AB 894 is a 2023 California law that requires cities and counties to let owners share underused parking with other uses and count those shared stalls toward parking requirements, when a parking analysis shows the supply can serve both.
- Statute
- Gov. Code 65863.1 (Friedman), Ch. 749, Stats. 2023
- In effect
- January 1, 2024, statewide
- Key fact
- Shared stalls can count for two uses at once when their peaks do not overlap
What AB 894 requires
AB 894 turns shared parking from a variance into a right. A local agency must allow existing parking that is underused to be shared with a new or existing use and counted toward that use’s requirement, as long as the arrangement meets the law’s conditions. It applies where a city still has parking requirements, which after AB 2097 mostly means sites beyond a half mile of a major transit stop.
Distance and shuttles
Shared parking qualifies when it is on the same parcel or a contiguous one, or within 2,000 feet walking distance of the use it serves. It can be farther away if the agreement includes a shuttle or similar plan to connect users to the parking.
The parking analysis and agreement
- Analysis: the proposal must include a parking analysis using peer-reviewed methods, such as those published by the Urban Land Institute, the National Parking Association or ICSC, showing the stalls are available when the new use needs them.
- Agreement: the parties need a shared parking agreement that provides for the parking over the long term or allows periodic review. The agency must approve an agreement that meets the statute and may require that it be recorded.
- Notice: for projects of 10 or more units or 18,000 square feet or more, owners within 300 feet must be notified and can request a meeting within 14 days.
What cities cannot require
- They cannot require an owner to cure an existing parking deficit as a condition of sharing.
- They cannot deny sharing solely because the number of stalls would be temporarily reduced.
- Historic resources being converted to new uses may meet requirements with offsite shared parking.
- AB 894 does not reduce EV charging or accessible parking requirements, does not require shared parking to be free, and does not force anyone to share.
The law also asks agencies to consider shared parking and feasibility before building publicly funded parking, and for state-funded developments.
Shared parking math
Shared parking works because uses peak at different times. Offices fill by day and empty at night; apartments do the reverse; churches and event venues peak on weekends and evenings. A shared parking model lays each use’s demand over the hours of the week and sizes the supply to the highest combined hour, not the sum of the separate peaks. The difference is the stalls you do not have to build.
AB 894 timeline
- October 2023: AB 894 (Friedman) is signed as Ch. 749, Stats. 2023.
- January 1, 2024: AB 894 takes effect statewide.
- January 1, 2025: AB 1317 begins requiring unbundled parking in new buildings, creating more stalls available to share.
How AB 894 works with other California laws
| Law | What it does for parking and housing near transit |
|---|---|
| SB 79 (2025) | Sets state floors for height, density and floor area around qualifying rail and BRT stops |
| AB 2097 (2022) | Bars minimum parking requirements on most projects within a half mile of a major transit stop |
| Density Bonus Law | Adds homes in exchange for affordable units and caps the parking a city may require |
| SB 423 (2023) | Ministerial, streamlined approval with its own parking limits near transit |
| AB 1317 (2023) | Separates the cost of parking from rent in new buildings of 16 or more units in ten counties |
| AB 894 (2023) | Lets owners share underused parking and count it toward requirements |
The Parkonomics view
Most cities already had a shared parking clause; few made it easy to use. AB 894 gives owners a statutory path and gives underused garages a second customer. The opportunity is biggest for office and retail garages with empty evenings, for apartments with stalls freed by AB 1317 unbundling, and for any site converting through adaptive reuse. The work is operational: access control by user group, permits and LPR enforcement, clear rules for overlap hours, and a pricing model both parties accept. An owner’s parking consultant can build the analysis the city needs and the operating plan the garage needs, and they are not the same document.
AB 894: frequently asked questions
What is AB 894?
AB 894 is a California law, in effect since January 1, 2024, that requires local agencies to allow underused parking to be shared and counted toward parking requirements for other uses when the law’s conditions are met.
How far away can shared parking be under AB 894?
On the same or a contiguous parcel, within 2,000 feet walking distance, or farther if the agreement includes a shuttle or similar plan.
What analysis does AB 894 require?
A parking analysis using peer-reviewed methods, such as those from the Urban Land Institute, the National Parking Association or ICSC, showing the shared stalls are available when needed.
Does AB 894 require parking to be shared for free?
No. Parking can be priced, and no one can be compelled to share parking.
Does AB 894 apply if there is no parking minimum?
It matters most where a city still imposes requirements. Within a half mile of a major transit stop, AB 2097 usually removes minimums, but AB 894 can still support shared arrangements and help underused garages serve new users.
Can a city require an owner to fix an existing parking shortfall before sharing?
No. AB 894 bars agencies from requiring an existing deficit to be cured as a condition of a shared parking arrangement.
Related terms: Shared Parking, AB 1317, AB 2097, Parking Demand Analysis, Parking Occupancy, Adaptive Reuse, Mobility Hub, Event Parking
Further reading: The Zoning Arrives Before the Train, The Parking Garage Is Becoming a Mobility Hub, Designed to Park, The Underwriting Frame
Sources: Gov. Code 65863.1; AB 894 (Friedman), Ch. 749, Stats. 2023; Assembly and Senate committee analyses of AB 894; Urban Land Institute, Shared Parking (3rd ed.).