Governor Newsom Signs Bill to Revitalize Cities With Downtown Housing

AB 2074 Streamlines Approvals for Highrise Housing in Seven Cities

“California’s largest cities just got a major housing boost”

Sacramento – Today, Governor Gavin Newsom signed into law AB 2074, a bill by Assembly Member Matt Haney (San Francisco) that seeks to revitalize dense, downtown districts in seven cities across California by creating new, streamlined standards for “high rise housing” near transit. 

“The pandemic is over, but many of our largest cities are still struggling to bring vitality back to their downtown neighborhoods,” said Brian Hanlon, CEO of California YIMBY. “By signing AB 2074 into law, Governor Newsom will help expedite the construction of taller, denser  residential buildings in our largest cities. Thanks to Governor Newsom and Asm. Matt Haney for their leadership in helping California’s largest cities recover with more homes.”

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 requires the California Housing Finance Administration (CalHFA) to study existing housing construction loan and financing programs and make recommendations to the State Legislature on how to create a loan program for projects proposed under AB 2074.