BILL NUMBER: AB 2282 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 4, 2016
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: local
limits. large-scale buy-to-rent investor s:
data collection.
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 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. 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. The bill would require the Department of
Housing and Community Development to obtain information on the number
of single family single -family
dwellings used as rental properties
owned by large-scale buy-to-rent investors, as defined, in
postal ZIP Code areas 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, and make that
information publicly available on its the
relevant department's Internet Web site, organized by
ZIP Code area. 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 -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.
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) (1) It is the intent of the
Legislature in enacting this provision to promote the
American dream of family home ownership by maintaining and, over
time, increasing the market of homes that are available for purchase.
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 -family rental properties.
(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.
(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.
(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.
(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.
(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.
(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.
(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:
(A) Collect data in a way that protects the privacy of homeowners.
(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.
(C) Provide information regarding how many of the property owners
are institutional investors in single-family homes compared to
private owners.
(D) Require property owners to renew registration of their rental
property on an annual basis through an online system.
(E) Make the data available on its Internet Web site.
(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.
(c) The Department of Housing and Community Development shall
obtain information on the number of single family
single-family dwellings used as rental properties
owned by large-scale buy-to-rent investors in
postal ZIP Code areas in California and make that
information publicly available on its Internet Web site, organized by
ZIP Code 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.
area. In collecting this information, the department shall
consider methods to accomplish all of the following:
(1) Collect data in a way that protects the privacy of tenants.
(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.
(3) Provide information regarding how long the property has been
owned by a large-scale buy-to-rent investor.
(4) Make the data available on its Internet Web site.
(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.