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AB-354 Institutional investors: housing.(2017-2018)

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Date Published: 05/01/2017 09:00 PM
AB354:v96#DOCUMENT

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, as amended, 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, 2018, and annually thereafter, 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. The bill would require the department to submit a report to the Legislature by December 1, 2018, and annually thereafter, regarding the information collected from institutional investors 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, 2018, and annually thereafter, 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.
(5) The total number of residential properties that are sold to existing tenants.
(b) The department may charge a reasonable fee to administer the registration required pursuant to subdivision (a).
(c) (1) For purposes of this section, an “institutional investor” means a publicly traded company or corporation that satisfies both of the following:
(A) Is devoted to holding and managing more than 40 100 single-family residential properties with a total value of more than ten million dollars ($10,000,000) in the state occupied by renters, either on behalf of clients or for itself.
(B) Owns more than 40 100 single-family homes in the state during a calendar year.
(2) “Institutional investor” does not include a public entity, including, but not limited to, the state or a city, county, or city and county.
(c) (1) The department shall submit a report to the Legislature by December 1, 2018, and annually thereafter, regarding the information collected pursuant to subdivision (a).
(2) A report required to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.