BILL NUMBER: AB 2282 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 31, 2016
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 a
large-scale buy-to-rent investors, investor,
as defined, from placing a bid on a normal
conventional 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
property property, which regions of the state
their investment activity is occurring, the number
number, density, and percentage 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 analyze the impacts
on the real estate market in California of the investment
activities of large-scale buy-to-rent investors in the State
of California that have, that, since October
2013, designed have involved 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-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. help
ensure, to the extent feasible, that families and individuals are
able to become homeowners.
(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)
(b) 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 number, density, and
percentage 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.
(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.
(d)
(c) A large-scale buy-to-rent investor shall not place
a bid on a normal conventional 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.
(e)
(d) 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
100 single-family homes during a calendar year.
(f)
(e) (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)
(b) shall be submitted in compliance with
Section 9795 of the Government Code.