SACRAMENTO — California’s closely watched housing legislation, SB 79, has cleared a major political hurdle after California YIMBY announced a deal with labor groups that extends strong labor standards to specific projects, winning support from UNITE HERE and softening opposition 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 were the result of weeks of negotiations between pro-housing advocates and union representatives. They require large-scale, complex developments — such as high-rise housing and projects built on transit-agency property — to meet skilled and trained labor standards or pursue project labor agreements. More routine housing projects under SB 79, however, remain free of new labor obligations, preserving the bill’s focus on housing expansion.
The deal reshapes labor’s stance. UNITE HERE has now formally endorsed SB 79, while the powerful Building Trades have agreed to remain neutral — a significant shift from the staunch opposition unions have mounted against past housing reforms. “Workers build California,” UNITE HERE emphasized in its statement backing the compromise, underscoring the importance of labor protections as the state faces a massive housing shortage.
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Authored by Sen. Scott Wiener and co-sponsored by California YIMBY and a coalition of housing and planning organizations, SB 79 seeks to streamline construction of multi-family housing near transit hubs by preempting local zoning restrictions. “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.”
The legislation introduces a tiered framework:
Affordability is built into the bill, with all SB 79 projects required to include a share of below-market units. Developers cannot demolish existing rent-stabilized housing or displace tenants who have lived in multifamily homes within the past seven years. Advocates say these protections are vital to ensuring that new housing benefits working families rather than accelerating gentrification.
The bill also includes provisions for wildfire-prone areas, giving local governments additional time to adopt density plans that maximize fire safety while still meeting growth targets.
Environmental groups have rallied behind the measure, emphasizing its climate benefits. “More homes near transit means fewer cars on the road, cleaner air, and healthier communities,” said the Greenbelt Alliance in its endorsement.
The compromise mirrors the approach taken in SB 423, passed in 2023, which linked housing streamlining with stronger labor protections. By adopting a similar strategy, SB 79 demonstrates how pro-housing advocates and unions can find common ground after years of conflict in Sacramento.
“When labor and housing advocates are fighting each other, nobody wins,” Hanlon noted. “This agreement shows we can find common ground that delivers both homes and good jobs.”
SB 79 has steadily advanced through legislative committees and is now poised for a final Assembly floor vote. If approved, the bill will head to Gov. Gavin Newsom’s desk, where it is expected to be signed into law.
For Wiener, housing advocates, and labor alike, the deal marks a turning point. “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.”
Originally reported by Vanguard Administrator in Davis Vanguard.
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