‘A win for common sense’: Reforms to Density Bonus Law signed into law

ENCINITAS, Calif. (FOX 5/KUSI) — Following pushback regarding a controversial 22-story high-rise development in Pacific Beach, California has signed housing reforms regarding its Density Bonus Law (DBL).
State Senator Catherine Blakespear (D-38) and Assemblymember Tasha Boerner (D-77), lawmakers from Encinitas, introduced separate legislation to make changes to DBL loopholes that currently allow large-scale developments to bypass regulations.
Blakespear states that Project Vela—the development in Pacific Beach—surpassed local zoning “by more than 1,500%.” Governor Newsom signed the new reforms into law on Friday.
“When we invest in housing, we’re investing in people — their chance to build a future, raise a family, and be part of a community,” Newsom said.
Authored by Blakespear, Senate Bill (SB) 92 prohibits the DBL from being used for large-scale commercial projects that exceed zoning and city law.
“Specifically, the legislation would limit developers to increasing the commercial floor space included in their projects to no more than 2.5 times what is allowed by local zoning,” Blakespear said in a statement.
This legislation was sponsored by San Diego Mayor Todd Gloria who celebrated its approval on social media on Friday.
“A win for common sense, local control, and housing! We have now closed the loophole that let developers use housing laws to build mega-commercial projects way over local limits,” Gloria posted on X, formerly known as Twitter.
While Blakespear cites Project Vela as an example, she stated SB 92 will not affect its development, instead it will, “prevent similar projects proposed in the future from receiving density bonus allowances.”
SB 92 does not take effect until Jan. 1, 2026.
Boerner’s Assembly Bill (AB) 87 was also signed into law by Newsom on Friday. The bill establishes that the DBL may only apply to residential housing—not hotels or motels.
“Housing is an ongoing challenge; in San Diego, the cost of living is 45.7% higher than the national average,” Boerner said.
“Solving the housing crisis starts with legislation, and I want to thank Governor Newsom for meeting the moment by signing this critical legislation,” Boerner added.