Less Red Tape Means Faster Returns
- Davenport Real Estate Group Operations
- 7 days ago
- 3 min read
California’s newest housing reforms — Senate Bill 79 and Assembly Bill 130 — are poised to accelerate the state’s transition toward higher-density, transit-oriented housing and faster project delivery.
For developers, investors, and landowners, these changes redefine opportunity zones and entitlement timelines. The focus is clear: unlock underused parcels and deliver housing faster.
Senate Bill 79 — The Abundant & Affordable Homes Near Transit Act
Effective July 1, 2026
SB 79 upzones land within one-half mile of major transit stops, allowing for taller, denser, and more flexible multifamily development across California’s urban corridors. The intent is to cluster housing near transit, cut commute emissions, and reduce the pressure on suburban sprawl.
Transit-adjacent land is entering a new value tier. Zoning changes are increasing allowable units and height limits while reducing parking requirements — directly impacting acquisition value and long-term yield models.
Identify parcels within half a mile of rail or BART stations.
Review zoning overlays — parcels previously limited to low-density may now qualify for mid-rise or mixed-use projects.
Coordinate early with city planning to secure entitlements before developer demand spikes.
Success Story:
After earlier up-zoning near the Berryessa BART station, landowners who acted quickly saw double-digit appreciation and increased investor interest before construction even began. SB 79 could create similar ripple effects across key Bay Area and Central Valley corridors.
Assembly Bill 130 — CEQA Streamlining for Infill Housing
Signed June 30, 2025 – Effective Immediately
AB 130 removes many infill housing projects from the long and expensive California Environmental Quality Act (CEQA) process. Projects that meet specific infill and density requirements can now move directly to local approval without triggering full environmental review.
By eliminating CEQA delays, developers can save six to eighteen months of entitlement time — reducing hold costs, carrying interest, and legal exposure. This accelerates project timelines, improves IRR, and can dramatically shift acquisition strategy.
Re-evaluate infill parcels previously shelved due to CEQA constraints.
Model new timelines and profitability under streamlined review.
Emphasize “CEQA-exempt” in investor decks and marketing collateral — a powerful differentiator in 2026’s competitive environment.
Success Story:
A San Jose developer revived a downtown duplex-to-fourplex project previously halted by CEQA litigation. With AB 130 in effect, the project moved from submission to approval in under 90 days, unlocking a 42 percent valuation lift and multiple developer offers.
Strategic Takeaways
CEQA Streamlining (AB 130) = Faster approvals, lower costs => Now
Transit Up-Zoning (SB 79) = Increased land value, higher density potential => July 2026
The state’s direction is unmistakable: density where infrastructure exists and speed where bureaucracy once stalled progress.
For investors, this is a moment to align portfolios with the policy curve — not lag behind it. Transit-adjacent parcels and infill opportunities are shifting from passive holdings to active wealth vehicles.
Audit your holdings near transit or in designated infill zones.
Partner with entitlement consultants now — before competitive demand rises.
Re-market qualifying listings as “infill-ready” or “transit-eligible” for maximum buyer attention.
Align investment timing with the 2026 policy window for optimal gains.
Team Success Story
Our team recently repositioned a downtown infill parcel under AB 130’s new framework — reducing entitlement time by nearly a year and achieving a substantial valuation lift. Early action, informed by policy insight, continues to deliver tangible returns.
Stay Informed. Stay Ahead.
California’s 2025 legislative reforms are changing more than housing — they’re changing where the next wave of real-estate value will be built.
Contact our team for a personalized briefing on how SB 79 and AB 130 affect your holdings, contact.
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