AMENDED IN SENATE JUNE 18, 2026

AMENDED IN ASSEMBLY MAY 4, 2026

AMENDED IN ASSEMBLY APRIL 15, 2026

AMENDED IN ASSEMBLY MARCH 19, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

94

Introduced by Assembly Member Kalra

(Coauthors: Assembly Members Ahrens and Pellerin)

February 19, 2026

An act to amend Sections 100001.5 and 100130.5 of the Public Utilities Code, relating to housing.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

Existing law establishes the Santa Clara Valley Transportation Authority (VTA) in order to meet the public transit problems of the County of Santa Clara. Existing law authorizes the VTA to purchase or otherwise acquire property for transit-oriented joint development projects, as provided.

This bill would authorize the VTA to similarly purchase or acquire property for an employee housing project, as defined, for VTA employees and members of the public, as specified. The bill would authorize the VTA to construct affordable rental housing for employees and affordable for-sale housing that promotes housing opportunities for VTA employees, as specified. The bill would require the VTA to submit an annual report to the Legislature on the use of the bill’s provisions to develop housing, as specified. By requiring the VTA to submit a new report, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1.

Section 100001.5 of the Public Utilities Code is amended to read:

100001.5.

The Legislature hereby finds and declares:

(a) Since the formation of the Santa Clara Valley Transportation Authority, unprecedented growth has occurred in the San Francisco Bay area and in the County of Santa Clara in particular. It has become apparent that additional measures are required in order to deal more effectively with the resultant serious traffic congestion and to foster the development of trade and the movement of people in and around the Santa Clara Valley and throughout the entire San Francisco Bay area.

(b) Transit and other modes of transportation are inextricably intertwined, and improvement and maintenance of the road and highway structure in conjunction and coordination with transit improvements are essential to optimize the ability of the Santa Clara Valley Transportation Authority to deal more effectively with serious traffic congestion.

(c) The Santa Clara Valley Transportation Authority, having been designated as the Congestion Management Agency for the County of Santa Clara, and already authorized to construct and improve state and local highways pursuant to Section 100115.5, is uniquely positioned to implement programs to achieve the goal of a balanced approach to solving transportation problems.

(d) This goal is best achieved in the County of Santa Clara by vesting in the Santa Clara Valley Transportation Authority the ability to plan, design, construct, maintain, and repair road and highway improvements, bicycle, pedestrian, and other transportation facilities, transit-oriented joint development projects, and affordable housing opportunities for the authority’s employees, under the conditions set forth in this part.

SEC. 2.

Section 100130.5 of the Public Utilities Code is amended to read:

100130.5.

(a) For purposes of this section, the following definitions apply:

(1) (A) “Employee housing project” is a project that provides a preference for VTA employees and qualifies as a housing development project, as defined in paragraph (2) of subdivision (h) of Section 65589.5 of the Government Code, for VTA employees and members of the public that is undertaken in connection with an existing, planned, or proposed transit facility and is located one-quarter mile or less from the external boundaries of that facility.

(B) An employee housing project constructed by the VTA pursuant to this section is subject to the duty of public agencies to affirmatively further fair housing pursuant to Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2 of the Government Code, the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code), the Unruh Civil Rights Act (Section 51 of the Civil Code), and the federal Fair Housing Act (42 U.S.C. Sec. 3601 et seq.).

(C) Employee housing projects undertaken by this section shall be restricted to VTA employees, except that the VTA may allow members of the public to occupy housing created through this section, subject to applicable laws and regulations.

(D) The VTA shall retain the right to prioritize VTA employees over members of the public to occupy housing.

(2) “Lower income households” has the same meaning as in Section 50079.5 of the Health and Safety Code.

(3) “Moderate-income households” has the same meaning as “persons and families of low or moderate income” in Section 50093 of the Health and Safety Code.

(4) “Transit-oriented joint development project” is a commercial, residential, or mixed-use development that is undertaken in connection with an existing, planned, or proposed transit facility and is located one-quarter mile or less from the external boundaries of that facility.

(b) The VTA may take by gift, or take or convey by grant, purchase, devise, or lease, and hold and enjoy, real and personal property of every kind within or without the boundaries of the VTA necessary for, incidental to, or convenient for both of the following:

(1) A transit-oriented joint development project.

(2) An employee housing project.

(c) (1) Any transit-oriented joint development project or employee housing project created under this section shall comply with applicable land use and zoning regulations of the city, county, or city and county in which the project is located.

(2) For purposes of a transit-oriented joint development project or employee housing project, the VTA may acquire, plan, undertake, construct, improve, develop, lease, maintain, operate, or dispose of any real or personal property.

(d) (1) The VTA may construct rental housing for employees pursuant to Chapter 6.3 (commencing with Section 54700.1) of Part 1 of Division 2 of Title 5 of the Government Code and shall, for that purpose, be considered a local agency. If the VTA constructs rental housing pursuant to this paragraph, the employee housing units shall be affordable to lower income households or moderate-income households. These units shall be subject to a recorded affordability restriction for at least 55 years.

(2) The VTA may construct for-sale housing that promotes housing opportunities for VTA employees. If the VTA constructs for-sale housing pursuant to this paragraph, the employee housing units shall be affordable to lower or moderate-income households These units shall be subject to a recorded affordability restriction for at least 45 years.

(3) The VTA shall ensure compliance with the recorded affordability restrictions on employee housing units described in paragraphs (1) and (2).

(e) Notwithstanding Sections 53090 and 53091 of the Government Code or any other law, the authority granted under this section is subject to applicable land use and zoning regulations of the city, county, or city and county jurisdiction in which the transit-oriented joint development project or employee housing project is located, in accordance with the Planning and Zoning Law (Title 7 (commencing with Section 65000) of the Government Code), relating to zoning.

(f) On or before December 31 of each year, the VTA shall submit a report, consistent with Section 9795 of the Government Code, to the Legislature, including the Assembly and Senate Transportation Committees, the Assembly Housing and Community Development Committee, the Assembly and Senate Local Government Committees, and the Senate Housing Committee, on the use of this section to develop employee housing. The report shall include, but shall not be limited to, both of the following:

(1) Development plans for any new employee housing projects, including, but not limited to, the number of units, affordability level, size of units, name of the developer, and density of the project.

(2) Status of pending employee housing projects, including, but not limited to, the number of units, affordability level, size of units, name of the developer, and density of the project.

SEC. 3.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.