California’s new transit-housing law took effect July 1, creating new development rules near qualifying transit stops in seven California counties. But the law does not apply to every property near every station, and it does not currently apply in Orange County. Senate Bill 79, signed by Gov. Gavin Newsom in October 2025, creates new rules for certain housing developments near qualifying transit stops in designated “urban transit counties.” The law is codified in Government Code sections 65912.155 through 65912.161.

As of July 1, the designated counties are Alameda, Los Angeles, Sacramento, San Diego, San Francisco, San Mateo and Santa Clara. Orange County is not currently on that list. The Southern California Association of Governments says Orange County will become an urban transit county when the OC Streetcar begins revenue service. That is not expected to happen immediately. The Orange County Transportation Authority now lists the OC Streetcar as beginning service in early 2027. OCTA had previously projected an earlier opening, and the project has faced delays involving utility conflicts, contaminated material and archaeological resources. The current project cost is listed at $649 million. In June, OCTA said crews had begun energized testing in downtown Santa Ana. The streetcar remains in testing rather than passenger service. That distinction matters in Fullerton. Being near a Metrolink station does not, by itself, mean that SB 79 currently changes what can be built on your property.

In counties covered by the law, SB 79 makes qualifying multifamily housing an allowed use on certain residential, mixed-use and commercial parcels near qualifying transit stops. The development standards depend on factors including the transit stop’s tier and the property’s distance from the stop. The closer a qualifying property is to a qualifying transit stop, the greater the development potential can be under the applicable standards. But this is not a blanket rezoning of every neighborhood near a train. Whether a particular parcel qualifies depends on the transit stop, the property’s location, its zoning and other legal requirements.

What makes SB 79 important for homeowners is that it can change the development potential of some properties. That may affect how buyers, sellers and developers evaluate land. But the law itself does not guarantee that property values will rise. The law does not determine what an individual property is worth. But a change in development rules can change the questions a homeowner needs to ask.

SB 79 took effect July 1, but its application is not as simple as looking at a train station on a map. Metropolitan planning organizations are responsible for identifying qualifying transit-oriented-development stops, zones and tiers. In Southern California, SCAG published a map on July 1, but the current map covers Los Angeles County because it is the only urban transit county in the SCAG region. SCAG says another update will follow as data is reviewed and verified, and that the map will be updated when a county becomes an urban transit county.

Cities do not have to adopt their own SB 79 ordinance. They can, however, adopt an ordinance, exclusion or TOD alternative plan that modifies implementation within the limits established by state law. The California Department of Housing and Community Development reviews those local measures. Several cities are already pursuing local approaches. Los Angeles has directed its planning department to pursue phased implementation through 2030 while expanding its Corridor Transition program. San Diego has also considered a phased local approach. The options available to Fullerton will depend on the law and state guidance in effect when Orange County becomes an urban transit county. For a homeowner, the important question is not simply whether your city has passed an ordinance. It is whether your particular property falls within an applicable TOD zone and satisfies the other requirements of the law. Anyone weighing a move this year should understand those rules before assuming that a nearby station adds development value to a property.

When a parcel can legally accommodate more homes, it may attract buyers interested in redevelopment as well as buyers interested in living in the existing house. Builders and investors may look at what a property could become, not just what is standing there now. If a qualifying property has a development opportunity that did not exist under its previous local zoning, the land itself can become a more important part of the buyer’s calculation. That does not mean every house near transit will suddenly attract developers. It means that, where SB 79 applies, the land’s potential use may become one factor in determining who is interested in buying it. If you own a tired house on a qualifying parcel, the question may be less about the kitchen and more about what can legally be built after the kitchen is gone.

An offer on a qualifying transit-adjacent property may reflect two different things: the value of the existing home and the potential value of the land for redevelopment. Those numbers can diverge. A buyer planning to build several homes may look at a property very differently from a family planning to live in the existing house for the next 20 years. That is why homeowners should be careful not to assume the first offer tells them what their property is worth. If development potential has changed, it is worth understanding whether a buyer is valuing the house, the land, or some combination of the two. If you live near a qualifying transit stop—or are considering buying a property near one—the questions worth asking before you sign anything have changed.

• Does my county qualify under SB 79?
• Is my property within a qualifying TOD zone?
• What transit tier and development standards apply?
• Does my city’s local ordinance change any of those standards?
• And is a potential buyer pricing my house, my land, or both?

For Fullerton homeowners, there are two additional questions: Will the Fullerton Metrolink station qualify as a TOD stop, and if so, which tier will it receive? Right now, being near a Fullerton Metrolink station does not by itself put a property under SB 79. Orange County is not currently an urban transit county under the law. And even after the county qualifies, not every station will automatically qualify. SCAG says a Tier 1 stop must be served by heavy rail or very high-frequency commuter rail, defined as 72 daily trains in both directions. A Tier 2 stop can be served by light rail, high-frequency commuter rail with 48 daily trains in both directions, or qualifying bus service. The Fullerton station’s eventual classification should therefore be verified, not assumed. SB 79 zones are measured from pedestrian access points. Depending on the applicable city and transit tier, the law establishes zones extending 200 feet, one-quarter mile or one-half mile from those points. The law also permits certain exclusions, including areas that cannot be reached by a pedestrian path under one mile and designated industrial employment areas.

The law itself is also still being adjusted. Senate Bill 677, authored by Sen. Scott Wiener, was introduced as a technical and clarifying measure to SB 79, including changes to transit definitions and station-frequency rules. Senate Bill 1361 is another 2026 measure addressing transit-oriented housing and local government implementation; as of Aug. 28, it remained pending in the Legislature. Before you sign anything this year, find out what your property actually allows under current zoning and state law. California’s transit-housing law is statewide. Its application is intensely local. For Fullerton, the practical timeline now depends first on the OC Streetcar reaching revenue service, then on Orange County becoming an urban transit county and SCAG updating its map. Only after those steps will the city and property owners have a concrete picture of how SB 79 applies locally.