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AB-782 • 2026

Unlawfully restrictive covenants: redevelopment of commercial property for residential uses.

Unlawfully restrictive covenants: redevelopment of commercial property for residential uses.

Housing
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Quirk-Silva
Last action
Official status
Senate - Housing
Effective date
Not listed

Plain English Breakdown

The source text confirms the bill passed both chambers but notes a hearing was canceled; final enactment status depends on executive action not shown in the provided metadata.

AB-782: Rules on Removing Land Use Restrictions and Security Requirements

This law narrows which housing projects can remove old land use restrictions in commercial areas by excluding certain charter cities, and stops the state from requiring duplicate security deposits if a local agency already holds them.

What This Bill Does

  • Narrows the list of housing developments that qualify to remove restrictive covenants on existing commercial property.
  • Excludes development projects in charter cities with populations between 200,000 and 400,000 if they meet specific building permit goals and have a compliant housing element.
  • Requires county officials to review applications for modifying restrictive covenants under new criteria.
  • Prohibits the Real Estate Commissioner from requiring security deposits for improvements if sufficient security is already held by a local agency.
  • States that no state reimbursement is required for costs created by this bill.

Who It Names or Affects

  • Owners of commercial property seeking to build residential housing
  • Charter cities with populations between 200,000 and 400,000 residents that meet specific criteria
  • County recorders and county counsel offices
  • The Real Estate Commissioner

Terms To Know

Restrictive covenant
A written rule in a property deed or other document that limits how the land can be used, such as banning residential apartments.
Charter city
A California city with its own special constitution or charter instead of following standard state laws for local government.
Security
Money, a bond, or other financial guarantee provided to ensure that construction work is completed properly.

Limits and Unknowns

  • The bill states no reimbursement is required but does not specify the exact reason in this summary.
  • The text mentions three sets of requirements for housing developments but only details one set involving commercial redevelopment.
  • The effective date and final status after legislative passage are not provided in the source material.

Bill History

  1. California Legislative Information

    Senate - Housing

Official Summary Text

Unlawfully restrictive covenants: redevelopment of commercial property for residential uses.