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AB-1317 Unbundled parking.(2023-2024)

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Date Published: 10/12/2023 09:00 PM
AB1317:v93#DOCUMENT

Assembly Bill No. 1317
CHAPTER 757

An act to add Section 1947.1 to the Civil Code, relating to tenancy.

[ Approved by Governor  October 11, 2023. Filed with Secretary of State  October 11, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1317, Wendy Carrillo. Unbundled parking.
Existing law prohibits an owner of residential real property from, over the course of any 12-month period, increasing the gross rental rate for a dwelling or a unit more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months before the effective date of the increase, as prescribed.
This bill would require the owner of qualifying residential property, as defined, that provides parking with the qualifying residential property to unbundle parking from the price of rent, as specified. The bill would define “unbundled parking” as the practice of selling or leasing parking spaces separate from the lease of the residential use. The bill would define “qualifying residential property” as any dwelling or unit that is intended for human habitation that (1) is issued a certificate of occupancy on or after January 1, 2025, (2) consists of 16 or more residential units, and (3) is located within the County of Alameda, Fresno, Los Angeles, Riverside, Sacramento, San Bernardino, San Joaquin, Santa Clara, Shasta, or Ventura. The bill would provide a tenant of a qualifying residential property with a right of first refusal to parking spaces built for their unit, as specified. The bill would prohibit a tenant’s failure to pay the parking fee of a separately leased parking agreement from forming the basis of any unlawful detainer action against the tenant. The bill would authorize a property owner, if a tenant fails to pay by the 45th day following the date payment is owed for a separately leased parking space, to revoke that tenant’s right to lease that parking spot. The bill would exempt certain properties from these provisions, including residential properties with individual garages that are functionally a part of the property and housing developments where 100% of the units, exclusive of any manager’s unit or units, are restricted as affordable housing for persons and families of low or moderate income.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Alameda, Fresno, Los Angeles, Riverside, Sacramento, San Bernardino, San Joaquin, Santa Clara, Shasta, and Ventura.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1947.1 is added to the Civil Code, to read:

1947.1.
 (a) If an owner of a qualifying residential property provides parking with the qualifying residential property, they shall unbundle parking from the price of rent.
(b) (1) Off-street parking accessory to a qualifying residential property shall not be included in any residential rental agreement and shall be subject to a rental agreement addendum or provided in a separate rental agreement.
(2) All off-street parking spaces shall be unbundled from the qualifying residential property for the life of the property.
(c) (1) A tenant of a qualifying residential property shall have the right of first refusal to parking spaces built for their property. Remaining residential unbundled parking spaces that are not leased to tenants of the residential dwelling may be leased by the owner of the qualifying residential property to other on-site users or to off-site residential users on a month-to-month basis.
(2) If there are unavailable parking spaces on the residential property upon the occupancy of a new tenant, and parking spaces are subsequently built for the residential dwelling or otherwise becomes available on the qualifying residential property, the new tenant shall receive a right of first refusal to an available parking space.
(d) (1) A tenant’s failure to pay the parking fee pursuant to a separately leased parking agreement shall not form the basis of any unlawful detainer action against the tenant.
(2) If a tenant fails to pay by the 45th day following the date payment is owed for a separately leased parking space, the property owner may revoke that tenant’s right to lease that parking spot.
(e) For purposes of this section:
(1) “Owner of qualifying residential property” includes any person, acting as principal or through an agent, having the right to offer qualifying residential property for rent, and includes a predecessor in interest to the owner.
(2) (A) “Qualifying residential property” means any dwelling or unit that is intended for human habitation that meets all of the following criteria:
(i) The property is issued a certificate of occupancy on or after January 1, 2025.
(ii) The property consists of 16 or more residential units.
(iii) The property is located in one of the following counties:
(I) Alameda.
(II) Fresno.
(III) Los Angeles.
(IV) Riverside.
(V) Sacramento.
(VI) San Bernardino.
(VII) San Joaquin.
(VIII) Santa Clara.
(IX) Shasta.
(X) Ventura.
(B) “Qualifying residential property” does not include any of the following:
(i) A residential property or unit with an individual garage that is functionally a part of the property or unit, including, but not limited to, townhouses and row houses.
(ii) A housing development of which 100 percent of its units, exclusive of any manager’s unit or units, are restricted by deed, regulatory restriction contained in an agreement with a governmental agency, or other recorded document as affordable housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code.
(iii) A housing development that receives low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code (26 U.S.C. Sec. 42).
(iv) A housing development that is financed with tax-exempt bonds pursuant to a program administered by the California Housing Finance Agency.
(3) “Unbundled parking” means the practice of selling or leasing parking spaces separate from the lease of the residential property.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the need to determine the potential benefits of unbundled parking on a limited basis before expanding the policy statewide.