Description
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.
Implementation Details
- Mandate unbundling of parking from rent or home price in residential developments located near mobility corridors and transit-priority areas.
- Include unbundling requirements in Specific Plans or project conditions of approval for new multifamily developments.
- Create incentive programs or streamlined permitting for developers who voluntarily implement parking unbundling and car-free housing strategies.
- Focus implementation in areas with high housing cost burden and limited mobility options.
Mitigation Potential
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 SB743 Program Mitigation Playbook, Parking, pg. 39-41 for VMT reduction quantification.
Linked Strategies
Equity Considerations
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.
Funding Sources
Requires staff time to implement. Planning for alternative parking strategies can be funded through RCTC’s Measure A program, Caltrans Sustainable Transportation Planning Grants, and CMAQ. Proximity to transit and active transportation networks may impact eligibility to a broader range of funding programs.
Examples/Case Studies
State of California Assembly Bill (AB) 1317
California State Law AB 1317, also known as the “Unbundled Parking” bill, mandates that new, large apartment complexes in certain counties separate parking costs from rent. This means that tenants in qualifying properties will have the option to rent parking spaces separately, rather than having the cost bundled into their monthly rent. The bill aims to reduce car dependency, encourage more affordable housing, and address environmental concerns .
City of Sacramento Parking Code Update
Sacramento allows and encourages unbundling of parking from residential leases in its central city area as part of broader VMT reduction strategies.