State bill aims to boost high-rise housing in downtown Sacramento

The legislation would require cities over 400,000 to designate dense transit-oriented zones with no density limits.

Apr. 8, 2026 at 11:34pm by Ben Kaplan

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A vibrant, abstract painting featuring overlapping, geometric shapes in shades of blue, purple, and orange, conceptually representing the dynamic push to build more high-rise housing near public transportation.A conceptual illustration capturing the energy and momentum behind efforts to spur more high-density housing development near transit hubs in California's urban centers.San Francisco Today

A new California state bill, Assembly Bill 2074, would require cities with populations over 400,000 to designate at least one high-density, transit-oriented zone in their downtown areas that has no density limits and allows buildings up to 450 feet tall. The bill also creates a loan fund to help develop projects in these zones, which are intended to address the state's housing shortage and support urban centers still recovering from the pandemic.

Why it matters

The bill is part of the state's broader efforts to spur housing development near public transportation hubs, which is seen as an environmentally conscious way to meet California's housing needs. However, some advocates argue the focus on market-rate housing does not do enough to serve the lowest-income residents.

The details

AB 2074 would require cities over 400,000 people to designate at least one transit-oriented zone in their downtown areas with no density limits and a maximum height of 450 feet. The size of these zones would be determined by the city's population - for example, Los Angeles would need at least 1.5 square miles, San Jose at least 1 square mile, and Sacramento at least 0.5 square miles. Within these zones, cities could set height limits of 150 feet and a maximum density of 200 units per acre for the majority of the area.

  • AB 2074 gained an initial victory in the California Legislature on April 8, 2026.
  • The bill still needs to clear several more committees before going up for a vote in the full Assembly.

The players

Matt Haney

The Assemblymember from San Francisco who authored AB 2074.

Jennifer Singer

A spokesperson for the city of Sacramento, which does not currently have a position on the bill.

Natalie Spievack

A lobbyist for Housing California, an organization that advocates for more affordable housing and argues the bill focuses too much on market-rate development.

California YIMBY

An organization that has argued for reducing regulations around housing development and supports AB 2074.

State Building and Construction Trades Council of California

An influential labor union that also supports AB 2074, marking a rare alignment with the pro-development California YIMBY group.

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What they’re saying

“'We have huge amount of capacity and opportunity in some of these dense areas, where we do have transit, where we do have a lot of jobs.'”

— Matt Haney, Assemblymember

“'Limited public funds should be used not to support mostly market rate housing, but housing that serves the lowest income Californians.'”

— Natalie Spievack, Lobbyist for Housing California

“'I hope they get used to working together. Our state would be better off because of it and we'd get more done in this building if labor and housing advocates were on the same side of the table a lot more.'”

— Matt Haney, Assemblymember

What’s next

The bill needs to clear several more committees in the California Legislature before going up for a vote in the full Assembly.

The takeaway

This bill is part of the state's broader efforts to spur more housing development near public transit, but it faces some criticism from affordable housing advocates who argue the focus on market-rate units does not do enough to serve low-income residents. The rare alignment between pro-development and labor groups, however, could signal a shift in Sacramento politics around housing.