New Bill Would Bring More High-Rise Housing to Transit Hubs in California’s Largest Cities
Legislation Addresses Local Permitting Delays, Financing Gaps for Taller Buildings
For too long, the economics of building high-rise housing in California’s downtowns simply haven’t worked. AB 2074 changes that.
SAN DIEGO – California’s seven largest and most transit-rich cities could get a major boost in downtown high-rise housing development, including state funds to close construction finance gaps, under a new bill proposed by the California state legislature.
AB 2074, authored by Assemblymember Matt Haney (D-San Francisco) and sponsored by California YIMBY and the State Building and Construction Trades Council of California, streamlines permitting and creates a self-sustaining revolving loan fund to make it easier to build high-rise residential construction in California’s largest and most transit-rich cities.
“For too long, the economics of building high-rise housing in California’s downtowns simply haven’t worked. AB 2074 changes that,” said Brian Hanlon, CEO of California YIMBY. “It’s time to build up.”
High-rise construction generally costs more than comparable mid-rise and low-rise buildings. It also typically takes longer and is harder to finance than lower-rise projects. AB 2074 addresses all three barriers at once, setting clear density standards near transit, cutting permitting delays, and standing up a revolving loan fund that reduces financing costs.
“I’ve spoken with city leaders across California and the message is clear: our downtowns are still struggling and need new energy,” said Assemblymember Matt Haney (D- San Francisco). “AB 2074 makes that possible by building dense housing where it’s needed most, while creating good-paying jobs in the process.”
“These are complex projects that require a highly skilled workforce,” said Chris Hannan, President of the State Building and Construction Trades Council of California. “AB 2074 ensures they are built to the highest standards—delivering quality housing and family-sustaining jobs.”
“This is the kind of policy that big cities need right now,” said Mayor Todd Gloria. “It makes it easier to build more affordable housing while directly supporting good-paying jobs. In San Diego, we’ve done the work to get housing built faster, and we’re seeing the results. This bill takes the next step by turning underused spaces into homes near jobs and transit.”
“Long Beach is leading the way in building a vibrant, 24/7 downtown where more people can live, work, and connect. AB 2074 builds on that momentum by giving cities like ours additional tools, including a state-backed revolving loan fund, to accelerate housing production where it’s needed most,” said Mayor Rex Richardson. “With stronger state partnership, we can keep investing in our dynamic downtown, expand housing opportunities, and make Long Beach more affordable and accessible for everyone.”
“Downtown San Diego proves that building housing works — rents are stabilizing, and we have the transit and jobs to build on our momentum. AB 2074 helps us finish what we started.” -Stephen Whitburn, San Diego Councilmember representing Downtown
“Downtown San Diego is already one of California’s best places to live, work, and invest. AB 2074 unlocks more housing that brings more residents, more businesses, and more vibrancy to our urban core.” – Justine Murray, Vice President of Government Affairs, Downtown San Diego Partnership
“California can’t meet its climate goals if we’re not putting more homes next to transit. AB 2074 is a climate-smart housing policy that will allow Californians to have cleaner commutes.” – Nicole Capretz, Founder and CEO of Climate Action Campaign.
“More people living near transit makes our whole transportation system work better. Allowing more homes at transit hubs is one of the most impactful ways to get there, and AB 2074 will make that happen.” – Colin Parent, CEO and General Counsel, Circulate Planning & Policy
“High-density housing near transit is essential to a vibrant downtown. AB 2074 builds more homes where they’re needed most, brings down costs for residents, and creates high-quality union construction jobs. When downtowns thrive, cities thrive.” – Anthony Tordillos, San Jose City Councilmember representing Downtown