BILL NUMBER: AB 2282	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2016
	AMENDED IN ASSEMBLY  APRIL 12, 2016
	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: 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 than  90
  15  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 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 monitor the investment activities of large-scale
buy-to-rent investors in the State of California that have, since
October 2013, designed a mortgage-based security supported by the
revenue from single-family 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   buy-to-rent  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) The Department of Business Oversight, with any assistance that
may be offered by county recorders, shall 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. In designing this program,
the department shall 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.
   (c) On or before January 1, 2018, the department shall submit to
the Governor and the Legislature a report that includes, but is not
limited to, both of the following:
   (1) Information regarding how many large-scale buy-to-rent
investors own property in the state for the purpose of renting the
property, and which regions of the state their investment activity is
occurring.
   (2) The number of single-family homes each large-scale buy-to-rent
investor owns, and an analysis of the potential impacts their
investments are having on the local real estate market, including the
price of homes, the ability of individual home buyers, specifically
those who need financing, to compete against the large-scale
buy-to-rent investors, the length of time large-scale buy-to-rent
investors are holding their property as a rental, and how many homes
they are selling each year.
   (d) 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   15  days after the home has
been placed on the real estate market.
   (e) As used in this section, "large-scale buy-to-rent investor"
means 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  
100  single-family homes during a calendar year.
   (f) (1) The requirement to submit a report imposed under
subdivision (c) is inoperative on January 1, 2022, pursuant to
Section 10231.5 of the Government Code.
   (2) A report submitted pursuant to subdivision (c) shall be
submitted in compliance with Section 9795 of the Government Code.