A newly proposed state bill, Assembly Bill 2074, aims to address California’s housing shortage by altering zoning laws in the state’s largest cities. For Los Angeles, this legislation, known as the Downtown Revitalization Act, aims to tackle California’s housing shortage by making it easier to build high-rise apartments near major transit hubs.
Here is everything you need to know about the proposed legislation and how it might reshape the LA skyline.
Fixing empty streets and high rent
Since the pandemic, many commercial buildings in Downtown Los Angeles sit empty. Fewer office workers mean less foot traffic for local businesses. At the same time, California desperately needs more homes. The Downtown Revitalization Act attempts to solve both problems at once. The goal is to turn quiet, underused business districts into vibrant, 24/7 residential neighborhoods.
How the Downtown Revitalization Act would work
Introduced in early 2026, the bill targets California’s seven largest transit-rich cities with populations over 400,000: Los Angeles, San Diego, San Jose, San Francisco, Sacramento, Oakland, and Long Beach.
As established by Assembly Member Matt Haney, this bill would “require major transit cities to designate one or more regional transit hub districts” by July 1, 2027. It uses four clear strategies to bring housing back to urban centers:
- Expand Building Sizes: The state will change zoning rules to let developers build taller and denser buildings in city centers.
- Create Transit Districts: LA and other qualifying cities must officially designate specific “downtown transit hub districts.”
- Speed Up Approvals: If builders meet strict labor requirements and provide good-paying jobs, the city will fast-track their project approvals.
- Provide Early Funding: The state will offer early-stage financing through a revolving loan fund. This gives developers the low-interest cash they need to start building immediately.
A possible new way to fund affordable housing?
If passed, this bill could completely transform the LA skyline. For Angelenos, this means fewer cars on the road, more affordable places to live, and a much livelier downtown filled with restaurants, shops, and residents.
💡Learn more: AB 2074
