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 Caltrans Sustainable Transportation Planning Grants and CMAQ. Proximity to transit and active transportation networks may impact eligibility to a broader range of funding programs.
Implemented in TAM Area
Current TDM Implementation
Based on California’s AB 1317, new, qualifying multi-family residential developments are required to unbundle parking. Some jurisdictions, like San Rafael, have more comprehensive unbundled parking requirements than at the state level.
TDM Benefit Locations
Jurisdictions can adopt more widespread mandates for unbundled parking, especially in areas with high transit access and lower income residents, like Marin City, Novato, and the Canal neighborhood. This TDM measure introduces more flexibility and incentivizes households to reduce individual vehicles.