Status of the City's Temporary SB 79 Implementation Regulations

Published on August 04, 2026

Sente Bill (SB) 79 legislation is intended to facilitate the development of multi-family housing on land located in proximity to qualifying transit stations, with the goal of promoting transit-oriented development through the establishment of new minimum standards for building height, residential density, and floor area. In Palo Alto, there are several parcels located within the areas of three qualifying transit stations: two Caltrain stations within the City of Palo Alto and one Caltrain station in the City of Mountain View adjacent to Palo Alto.

SB79 Transit-tiering and applicable standards

Local jurisdictions may adopt regulations exempting historic properties or may prepare a transit-oriented development Alternative Plan that modifies applicable development standards, subject to review and approval by the California Department of Housing and Community Development (HCD). Sites within the SB 79 influence areas zoned at 50 percent of the standards in State law may also be exempted until one year after the adoption of the 7th cycle Housing Element amendment (January 31, 2032).

In recognition that SB 79 would go into effect on July 1, the City Council took steps in June to ensure continuity of local regulations by adopting a temporary ordinance that exempt locally designated historic resources from SB 79 standards through one year following adoption of the City’s 7th Cycle Housing Element, and established interim transient-oriented development standards at 50 percent of the development capacity otherwise permitted under SB 79. The ordinances also authorized corresponding zoning map updates and support the City’s ongoing efforts to implement SB 79 while protecting historic resources and planning for future housing growth.

The ordinance adopted by the Council on June 15 went into effect on July 16. Noting a gap between when SB 79 took effect on July 1, and the City’s ordinance effective date, the City received nine pre-applications proposing a total of 341 housing units and approximately 395,310 square feet of development. Noting that these are preliminary applications and that public hearings will occur at such time a formal application is submitted. Formal submittals are required within 180 days to comply with SB 330.

Initial preliminary project application information is provided below, and the map shows proposed project locations along with elevations and renderings from the preliminary plans.

Address	Units	Floor Area (Square Feet)	Zoning District	Ground Floor Commercial Proposed (Square Feet)
2455 EL Camino Real	76	90,000	CC(2)	0
525 Hamilton Ave.	21	27,430	CD-C(P)	5,775
414 California Ave.	39	66,080	CC(2)(R)(P)	10,724
555 College Ave.	70	70,475	CN	8,291
127 Lytton Ave.	24	20,925	CD-C(P)	4,650
135 University Ave.	17	14,491	CD-C(GF)(P)	3,000
340 Palo Alto Ave.	6	17,545	R-1	0
2497 High St.	19	19,250	RM-30	0
332 Forest Ave.	69	69,114	RM-40 SOFA 1	0
TOTAL	341	395,310

As noted, the City’s ordinance exempts locally designated historic resources from SB 79 standards through one year following adoption of the City’s 7th Cycle Housing Element and established interim transient-oriented development standards at 50 percent of the development capacity otherwise permitted under SB 79.

These interim development standards include:

A maximum Floor Area Ratio (FAR) of 1.75:1 for sites within one-quarter mile of a transit stop;

A maximum FAR of 1.5:1 for sites between one-quarter mile and one-half mile of a transit stop;

A maximum FAR of 2.25:1 for sites adjacent (within 200 feet) of a transit stop;

Minimum setbacks consisting of 10-foot front and rear setbacks and four-foot side setbacks unless otherwise prescribed by the underlying zone; and

Daylight plane standards beginning at a height of 16 feet and extending at a 45-degree angle when the subject property is adjacent to low-density residential zoning districts.

A new zoning map is now available online showing the areas covered by the new local zoning ordinances adopted by Council on June 15.

Next Steps

Over the next six to twelve months, staff will prepare implementing ordinances to codify the temporary ordinance while exploring opportunities to accelerate housing production on California Avenue and adjacent areas on El Camino Real. Additionally, work related to the Downtown Housing Plan will also advance.

Staff will continue monitoring guidance issued by HCD and any future amendments to SB 79 currently under consideration by the California Legislature.

Status of the City's Temporary SB 79 Implementation Regulations

Next Steps

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