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California Enacts Senate Bill 1087

The Building Industry Association of Southern California responded to the enactment of Senate Bill 1087, raising concerns about housing affordability and regional governance.

Sophia Brennan

Wall Street Correspondent

California Enacts Senate Bill 1087

The Building Industry Association of Southern California expressed strong disappointment with the enactment of Senate Bill 1087 on Friday, Oct. 2, 2026, according to a report by PR Newswire M&A. The legislation was sponsored and advanced by the Southern California Association of Governments. Despite being designated as a housing killer bill by the statewide California Building Industry Association, the measure was signed by Governor Gavin Newsom on Wednesday, September 30, 2026.

The Building Industry Association of Southern California opposed the final version of the legislation due to concerns regarding housing affordability, local planning authority, and the potential consequences of new regional transportation and land use requirements. The legislation takes effect as California continues to face a severe housing affordability and production challenge. The organization believes the new law will make that challenge more difficult by expanding the role of regional planning requirements tied to greenhouse gas reduction and vehicle miles traveled targets.

"California cannot solve its housing affordability crisis by creating additional uncertainty around where and how housing can be built," said Building Industry Association of Southern California CEO Jeff Montejano. "SB 1087 may now be law, but the larger issue remains: Southern California deserves a regional planning system that is transparent, accountable to its member cities and counties, and aligned with the state's housing goals."

Legal and Grassroots Opposition

The organization's September 28 letter opposing the bill pointed to research cited from UC Berkeley's Terner Center regarding the significant gap between California's existing housing plans and the state's vehicle miles traveled reduction objectives. The letter argued that these competing policy mandates could have significant consequences for housing production and affordability. Jennifer Hernandez, who leads West Coast Land Use and Environmental Law with Holland and Knight and advised the industry on California housing and environmental law, emphasized the broader legal implications.

"Sustainable Communities Strategies are not simply planning exercises," Hernandez stated. "They operate within a statewide legal and policy framework that can affect housing production, transportation funding and litigation. California should not impose new regional mandates without fully evaluating their consistency with existing housing laws and their affordability consequences."

That language reflects the legal arguments presented in the industry letter, which states that Sustainable Communities Strategies operate within a statewide framework that can be litigated and used in decisions involving transportation and affordable housing funding. Members of the public, building industry members, and coalition partners generated 510,723 emails voicing concerns to elected officials about the bill, marking the largest grassroots advocacy effort in the organization's history. The campaign also generated over 348,000 views of video demonstrating the measure as a housing killer bill, along with over 28,000 social media likes and opposition from elected officials and regional stakeholders across Southern California.

Focus on Regional Governance

The enactment of the legislation does not end the organization's involvement in regional policy. The Building Industry Association of Southern California will now focus on regional governance, transparency, accountability, and the role of its 191 cities and six counties in major legislative and policy decisions.

"This is bigger than one bill," Montejano said. "The question now is how a regional organization representing millions of Southern Californians makes major policy decisions, how those decisions are communicated to its member agencies, and how elected representatives are given a meaningful voice in that process. Those are legitimate questions, and BIASC intends to pursue them."

The organization will continue working with its members, local governments, elected officials, and regional partners on reforms intended to strengthen transparency and accountability at the regional association. The Building Industry Association of Southern California serves as the voice of the region's building industry, operating five chapters that offer localized services to building professionals from Ventura to the southern tip of Orange County. Shannon Widor serves as chief public affairs officer for the organization.

Sophia Brennan

Wall Street Correspondent

Covers IPOs, buybacks, and the capital-markets calendar out of New York.

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