Why this article matters: Streamlined removal of CC&R provisions permits an owner builder to clear out title restrictions to clear the path for housing additions to inventory. What earlier developers did in their CC&Rs, today’s home developer can now undo with a request for administrative review, voiding obstructive CC&R provisions used as exclusiveness to attract buyers decades ago.

CC&Rs restricting housing supply

Covenants, conditions and restrictions (CC&Rs) are recorded restrictions encumbering title to real estate intended to prohibit or limit specified uses of the property in a subdivision, whether horizontal or vertical.

CC&Rs are designed to bind future owners of the subdivided lots — they run with the land. However, when a provision unreasonably restricts the marketability of a property subject to the CC&Rs, the state may step in and overrule.

For example, CC&Rs addressing the installation or use of a solar energy system are unenforceable when the restriction significantly increases the cost of the system or decreases its efficiency by:

  • causing the installation cost of the system to increase more than 20%; or
  • decreasing the operating efficiency of the solar system by more than 20%. [Calif. Civil Code §714]

Assembly Bill 1050, effective beginning January 1, 2026, sets up a process which streamlines an owner’s ability to control clearing title of CC&R provisions restricting the development of additional housing.

The new law greatly simplifies a property owner’s removal of a covenant, condition, or restriction which limits the use of the property to add affordable housing.

The person planning a housing development on property encumbered by an obstructive restrictive covenant may submit a request to the County Recorder to render the restrictive covenants unenforceable. The Recorder is authorized to modify existing CC&Rs encumbering the property [CC §714.6(b)(1)]

The new law addresses any recorded covenant, condition, restriction or limit on the use of land that restricts the residential uses of the property. The CC&R provisions avoided include those addressing number, size, or location of the residences allowed to be built on the property, or the number of people who may reside on the property. [CC §714.6(j)(6)]

The modification request submitted to the county recorder includes:

  • a copy of the restrictive covenant;
  • proof the owner, prior to 60 days before submitting the request, provided written notice to property owners and easement holders affected by the modification of the number, size and location of improvements to be built; and
  • documents establishing the property qualifies for a housing development. [CC §714.6(b)(2(A)]

Within five days of receiving the modification request and all required documents, the county recorder submits the documentation to the county counsel for review and a decision. [CC §714.6(b)(2)(B)]

The county counsel’s decision is delivered within 15 days of receiving the documentation from the county recorder. [CC §714.6(b)(2)(C)]

When the modification is authorized, the owner will deliver by certified mail a copy of the modification document along with a copy of the new law (the full text of Calif. Civil Code §714.6) and a written explanation to all individuals with an interest in the property. [CC §714.6(b)(2)(D)]

When the person submitting the modification request is a buyer of the property under a purchase agreement — in escrow — the modification document is recorded when the person acquires title to the property. [CC §714.6(b)(2)(E)]

Related article:

Word-of-the-Week: Covenants, conditions & restrictions (CC&Rs)