Unlawfully restrictive covenants: housing developments: reciprocal easement agreements.

Assembly Member Schultz's proposal to modify California's real property law expands provisions for removing restrictive covenants beyond affordable housing to include commercial-to-residential conversion projects. The legislation allows property owners and developers to invalidate deed restrictions that limit residential density or occupancy when redeveloping commercial properties for housing uses permitted under state or local regulations.

The bill establishes a structured process requiring property owners to submit modification documents to county recorders for review by county counsel. Officials must verify that existing covenants improperly restrict development and that the property qualifies for modification under the new provisions. Owners must notify other parties with property interests of pending modifications, though failure to provide optional notice does not invalidate approved changes.

While broadening covenant modification rights, the legislation maintains key exemptions for conservation easements, particularly those recorded before 2022 or held by accredited land trusts. The bill preserves local authority over building codes, unit sizes, and occupancy limits, while requiring developments to comply with state housing laws and local land use regulations. County recorders may charge standard fees for processing modification documents, with no state reimbursement required for additional administrative duties imposed on local agencies.