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

California Assembly Bill 1317

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

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

Amended IN Assembly April 17, 2023

Amended IN Assembly March 13, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1317

Introduced by Assembly Member Wendy Carrillo

February 16, 2023

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 qualifying residential ~~property~~ property, as defined, that provides parking with a 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, for qualifying residential properties where unbundled parking is not possible, as provided, would require an the owner of qualifying residential property to provide a tenant with an annual itemization of the market rate cost of parking, as defined, for the parking spaces that are included in their lease. The bill would exempt qualifying residential properties with individual garages that are functionally a part of the property from these provisions.

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.~~
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: ~~YES~~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) ~~(1)~~If an owner of a qualifying residential property provides parking with the qualifying residential 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.

(b) (1) Off-street parking accessory to ~~leased~~ 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 is 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) For qualifying residential properties where unbundled parking is not possible, as determined by the owner of the qualifying residential property, a tenant shall be provided with an annual itemization of the market rate cost of parking for the parking spaces that are included in their lease.

(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.
~~(f)~~

(e) 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 a qualifying 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 qualifying residential property. The owner of a qualifying 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 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 qualifying residential 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 qualifying residential property calculates the market rate cost of parking pursuant to this paragraph, the owner of qualifying 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) ~~(A)~~If the market rate cost of parking cannot be established pursuant to 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.

~~(g)~~

(f) 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) ~~“Residential~~ (A) ”Qualifying residential property” means any dwelling or unit that is intended for human ~~habitation.~~ 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 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.

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

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.