Unlawfully restrictive covenants: housing developments: Palisades Fire.

Existing law makes specified recorded covenants, conditions, restrictions, or private limits on the use of land contained in specified instruments affecting the transfer or sale of any interest in real property unenforceable against the owner of an affordable housing development, as defined, if an approved restrictive covenant affordable housing modification document has been recorded in the public record, as specified. As part of this process, existing law requires the owner to submit to the county recorder a copy of the original restrictive covenant, among other documents, and requires the county counsel to determine, among other things, if a modification document may be recorded.

Existing law, the California Emergency Services Act, authorizes the Governor to proclaim a state of emergency when specified conditions of disaster or extreme peril to the safety of persons and property exist, as specified.

This bill would expand the provisions making a recorded restrictive covenant unenforceable against the owner of an affordable housing development to additionally apply to a development located on property that is the subject of a recorded restrictive covenant and is located within a county subject to the state of emergency declared by the Governor on January 7, 2025, related to the Palisades Fire and windstorm conditions. The bill would make conforming changes in this regard. By imposing additional duties on county officials, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.