Bill Text: CA AB2282 | 2015-2016 | Regular Session | Amended
Bill Title: Rental housing: large-scale buy-to-rent investors: data collection.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2016-11-30 - Died on Senate inactive file. [AB2282 Detail]
Download: California-2015-AB2282-Amended.html
BILL NUMBER: AB 2282 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 15, 2016
AMENDED IN SENATE AUGUST 8, 2016
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, declaring the urgency thereof, to take effect immediately.
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
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 home ownership are beneficial to
the well-being and prosperity of the people of the state.
This bill would establish the Task Force on Institutional
Investors within the Bureau of Real Estate, under the leadership of
the Real Estate Commissioner. The bill would require the task force,
on or before 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, in 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, an analysis of the potential impacts of their
investments, as specified, data on how the structure of the
investment instruments in which properties in California are held,
and recommendations on how to increase homeownership
home ownership among the residents of California
and the tracking and monitoring of large-scale buy-to-rent investor
holdings. The bill would make various findings and declarations in
this regard.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. 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
home ownership 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.
(5) It is critical to know to what extent these new
investors are crowding out potential owner-occupants or artificially
inflating home prices. the impact these new investors
are having on California's housing market.
(6) Before any meaningful legislative action takes place, more
data needs to be collected and analyzed to ensure the proper
oversight over of this new investment
activity. There is currently insufficient data to properly categorize
the problem, and while the impacts are
currently unknown, on families and other
first-time homebuyers are certainly put at a disadvantage
when having to compete against a large investment firm. This can
exacerbate income inequality issues in the state and must be
addressed sooner rather than later to protect the American Dream of
buying and owning a home. home buyers.
(7) To the extent that these investments are
geographically clustered, they could have unintended ripple
the task force shall examine the effects across
regions throughout California and California,
which should be examined more closely. Should the Legislature
wait longer to gather and analyze delay in
gatherin g and analyzing the appropriate data,
thousands more homes could be off the market for purchase by
families and other first-time homebuyers.
home buyers to purchase.
(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, expert with
background in the buy-to-rent industry, to be appointed by the
Senate Committee on Rules.
(E) A real estate finance expert, to be appointed by the Speaker
of the Assembly.
(F) A legal services expert with expertise on
homeownership home ownership from northern
California, to be appointed by the Speaker of the Assembly.
(G) A legal services expert with expertise on
homeownership home ownership from central
California, to be appointed by the Governor.
(H) A housing counselor certified by the United States Department
of Housing and Urban Development from southern California, to be
appointed by the Senate Committee on Rules.
(I) An expert from a county assessor's office, to be appointed by
the Governor.
(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) 2) shall apply to
meetings of the task force.
(c) On or before July 1, 2018, the task force shall submit to the
Governor and the Legislature a report that includes, but is not
limited to, 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 in 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) Data on the structure of the investment instruments in which
properties in California are held, including, but not limited to,
factors that could affect the timing and quantity of property
turnover in California by investors and the potential effects of the
investment structure on California's rental and
homeownership home ownership markets.
(4) Recommendations to the Governor and the Legislature on how to
increase homeownership home ownership
among the residents of California, and the tracking and monitoring of
large-scale buy-to-rent investor holdings, including proposed
legislative or regulatory actions, homebuyer
home buyer assistance programs, and any other recommendations
the task force deems appropriate.
(d) The task force shall be funded by an appropriation from the
General Fund. No funds appropriated to the Bureau of Real Estate for
purposes other than the task force shall be used to fund the
activities of the task force. Members of the task force shall not be
paid a salary, but may receive a per diem reimbursing them for
expenses associated with the activities of the task force.
(d)
(e) 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)
(f) (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) shall be
submitted in compliance with Section 9795 of the Government Code.
SEC. 2. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to provide for the expedient collection of data on
large-scale buy-to-rent investors to allow for meaningful legislative
action that will help alleviate the pressing concern of rising home
prices, it is necessary that this act take effect immediately.
