Affordable Housing Development Restrictive Covenant Modification Program

(Assembly Bill 721, Chapter 349, Statutes of 2021)

Background

Under state law, pursuant to AB 721, Chapter 349, Statutes of 2021 effective January 1, 2022, the owner of an affordable housing development may request to modify property documents containing restrictions on the number or size of residences that may be built or the number of persons that may reside on such property to the extent necessary to allow the affordable housing development to proceed.
 

Who is affected?

Any person who owns an affordable housing development that is subject to a restrictive covenant that unlawfully restricts (i) the number, size, or location of residences that may be built on the property or (ii) the number of persons or families who may reside on the property may, subject to the terms of Civil Code section 714.6, record an Affordable Housing Development Restrictive Covenant Modification to redact and render those unlawful restrictive covenants unenforceable against the owner of the affordable housing development.
 

How do you begin the modification process?

If you are the owner of an affordable housing development, as defined in Civil Code section 714.6(j)(1), please complete the Affordable Housing Development Restrictive Covenant Modification (RCM) cover page.

In order to facilitate the County’s review of your application to redact and render unenforceable an unlawful restrictive covenant, you may wish to submit a packet including the following materials:

  • A completed RCM cover page; please note that your signature on this document must be acknowledged by a notary public prior to submission to the Clerk-Recorder’s Office

  • An unmodified certified copy of the document containing the restrictive covenant

  • A copy of the document containing the restrictive covenant with the specific restrictive language proposed to be rendered unenforceable redacted or otherwise marked

  • Either (i) a certified copy of a recorded affordability restriction binding on the property that meets the criteria set forth in Civil Code section 714.6(j)(1)(A) or (ii) a copy of a permit application submitted to the relevant public agency seeking to develop a project that will be subject to a recorded affordability restriction

  • If the restrictive covenant is a conservation easement, (i) copies of the letters sent to the parties to that conservation easement and any third-party beneficiaries or other entities that are entitled to receive notice of changes to the conservation easement and (ii) certified mail receipts demonstrating that these have been sent to these parties at least 60 days before the date of submission

The RCM cover page and any supporting materials may be submitted to the County of Santa Clara, Clerk-Recorder's Office Restrictive Covenant Modification Program (RECOMP) Division by mail or in person. 
 

What is the cost?

The cost to record this document will be the standard recording fee of $102 for the first page and $3 for each additional page.

The cost for a certified copy of the original document is $6 for the first page and $2 for each additional page.

For questions related to submitting your modification packet, you may contact the RECOMP Division by phone at (408) 299-6099 or by e-mailing [email protected]

 

 

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