Amended in Assembly April 4, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2282

Introduced by Assembly Member Calderon

February 18, 2016

An act to add Section 65009.5 to the Government Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

AB 2282, as amended, Calderon. Rental housing: begin delete local limits. end delete begin insert large-scale buy-to-rent investor end insert begin insert s: data collection. end insert

Existing law, the Planning and Zoning Law requires cities and counties to prepare and adopt a general plan for their jurisdictions that contains certain mandatory elements, including a housing element. Existing law requires the housing element to include, among other things, an inventory of land suitable for residential development and make adequate provision for the existing and projected needs of all economic segments of the community. Existing law states legislative findings declaring that the preservation and enhancement of opportunities for homeownership are beneficial to the well-being and prosperity of the people of the state.

This bill would require begin delete that, on and after January 1, 2017, the number of single family dwellings that are used more than intermittently as rental properties be limited to an unspecified percent age of the total number of single family dwellings in the relevant postal ZIP Code area. The bill would provide that, if the number of these single family dwellings used as rental properties in a postal ZIP Code area already exceeds that percentage on January 1, 2017, the limit on rental properties would apply prospectively to proposed new rental properties. end delete begin insert the Department of Business Oversight to design and implement a registration program for the purpose of registering owners of single-family homes who specifically intend to use the property as a rental property more than intermittently. end insert The bill would require the Department of Housing and Community Development to obtain information on the number of begin delete single family end delete begin insert single-family end insert dwellings begin delete used as rental properties end delete begin insert owned by large-scale buy-to-rent investors, as defined, end insert in postal ZIP Code areas begin insert in California. The bill would require the Department of Business Oversight and the Department of Housing and Community Development, in carrying out these duties, to consider methods that, among other things, collect data in a way that protects the privacy of homeowners and tenants, organize data to a level that provides information on the number of single-family homes that are owned and operated as rental properties more than intermittently in each postal ZIP Code area in the state, end insert and make that information publicly available on begin delete its end delete begin insert the relevant department’s end insert Internet Web begin delete site, organized by ZIP Code area. end delete begin insert site. The bill would also prohibit large-scale buy-to-rent investors, as defined, from placing a bid on a normal sale of a single end insert begin insert -family home, with specified exceptions, for a period of not less than 90 days after the home has been placed on the real estate market. The bill would make various findings and declarations in this regard. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 65009.5 is added to the Government
Code, to read:

65009.5.  

(a)  begin insert (1) end insert begin insert   end insert It is the intent of the Legislature in enacting
this provision to begin delete promote the American dream of family home
ownership by maintaining and, over time, increasing the market
of homes that are available for purchase. end delete begin insert monitor the investment
activities of large-scale buy-to-rent investors in the State of
California who have, since October 2013, designed a
mortgage-based security supported by the revenue from
single end insert begin insert -family rental properties. end insert

begin delete

(b) (1) Notwithstanding any law to the contrary, on and after
January 1, 2017, the number of single family dwellings that are
used more than intermittently as rental properties shall be limited
to __ percent of the total number of single family dwellings in the
relevant postal ZIP Code area.

end delete begin delete

(2) On January 1, 2017, if the existing number of single family
dwellings that are being used more than intermittently as rental
properties in a postal ZIP Code area already exceeds the relevant
percentage for the area, the percentage for that area is deemed met,
but not exceeded, and the limit described in paragraph (1) shall
apply prospectively to proposed new rental properties.

end delete begin insert

(2) The emergence of this type of security is likely to grow and
scale institutionally owned single-family rental homes to a level
that is, at this time, unknown. However, with home prices currently
approaching record highs, yet with homeownership at historic
lows, it is important to understand the size and scope of investor
activity of single-family homes and the impacts it has on the real
estate market in California.

end insert begin insert

(3) It is in the best interest of the State of California to limit the
amount of single-family homes that large-scale buy-to-tent
investors can own in our neighborhoods and communities.
Furthermore, we must protect against the potential displacement
of persons residing in single-family home rentals that is harmful
not only to the persons displaced by these practices but also to the
entire community in which those persons reside.

end insert begin insert

(4) Large-scale buy-to-rent investors own more single-family
homes than any other population in the United States, a market
once dominated by local, private owners.

end insert begin insert

(5) Limiting the activity of large-scale buy-to-rent investors can
have a positive impact on the housing market by providing a
greater supply of homes to individual buyers, protect the real estate
market from large fluctuations in home prices, create a stronger
sense of community in our neighborhoods, and defend the American
dream of becoming a homeowner.

end insert begin insert

(b) (1) The Department of Business Oversight shall design and
implement a registration program for the purpose of registering
owners of single-family homes in California who specifically intend
to use those homes as a rental property more than intermittently.
In designing this program, the department shall consider methods
to accomplish all of the following:

end insert begin insert

(A) Collect data in a way that protects the privacy of
homeowners.

end insert begin insert

(B) Aggregate that data to a level that provides information on
the number of single-family homes that are owned and operated
as rental properties more than intermittently in each postal ZIP
Code area in this state.

end insert begin insert

(C) Provide information regarding how many of the property
owners are institutional investors in single-family homes compared
to private owners.

end insert begin insert

(D) Require property owners to renew registration of their
rental property on an annual basis through an online system.

end insert begin insert

(E) Make the data available on its Internet Web site.

end insert begin insert

(2) A large-scale buy-to-rent investor shall not place a bid on
a normal sale of a single-family home that is not a short sale,
foreclosure sale, or real estate owned property for a period of not
less than 90 days after the home has been placed on the real estate
market.

end insert

(c) The Department of Housing and Community Development
shall obtain information on the number of begin delete single family end delete
begin insert single-family end insert dwellings begin delete used as rental properties end delete begin insert owned by
large-scale buy-to-rent investors end insert in postal ZIP Code areas begin insert in
California end insert and make that information publicly available on its
Internet Web site, organized by ZIP Code begin delete area, so that buyers of
single family dwellings can determine where single family homes
are available and where limits on rental properties are, or may soon
be, in effect. end delete begin insert area. In collecting this information, the department
shall consider methods to accomplish all of the following: end insert

begin insert

(1) Collect data in a way that protects the privacy of tenants.

end insert begin insert

(2) Organize the data to a level that provides information on
the number of single-family homes that are owned and operated
as rental properties more than intermittently in each postal ZIP
Code area in this state.

end insert begin insert

(3) Provide information regarding how long the property has
been owned by a large-scale buy-to-rent investor.

end insert begin insert

(4) Make the data available on its Internet Web site.

end insert begin insert

(d) As used in this section, “large-scale buy-to-rent investor”
and “institutional investor in single-family homes” mean a publicly
traded company devoted to holding and managing single-family
home rental properties, either on behalf of clients or on for itself,
and which owns more than 10 single-family homes during a
calendar year.

end insert