The Downtown Revitalization Act

AB 2074 will accelerate the recovery of dense, urban neighborhoods in California’s largest cities by streamlining the construction of high-rise, residential and mixed-use developments near regional transit hubs.  The bill includes a low-interest revolving loan fund that will help lower construction costs.

The bill requires California’s seven largest transit-rich cities, with populations over 400,000 — Los Angeles, San Diego, San Jose, San Francisco, Sacramento, Oakland, and Long Beach — to designate regional transit districts.  New standards would apply across these districts: a 150-foot height baseline, with at least 25% of each district allowing 450 feet or more. Proposed residential housing projects that meet the bill’s labor standards would be eligible for streamlined approval.

The bill also creates a state-backed loan fund, administered by the California Housing Finance Agency, that will offer low-interest loans to projects meeting labor and affordability standards to help reduce construction costs. The revolving fund will be paid back upon project completion, creating a virtuous cycle for the development of lower-cost, high-rise housing near designated regional transit hubs.

Updates

  • AB 2074 was introduced in the Assembly on February 18, 2026. It passed the Assembly Local Government Committee on April 15, 2026 and now goes to the Assembly Natural Resources Committee.

Author

  • Matt Haney (AD 17)

Sponsors

  • California YIMBY
  • State Building and Construction Trades Council of California

Resources