Transit-oriented housing developments: local governments: transit agencies and projects.

The bill was reformatted from a line-numbered PDF-style layout (with page headers, footers, and sequential line numbers) to a web-friendly format with navigation menus, search tools, version dropdowns, and publication metadata.

Website UI elements were added including navigation links (home, accessibility, FAQ, sitemap, login), quick search functionality, bill tracking options, and a date published stamp of 08/18/2026.

Removed the entire exemption (former subdivision (o)) that would have excluded local agencies, cities, councils of governments, regional transportation agencies, transit agencies, and county transportation agencies from the bill's requirements if they adopted a policy by January 1, 2026 to complete at least 10,000 housing units (at least 50% income-restricted) by January 1, 2032. This means no local agency can opt out of the transit-oriented housing development rules.

Added Senator Arreguin and Assembly Member McKinnor as coauthors of the bill.

Expanded the prohibition on local governments requesting transit service reductions near TOD stops. Previously only covered requesting a transit provider to reduce service at a stop. Now also prohibits requesting removal of a transit-oriented development stop or removal of a dedicated transit lane, and changes 'transit provider' to 'transit provider agency.'

Broadened the prohibition on conditioning transit project approvals. Previously only covered conditioning approval on height/density impacts. Now also covers withholding approval, specifies it applies to transit projects that include a TOD stop, and clarifies the height/density is 'available to' the housing project rather than simply 'required by' the chapter.

Expanded the prohibition on federal funding support for transit projects. Previously only covered withholding support. Now also covers withdrawing support, specifies it applies to transit projects that include a TOD stop, and uses the same clarified language about height/density being 'available to' the housing project.

The term 'transit providers agencies' was replaced with 'transit agencies' throughout the bill, simplifying language without changing meaning.

Senator Wiener was added as a coauthor of the bill.

Subdivision (c)(2)(B) now reads that a local government shall not condition or withhold approval of a transit project 'on the basis of the impacts of additional height or density,' adding the clarifying phrase 'on the basis of' to make the prohibition more explicit.

Entirely new Section 65912.157 added to the Government Code establishing mandatory transit-oriented housing development standards near Tier 1 and Tier 2 transit stops within 1/4 to 1/2 mile radius

The original Mello-Roos naming amendment is retained but renumbered from Section 1 to Section 2, and the bill title now references both local government and land use

Local governments cannot impose height limits below 75 feet (Tier 1, within 1/4 mile), 65 feet (Tier 1 within 1/2 mile in cities of 35,000+, or Tier 2 within 1/4 mile), or 55 feet (Tier 2 within 1/2 mile in cities of 35,000+); cannot cap density below 120, 100, or 80 units per acre respectively; cannot enforce standards that preclude floor area ratios up to 3.5, 3, or 2.5

Affordability requirements: at least 7% extremely low income units, 10% very low income units, or 13% lower income units; 55-year affordability for rental units and 45 years for ownership units; local inclusionary requirements apply if they mandate higher percentages

Adjacency intensifier: projects immediately adjacent to a transit stop get an additional 20 feet of height, 40 units per acre of density, and 1.0 floor area ratio before applying Section 65915 incentives

Prohibition on locating projects on sites where rent-controlled housing (more than 2 units) was demolished within the past 7 years or is currently occupied by tenants under rent control

Local agencies are exempt if they adopted a policy by January 1, 2026 to complete at least 10,000 housing units (at least 50% income restricted) by January 1, 2032, unless Tier 1 stops or light rail/high-frequency commuter rail Tier 2 stops are operational as of January 1, 2026

Starting January 1, 2027, denial of a qualifying project in a high-resource area creates a presumption of Housing Accountability Act violation with immediate penalty liability unless the local government demonstrates a health, life, or safety reason

Section takes effect July 1, 2026 unless a local agency adopts a compliant ordinance before that date; does not apply in unincorporated county areas until the 7th regional housing needs allocation cycle

Section 2, which amended Government Code Section 53311 to rename the Mello-Roos Community Facilities Act of 1982, is entirely removed. The bill title changes from 'relating to local government' to 'relating to land use.'

New subdivision (c)(2) prohibits a local government with an existing or planned transit-oriented development stop from: (A) requesting the transit provider to reduce service so the chapter's requirements do not apply, (B) conditioning approval or review of a transit project on the impacts of additional height or density required by the chapter, or (C) withholding support for federal funding of a transit project based on additional height or density required by the chapter.

Minor typo corrections: removed duplicate word 'Installations' in 'Department of Defense Air Installation Compatible Use Zones' and duplicate 'California' in 'California Wildland-Urban Interface Code.'