In recent years, California has been at the forefront of reshaping housing policy to promote density, reduce car dependency, and lower the overall cost of living. Two key pieces of legislation—Assembly Bill 1317 (AB 1317) and Assembly Bill 2097 (AB 2097)—represent a pivotal shift in how parking is managed and valued in new multifamily housing developments.
With AB 1317 set to take effect on January 1, 2025, multifamily property owners, developers, and parking managers should prepare now for a significant change: the unbundling of parking costs from rent. At the same time, AB 2097 is already influencing the development landscape by removing minimum parking requirements near transit.
This article explores the core aspects of these new laws, how they affect parking management and residential behavior, and the technology and policy changes that property managers should consider to stay compliant and competitive in California’s evolving housing environment.
What Is AB 1317? Understanding Unbundled Parking
Signed into law in October 2023, Assembly Bill 1317 introduces a pilot program for “unbundled parking” in new multifamily developments. This means that, rather than folding the cost of parking into monthly rent, property owners must separately charge tenants for parking.
Key Provisions of AB 1317
- Applies to new buildings with 16 or more units that receive a certificate of occupancy on or after January 1, 2025.
- The law is limited to select California counties for now, including:
Alameda, Fresno, Los Angeles, Riverside, Sacramento, San Bernardino, San Joaquin, Santa Clara, Shasta, and Ventura. - Parking fees must be charged separately from rent, giving tenants the choice to accept or decline a parking space.
- Tenants have the right of first refusal for any parking spaces associated with their unit.
- If the tenant declines, the landlord may lease that space to another resident or off-site user on a month-to-month basis.
- Failure to pay a parking fee is not grounds for eviction. However, after 45 days of non-payment, the landlord may revoke parking access.
Why Unbundle Parking?
Unbundling reflects a broader trend in housing and transportation planning: to encourage more equitable and environmentally sustainable living patterns. When parking is included in rent, all tenants pay for it—whether they use it or not. This artificially inflates housing costs and encourages car ownership, even in transit-accessible areas.
By unbundling parking, AB 1317:
- Promotes housing affordability by lowering base rent costs.
- Incentivizes lower car ownership and greater use of public transit.
- Reflects actual demand for parking rather than assuming every unit requires a space.
Impact on Property Managers and Parking Strategy
AB 1317 introduces a range of operational and logistical considerations for property managers. It’s not just a billing change—it’s a shift in how parking is perceived, tracked, and allocated. Here’s how it will affect day-to-day management.
1. New Complexity in Lease Agreements
Property managers will now need to separate parking from the lease itself, likely requiring a stand-alone parking addendum. The lease must clearly outline:
- The monthly parking fee
- The tenant’s decision to accept or decline parking
- The terms of revocation after non-payment
Standardizing this process—and ensuring legal compliance—will require coordination with legal counsel and leasing staff.
2. Need for Real-Time Parking Inventory
Unbundled parking will demand active monitoring of parking space availability and usage. Property managers will need to know:
- Which spaces are accepted by tenants
- Which are declined and available to offer
- Which have been revoked due to non-payment
This level of tracking is difficult to manage with static tools like spreadsheets. Modern parking management software with live inventory and resident access will be critical.
3. Revenue Tracking and Forecasting
Unbundled parking introduces a variable revenue stream, separate from rent. Property owners will need to forecast and report on:
- Monthly income from parking
- Occupancy rates for parking vs. units
- Trends in demand for spaces over time
This data will also guide decisions on pricing and the reallocation of unused spaces.
4. Enforcement and Compliance
Because tenants can lose access to parking after 45 days of non-payment—but cannot be evicted for it—property managers will need tools to automatically revoke access without disrupting other parts of the lease. That means automated alerts, clear communication workflows, and possibly hardware controls (gates, access fobs) tied to payment status.
AB 2097: Reducing Minimum Parking Requirements
The other major policy shift—AB 2097, signed in 2022—supports the goals of AB 1317 by making parking optional in more urban and transit-accessible developments.
Key Points of AB 2097
- Eliminates minimum parking requirements for new housing developments located within one-half mile of a major transit stop.
- Developers are not required to provide any parking if their site qualifies.
- Applies across California and is already in effect.
Impact on Development Strategy
AB 2097 allows developers to build more units per parcel without being constrained by costly parking mandates. This makes housing production more flexible and financially viable—especially for affordable housing near transit.
For parking management, it may mean:
- Smaller parking footprints with higher utilization
- Increased need for precision tools to assign, monitor, and enforce fewer available spaces
- Growing demand for dynamic parking strategies, like space sharing and rental programs
Technology Solutions to Support the Transition
As unbundled parking and reduced parking mandates reshape the multifamily landscape, technology will be the bridge between compliance and efficiency.
Here are four smart parking technologies that property managers should consider:
1. Interactive Parking Maps
An interactive map allows managers and residents to visually view, select, and manage parking spaces. With unbundled parking, this transparency is critical—residents want to see what they’re paying for.
2. Self-Serve Resident Portals
Empower residents to:
- Accept or decline parking
- Register guest vehicles
- See space availability
- List their own space while out of town
These portals reduce admin workload and give residents flexibility that is aligned with the new laws.
3. License Plate Recognition (LPR) Systems
LPR cameras allow for real-time access control and enforcement without physical permits. This helps enforce revoked parking access and track usage automatically.
4. Parking Revenue Tracking Tools
Modern platforms should include built-in tools to monitor parking income, overdue payments, and usage trends. With parking now functioning as a separate line of revenue, robust reporting is essential.
Looking Ahead: A More Flexible Parking Future
While AB 1317 and AB 2097 are California-specific, they reflect a national shift in how cities think about parking. Car ownership is no longer the default assumption in every household. Tenants want choices. Cities want density. And managers need smarter systems to stay ahead of the curve.
For property owners and managers, the shift may feel complex at first—but it’s also an opportunity. Unbundled parking opens the door to more equitable pricing, better space utilization, and higher operational efficiency. With the right technology in place, these laws are not a burden—they’re a blueprint for smarter, more resident-focused parking strategies.
Need help preparing your property for AB 1317?
At Reliant Parking, we help multifamily communities modernize parking with interactive maps, resident portals, self-serve access tools, and enforcement systems that support unbundled pricing and smarter policies. Let’s talk about how to turn change into opportunity.
