Car sharing

Legal Memorandum

Read the legal version from Lidstone & Co.

Car sharing is a car rental service that allows people to use vehicles for short periods of time, often by the hour. It can be an economical and eco-friendly option for those who only need occasional access to a vehicle. Local governments may want to enable car sharing in large new developments to support mode shift and reduce car ownership as part of a broader transportation demand management strategy. Car sharing generally requires agreements with car share providers and the market for car sharing varies by community.

Regulatory pathways

Covenant requiring developers to require car sharing

Last update: Aug. 2025

A local government could likely obtain a section 219 covenant under the Land Title Act from an owner or developer that requires the owner or developer to provide parking stalls that are allocated exclusively to car sharing.

How it works

The covenant could be used to secure a commitment from the developer to provide and maintain designated car share stalls within the development.

  • Once secured, the developer or property owner can enter into an agreement with a car share provider to operate the stalls as part of its service.
  • In addition, the developer or owner may contract with a car share company to offer incentives—such as memberships or credits—to new residents or occupants of the building.

Glossary Entry

Section 219 Covenants

A legal agreement registered on a property title that allows local governments to secure commitments from landowners.

Section 219 covenants, under the Land Title Act, are a way for local governments to enforce a landowner’s promise to do (or not do) certain things on their property—such as protecting a natural area, limiting certain uses, or ensuring specific construction standards. These covenants don’t need to benefit another property and can apply to any lot, though they’re often used in larger or more complex developments due to the administrative work involved.

A local government may consider a landowner’s offer for a covenant alongside rezonings, development permits, or subdivision approvals. Covenants are legally enforceable and may include financial penalties or specific legal remedies if breached.

Glossary Entry

Car sharing

Car sharing is a car rental service that allows people to use vehicles for short periods of time, often by the hour. It can be an economical and eco-friendly option for those who only need occasional access to a vehicle. Local governments may want to enable car sharing in large new developments to support mode shift and reduce car ownership as part of a broader transportation demand management strategy. Car sharing generally requires agreements with car share providers and the market for car sharing varies by community.