Summary:

California’s housing policy continues to evolve to address structural barriers to development.  Assembly Bill 1050 (AB 1050), signed into Law in October 2025, amends Civil Code §714.6 to expand the scope of restrictive covenant modification beyond affordable housing projects to include commercial-to-residential redevelopment.  This article provides a detailed legal and procedural analysis for developers, attorneys, and planners.

Legislative Context

• Prior Law (AB 721, 2021): Allowed removal of restrictive covenants for affordable housing projects only.
• AB 2011 (2022): Streamlined approvals for housing in commercial zones, but did not address private deed restrictions.
• AB 1050 (2025): Bridges the gap by invalidating covenants and reciprocal easement agreements (REAs) that prohibit residential uses or limit density on commercial parcels slated for housing redevelopment.

Core Amendments to Civil Code §714.6

1.       Expanded Applicability

o   Applies to any housing development tied to a commercial property redevelopment project where residential uses are permitted under state housing laws (e.g., AB 2011) or local zoning.

o   Includes REAs, which often govern shopping centers and mixed-use complexes.

2.       Unenforceable Restrictions

o   Covenants restricting:

§  Number, size, or location of residences.

§  Residential use of property.

§  Occupancy limits (persons or families).

o   These provisions become unenforceable once a Restrictive Covenant Modification Document (RCMD) is recorded.

3.       Preservation of Other Provisions

o   Aesthetic standards, maintenance obligations, and rent restrictions remain enforceable if uniformly applied.

o   Conservation easements recorded before 2022 or held by accredited land trusts are exempt.

Modification Process Flowchart

Below is a visual representation of the AB 1050 process:

attachment://AB1050-flowchart.png

Steps:

·       Title Review → Identify restrictive covenants or REAs.

·       Prepare Submission → Original covenant + proof of qualifying project.

·       County Recorder Filing → Submit RCMD and supporting documents.

·       County Counsel Review → Confirms compliance with AB 1050 and housing Law.

·       Notice Requirement → Notify interested parties via certified mail or public notice.

·       Recordation → Record the RCMD to void restrictions.

Legal Implications

• Preemption of Private Agreements: AB 1050 overrides private land-use restrictions when they conflict with state housing policy.
• Litigation Risk Mitigation: Recording an RCMD provides constructive notice, reducing exposure to future covenant enforcement claims.
• Local Control Preserved: Projects must still comply with local zoning, general plans, and state housing laws—AB 1050 does not authorize development outside these frameworks.

Interaction with AB 2011 and AB 721

• AB 721: Focused on affordable housing; AB 1050 extends similar protections to mixed-use and market-rate projects.
• AB 2011: Provides ministerial approval for housing in commercial zones; AB 1050 ensures private covenants cannot block these projects.
• Together, these laws create a comprehensive toolkit for adaptive reuse of commercial properties.

Bottom Line

AB 1050 is a targeted reform that removes private-law barriers to housing development while preserving public-law safeguards.  For developers and counsel, understanding its procedural nuances is critical to leveraging commercial-to-residential conversions effectively.