Construction Criticism

Weiner’s SB79: Construction Criticism

Alexander Pope had it right in 1709: "A little learning is a dangerous thing." California's latest housing fix, Senate Bill 79, proves his point perfectly.

Everyone's talking about streamlining as the magic bullet for our housing crisis. SB 79, the Abundant & Affordable Homes Near Transit Act, promises to cut red tape and build more homes faster near transit hubs. It sounds amazing until you dig deeper and realize we've been down this road before—and left a trail of unintended consequences.

The Promise

California needs 2.5 million new homes by 2030 just to keep pace with population growth [1]. SB 79 targets land near major transit stops, allowing denser multifamily developments with streamlined approvals for projects that include affordable units. The logic is sound: build near trains and buses, reduce car dependency, house more people.

Senator Scott Wiener's bill builds on previous efforts like SB 35 from 2017, which fast-tracked approvals for projects meeting affordability thresholds. Under SB 35, cities failing to meet their Regional Housing Needs Allocation (RHNA) goals faced automatic streamlining for qualifying developments. Projects needed just 10% affordable units for low-income households to bypass public hearings and environmental reviews.

Math looked great on paper. The execution? That's where Pope's warning about shallow learning becomes prophetic.

SB 35's Expensive Education

SB 35 was supposed to be a game-changer, spurring over 20,000 units in its first years. Developers quickly found the loopholes, and cities learned to game the system right alongside them.

Some jurisdictions underreported their housing progress or delayed RHNA updates to avoid triggering streamlining requirements. Others certified compliance when they hadn't met their goals. Developers pounced on these gaps, filing applications in non-compliant cities like San Diego and Oakland where projects could bypass community input entirely.

The "affordable housing" requirement became a joke. Projects needed only minimal affordable components—just enough to qualify—allowing market-rate heavy developments that inflated surrounding property values without meaningfully addressing the housing shortage [2]. A 2023 Terner Center report showed exactly how this played out across the state.

Enforcement of wage requirements proved equally toothless. Developers structured deals through non-union subsidiaries or lobbied for exemptions, cutting construction costs while undermining worker protections and community benefits.

In Los Angeles, one developer used SB 35 to demolish existing rent-stabilized units with inadequate replacement housing, displacing tenants before the project's affordability covenants even kicked in. The lawsuits that followed led to changes via SB 423, which tightened wage rules and added tenant relocation mandates—but only after real people got hurt.

SB 79

Proponents argue SB 79 addresses these failures head-on. The bill concentrates development near transit, includes stronger anti-displacement safeguards, and prevents developers from demolishing rent-controlled units without replacement housing at comparable affordability.

Projects must comply with just-cause eviction laws. Sites with evictions in the past 10 years are ineligible. A portion of new units must serve extremely low-income households earning 30% of area median income. These provisions directly target SB 35's demolition loopholes.

A 2025 Terner Center analysis suggests transit-oriented development under SB 79 could add 200,000 units statewide by 2035, with 40,000 affordable [3]. Governor Newsom's 2025 budget allocated $500 million for affordable housing infrastructure, signaling strong state support for this approach.

The mechanics sound improved, but the original guardrails, RHNA triggers and municipal oversight, are removed. Now the rules are made by regional transit boards and enforced by California’s Department of Housing and Community Development; an underfunded, understaffed

fundamental tension remains: can you streamline approval while protecting existing communities?

The Displacement Dilemma Nobody Wants to Discuss

Here's where Pope's wisdom cuts deepest. Streamlining sounds intoxicating until you soberly examine who pays the price.

Transit corridors often run through urban neighborhoods already home to renters and working-class families. In gentrifying areas like Long Beach or Oakland, new developments can drive up property values and rents faster than affordable units can be built to offset the pressure.

The Urban Displacement Project found that between 2000 and 2020, 25% of low-income households in high-transit California neighborhoods faced displacement risk, often due to rising costs from new construction [4]. Building more housing theoretically eases pressure, but developers prioritize market-rate units first. The lag time can inflate local values before affordable stock arrives.

Consider the mechanics of governmental approval—the "streamlining" everyone celebrates. It limits local ability to address context-specific issues like preserving historic districts, ensuring adequate green space, or managing parking shortages. San Francisco's experience with SB 423 led to lawsuits over unaddressed parking problems and shadow impacts on parks.

Federal Funding Adds Another Layer of Complexity

Many SB 79-eligible projects rely on federal Low-Income Housing Tax Credits (LIHTC), which require 55-year affordability covenants. That's long-term security for affordable units, but only if residents aren't displaced during construction.

Temporary relocation stipends are mandated, but enforcement varies widely. A 2024 California State Auditor report revealed gaps in tenant protections under similar streamlining laws, with 15% of affected households facing undue hardship during the approval and construction process [5].

Displacement isn't just economic—it's cultural and social. In communities of color, where transit corridors often overlap with historic Black and Latino neighborhoods, new developments can erode decades of social fabric and community networks.

The Investment Reality That Changes Everything

Institutional investors now hold 20% of California's multifamily stock, according to a 2025 Urban Institute report [6]. These players could flip properties post-approval, prioritizing profits over the community benefits SB 79 promises.

Speculative investment follows upzoning like sharks follow blood. When land gets rezoned for higher density, property values spike before a single shovel hits dirt. Current residents face higher rents and property taxes while waiting for years for the promised affordable units to materialize.

This isn't theoretical. It's the playbook that's been running across California for the past decade under various housing bills.

What Success Requires

SB 79 represents a critical step in Governor Newsom's "Abundance Agenda." If signed, Senator Wiener's office estimates it could deliver 50,000+ units near transit by decade's end. But success hinges on learning from SB 35's exploited flaws.

Real protection requires pairing SB 79 with robust rent stabilization expansions and community land trusts that retain local control. We need thorough anti-displacement impact assessments and funded tenant legal aid, not just promises in bill language.

For residents, this means demanding transparency: attending hearings, supporting groups like the California Housing Partnership, and questioning how "streamlined" truly benefits existing communities rather than just developers' bottom lines.

The Bottom Line: Wisdom Over Enthusiasm

As Pope suggested, true wisdom tempers enthusiasm with realism. SB 79 could provide much-needed housing near transit—or it could accelerate gentrification in vulnerable communities while enriching the same developers who gamed previous bills.

The difference lies in implementation, enforcement, and the political will to prioritize people over profit. California's housing crisis demands bold action, but bold doesn't have to mean reckless.

We need housing abundance, but not at the expense of the communities already struggling to survive in this state. That's the deep learning SB 79's success—or failure—will ultimately require.

America Foy is a real estate and development executive with 20+ years of experience bridging public and private sector initiatives. As Chief Real Estate & Development Officer at Where Ever Cogent., he specializes in asset optimization, strategic philanthropy, public-private partnerships, and complex transaction management. As former Real Property Agent for the City of Tracy, America designed municipal asset management systems, created risk mitigation solutions for dedicated land and authored policy frameworks for regulatory compliance. His expertise spans portfolio strategy, risk mitigation, and stakeholder alignment, making him a trusted advisor for governments, investors, and developers. A CA Real Estate Broker, General Contractor, and Mortgage Broker, he delivers compliant, and innovative solutions for any-scale real estate challenges.

Consulting Inquiries: america@whereever.net

[1] California YIMBY - SB 79 Transit-Oriented Development & Upzoning: https://cayimby.org/legislation/sb-79/

[2] CalMatters - Your neighborhood could get seven-story buildings if it's near a train station: https://calmatters.org/housing/2025/09/neighborhood-transit-upzoning/

[3] CalMatters - Breakthrough on California housing could put taller buildings in single-family neighborhoods: https://calmatters.org/housing/2025/09/california-housing-near-transit/

[4] LAist - Would California's big new housing bill affect your LA neighborhood? Use this map to find out: https://laist.com/news/housing-homelessness/los-angeles-sb-79-map-neighborhoods-address-housing-california-bill-bass-newsom

[5] LAist - How to know if your block could get denser housing: https://laist.com/brief/news/housing-homelessness/los-angeles-sb-79-map-neighborhoods-address-housing-california-bill-bass-newsom

[6] LegisState - Bill Text: CA SB79 | 2025-2026 | Regular Session: https://legiscan.com/CA/text/SB79/id/3247414