stops and Zones, Exempted Areas, and Excluded Sites
B. One-Mile Walking Path Methodology Memorandum dated June 12, 2026
C. San Marcos Municipal Code (SMMC) Chapter 20.280: Transit-Oriented Development
D. Notice of Exemption (EX26-041)
E. Senate Bill 79 Full Text
F. Planning Commission Meeting Minutes from June 15, 2026
Prepared by: Sean del Solar, Principal Planner / Sustainability Program Manager
Punam Prahalad, Deputy City Attorney
Sarah Cluff, Senior Planner
James Crandall, GIS Program Manager
Julie Uhren, GIS Technician
Submitted by: Joesph Farace, Planning Division Director
Reviewed by: Isaac Etchamendy, City Engineer / Development Services Director
Helen Holmes Peak, City Attorney
Approved by: Michelle Bender, City Manager