Unlawfully restrictive covenants: housing developments: reciprocal easement agreements.

Assembly Member Schultz's proposal to amend California's Civil Code expands protections against restrictive property covenants to include housing developments that aim to redevelop existing commercial properties with residential uses. The legislation builds upon current law that makes certain recorded covenants unenforceable against affordable housing developments.

The bill establishes a detailed process for property owners to modify restrictive covenants through county recorders and counsel. Owners must submit documentation proving their property qualifies as a housing development, after which county counsel has 15 days to verify eligibility and determine if the restrictions can be modified. Once approved, owners must notify interested parties via certified mail, though failure to provide notice does not invalidate the modification.

While the legislation maintains exemptions for certain covenants—including those governing aesthetic standards, common area maintenance fees, and rent limits—it newly applies to reciprocal easement agreements. The bill preserves local authority over building codes and zoning requirements while adding protections for conservation easements that meet specific criteria, such as those recorded before 2022 or held by accredited land trusts. County officials gain enforcement powers through violation notices, though owners can request removal upon achieving compliance.

The amendments create additional administrative duties for county officials, with local agencies authorized to levy fees to cover implementation costs rather than receiving state reimbursement. Legal challenges to modification documents must be filed within 35 days of notice, with prevailing parties eligible to recover post-recordation litigation costs and attorney fees.