Newsom Warns Cities Of Lawsuits Over California Sb 79 Law

California Gov. Gavin Newsom is threatening legal action against cities and counties that do not comply with a 2025 housing reform law that allows higher density near public transit.

During a Wednesday press conference, Newsom said his administration has warned 15 cities and counties that they have 30 days to comply with Senate Bill 79 or face legal action.​

Newsom’s move mirrors tactics other governors have used when local governments resist state zoning pre-emption. Colorado Gov. Jared Polis, for example, threatened to withhold grants and other funding from noncompliant cities.​

Newsom also said his administration plans to use financial pressure on cities and counties.​

“You don’t build, we are not going to fund,” he said at the press conference.​

California cities and counties have been racing to adopt local zoning ordinances by the end of March so state officials have enough review time before the law takes effect July 1.​

Law expands density near transit

Lawmakers passed SB 79 last year despite stiff opposition from local governments and neighborhood groups.​

SB 79 requires large transit counties to allow taller apartment buildings near rail and rapid bus stops. The law targets underused parcels already zoned residential, mixed-use or commercial within a short walk of major transit stops.​

The law sets minimum height, density and floor-area ratios for qualifying sites around those stations, overriding stricter local zoning rules. To qualify for SB 79 incentives, developers must include on-site affordable housing and avoid demolishing occupied or rent-stabilized homes.

Projects still go through local review, but cities cannot reject proposals that meet SB 79 requirements based on vague concerns about neighborhood character or scale.

Cities and counties may adopt tailored transit plans if they match or exceed SB 79’s overall housing capacity around covered transit stops. Jurisdictions can also delay full implementation until 2030 if they create new transit zoning for roughly half of SB 79’s units and adopt a capacity-neutral local plan.

Los Angeles votes to limit density

Newsom’s warning comes as Los Angeles lawmakers — who opposed the reform — voted this week to limit the law’s full density requirements.

The ordinance allows buildings up to four stories with four to 16 units, a less aggressive approach than SB 79’s six- to nine-story allowance near covered transit stops.

Slow housing construction, despite state housing laws, has emerged as a major issue in the city’s mayoral race.

Los Angeles City Council member Nithya Raman, who supports SB 79, is running on a platform focused on accelerating housing production. In a social media post, Raman pointed to a 350-unit affordable housing project the city blocked.

The city has also faced lawsuits from groups such as YIMBY Law. When Los Angeles loses, the city pays its own legal fees and those of the prevailing party.

YIMBY Law said in a social media post that it has won all four of its completed lawsuits because the City Council did not follow its own land-use laws.

“The total payout — just to us — is about $500,000,” the group wrote.