AB 2097 Killed Parking Minimums Near Transit. Here’s What That Actually Unlocks in San Diego.
Introduction
For decades, parking ratios decided which sites were buildable in California.
Two spaces per unit. Sometimes more. Often layered with guest parking, retail parking, and accessibility minimums.
On a tight infill site, that math eliminated more projects than zoning ever did.
AB 2097 changed that conversation. For qualifying sites within a half-mile of major transit, the City cannot impose a minimum parking requirement on residential or mixed-use housing.
What AB 2097 Actually Says
Effective January 2023, AB 2097 prohibits California cities and counties from enforcing parking minimums on residential, commercial, or mixed-use developments located within a half-mile of a “major transit stop.”
A major transit stop includes:
- existing rail and bus rapid transit stations
- the intersection of two or more bus routes with 15-minute peak service
- certain ferry terminals served by buses or rail
In San Diego, that includes most of the MTS trolley network, the future Mid-Coast Trolley extension, and several high-frequency bus corridors.
Why the San Diego Map Is Bigger Than You Think
San Diego has been quietly building transit capacity for years.
When you map the AB 2097 buffer across the city, the coverage area includes:
- large sections of Mid-City, North Park, Hillcrest, and University Heights
- much of the El Cajon Boulevard and University Avenue corridors
- most of downtown and Barrio Logan
- significant portions of Pacific Beach, Old Town, and Mission Valley
- the new Mid-Coast Trolley stations in Clairemont, UTC, and UC San Diego
For developers focused on density bonus and CCHS projects, this overlay is significant.
Many CCHS Sustainable Development Areas already sit inside the AB 2097 buffer. The two layers compound.
What This Unlocks on a Pro Forma
Removing parking minimums changes more than a unit count.
It changes:
- buildable area on small lots that previously could not support a podium
- construction type, since wood-frame Type V projects often become possible without a costly garage level
- cost per buildable square foot, since structured parking can run $40,000 to $70,000 per stall
- unit mix flexibility, since the developer can right-size parking to actual demand
On a sub-acre infill site near a trolley stop, the difference between a code-required garage and a market-driven parking ratio can be the difference between a project and a passed deal.
What It Doesn’t Do
AB 2097 is not a free pass.
The law applies to minimums, not to other entitlement realities:
- density limits, FAR, height, and setbacks still apply
- coastal overlay zone reviews still happen
- lenders may still require a parking ratio to underwrite a project
- condo buyers and renters still expect parking in some submarkets
The decision becomes financial, not regulatory.
How We Use AB 2097 in Feasibility Work
When we run a site analysis, AB 2097 is one of the first overlays we check.
If the site falls inside the buffer, we model two pro formas in parallel:
- a market-realistic parking ratio that matches the submarket and lender expectations
- a reduced ratio that captures the cost savings AB 2097 allows
The delta usually shows up in three places: total project cost, unit count, and effective rent per square foot.
On the right site, AB 2097 alone moves a project from infeasible to financeable. The math is rarely close. The site selection matters more than ever.
Closing
Parking has always been a quiet veto.
For sites near transit, that veto is gone.
The next question is whether your site qualifies, and what the reduced ratio does to your yield.
Related read: AB 2097 pairs naturally with the new ministerial pathway in SB 79. See SB 79 Isn’t What You Think for how the two laws work together on transit-adjacent sites.
Is your site inside the AB 2097 buffer?
We run paid feasibility studies that map your site against AB 2097, CCHS overlays, transit corridors, and density bonus eligibility. You get a written pathway, a yield projection, and the cost delta for parking-reduced design before you commit capital.
Book a Feasibility Consultation →Principal-led. Site-specific. Confidential.
This content is provided for general informational purposes only and does not constitute legal, financial, or entitlement advice. AB 2097 application, transit qualification, lender requirements, and project feasibility vary based on site conditions, jurisdiction, and agency interpretation. Project feasibility must be evaluated on a site-specific basis in coordination with qualified professionals and the appropriate public agencies.