Build within a half-mile of a bus stop. Save $3 million in parking costs. It’s that simple.
California passed a game-changing law in January 2023. Assembly Bill 2097 says cities can’t force you to build parking if you’re near major transit. This isn’t optional for cities—it’s state law. And it’s saving developers millions.
The Math That Makes Sense
Building one parking space costs between $40,000 and $65,000. Before this law, a 50-unit apartment building needed 100 parking spaces. Do the math: that’s $4 to $6.5 million spent on parking that brings in zero dollars.
AB 2097 wipes out this requirement completely.
Here’s what really matters: Each parking space takes up 350 square feet when you count the driving lanes. Remove 100 spaces? You just freed up 35,000 square feet. That’s room for 30 more apartments. Apartments make money. Parking spaces don’t.
What Counts as “Major Transit”?
The law covers three types of transit stops:
- Train stations (built or planned)
- Ferry docks
- Bus stops where two frequent routes meet (buses every 20 minutes during rush hour)
Look around Los Angeles. This law covers huge areas. That quiet bus stop down the street? It could be your key to a profitable project.
Save Time, Save Money
Here’s a benefit most people miss: Your project gets approved faster. Much faster.
Planning departments used to spend weeks fighting over parking studies. City councils debated parking ratios for hours. Now? That whole debate is gone. Projects get approved at least one-third faster.
What does faster mean for your bottom line? On a $10 million project, saving six months saves you $300,000 in interest. That goes straight to profit.
You Still Have Options
Let’s be clear: AB 2097 removes parking requirements. It doesn’t ban parking.
You can still build parking if the market wants it. Most developers now build 0.5 to 0.7 spaces per unit instead of the old 2.0 spaces. People who need parking can have it. People who don’t need it don’t pay for it.
When Cities Can Say No (Spoiler: Almost Never)
Cities have one way out. They can override AB 2097 if they prove removing parking would cause “major negative impacts.” They have 30 days to make this case in writing.
But cities cannot use this excuse for:
- Buildings with 20% affordable housing
- Projects with fewer than 20 units
Good luck to any city trying to prove “major negative impacts” in court. It won’t happen.
Banks Are Coming Around
Banks worried at first. “No parking means no loan,” they said.
Not anymore. Successful projects have proved the market works. Most banks now accept 0.5 to 0.75 spaces per unit near transit. Smart banks actually prefer less parking because it means more apartments to rent.
Perfect for Building Conversions
Want to turn an old office building into apartments? AB 2097 makes it possible.
Old buildings often can’t add modern parking without major demolition. Now they don’t need to. Convert that empty office tower without touching the parking. Simple.
Who Wants This? Who Doesn’t?
Young renters love it. They get lower rent, easy transit, and city living.
Families are warming up to it as cars get more expensive. The trick is simple: Know your renters. Provide the parking they actually need, not what the city used to require.
Take Action
Williams Capital Advisors knows AB 2097 inside and out. We help you:
- Find sites that qualify
- Design projects with more units
- Work with banks on reduced parking
Don’t waste millions on parking nobody needs. Turn that cost into profit.
Contact Williams Capital Advisors:
(213) 880-8107 | francisco.williams@williamscap.ai | williamscapitaladvisors.com
Make parking work for you, not against you.
