LA City Council pumps brakes on ambitious affordable housing law

The Los Angeles City Council voted to delay implementation of SB 79, a state law taking effect July 1 that allows high-density affordable housing of up to nine stories near transit areas. The council will also advance a plan to upzone 55 single-family and low-density neighborhoods to allow four- to 16-unit buildings up to four stories tall.

Council members considered three options centered on how much authority the city would have over L.A. County-controlled transit areas, how to fund outreach to tenants and property owners and the potential impacts of the law on development.

Councilmember Bob Blumenfield (Third District) described the options as ranging from immediate implementation to potential delays.

“Option A was basically saying SB 79 is the law—pedal to the metal,” Blumenfield said. “Option B was, anywhere we can legally delay, let’s do so. Option C was more of a Goldilocks approach—being thoughtful, keeping with the spirit of the law, but trying to be strategic about any delays.”

Blumenfield said Option C emerged as the most viable path forward, directing the city’s Planning Department to develop three sub-options—C1, C2 and C3—to further evaluate implementation.

Councilwoman Katy Yaroslavsky (Fifth District) said Option C1 most closely aligns with the city’s existing plans for housing near transit.

“It allows more housing in higher-opportunity areas by expanding and improving the Corridor Transit program,” Yaroslavsky said. “That program allows three- to four-story multifamily housing near transit for the first time in decades—and in some places, for the first time ever. At the same time, Option C1 delays the full impact of SB 79 in lower-resource areas, fire zones and historic districts until 2030. In my mind, C1 is phase one.”

The Planning Committee said beginning this first phase would meet SB 79 requirements in its first year and move the city closer to full implementation by 2030.

Councilmember Adrin Nazarian (Second District) proposed Option C2, which would fund outreach and notification efforts for tenants and property owners. The proposal was supported by Councilmember Hugo Soto-Martínez (13th District), who said Option C1 does not go far enough.

“It’s about asking for funding to send out notices so neighborhoods know what is going on,” Soto-Martínez said. “As we work through these issues, we have to work with our communities, get into the weeds and find the right solution.”

Council President Marqueece Harris-Dawson (Eighth District) and Nazarian initially did not reach a consensus on whether the notification program would be funded through the city’s general fund or another source.

Harris-Dawson said it was unclear where the funds—capped at $650,000—would come from and how that would affect the next fiscal year’s budget.

Nazarian said the council must be as transparent as possible with the community when implementing the bill.

City Planner, Kevin Keller said funding would most likely come from the city’s general fund or other sources.

Harris-Dawson expressed concern that funding the program could mean diverting money from other priorities.

“We would appropriate it ourselves—it would just go through the budget, because appropriating money for that may mean not appropriating money for something else,” Harris-Dawson said.

Ultimately, the council agreed to direct the Planning Department to draft a report, with the Budget Committee reviewing the proposal further, contingent on identifying funding without delaying the process. The plan is expected to return to the council for another vote in April.