CA AB721

Makes recorded covenants that restrict the number, size, or location of residences, or restrict the number of persons or families living on a property, unenforceable against owners of affordable housing developments if an approved modification document is recorded.

Allows affordable housing development owners to submit a restrictive covenant modification document to the county recorder, which must be reviewed by county counsel within 15 days to determine if the original covenant is prohibited and if the property qualifies as an affordable housing development.

Exempts from the bill's application: conservation easements (with specific conditions), aesthetic design standards, maintenance fees for common areas, rent limits on tenants, deed restrictions required by state agencies, and certain environmental settlement agreements.

Defines "affordable housing development" as property with 100 percent of units (excluding manager units) available at affordable rent to lower income households for 55 years, or property with a submitted permit application to develop such a project.

Entitles prevailing affordable housing development owners to recover litigation costs and reasonable attorney's fees in disputes over the enforcement of these provisions.