Dan J. Harkey

Master Educator | Business & Finance Consultant | Mentor

AB-1050: Removing Barriers to Housing by Tackling Restrictive Covenants- Quick Read

California’s housing shortage isn’t just about zoning—it’s also about outdated property covenants that block redevelopment. AB 1050 targets these hidden barriers to unlock new housing opportunities

by Dan J. Harkey

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The Problem

Many commercial properties in California sit vacant or underutilized.  State housing laws and local zoning codes often allow these sites to be redeveloped into mixed-use or residential projects.  But there’s a catch: restrictive covenants and reciprocal easement agreements (REAs) embedded in property deeds can prohibit residential uses or limit density, size, and location of homes.  These covenants “run with the land,” meaning they remain enforceable even after ownership changes—creating a legal roadblock for housing development.

What AB 1050 Does

Authored by Assemblymember Nick Schultz, AB 1050 amends Civil Code Section 714.6 to expand the ability to modify or remove restrictive covenants that hinder housing development.

Key Provisions

✅ Expands Existing Law
Previously, only affordable housing projects could override restrictive covenants.  AB 1050 extends this to any housing development tied to a commercial-to-residential redevelopment project permitted under state housing laws or local zoning.

✅ Includes Reciprocal Easement Agreements (REAs)
These agreements often govern shopping centers and commercial complexes.  AB 1050 makes restrictive provisions in REAs unenforceable if they block residential uses.

✅ Structured Modification Process
Property owners must:

  • Submit the original covenant and supporting documents to the county recorder.
  • Obtain review and approval from county counsel.
  • Notify interested parties via certified mail or public notice.  Once approved, a Restrictive Covenant Modification Document is recorded.

✅ Safeguards Remain

  • Projects must comply with state housing laws, local zoning, and building codes.
  • Affordable housing and fair housing protections remain intact.
  • Certain conservation easements (e.g., recorded before 2022 or held by accredited land trusts) are exempt.

✅ Timeline for Review
County officials must act within 15 days of submission.

Why It Matters

  • Unlocks Housing Potential: Thousands of commercial parcels could be repurposed for housing without litigation risk.
  • Supports Mixed-Use Development: Aligns with AB 2011 (2022) and other pro-housing laws that encourage the redevelopment of retail corridors.
  • Reduces Legal Uncertainty: Developers gain clarity and speed in removing outdated restrictions.  [cayimby.org]

Implementation Guide for Developers

·         Title Review

o   Identify restrictive covenants or REAs in property deeds.

·         Prepare Documentation

o   Original covenant + proof of qualifying redevelopment project.

·         Submit to County Recorder

o   Include modification request and supporting documents.

·         County Counsel Review

o   Confirms compliance with AB 1050 and housing laws.

·         Notify Interested Parties

o   Certified mail or public notice before recording the modification.

·         Record Modification Document

o   Removes unenforceable restrictions; preserves other valid provisions.

Bottom Line

AB 1050 is a surgical strike against hidden legal barriers that stall housing projects.  By modernizing property Law, California is clearing the path for adaptive reuse of commercial sites—turning empty storefronts into homes.