Bill Text: CA AB1333 | 2023-2024 | Regular Session | Amended
Bill Title: Single-family dwelling units: bundled sales.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Engrossed) 2024-07-02 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB1333 Detail]
Download: California-2023-AB1333-Amended.html
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Amended
IN
Senate
June 10, 2024 |
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Amended
IN
Assembly
January 03, 2024 |
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Amended
IN
Assembly
March 23, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1333
| Introduced by Assembly Member Ward |
February 16, 2023 |
An act to add Section 2924q 1048 to the Civil Code, relating to real property.
LEGISLATIVE COUNSEL'S DIGEST
AB 1333, as amended, Ward.
Residential real property: Single-family dwelling units: bundled sales.
Existing law prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust and prescribes a procedure for the exercise of that power. Existing law, until January 1, 2031, for purposes of the exercise of a power of sale, prohibits a trustee from bundling properties for the purpose of sale, instead requiring each property to be bid on separately, unless the deed of trust or mortgage provides otherwise. Existing law also prohibits specified institutions that, during their immediately preceding annual reporting period, as established with their primary regulator, foreclosed on 175 or more residential real properties, containing no more than 4 dwelling units, from conducting a sale of 2 or more parcels of real property containing one to 4 residential dwelling units, inclusive, at least 2 of which have been acquired through
foreclosure under a mortgage or deed of trust.
Existing law regulates the transfer of property. Existing law generally permits any kind of property to be transferred, subject to specified exceptions.
This bill would prohibit a developer homebuilder of residential one to 4 dwelling units, inclusive, a new single-family dwelling unit, as defined, from conducting a
bundled sale of 2 or more parcels of real property containing one to 4 residential single-family dwelling units, inclusive, under a single assessor’s parcel number, in a single transaction to an institutional investor, as defined, if the certificate of occupancy permit was issued for a single-family dwelling unit within the bundled sale and the contract of sale was entered into on or
after January 1, 2025. The bill would exempt a homebuilder from this prohibition if the homebuilder obtains an affidavit signed under penalty of perjury from the buyer that the buyer is not an institutional investor, among other things. By expanding the crime of perjury, the bill would impose a state-mandated local program.
This bill would authorize the Attorney General or a district attorney, county counsel, or city attorney to bring a civil action to enforce these provisions. If the Attorney General or a district attorney, county counsel, or city attorney prevails in the civil action, the bill would authorize a court to order the payment of a civil penalty, as specified, and reasonable attorney’s fees and costs.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1048 is added to the Civil Code, to read:1048.
(a) For purposes of this section, the following definitions apply:(1) “Accessory dwelling unit” has the same meaning as defined in subdivision (a) of Section 66313 of the Government Code.
(1)
(2) “Bundled sale” means the sale of two or more parcels of real property containing one to four residential single-family dwelling units,
inclusive, under a single assessor’s parcel number, in a single transaction.
(2)(A)
(3) “Institutional investor” means an investor, investor with portfolios containing more than 1,000 units,
single-family dwelling units that is not a natural person and is an entity including, but not limited to, a limited liability company, limited liability partnership, or real estate investment trust.
(4) “Junior accessory dwelling unit” has the same meaning as defined in subdivision (d) of Section 66313 of the Government Code.
(B)
(5) “Real estate investment trust” means a publicly traded limited liability company,
limited liability partnership, or other entity that may have multiple affiliated or linked entities serving as a subsidiary or parent company. has the same meaning as defined in Section 856 of the Internal Revenue Code.
(6) “New single-family dwelling unit” means a single-family dwelling unit, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit, that has not been previously sold.
(b) Notwithstanding any other law, a developer
homebuilder of residential one to four dwelling units, inclusive,
a new single-family dwelling unit
shall not conduct a bundled sale to an institutional investor if the certificate of occupancy permit for a single-family dwelling unit in the bundled sale
was issued
and the contract of sale for the bundled sale was entered into on or after January 1, 2025.
(c) This section shall not apply to a homebuilder if the homebuilder obtains an affidavit signed under penalty of perjury from the buyer that the buyer is not an institutional investor.
(d) This section shall not limit either of the following:
(1) A homebuilder’s ability to construct and own a rental single-family dwelling unit for its own portfolio or the homebuilder’s ability to transfer a rental single-family dwelling unit to a subsidiary or parent of the homebuilder, which may be an institutional investor.
(2) An institutional
investor’s ability to construct and own a rental single-family dwelling unit for the institutional investor’s own portfolio if the institutional investor acquired a controlling interest in the land before the issuance of a development permit.
(e) This section shall not affect the title of a parcel of real property. An escrow agent, settlement agent, title company, or title insurer has no duty to ensure compliance with this section and shall have no liability for a violation of this section.
(f) (1) The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this section. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:
(A) A civil penalty of one hundred thousand dollars ($100,000) for each parcel of real property sold in violation of this section.
(B) Reasonable attorney’s fees and costs.
(2) This subdivision is the exclusive means for enforcing this section.
