AB 782

Existing law provides that recorded covenants, conditions, restrictions, or private limits on the use of land contained in instruments affecting the transfer or sale of any interest in real property that, among other things, restrict or prohibit the residential uses of the property, are not enforceable against the owner of a housing development if an approved restrictive covenant housing modification document has been recorded in the public record, as provided. As part of this process, existing law requires the owner to submit to the county recorder a copy of the original restrictive covenant and any documents the owner believes necessary to establish that the property qualifies as a housing development and requires the county counsel to determine, among other things, if the property qualifies as a housing development and if a modification document may be recorded.

Existing law defines "housing development," for purposes of these provisions, as a development located on the property that is the subject of the recorded restrictive covenant and meets one of 3 sets of specified requirements. One set requires the property to be owned or controlled by an entity or individual that has submitted a development project application to redevelop an existing commercial property, and the development project includes residential uses permitted by state housing laws or local land use and zoning regulations.

This bill would narrow the housing developments that qualify for removing use restrictions on an existing commercial property, as described above, by excluding a development project within a charter city that meets 3 criteria. For that exclusion, the bill would require the charter city to have a population size between 200,000 and 400,000 and a housing element that is in substantial compliance with the housing element law, as specified. Additionally, the bill would require the charter city to have issued residential building permits that, on an average annual basis during the current regional housing needs allocation cycle applicable to the charter city, allow for a total of more than 500 residential units. By imposing additional duties on county officials, 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 no reimbursement is required by this act for a specified reason.