SB 79 Alternative Plans: HCD Rejects Beverly Hills and Burlingame

Informational only, not legal advice. ADU rules change often and differ by city. Confirm with your local planning department before you rely on anything here.

The first test of the SB 79 alternative plan is going badly for the cities that tried it. In letters dated September 3, 2026, the California Department of Housing and Community Development (HCD) found that the alternative plans adopted by Beverly Hills and Burlingame are not in substantial compliance with SB 79 (Wiener), the transit-oriented upzoning law that took effect July 1, 2026. Both cities had until November 2, 2026 to answer. The practical result is simple: until HCD approves a plan, the state's own SB 79 standards apply around those cities' transit stops, not the local version.

What an SB 79 alternative plan is supposed to do

SB 79 raises the allowed density, height and floor area ratio near qualifying rail and bus rapid transit stops. Cities that dislike where that capacity lands can adopt a "transit-oriented development alternative plan" under Government Code section 65912.161. As the Beverly Hills staff report summarizes it, a plan may cut SB 79 density by up to 50% on individual sites and move it to other eligible sites, as long as:

• the plan keeps the same total net zoned capacity, measured in both units and residential floor area, and
• no receiving site goes above 200% of the SB 79 density.

The city adopts the plan, sends it to HCD, and HCD has up to 90 days, plus a possible 30-day extension, to issue findings. If HCD finds a problem, the city gets 60 days to amend the plan or adopt findings explaining why it disagrees. A city that does neither can be reported to the Attorney General.

Burlingame: parks and institutional zones count

Burlingame's plan, adopted under Ordinance No. 2050, left sites zoned Parks and Recreation (PR) and Public and Institutional (P/I) out of its capacity math. HCD said that does not work. The same plan opened those zones to housing, and the P/I zone already permits commercial uses such as offices and medical clinics. SB 79 applies to any site zoned for residential, mixed or commercial use near a stop, so those parcels have to be counted.

HCD also told the city to strip language that pulled in SB 79's modified density bonus rules. Its position: because an alternative plan is part of the city code, the full State Density Bonus Law applies on its own terms.

Beverly Hills: the density bonus fight and the decision to rescind

Beverly Hills' plan, first adopted January 21, 2026, cut SB 79 density by half on single-family lots within a quarter mile of its two Metro stations and moved it to mixed-use sites near the La Cienega station. HCD's May 8, 2026 letter flagged two problems: the receiving sites got more units without more floor area, and the city had left rent-stabilized buildings out of its capacity count. HCD said those sites must be counted, because the seven-year limit on demolishing rent-controlled units eventually runs out.

The city revised the plan on June 9. According to its October 20 staff report, staff met with HCD at least 14 times and received email confirmation on May 29 that the revisions answered the May letter. The September 3 letter then found the plan still out of compliance on net capacity and, more importantly, said density bonus height waivers and concessions must be granted on top of the plan. Staff argued that leaves no certain height limit. HCD's own letter puts the city's SB 79 capacity at 22,484.5 units gross and 19,549.5 net, after subtracting 2,935 existing units.

Staff recommended rescinding the plan so the baseline SB 79 provisions apply, with a repeal ordinance going to the Planning Commission and then the City Council. California Planning & Development Report reports that HCD has also sent findings to Pasadena and Oceanside, with deadlines in late November and mid-December. We have not seen those two letters, so we are not summarizing them here.

How SB 79 fits with ADUs, SB 9 and SB 1211

SB 79 does not replace the pathways most of our clients use. On a single-family lot you can still add an ADU and a JADU under state law (see every 2026 ADU rule), or split the lot under SB 9. On a multifamily lot, SB 1211 still allows up to eight detached ADUs. What SB 79 adds near a stop is a much larger option: a mid-rise building on land that used to allow one house.

Our recommendation:

1. Check whether you are in a TOD zone. Use the regional SB 79 map (SCAG in Southern California, MTC in the Bay Area). HCD says those maps carry a rebuttable presumption of validity.
2. Run both numbers. An ADU or SB 9 project costs less and is faster. An SB 79 building can hold far more units, but it is a different project with different costs and lenders. Our SB 79 guide covers the tiers and heights.
3. Watch the city's response. If Beverly Hills rescinds or Burlingame amends, the rules on a given parcel can shift again. Get a written zoning confirmation before you commit to a design.

Parcy shows what the ADU, SB 9 and SB 1211 pathways allow on any California address.

Frequently asked questions

What is an SB 79 alternative plan?

A local plan that lets a city move SB 79 density around within its transit-oriented development zones. It can cut SB 79 density by up to 50% on some sites and shift it to others, but it must keep the same total net zoned capacity in units and residential floor area, and HCD reviews it for compliance.

Does SB 79 apply in Beverly Hills and Burlingame right now?

Yes. HCD's September 3, 2026 letters say the state's standard SB 79 provisions apply unless and until the city adopts an alternative plan HCD has approved. Beverly Hills staff recommended rescinding its plan altogether, which would leave the baseline rules in place.

Does the density bonus law apply to SB 79 projects?

In a city with an alternative plan, HCD says yes: the State Density Bonus Law applies independently, so a city cannot use its plan to block density bonus height waivers or concessions. Whether a specific project qualifies depends on its affordable units, so have it checked.

Can a city opt out of SB 79?

Not entirely. A city can adopt an alternative plan that redistributes density, and the law allows some delays and exclusions, but HCD must find the plan in substantial compliance. A city that ignores HCD's findings can be reported to the Attorney General.

Official bill text

• SB 79 — Housing development: transit-oriented development. (official bill text, California Legislative Information)

Sources

• HCD findings letter to the City of Burlingame, September 3, 2026 — Not in substantial compliance; P/I and PR zones; density bonus language; response due November 2, 2026
• HCD review letter to the City of Beverly Hills, May 8, 2026 — Import-site floor area; rent-stabilized sites must be counted in capacity
• City of Beverly Hills staff report, October 20, 2026 City Council meeting — September 3 HCD letter, density bonus reversal, 22,484.5 / 19,549.5 unit capacity figures, recommendation to rescind
• HCD: SB 79 Transit-Oriented Development — HCD's review of local SB 79 ordinances and alternative plans
• Government Code section 65912.161 (alternative plans) — Net zoned capacity in units and residential floor area

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• SB 79 HCD findings
• SB 79 Beverly Hills
• SB 79 Burlingame
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• does density bonus apply to SB 79
• SB 79 net zoned capacity
• can a city opt out of SB 79
• Beverly Hills
• Burlingame

Informational only. Not legal, architectural, or investment advice. Confirm current rules with your local planning department.