Bill Text: CA AB1317 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Unbundled parking.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2023-10-11 - Chaptered by Secretary of State - Chapter 757, Statutes of 2023. [AB1317 Detail]

Download: California-2023-AB1317-Amended.html

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Amended  IN  Assembly  March 13, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1317

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Introduced by Assembly Member Wendy Carrillo

February 16, 2023

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

LEGISLATIVE COUNSEL'S DIGEST

AB 1317, as amended, 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 residential real property that provides parking with a residential unit 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 exempt residential units with individual garages that are functionally a part of the unit from these provisions. The bill would provide a tenant of a residential unit property with a right of first refusal to parking spaces built for their unit, as specified. The bill, for residential units properties where unbundled parking is not possible, would require an owner of residential property to annually provide a tenant with an annual itemization of the market rate cost of parking, as defined, for the parking spaces they have leased. that are included in their lease. The bill would exempt residential properties with individual garages that are functionally a part of the property from these provisions.

This bill would require and owner of a residential real property that is subject to these provisions and that does not unbundle parking as of January 1, 2024, to take prescribed action, including lowering the rental rate such that the rent of a parking space added to the rent of a dwelling unit is equal to the current cost of rent. The bill would specify that this requirement does not require an owner of residential real property to accept a lower total amount for the rental of a residential unit under a lease in effect as of January 1, 2024.

This bill, for purposes of the maximum rental rate increase restrictions described above, would require that the gross rental rate for a renewed lease or rental agreement commencing on or after January 1, 2024, be reduced by the amount of the market rate cost of parking before imposing any increase in the rental rate.

Beginning January 1, 2025, this bill would require the Department of Housing and Community Development to annually adjust certain amounts of the market rate cost of parking, as specified, for inflation.

This bill would specify that these provisions apply only to a lease or rental agreement for residential property that commences or is renewed on or after January 1, 2024.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

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) (1) If an owner of residential property provides parking with a the residential unit, property, they shall unbundle parking from the price of rent.

(2) For purposes of Section 1947.12, the gross rental rate for a renewed lease or rental agreement commencing on or after January 1, 2024, shall be reduced by the amount of the market rate cost of parking before imposing any increase in the rental rate.

(2)

(b) (1) Off-street parking accessory to leased residential units property shall not be included in any residential unit rental agreement and shall be subject to a rental agreement addendum or provided in a separate rental agreement.

(3)Residential units with individual garages that are functionally a part of the unit, including, but not limited to, townhouses and row houses, shall be exempt from this section.

(4)

(2) All off-street parking spaces shall be unbundled from the residential units property for the life of the dwelling units. property.

(5)

(c) (1) A tenant of a residential unit property shall have the right of first refusal to parking spaces built for their unit. property. Remaining residential unbundled parking spaces that are not leased to tenants of the residential dwelling may be leased to other on-site users or to off-site residential users on a month-to-month basis.

(6)

(2) If there is unavailable parking spaces on the residential property upon the occupancy of the a new tenant, and parking spaces are subsequently built for the residential dwelling or otherwise becomes available on the residential property, the new tenant shall receive a right of first refusal to any an available parking space.

(b)

(d) For residential units properties where unbundled parking is not possible, a tenant shall be provided annually with an annual itemization of the market rate cost of parking for the parking spaces they have leased. that are included in their lease.

(c)(1)An owner of a residential real property that is subject to this section and that does not unbundle parking as of January 1, 2024, shall comply with either of the following:

(A)Lower the rental rate such that the rent of a parking space added to the rent of a dwelling unit is equal to the current cost of rent.

(B)Calculate the initial gross rental rate pursuant Section 1947.12 of the Civil Code by using the current cost of rent less the market rate cost of parking.

(2)This subdivision does not require an owner of residential real property to accept a lower total amount for the rental of a residential unit under a lease in effect as of January 1, 2024.

(e) This section shall not apply to 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.

(d)

(f) For purposes of this section, all of the following apply with respect to the market rate cost of parking:

(1) “Market rate cost of parking” means an amount that is no less than if the parking were to be obtained by an individual unaffiliated with the property on which parking is provided or by the owner of residential property through a transaction with no special rate due to a property lease for the closest publicly available parking within one-quarter mile of the residential unit. property. The owner of residential property shall maintain appropriate evidence of its effort to establish the market rate cost of parking pursuant to this paragraph for at least four years.

(2) If the amount market rate cost of parking cannot be established pursuant to paragraph (1), an amount that is the monthly or daily price for use of a parking space located within one-quarter mile of the residential unit, property, as evidenced by a public offer, such as a printed or otherwise publicly displayed advertisement, or a listing including price, such as on a publicly accessible parking smartphone application, available for acceptance by a member of the public, for use of that parking space from within the previous six months. If the owner of residential property calculates the market rate cost of parking pursuant to this paragraph, the owner of residential property shall maintain appropriate evidence of the offer it relied upon, such as a physical copy or photograph of an advertisement or a screenshot showing availability and price within a parking smartphone application, for at least four years from the time of any cash allowance payment made based upon that offer.

(3)Notwithstanding paragraphs (1) and (2), “market rate cost of parking” means either of the following under the specified circumstances:

(A)If the amount determined pursuant to paragraph (1) is valued at over three hundred fifty dollars ($350) per month, “market rate cost of parking” means three hundred fifty dollars ($350) per month.

(B)

(3) (A) If the amount market rate cost of parking cannot be established pursuant to paragraph (1), paragraph (1) or (2), “market rate cost of parking” means the monthly price of the lowest priced transit serving within one-quarter mile of the site or fifty dollars ($50) per month, whichever is higher.

(B) Beginning January 1, 2025, the Department of Housing and Community Development shall annually adjust the minimum market rate cost of parking established pursuant to subparagraph (A) for inflation based on the changes in the California Consumer Price Index.

(4) For purposes of this subdivision, free parking shall not be considered when determining the market rate cost of parking.

(e)Beginning January 1, 2025, the Department of Housing and Community Development shall annually adjust the amounts in paragraph (3) of subdivision (d) for inflation based on the changes in the California Consumer Price Index.

(f)

(g) For purposes of this section, both of the following terms apply: section:

(1) “Owner of residential property” includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.

(2) “Residential property” means any dwelling or unit that is intended for human habitation.

(2)

(3) “Unbundled parking” means the practice of selling or leasing parking spaces separate from the lease of the residential use. property.

(h) This section shall only apply to a lease or rental agreement for residential property that commences or is renewed on or after January 1, 2024.