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 and to 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 registering and monitoring large-scale buy-to-rent investors and analyzing the
impacts they are having on California’s real estate market. The bill would require the Department of Business Oversight, in designing the program to consider methods 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. 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 thanbegin delete 90end deletebegin insert 15end insert days after the home has been placed on the real estate market. The bill would make various findings and declarations in this regard. 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.
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 California that have, since
6October 2013, designed a mortgage-based security supported by
7the revenue from single-family rental properties.
8(2) The emergence of this type of security is likely to grow and
9scale institutionally owned single-family rental homes to a level
10that is, at this time, unknown. However, with home prices currently
11approaching record highs, yet with homeownership at historic
12lows, it is important to understand the size and scope of investor
13activity of single-family
homes and the impacts it has on the real
14estate market in California.
15(3) It is in the best interest of the State of California to limit the
16amount of single-family homes that large-scalebegin delete buy-to-tentend delete
17begin insert buy-to-rentend insert investors can own in our neighborhoods and
18communities. Furthermore, we must protect against the potential
19displacement of persons residing in single-family home rentals
P3 1that is harmful not only to the persons displaced by these practices
2but also to the entire community in which those persons reside.
3(4) Large-scale buy-to-rent investors own more single-family
4homes than any other population in the United
States, a market
5once dominated by local, private owners.
6(5) Limiting the activity of large-scale buy-to-rent investors can
7have a positive impact on the housing market by providing a greater
8supply of homes to individual buyers, protect the real estate market
9from large fluctuations in home prices, create a stronger sense of
10community in our neighborhoods, and defend the American dream
11of becoming a homeowner.
12(b) The Department of Business Oversight, with any assistance
13that may be offered by county recorders, shall design and
14implement a registration program for the purpose of registering
15
and monitoring large-scale buy-to-rent investors and analyzing
16the impacts they are having on California’s real estate market. In
17designing this program, the department shall consider methods to
18require large-scale buy-to-rent investors to renew registration of
19their rental property on an annual basis, including new and current
20single-family home rentals that they own or in which they have
21invested.
22(c) On or before January 1, 2018, the department shall submit
23to the Governor and the Legislature a report that includes, but is
24 not limited to, both of the following:
25(1) Information regarding how many large-scale buy-to-rent
26investors own property in the state for the purpose of renting the
27property, and which regions of the state their investment activity
28is
occurring.
29(2) The number of single-family homes each large-scale
30buy-to-rent investor owns, and an analysis of the potential impacts
31their investments are having on the local real estate market,
32including the price of homes, the ability of individual home buyers,
33specifically those who need financing, to compete against the
34large-scale buy-to-rent investors, the length of time large-scale
35buy-to-rent investors are holding their property as a rental, and
36how many homes they are selling each year.
37(d) A large-scale buy-to-rent investor shall not place a bid on a
38normal sale of a single-family home that is not a short sale,
39foreclosure sale, or real estate owned property for a period of not
P4 1less thanbegin delete 90end deletebegin insert
15end insert days after the home has been placed on the real
2estate market.
3(e) As used in this section, “large-scale buy-to-rent investor”
4means a publicly traded company devoted to holding and managing
5single-family home rental properties, either on behalf of clients or
6on for itself, and which owns more thanbegin delete 10end deletebegin insert 100end insert single-family
7homes during a calendar year.
8(f) (1) The requirement to submit a report imposed under
9subdivision (c) is inoperative on January 1, 2022, pursuant to
10Section 10231.5 of the Government Code.
11(2) A report submitted pursuant to subdivision (c) shall be
12submitted in compliance with Section 9795 of the Government
13Code.
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