San Diego sued for misinterpreting state housing law that allows for projects near transit

Two California housing advocacy groups are suing the city of San Diego, alleging city planners illegally excluded properties from a state program meant to spur development near transit stations.

In a legal filing obtained by Times of San Diego, Californians for Homeownership and the California Housing Defense Fund say San Diego ran afoul of the state housing law by requiring that projects are connected to bus or rail stations by dedicated sidewalks to qualify.

Signed into law by Gov. Gavin Newsom in October 2025, Senate Bill 79 allows developers to build more housing than allowed by local zoning restrictions for projects that are near major transit stops…

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