Amended in Assembly May 31, 2016

Amended in Assembly April 25, 2016

Amended in Assembly April 12, 2016

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: 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 begin delete 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 end delete prohibit begin insert a end insert large-scale buy-to-rent begin delete investors, end delete begin insert investor, end insert as defined, from placing a bid on a begin delete normal end delete begin insert conventional end insert sale of a single-family home, with specified exceptions, for a period of not less than 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 begin delete property end delete begin insert property, end insert which regions of the state their investment activity is occurring, the begin delete number end delete begin insert number, density, and percentage end insert 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 begin delete monitor end delete begin insert analyze the impacts on the real estate
market in California of end insert the investment activities of large-scale
buy-to-rent investors begin delete in the State of California that have, end delete begin insert that, end insert since
October 2013, begin delete designed end delete begin insert have involved end insert 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 begin delete limit the
amount of single-family homes that large-scale 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. end delete begin insert help ensure, to
the extent feasible, that families and individuals are able to become
homeowners. end 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.

begin delete

(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.

end delete begin delete

(c)

end delete

begin insert (b) end insert  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 begin delete number end delete begin insert number, density, and percentage end insert 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.

begin insert

(3) The department may hire an independent third party or
obtain the assistance of another state department to assist in
analyzing the information described in paragraphs (1) and (2) if
it finds those actions appropriate and justifiable.

end insert begin delete

(d)

end delete

begin insert (c) end insert  A large-scale buy-to-rent investor shall not place a bid on a
begin delete normal end delete begin insert conventional end insert 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 15 days after the home has been placed on
the real estate market.

begin delete

(e)

end delete

begin insert (d) end insert  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
begin delete on end delete for itself, and which owns more than 100 single-family homes
during a calendar year.

begin delete

(f)

end delete

begin insert (e) end insert  (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 begin delete (c) end delete begin insert (b) end insert shall be
submitted in compliance with Section 9795 of the Government
Code.