BILL NUMBER: AB 2282 AMENDED
BILL TEXT
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
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 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. establish the Task Force on Institutional
Investors within the Bureau of Real Estate, under the leadership of
the Real Estate Commissioner. The bill
would also require the Department of
Business Oversight, task force, on or before
January July 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, and an analysis of the
potential impacts of their investments, as specified.
specified, and recommendations on how to increase
homeownership among the residents of California. The bill would make
various findings and declarations in this regard.
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.
(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.
(2) The membership of the task force shall be as follows:
(A) The Real Estate Commissioner, or his or her designee, who
shall serve as the chair of the task force.
(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.
(C) A local government official with an extensive background and
knowledge of the real estate market, to be appointed by the Governor.
(D) A real estate expert, to be appointed by the President pro
Tempore of the Senate.
(E) A real estate finance expert, to be appointed by the Speaker
of the Assembly.
(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.
(b)
(c) On or before January July
1, 2018, the department task force
shall submit to the Governor and the Legislature a report that
includes, but is not limited to, both all
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.
(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.
(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.
(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 (b)
(c) shall be submitted in compliance with
Section 9795 of the Government Code.