AB 2074 to accelerate high-rise housing near transit in California cities

California bill AB 2074 aims to boost high-rise housing near transit hubs

A new bill in California could significantly expand high-rise housing development in major urban centers by addressing long-standing barriers related to permitting, financing and construction costs.

AB 2074, introduced by Matt Haney and backed by California YIMBY and the State Building and Construction Trades Council of California, proposes a series of measures aimed at accelerating residential construction in the state’s largest, transit-rich cities.

The legislation would streamline permitting processes and establish a revolving loan fund designed to close financing gaps for high-rise projects, which are typically more expensive and time-consuming to build than low- and mid-rise developments.

“For too long, the economics of building high-rise housing in California’s downtowns simply haven’t worked. AB 2074 changes that,” said Brian Hanlon, CEO of California YIMBY. “It’s time to build up.”

Bill targets permitting delays and financing challenges

High-rise construction has historically faced multiple hurdles, including longer approval timelines, higher costs and limited access to financing. AB 2074 seeks to address these challenges by setting clear density standards near transit hubs and reducing delays in local permitting.

“I’ve spoken with city leaders across California and the message is clear: our downtowns are still struggling and need new energy,” said Haney. “AB 2074 makes that possible by building dense housing where it’s needed most, while creating good-paying jobs in the process.”

The proposed revolving loan fund would provide state-backed financial support to developers, helping offset higher construction costs and making projects more viable.

“These are complex projects that require a highly skilled workforce,” said Chris Hannan, president of the State Building and Construction Trades Council of California. “AB 2074 ensures they are built to the highest standards—delivering quality housing and family-sustaining jobs.”

Local leaders and advocates voice support

Local officials and housing advocates have expressed strong support for the bill, citing its potential to revitalize downtown areas and improve housing affordability.

“This is the kind of policy that big cities need right now,” said Todd Gloria. “It makes it easier to build more affordable housing while directly supporting good-paying jobs.”

Leaders in other cities echoed similar sentiments. Rex Richardson highlighted the bill’s potential to expand housing opportunities and strengthen urban cores, while Anthony Tordillos emphasized its role in supporting vibrant, high-density downtowns.

Advocates also pointed to environmental benefits, noting that increasing housing near transit can reduce reliance on cars and lower emissions.

“California can’t meet its climate goals if we’re not putting more homes next to transit,” said Nicole Capretz, founder and CEO of the Climate Action Campaign. “AB 2074 is a climate-smart housing policy that will allow Californians to have cleaner commutes.”

As California continues to grapple with housing shortages and affordability challenges, AB 2074 represents a targeted effort to encourage vertical development in areas with existing infrastructure and transit access.

If passed, the bill could reshape urban housing patterns by making high-rise construction more financially feasible and operationally efficient in some of the state’s most densely populated regions.

Originally reported by California Yimby.