California’s new housing law, the hotly debated Senate Bill 79, has sparked debate across the state, but its impact in Manhattan Beach is effectively zero. 

The measure, signed into law earlier this year, is designed to encourage denser housing near major transit stops. Yet because Manhattan Beach lacks the specific types of transit hubs defined in the law, the city is essentially untouched by its provisions.

Citing some confusion about the matter both pre- and post-passage of SB 79, local real estate broker Dave Fratello published a detailed analysis of the matter on his MB Confidential site this week. (Fratello is also the publisher of MB News.)

SB 79 builds on the state’s broader push for transit‑oriented development. It requires cities with qualifying  "Tier 1" or “Tier 2” rail or bus stops to allow taller, denser housing projects within up to a half‑mile radius. Buildings could reach 55 to 95 feet tall in the affected areas, with other provisions allowing greater building density and requiring less parking – all without regard to local zoning.

The idea is to concentrate growth where public transportation can support it, reducing reliance on cars and expanding access to housing. In practice, that means cities with robust bus or rail service will see new rules about what can be built near those stops.

However, the definitions of the rail and bus stops that would open the door to development under the new rules are very specific. Tier 1 encompasses high-frequency rail stops, which Manhattan Beach lacks. Tier 2 includes "bus rapid transit," which is specifically defined in state law. There must be a high‑frequency bus line with a fully dedicated, exclusive bus lane, along with 4 additional criteria. No such service exists in Manhattan Beach. The city’s bus routes run less frequently, and do not have dedicated lanes.

As a result, despite early fears expressed by the city that "a significant amount of property" in town could be impacted, no new zoning changes are required, no new density allowances are triggered, and no projects appear likely to be affected in virtually any part of Manhattan Beach. For residents, that means the law's passage is basically a non‑event. 

Fratello's analysis notes that while final maps of SB 79's reach will come later, it is conceivable that a 1/2 mile radius drawn from the Metro K-line train station in El Segundo at Douglas (near Bay Club) could reach partway into Manhattan Beach, potentially opening up some land to development under the SB 79 rules. However, that land is mostly in "the Rosecrans commercial corridor, possibly [part of] the Westdrift golf course and a few townhomes in Manhattan Village." 

Sections of Rosecrans are already "upzoned" for dense new housing development under the "Regional Overlay District" rules, and Fratello states that, for other reasons, Manhattan Village is unlikely to be impacted, even if "a few townhomes" fall within a radius from the El Segundo rail stop.

The broader context, however, is worth noting. SB 79 reflects California’s ongoing effort to address its housing shortage by tying development to transit. While Manhattan Beach is effeectively exempt, nearby communities with stronger bus or rail service could see real changes. 

Want a deeper dive into SB 79 and housing policy? See the detailed analysis of SB 79 and its local implications in our sister publication, MB Confidential.