AB 2282, as amended, Calderon. Rental housing: large-scale buy-to-rent investors: 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 andbegin insert toend insert 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 the Department of Business Oversight to design and implement a registration
program for the purpose of registeringbegin insert and monitoring large-scale buy-to-rent investors and analyzing the impacts they are having on California’s real estate market.end insertbegin delete 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 dwellings owned by large-scale buy-to-rent investors, as defined, in postal ZIP Code areas in California.end delete The bill would require the Department of Businessbegin delete Oversight and the Department of Housing and Community Development,end deletebegin insert Oversight,end insert inbegin delete carrying out these duties,end deletebegin insert designing the programend insert to consider methodsbegin delete 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
the relevant department’s Internet Web site.end deletebegin insert to require large-scale buy-to-rent investors to renew registration of their rental property on an annual basis, including new and current single-family home rentals that they own or in which they have invested.end insert 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.begin insert The bill would also require the Department of Business Oversight, on or before January 1, 2018, to submit to the Governor and the Legislature a report that includes information regarding how many large-scale buy-to-rent investors own
property in the state for the purpose of renting the property which regions of the state their investment activity is occurring, the number of single-family homes each large-scale buy-to-rent investor owns, and an analysis of the potential impacts of their investments, as specified.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 65009.5 is added to the Government
2Code, to read:
(a) (1) It is the intent of the Legislature in enacting
4this provision to monitor the investment activities of large-scale
5buy-to-rent investors in the State of Californiabegin delete whoend deletebegin insert thatend insert have, since
6October 2013, designed a mortgage-based security supported by
7the revenue from single-family rental properties.
P3 1(2) The emergence of this type of security is likely to grow and
2scale institutionally owned single-family rental homes to a level
3that is, at this time, unknown.
However, with home prices currently
4approaching record highs, yet with homeownership at historic
5lows, it is important to understand the size and scope of investor
6activity of single-family homes and the impacts it has on the real
7estate market in California.
8(3) It is in the best interest of the State of California to limit the
9amount of single-family homes that large-scale buy-to-tent
10investors can own in our neighborhoods and communities.
11Furthermore, we must protect against the potential displacement
12of persons residing in single-family home rentals that is harmful
13not only to the persons displaced by these practices but also to the
14entire community in which those persons reside.
15(4) Large-scale buy-to-rent investors own more single-family
16homes than any other population in
the United States, a market
17once dominated by local, private owners.
18(5) Limiting the activity of large-scale buy-to-rent investors can
19have a positive impact on the housing market by providing a greater
20supply of homes to individual buyers, protect the real estate market
21from large fluctuations in home prices, create a stronger sense of
22community in our neighborhoods, and defend the American dream
23of becoming a homeowner.
24(b) begin delete(1)end deletebegin delete end deleteThe Department of Businessbegin delete Oversightend deletebegin insert
Oversight, with
25any assistance that may be offered by county recorders,end insert shall
26design and implement a registration program for the purpose of
27registeringbegin delete owners of single-family homes in California who begin insert
and monitoring large-scale buy-to-rent
28specifically intend to use those homes as a rental property more
29than intermittently.end delete
30investors and analyzing the impacts they are having on California’s
31real estate market.end insert In designing this program, the department shall
32consider methods tobegin delete accomplish all of the following:end deletebegin insert require
33large-scale buy-to-rent investors to renew registration of their
34rental property on an annual basis, including new and current
35single-family home rentals that they own or in which they have
36invested.end insert
37(A) Collect data in a way that protects the privacy of
38homeowners.
39(B) Aggregate that data to a level that provides information on
40the number of single-family homes that are owned and operated
P4 1as rental properties more than intermittently in each postal ZIP
2Code area in this state.
3(C) Provide information regarding how many of the property
4owners are institutional investors in single-family homes compared
5to private owners.
6(D) Require property owners to renew registration of their rental
7property on an annual basis through an online system.
8(E) Make the data available on its Internet Web site.
end delete
9
(c) On or before January 1, 2018, the department shall submit
10to the Governor and the Legislature a report that includes, but is
11not limited to, both of the following:
12
(1) Information regarding how many large-scale buy-to-rent
13investors own property in the state for the purpose of renting the
14property, and which regions of the state their investment activity
15is occurring.
16
(2) The number of single-family homes each large-scale
17buy-to-rent investor owns, and an analysis of the potential impacts
18their investments are having on the local real estate market,
19including the price of homes, the ability of individual
home buyers,
20specifically those who need financing, to compete against the
21large-scale buy-to-rent investors, the length of time large-scale
22buy-to-rent investors are holding their property as a rental, and
23how many homes they are selling each year.
11 24(2)
end delete
25begin insert(d)end insert A large-scale buy-to-rent investor shall not place a bid on a
26normal sale of a single-family home that is not a short sale,
27foreclosure sale, or real estate owned property for a period of not
28less than 90 days after the home has been placed on the real estate
29market.
30(c) The Department of Housing and Community Development
31shall obtain information on the number of single-family dwellings
32
owned by large-scale buy-to-rent investors in postal ZIP Code
33areas
in California and make that information publicly available
34on its Internet Web site, organized by ZIP Code
area. In collecting
35this information, the department shall consider methods to
36accomplish all of the following:
37(1) Collect data in a way that protects the privacy of tenants.
38(2) Organize the data to a level that provides information on the
39number of single-family homes that are owned and operated as
P5 1rental properties more than intermittently in each postal ZIP Code
2area in this state.
3(3) Provide information regarding how long the property has
4been owned by a large-scale buy-to-rent investor.
5(4) Make the data available on its Internet Web site.
end delete34 6(d)
end delete
7begin insert(e)end insert As used in this section, “large-scale buy-to-rent investor”
8begin delete and “institutional investor in single-family homes” meanend deletebegin insert meansend insert a
9publicly traded company devoted to holding and managing
10single-family home rental properties, either on behalf of clients or
11on for itself, and which owns more than 10 single-family homes
12during a calendar year.
13
(f) (1) The requirement to submit a report imposed under
14subdivision (c) is inoperative on January
1, 2022, pursuant to
15Section 10231.5 of the Government Code.
16
(2) A report submitted pursuant to subdivision (c) shall be
17submitted in compliance with Section 9795 of the Government
18Code.
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