Requiring developers to separate parking costs from rent or the purchase price in multifamily projects incentivizes residents to opt out of paying for parking if they don’t own a vehicle.
Unbundling residential parking from property costs requires residents to pay only if they choose to own a vehicle. Unbundling residential parking incentivizes low or no car ownership and encourages alternative modes such as biking, walking, or transit, reducing VMT.
For more details, see CAPCOA, T-16. Unbundle Residential Parking Costs from Property Cost, pg. 126-129 and CALTRANS VMT Mitigation Program, Parking, pg. 45-47 for VMT reduction quantification.
Allows renters without cars, often lower-income residents, to avoid subsidizing parking they don’t use. Supports housing affordability by reducing bundled rent or mortgage costs. Ensure that developments that unbundle parking also provide equitable mobility alternatives (e.g., secure bike storage, transit access). Educate tenants and landlords about tenant rights and cost savings to prevent exploitation or confusion.
Requires primarily staff time for ordinance development, development review, outreach, and monitoring. Local jurisdictions can incorporate parking unbundling requirements into development approvals and specific plans. StanCOG planning and TDM resources may support policy development and coordination with local jurisdictions. State requirements, including AB 1317, may also provide a framework for implementation in qualifying multifamily developments.
California Assembly Bill 1317 requires qualifying new multifamily rental properties to separate the cost of off-street parking from residential rent. The requirements apply to properties with 16 or more units that receive a certificate of occupancy on or after January 1, 2025, within specified counties, including Fresno and San Joaquin counties. Tenants receive the right of first refusal for parking associated with their property, while spaces declined by tenants may be leased separately. The law provides a San Joaquin Valley-relevant example of implementing residential parking unbundling through a regulatory requirement.
