Undercover Billionaire star and real estate investor Elaine Culotti came on the shot to talk about California Senate Bill 79, recently signed by Governor Gavin Newsom, which overrides local zoning to allow high-density housing near public transit stops. Culotti argues the law strips local communities of control and enables large developers to build nine-story apartments in single-family neighborhoods, calling it a “land grab.”
She and Jimmy discuss how the policy is being applied in places like the Pacific Palisades, where a bus terminal addition near the Gladstones redevelopment paves the way for high-rise construction. Both criticize Newsom’s housing agenda as authoritarian and warn that California lacks the infrastructure to support the dense developments being mandated.
California Gov. Gavin Newsom Signs SB 79, Unlocking Higher Residential Density Near Transit
Applicants, Investors and Localities Should Carefully Consider How Senate Bill 79 Can Be Invoked to Unlock Higher Density, Either Alone or in Concert with Other Applicable Housing Streamlining Laws
California Gov. Gavin Newsom signed Senate Bill (SB) 79 into law on Oct. 10, 2025, with a strong statement of support. Of SB 79, which in part addresses local limits with regard to high-density housing development, the governor said that “far from limiting local control, the bill strengthens it” because it “gives local governments the tools to take ownership of outcomes with state law serving as a backstop” and further emphasized that the bill does not impact the ability of residents to rebuild homes damaged or destroyed in the January 2025 wildfires. The governor concluded that “[t]he world looks to California for leadership – it’s time to build modern, connected communities that fulfill California’s promise, meeting the needs of today and the next generation. The cost of inaction is simply too high.”
SB 79 overrides local density limits to allow high-density housing development within one-half mile of qualifying transit stops (including Caltrain, Los Angeles County Metropolitan Transportation Authority (LA Metro), Bay Area Rapid Transit (BART), Sacramento Regional Transit (SacRT) and Santa Clara Valley Transportation Authority (VTA) stops) in counties with significant existing transit infrastructure such as Los Angeles, San Bernardino, San Diego, Santa Clara, San Mateo, San Francisco, Alameda and Sacramento. SB 79 is Sen. Scott Wiener’s third attempt at the “greater density near transit” concept – a key priority of the Yes in My Backyard (YIMBY) movement – and comes on the heels of two prior failed efforts: 2018’s SB 827 and 2020’s SB 50.
https://www.hklaw.com/en/insights/publications/2025/10/california-gov-gavin-newsom-signs-sb-79
