- “Our agreement with labor on SB 79 will yield more homes, better jobs, and quicker timelines.” – Brian Hanlon, CEO of California YIMBY
By Vanguard Staff
SACRAMENTO — California YIMBY announced Thursday that new amendments to SB 79 extend labor provisions to new homes built under the bill, securing support from UNITE HERE and a neutral position from the State Building and Construction Trades Union.
“Our agreement with labor on SB 79 will yield more homes, better jobs, and quicker timelines,” said Brian Hanlon, CEO of California YIMBY. “We’re proud to stand with labor to make sure those workers are paid good wages and get good benefits. With these amendments, all SB 79 housing projects on transit agency land, and above 85 feet in height, require strong labor standards — the projects that need the most skilled crews — while keeping the rest of SB 79 free of new mandates.”
The amendments, negotiated by California YIMBY and labor representatives, ensure that projects over 85 feet built under SB 79 must use skilled and trained labor standards, unless a project does not receive at least three qualified bids. Projects built on land owned by transit agencies will either use the SB 423 labor standards or enter into a project-labor agreement. The bill does not authorize construction of new hotels.
The deal brings UNITE HERE in as a supporter of SB 79, while the Building Trades are expected to remain neutral, a shift from earlier opposition. “Workers build California,” UNITE HERE emphasized in a statement backing the compromise, pointing to the importance of labor protections in the state’s construction boom.
SB 79, authored by Sen. Scott Wiener, is co-sponsored by California YIMBY and a coalition of housing and planning groups. The bill is designed to make it faster and easier to build multi-family housing near transit stops, such as rail and rapid bus lines, by overriding local zoning that currently prohibits such development.
“California has a deep housing shortage that is fueling skyrocketing rents, crushing long commutes, and pushing families into poverty,” Wiener said when introducing the bill in January. “If we’re serious about tackling this crisis, we need to legalize more housing near public transportation, so people can live closer to jobs, schools, and the transit infrastructure they pay for.”
Currently, many California cities ban most new housing near transit stations, a restriction that contributes to high housing costs, worsens traffic and pollution, and undermines the viability of public transit. SB 79 seeks to change that by setting statewide rules that allow more housing in areas with high-quality transit.
Under the bill’s framework, the type of new homes that will be permitted is determined by distance from a transit stop, the type and frequency of transit service, and the overall level of infrastructure in the region.
The legislation establishes two development tiers. In larger urban areas, qualifying sites within a half-mile of major transit stops would be eligible for increased density. In very small cities, the radius is reduced to a quarter-mile.
SB 79 includes a minimum affordability requirement for all projects, with additional density bonuses available for deeper affordability. Developers are barred from demolishing rent-stabilized homes of three units or more, or multifamily housing occupied by tenants within the past seven years. These protections build on existing state displacement-prevention laws.
Advocates say these provisions are critical for ensuring that SB 79 supports housing for low- and moderate-income families rather than fueling gentrification. “Housing policy must serve equity and affordability, not just supply,” said Hanlon. “By pairing affordability standards with displacement protections, SB 79 strikes that balance.”
While the bill sets statewide rules, it also gives local governments flexibility to craft their own transit-oriented development plans, so long as they meet minimum density targets. Cities can phase in new density over two to three years and, in lower-resource areas, request additional deferrals to allow for community planning.
The bill also includes “fire flexibility” safeguards. In communities located in very high fire severity zones, local governments will have at least three years to adopt plans that maximize wildfire safety. Jurisdictions can also shift density away from fire-prone areas while still meeting overall housing growth targets.
The labor amendments to SB 79 reflect a broader political shift in California housing policy. For years, conflicts between pro-housing advocates and construction unions have slowed or blocked housing bills in Sacramento. By aligning with labor on high-rise projects and transit-agency land, YIMBY groups hope to avoid the kind of standoffs that derailed earlier legislation.
The compromise mirrors the approach taken in SB 423, which passed in 2023 and extended housing streamlining laws while incorporating strong labor standards. Under SB 423, large projects must use a skilled and trained workforce or demonstrate that no qualified bids were received.
In negotiations on SB 79, labor unions pushed for similar protections on projects most likely to involve complex construction. The resulting amendments cover high-rise developments and projects on transit-agency land — areas where public accountability and technical expertise are most critical.
For YIMBY groups, securing a neutral stance from the Building Trades is a significant achievement. “When labor and housing advocates are fighting each other, nobody wins,” Hanlon said. “This agreement shows we can find common ground that delivers both homes and good jobs.”
SB 79 has moved steadily through the Legislature this year. It was introduced on Jan. 15, 2025, and passed out of the Senate Housing Committee on April 22, the Senate Local Government Committee on April 30, and the Senate Appropriations Committee on May 23. The bill cleared the Senate floor on June 3 by a 21-13 vote.
In the Assembly, the bill passed the Housing Committee on July 2, the Local Government Committee on July 16, and the Appropriations Committee on Aug. 29. It now heads to the Assembly floor, where final passage is expected in September.
SB 79 is co-sponsored by California YIMBY, Streets For All, SPUR (San Francisco Bay Area Planning and Research Association), Bay Area Council, Greenbelt Alliance, and the Inner City Law Center. Environmental and housing advocates have rallied behind the bill as a key measure for addressing California’s intertwined housing and climate crises.
Supporters say that by concentrating housing near transit, the bill will reduce greenhouse gas emissions from long car commutes, increase transit ridership, and strengthen the financial stability of transit agencies. “More homes near transit means fewer cars on the road, cleaner air, and healthier communities,” Greenbelt Alliance said in its endorsement of the bill.
With labor on board and momentum in the Legislature, SB 79 is now poised for a floor vote in the Assembly. If approved, it will head to Gov. Gavin Newsom’s desk, where it is expected to be signed.
For Wiener and housing advocates, the bill represents a major step in California’s ongoing effort to address its housing shortage through zoning reform. For labor unions, the amendments mark a recognition of the need to expand housing while ensuring that construction workers share in the benefits.
“California can’t solve its housing crisis without building more homes near jobs and transit,” Wiener said. “SB 79 is about creating affordable, sustainable communities where people can thrive. And thanks to this agreement, it will also mean good jobs for the workers who build them.”
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Saw the headline and said, I bet it’s a Project Labor Agreement :-(
And this, ladies and gentlemen, is why we can’t have nice things :-|