New Law Expands Unenforceable Restrictions on Affordable Housing

California has long sought to open up land for housing, but one continuing issue is how to handle old covenants that restrict residential use. To address this issue a new law enacted as a result of Assembly Bill 1050 added reciprocal easement agreements to the list of unenforceable restrictions against affordable housing.

The law expands existing rules to help remove old private land use restrictions that block housing development. Specifically, the law allows owners to apply to eliminate covenants, conditions, restrictions or private limits on a property that prevent or limit building residential units, including those within reciprocal easement agreements or on commercial sites being redeveloped for residential use.

The change builds on an earlier law that focused only on affordable housing projects, and now extends relief to more projects where residential uses are permitted under state and local law. The law does not override local zoning or general plan requirements; developments must still comply with all applicable land-use laws.

California continues to dismantle recorded barriers that stand in the way of new housing. For real estate consumers, the message is opportunity. Old documents no longer carry the same power to stop development. Buyers, investors, and communities should expect more parcels to become available for residential projects.