Bill Can Reduce Parking & Increase HousingJune 18, 2021
The California State Legislature has just moved forward with Assembly Bill 1401 to prevent cities from imposing parking requirements on residential, commercial or other developments if the development is 1½ miles from public transit. California’s economy has been affected by the housing defect of around 3.5 million units, which has driven up cost resulting in a mass exodus of businesses and residents. This bill has yet to be voted on by the State Senate, however Randyle Drummer reports it passed through the State Assembly with relative ease, (51 to 17). With the Yes’s more than doubling the No’s one could make an assumption that it has a good chance to become a law. The State Legislature hope to maximize housing and commercial developments on land usually taken up by parking spaces. With this new government action what should landlords and tenants expect?
Landlords with excess parking may be in luck. These extra parking spaces could be a developmental goldmine to convert a portion of their property to housing and add value. However, every time a law is enacted to solve an issue it usually creates a new problem. The question is would this actually be feasible? It’s possible for a landlord to find undeclared value in their parking and at same time, it could also reduce the value of their assets by creating a parking shortage. If this bill passes, it would mean some landlords could be looking at their tenant’s parking as a way to add value and this might lead to the tenant having to find off-site parking or look to public transportation to get to work. Savvy landlords and tenants will see these issues and determine if this could actually work. Even though this bill has some time until it’s enacted, it’s never too soon to make a plan.
To read more on this topic you can see two recent articles posted on Costar.
If you have questions on how this may affect your specific situation then give me a call and I would be happy to look at your lease(s) and let you know what might be feasible. I look forward to hearing from you.
Chris Crabtree | 510-915-7645-c