Official Summary Text
AB 782, as amended, Quirk-Silva.
Subdivisions: security.
Unlawfully restrictive covenants: redevelopment of commercial property for residential uses.
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.
Existing law, the Subdivision Map Act, vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps, and the modification of those maps. The act requires prescribed security from a developer if the act or a local ordinance authorizes or requires the furnishing of security in connection with the performance of any act or agreement.
Existing law requires the Real Estate Commissioner to make an examination of any subdivision, and to, unless there are grounds for denial, issue to the subdivider a public report authorizing the sale or lease of the lots or parcels within the subdivision. Existing law specifies the grounds
for denial, including, among other things, the inability to demonstrate that adequate financial arrangements have been made for all offsite improvements included in the offering or the inability to demonstrate that adequate financial arrangements have been made for any community, recreational, or other facilities included in the offering.
This bill would prohibit the Real Estate Commissioner, in issuing a public report for a residential development or project, from requiring the furnishing of a security in connection with the performance of any act or agreement related to an improvement if the Real Estate Commissioner determines that security sufficient to protect the interests of purchasers, owners, and lessees, as necessary, has been furnished to a local agency for
the same improvement pursuant to the provisions above requiring security under the Subdivision Map Act.