Amended in Senate June 20, 2016

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 prohibit a large-scale buy-to-rent investor, as defined, from placing a bid on a 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. end delete begin insert establish the Task Force on Institutional Investors within the Bureau of Real Estate, under the leadership of the end insert begin insert Real Estate end insert begin insert Commissioner. end insert The bill would begin delete also end delete require the begin delete Department of Business Oversight, end delete begin insert task force, end insert on or before begin delete January end delete begin insert July end insert 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, density, and percentage of single-family homes each large-scale buy-to-rent investor owns, begin delete and end delete an analysis of the potential impacts of their investments, as begin delete specified. end delete begin insert specified, and recommendations on how to increase homeownership among the residents of California. The bill would make various findings and declarations in this regard. 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 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 analyze the impacts on the real estate market in
California of the investment activities of large-scale buy-to-rent
investors that, since October 2013, 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 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.

begin insert

(b) (1) To ensure that the citizens of California preserve the
ability to become homeowners and are not overtly challenged by
institutional investors in the real estate market, the Task Force on
Institutional Investors, hereafter referred to in this section as “the
task force,” is hereby created in the Bureau of Real Estate. Under
the leadership of the Real Estate Commissioner, the task force
shall examine the impacts that large-scale buy-to-rent investors
are having on the real estate market in California.

end insert begin insert

(2) The membership of the task force shall be as follows:

end insert begin insert

(A) The Real Estate Commissioner, or his or her designee, who
shall serve as the chair of the task force.

end insert begin insert

(B) A professor from either the University of California or the
California State University with an extensive background and
knowledge of the real estate market, to be appointed by the
Governor.

end insert begin insert

(C) A local government official with an extensive background
and knowledge of the real estate market, to be appointed by the
Governor.

end insert begin insert

(D) A real estate expert, to be appointed by the President pro
Tempore of the Senate.

end insert begin insert

(E) A real estate finance expert, to be appointed by the Speaker
of the Assembly.

end insert begin insert

(3) The Bagley-Keene Open Meeting Act (Article 9 (commencing
with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title
2 of the Government Code) shall apply to meetings of the task
force.

end insert begin delete

(b)

end delete

begin insert (c) end insert  On or before begin delete January end delete begin insert July end insert 1, 2018, the begin delete department end delete begin insert task force end insert
shall submit to the Governor and the Legislature a report that
includes, but is not limited to, begin delete both end delete begin insert all end insert 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, 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.

begin delete

(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.

(c) A large-scale buy-to-rent investor shall not place a bid on a
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.

end delete begin insert

(3) Recommendations to the Governor and the Legislature on
how to increase homeownership among the residents of California,
including proposed legislative or regulatory actions, homebuyer
assistance programs, and any other recommendations the task
force deems appropriate.

end insert

(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
for itself, and which owns more than 100 single-family homes
during a calendar year.

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