Bill Text: CA AB354 | 2017-2018 | Regular Session | Enrolled

California Assembly Bill 354 (Prior Session Legislation)

Bill Title: Institutional investors: housing.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2018-09-27 - Vetoed by Governor. [AB354 Detail]

Download: California-2017-AB354-Enrolled.html

Enrolled September 04, 2018

Passed IN Senate August 29, 2018

Passed IN Assembly August 30, 2018

Amended IN Senate August 17, 2018

Amended IN Senate June 26, 2018

Amended IN Senate July 03, 2017

Amended IN Assembly May 01, 2017

Amended IN Assembly April 18, 2017

Amended IN Assembly March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 354

Introduced by Assembly Member Calderon

February 08, 2017

An act to add Division 21 (commencing with Section 60000) to the Financial Code, relating to housing investors.

LEGISLATIVE COUNSEL'S DIGEST

AB 354, Calderon. Institutional investors: housing.

Existing law establishes the Department of Business Oversight within the Business, Consumer Services, and Housing Agency.

Existing law, the Economic Revitalization Act, establishes the Governor’s Office of Business and Economic Development, also known as GO-Biz, under the control of a director. Existing law requires GO-Biz to serve the Governor as the lead entity for economic strategy and authorizes it to undertake specified activities, including marketing business and investment opportunities in California by working in partnership with local, regional, federal, and other state public and private institutions.

This bill would require an institutional investor, as defined, to register by July 1, 2019, and annually thereafter, with the Department of Business Oversight by providing a statement containing certain information, including, among other things, the total number of single-family homes in the state that are owned by the institutional investor, including the number owned in each county, and the number occupied by renters throughout the state, and in each county. The bill would authorize the department to charge a reasonable fee to process the registration. The bill would require the department to submit a report to the Legislature by July 1, 2020, and annually thereafter, regarding the information collected from institutional investors during the prior calendar year pursuant to the provisions of this bill.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Division 21 (commencing with Section 60000) is added to the Financial Code, to read:

DIVISION 21. Institutional Investors

60000.

(a) An institutional investor shall register by July 1, 2019, and annually thereafter, with the department by providing the Department of Business Oversight with a written statement of all of the following for the prior calendar year:

(1) The total number of single-family homes in the state that are owned by the institutional investor, including the number that are owned in each county, and the number that are occupied by renters throughout the state, and in each county.

(2) The total number of single-family homes in the state annually purchased by the institutional investor.

(3) The total number of offers to purchase single-family homes in the state made by the institutional investor.

(4) The total dollar value of single-family homes owned by the institutional investor in the state and the total dollar value of single-family homes owned by the institutional investor that are occupied by renters.

(5) The total number of single-family homes that are sold to existing tenants.

(b) The department may charge a reasonable fee to administer the registration required pursuant to subdivision (a).

(c) For purposes of this section, “institutional investor” means a publicly traded company or corporation that owns more than 100 single-family homes in the state during a calendar year that are occupied by renters and that have a total value of more than ten million dollars ($10,000,000). An institutional investor may use an automated valuation model to estimate the value of homes it owns for purposes of determining whether the ten-million-dollar ($10,000,000) threshold required by this subdivision is met. An institutional investor does not include a lienholder that acquires ownership of a single-family home through a judicial or nonjudicial foreclosure.

(d) For purposes of this section, “single-family home” means a home that is alienable separate from the title to any other dwelling unit or is a subdivided interest in a subdivision.

(e) (1) Notwithstanding Section 10231.5 of the Government Code, the department shall submit a report to the Legislature by July 1, 2020, and annually thereafter, regarding the information collected pursuant to subdivision (a) during the prior calendar year.

(2) A report required to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.