Riverside May Have Escaped New Housing Regulations - for Now

Senate Bill 79 passed the California legislature last week with sweeping provisions to override local zoning near transit stations, but City planners believe the law may not apply locally because of county-level thresholds in the legislation.

City planning staff’s initial analysis suggests the transit-oriented development law only affects counties with at least 15 passenger rail stations and individual stations serving at least 48 trains daily, thresholds the County does not meet. If accurate, this would exempt the City from mandates allowing buildings up to seven stories within a half-mile of Metrolink stations, providing unexpected relief for a community grappling with intense development pressure.

The apparent exemption comes as the City faces one of California’s most challenging housing situations. Rising median home prices have pushed working families to increasingly distant communities, creating lengthy commutes that strain regional transportation systems. Unlike coastal cities with room for suburban expansion, the City’s geographic constraints make infill development essential but contentious, particularly in historic neighborhoods that anchor the City’s tourism economy and community identity.

“There has long been some interest in encouraging transit-oriented development around our downtown Metrolink station,” said Matthew Taylor, a City planning official. “But there have been many efforts over nearly a 30-year period to update our plans for that area, and none have panned out for various reasons.”

The challenge reflects broader tensions between state housing mandates and local preservation priorities. California’s housing shortage has prompted increasingly aggressive state intervention in local planning decisions, with lawmakers arguing that local control has contributed to the crisis by allowing communities to block needed development.

The City’s historic districts serve as key marketing components that attract visitors and support local businesses. The Mission Inn, downtown’s Victorian neighborhoods, and other preserved areas generate significant tourism revenue while defining the community’s character. Balancing this economic and cultural asset with housing needs creates ongoing planning challenges.

The City appears to be preparing for future development pressure regardless of current exemptions. A pilot program under consideration would allow property owners to transfer housing density from sensitive areas to University Avenue, directing growth toward corridors better equipped to handle increased development. Many of the properties involved in the density transfer program sit within a mile of Metrolink stations, suggesting City planners are creating tools to manage transit-oriented development whether mandated by state law or driven by market forces.

The proactive approach reflects uncertainty about long-term regulatory immunity. Even if SB 79 doesn’t currently apply, developers are expected to test the law’s boundaries through the permitting and litigation processes, potentially expanding its scope through court interpretations or administrative guidance.

Other state housing reforms enacted this year do affect the City directly. Assembly Bill 130 and Senate Bill 131 streamlined environmental review for infill housing projects and imposed faster approval timelines on local agencies. These California Environmental Quality Act reforms eliminate many procedural barriers that previously allowed project opponents to delay development, though they maintain some protections for individually listed historic properties.

The regulatory landscape continues to evolve as state lawmakers pursue additional housing legislation. Future bills may close perceived loopholes or expand requirements to communities currently exempt from various mandates.

The City also faces development opportunities beyond residential construction. Empty warehouse facilities near Metrolink stations could provide sites for adaptive reuse or mixed-use projects that combine housing with commercial space. The industrial corridor near March Air Reserve Base, once served by electric rail in the early 20th century, represents potential for transit-oriented development if regional rail connections were restored.

City planning staff caution that their interpretation of SB 79’s scope remains preliminary and subject to further legal analysis. Implementation guidance from state agencies and early court challenges to the law will likely clarify which jurisdictions face upzoning requirements.

For now, the City appears to have avoided one major regulatory change while continuing to grapple with fundamental housing pressures affecting communities throughout California. The City’s preparation for future development challenges suggests recognition that regulatory relief may prove temporary in a state determined to address its housing crisis through increasingly assertive intervention in local planning decisions.