Unlawfully restrictive covenants: housing developments.

Corrected a duplicated word 'property property' to 'property' in subdivision (c)(1) and in the definition of 'restrictive covenant' in subdivision (j)(6).

Removed legislative working headers including amendment dates, author/coauthor lines, the full legislative counsel digest, and vote/appropriation/fiscal committee information.

Added standard enrolled-bill formatting: passage dates (Assembly September 11, 2025; Senate September 10, 2025), governor receipt line, and approval signature block.

The bill text was reformatted from an official chaptered document (with page numbers like '92' and section markers like 'Ch. 504') into a web-based layout that includes navigation elements (skip to content, home, accessibility, FAQ, feedback, sitemap, login), search fields, and version history links.

Subdivision (a) of Section 714.6 now covers covenants that 'restrict or prohibit the residential uses of the property' in addition to those restricting the number, size, or location of residences. This expands protection to covenants that outright ban residential use rather than merely limiting unit count or size.

Subdivision (b)(1) was updated with the same expansion, so modification documents can now be used to remove covenants that prohibit residential uses, not just those that limit the number, size, or location of residences.

Subdivision (c)(1), which limits the section's applicability, was updated to match: the section now applies to covenants that restrict or prohibit residential uses, not only those restricting unit number, size, or location.

The definition of 'restrictive covenant' in subdivision (j)(6) was expanded to include instruments that 'restrict or prohibit the residential uses of the property,' aligning the definition with the broadened operative provisions.

Assembly Member Petrie-Norris was added as a coauthor alongside Assembly Member Wicks.

Assembly Member Wicks added as coauthor of the bill.

Removed redundant phrase 'that property' from the bill description and from Section 714.6(j)(1)(A)(iii), clarifying the language about redeveloping existing commercial property.

Introduced apparent drafting error in Section 714.6(b)(1): changed 'under subdivision (a)' to 'under pursuant to subdivision (a)', which is grammatically incorrect and likely a typo.

Introduced apparent drafting error in Section 714.6(b)(5): changed 'and if approved' to 'and and, if approved', duplicating the conjunction.

Page numbers renumbered from 96 to 95 throughout, likely due to content shifting from the added coauthor line.

The term 'affordable housing development' is replaced with 'housing development' throughout the bill. While the definition still requires a 100 percent affordable rent restriction for 55 years (or a pending application for one, or a commercial redevelopment application), the broader label and removal of 'affordability restrictions' language in enforcement provisions (subdivisions b(4) and b(5)) signals an intent to cover a wider range of housing projects.

Reciprocal easement agreements are explicitly added as a type of instrument that can contain covenants subject to this section, both in the operative text of subdivision (a) and in the definition of 'restrictive covenant' in subdivision (j)(6).

A new exclusion is added to the definition of 'restrictive covenant': it does not include an easement set forth in a reciprocal easement agreement or other recorded instrument. This narrows what can be modified while still allowing covenants contained within REAs to be addressed.

The definition formerly labeled 'Affordable housing' is restructured and relabeled as 'Housing development.' The three qualifying pathways (recorded 55-year affordability restriction, pending permit application for such a project, or commercial redevelopment application) are preserved but the nested subparagraph structure is simplified.

References to 'affordability restrictions' in the enforcement and violation provisions (subdivisions b(4) and b(5)) are changed to simply 'restrictions,' aligning with the broader 'housing development' framing and potentially applying to non-affordability-based restrictions as well.

Reciprocal easement agreements are no longer directly listed as instruments whose terms can be struck down under Section 714.6(a). The bill now only reaches covenants, conditions, restrictions, or private limits contained within a reciprocal easement agreement, rather than the REA itself.

The eligibility criterion for commercial property redevelopment is clarified: it is now the development project that must include residential uses permitted by state housing laws or local zoning, rather than the commercial property itself.

The definition of 'restrictive covenant' in Section 714.6(f)(6) removes 'reciprocal easement agreement' from the list of covered instruments, aligning with the narrowing in subdivision (a).

Fixed a typo ('an a housing' to 'a housing') and removed a duplicate statutory citation ('Section 815.7 of the Civil Code. 815.7.' corrected to 'Section 815.7.').

A new eligibility pathway (subparagraph B, clause iii) allows a property to qualify if it is owned or controlled by an entity or individual that has submitted a development project application to redevelop an existing commercial property that includes residential uses permitted by state housing laws or local land use and zoning regulations. Previously, only properties with recorded 55-year affordability restrictions or those with permit applications for affordable housing qualified.

The bill now applies to both 'affordable housing developments' and a broader category of 'housing developments' (specifically commercial-to-residential conversions). Throughout the text, references to 'affordable housing development' are changed to 'affordable [or] a housing development,' expanding who can use the restrictive covenant modification process.

Subsection (f)(2) changes the consistency requirement from requiring development to be consistent with 'the local general plan, zoning ordinances, and any applicable specific plan' to being consistent with 'state housing laws OR the local general plan, zoning ordinances, and any applicable specific plan.' This means a project can proceed if it meets state housing law standards even if it does not fully conform to local plans.

The definition section (j)(1) is restructured from a single 'Affordable housing development' definition into a broader 'Housing development' definition that encompasses both the original affordable housing criteria and the new commercial-to-residential conversion pathway.