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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Amended.html

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Amended  IN  Assembly  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 354

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Introduced by Assembly Member Calderon

February 08, 2017

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

LEGISLATIVE COUNSEL'S DIGEST

AB 354, as amended, Calderon. Rental housing. 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, defined as a company or corporation that owns more than 20 residential properties with a total value of more than $10,000,000 in the state, to register with the Department of Business Oversight by providing a statement containing certain information, including, among other things, the total number of residential properties in the state that are owned by the institutional investor, the total number of those residential properties occupied by renters, and the total number of residential properties owned by the institutional investor in each county. The bill would authorize the department to charge a reasonable fee to process the registration.

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 home ownership are beneficial to the well-being and prosperity of the people of the state.

This bill would declare the intent of the Legislature to enact legislation to address the impacts on the real estate market in California of the investment activities of large-scale buy-to-rent investors in the state and would make various findings and declarations in this regard.

Digest Key

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

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Bill Text

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 with the department by providing the Department of Business Oversight with a written statement of all of the following:

(1) The total number of residential properties in the state that are owned by the institutional investor, including the total number of residential properties occupied by renters, and the total number of residential properties owned by the institutional investor in each county.

(2) The total number of residential properties annually purchased by the institutional investor.

(3) The total number of offers to purchase residential property in the state made by the institutional investor.

(4) The total dollar value of residential properties owned by the institutional investor in the state and the total dollar value of residential properties owned by the institutional investor that are occupied by renters.

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

(c) For purposes of this section, an “institutional investor” means a company or corporation that owns more than 20 residential properties with a total value of more than ten million dollars ($10,000,000) in the state. “Institutional investor” does not include a public entity, including, but not limited to, the state or a city, county, or city and county.

SECTION 1.

(a)It is the intent of the Legislature to enact legislation to address 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 utilized a mortgage-based security supported by the revenue from single-family rental properties.

(b)The Legislature finds and declares all of the following:

(1)The emergence of mortgage-based securities supported by the revenue from single-family rental properties 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 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.

(2)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.

(3)Limiting the activities of large-scale buy-to-rent investors can have a positive impact on the housing market by providing a greater supply of homes to individual buyers, protect the real estate market from large fluctuations in home prices, create a stronger sense of community in our neighborhoods, and defend the American dream of becoming a homeowner.

(4)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.