AB 2005: Housing developments: urban lot split: owner-occupancy.
This bill amends the government code to require local agencies to ensure that urban lot splits have owner-occupancy requirements for a minimum of three years. To achieve this, applicants must either sign an affidavit stating their intention to occupy one of the housing units as their principal residence or require that all units remain owner-occupied for three years when selling to a homebuyer. The bill also imposes recording and notice requirements on this new requirement and prohibits local agencies from adopting specific rules for urban lot splits. Additionally, the bill requires sellers of urban lot splits to disclose the owner-occupancy requirement in writing. The bill also clarifies that the state is not required to reimburse local agencies for costs related to implementing this new requirement.
| Aug. 30, 2026 | Read second time. Ordered to third reading. |
| Aug. 28, 2026 | Read third time and amended. Ordered to second reading. |
| Aug. 26, 2026 | Reconsideration granted. (Ayes 30. Noes 6.) |
| Aug. 25, 2026 | Read third time. Refused passage. (Ayes 18. Noes 11.). |
| Aug. 20, 2026 | Read second time. Ordered to third reading. |
| Amended IN Senate August 28, 2026 |
| Amended IN Senate August 19, 2026 |
| Amended IN Senate August 11, 2026 |
| Amended IN Senate June 22, 2026 |
| Amended IN Assembly May 07, 2026 |
| Amended IN Assembly April 09, 2026 |
| Amended IN Assembly March 19, 2026 |
| Introduced by Assembly Member Ahrens (Coauthors: Senators Arreguín, Cortese, and Wiener) |
February 17, 2026 |
LEGISLATIVE COUNSEL'S DIGEST
This bill would additionally prohibit a local agency from adopting or imposing any requirement, process, practice, or procedure, or undertaking any course of conduct, that applies to a project solely or partially on the basis that the project is an urban lot split, including, but not limited to, restricting the eligibility of an applicant of an urban lot split.
The people of the State of California do enact as follows:
SECTION 1.
Section 1102.6l is added to the Civil Code, to read:1102.6l.
(a) The seller of an urban lot split unit subject to the requirements of clause (ii) of subparagraph (A) of paragraph (1) of subdivision (g) of Section 66411.7 of the Government Code shall disclose, in writing, any owner-occupancy requirement for three years after the conveyance of an urban lot split unit.SEC. 2.
Section 66411.7 of the Government Code, as amended by Section 9 of Chapter 56 of the Statutes of 2026, is amended to read:66411.7.
(a) Notwithstanding any other provision of this division and any local law, a local agency shall ministerially approve, as set forth in this section, a parcel map for an urban lot split only if the local agency determines that the parcel map for the urban lot split meets all of the following requirements:(I)The local agency shall record a notice of the owner-occupancy requirement on both resulting parcels as a condition of ministerial approval of the parcel map for an urban lot split.
(II)A parcel or unit being purchased shall be subject to a recorded deed restriction imposing the owner-occupancy requirement on any subsequent home buyer who purchases the parcel or unit during the three-year period specified in this clause.
(III)The home buyer shall record a notice of owner-occupancy as a condition to acquiring title to a parcel or unit. The notice shall state that the home buyer, and any subsequent home buyer who purchases the parcel or unit during the three-year period specified in this clause, shall be required to occupy the parcel or unit or designate the parcel or unit as their primary residence.
(2)A local agency shall not adopt or impose any requirement, process, practice, or procedure, or undertake any course of conduct, that applies to a project solely or partially on the basis that the project is an urban lot split, including, but not limited to, restricting the eligibility of an applicant of an urban lot split.
SEC. 2.5.
Section 66411.7 of the Government Code is amended to read:66411.7.
(a) Notwithstanding any other provision of this division and any local law, a local agency shall ministerially approve, as set forth in this section, a parcel map for an urban lot split only if the local agency determines that the parcel map for the urban lot split meets all of the following requirements:(I)The local agency shall record a notice of the owner-occupancy requirement on both resulting parcels as a condition of ministerial approval of the parcel map for an urban lot split.
(II)A parcel or unit being purchased shall be subject to a recorded deed restriction imposing the owner-occupancy requirement on any subsequent home buyer who purchases the parcel or unit during the three-year period specified in this clause.
(III)The home buyer shall record a notice of owner-occupancy as a condition to acquiring title to a parcel or unit. The notice shall state that the home buyer, and any subsequent home buyer who purchases the parcel or unit during the three-year period specified in this clause, shall be required to occupy the parcel or unit or designate the parcel or unit as their primary residence.
(2)A local agency shall not adopt or impose any requirement, process, practice, or procedure, or undertake any course of conduct, that applies to a project solely or partially on the basis that the project is an urban lot split, including, but not limited to, restricting the eligibility of an applicant of an urban lot split.
SEC. 3.
Section 66411.7 is added to the Government Code, to read:66411.7.
(a) Notwithstanding any other provision of this division and any local law, a local agency shall ministerially approve, as set forth in this section, a parcel map for an urban lot split only if the local agency determines that the parcel map for the urban lot split meets all of the following requirements:SEC. 3.5.
Section 66411.7 is added to the Government Code, to read:66411.7.
(a) Notwithstanding any other provision of this division and any local law, a local agency shall ministerially approve, as set forth in this section, a parcel map for an urban lot split only if the local agency determines that the parcel map for the urban lot split meets all of the following requirements:SEC. 4.
The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the special circumstances requiring additional protection for communities living in areas impacted by the 2025 Palisades or Eaton Fires in the County of Los Angeles.SEC. 5.
Sections 2.5 and 3.5 of this bill incorporate amendments to Section 66411.7 of the Government Code proposed by both this bill and Assembly Bill 2601. Those sections of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 66411.7 of the Government Code, and (3) this bill is enacted after Assembly Bill 2601, in which case Sections 2 and 3 of this bill shall not become operative.SEC. 6.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.