Amended IN Assembly April 18, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2170Introduced by Assembly Member Grayson(Coauthors: Assembly Members Cunningham, Flora, Gray, Lackey, Mayes, Petrie-Norris, Quirk-Silva, Valladares, Villapudua, and Waldron)(Coauthors: Senators Hurtado and Newman)February 15, 2022 An act to add Section 2924p to the Civil Code, relating to foreclosure. LEGISLATIVE COUNSEL'S DIGESTAB 2170, as amended, Grayson. Residential real property: foreclosure 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, 2026, prescribes a process in connection with a trustees sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to 4 residential units, inclusive, that provides specified bidding priorities to certain parties, including prospective owner-occupants. This bill would prescribe requirements that would apply to sales of real property containing one to 4 residential dwelling units, inclusive, that a federal government-sponsored enterprise, as defined, acquires by is acquired through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale. sale by an institution, as defined. The bill would require the enterprise, institution, during the first 30 days that after a property is listed, as specified, to consider only purchase only accept offers from prospective owner-occupants and eligible bidders, as defined, consistent with the federal First Look program of the enterprise. The bill would require the enterprise to provide written acknowledgment of offers to owner-occupants and eligible bidders, and their respective agents, during the 30-day period before accepting or considering offers. The bill would authorize investor purchasers, as defined, to submit offers to purchase, as specified, but would prohibit consideration of the offers until the 30-day period has expired. and to respond, in writing, to all offers received from eligible bidders.This bill would require, pursuant to the guidelines of a federal government-sponsored enterprise, than a prospective owner-occupant sign and submit an affidavit affirming their intent to occupy the property as their primary residence. The bill would require an eligible bidder to be engaged in a neighborhood stabilization program, to provide an affidavit affirming their nonprofit or governmental status, and to provide evidence of their neighborhood stabilization mission. require an eligible bidder to submit an affidavit or declaration, as specified, with their offer to an institution. By expanding the crime of perjury, this bill would impose a state-mandated local program.This bill would also prohibit a federal government-sponsored enterprise that is regulated by the Federal Housing Finance Agency an institution from conducting a bundled sale, as defined.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: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 2924p is added to the Civil Code, to read:2924p. (a) For purposes of this section, it is the intent of the Legislature to do all of the following:(1) Allow for prospective owner-occupants and eligible bidders to have the first opportunity to purchase properties which that have been acquired through the foreclosure process by federal government-sponsored enterprises. by an entity that annually forecloses on 175 or more residential real properties in California.(2)Model in California law the federal First Look program that the Federal Housing Finance Administration instituted during the national foreclosure crisis.(3)(2) Promote owner occupancy and to provide owner-occupants and public entities an advantage in submitting offers on foreclosed properties owned by federal government sponsored enterprises without competition from investors. by enacting legislation consistent with the provisions of the federal First Look program that provides owner-occupants and affordable housing providers an opportunity for their offers to be considered on foreclosed properties prior to other offers.(4)(3) Ensure that the requirements of this section are consistent with the original stated goals of the federal First Look program, which were to expand home ownership opportunities, strengthen neighborhoods and communities, while also providing that sellers are required to respond to offers received during the first look period before accepting or considering investor offers to purchase single family single-family homes.(b) For purpose of this section:(1) Bundled sale means the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust or purchased at a foreclosure sale by a federal government-sponsored enterprise. trust.(2) Eligible bidder means any of the following:(A) A prospective owner-occupant.(B) A nonprofit corporation, which has the primary activity to develop and preserve affordable housing. corporation that meets all of the following requirements:(i) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.(ii) The nonprofit corporation is based in California.(iii) All of the board members of the nonprofit corporation have their primary residence in California.(iv) The primary activity of the nonprofit corporation is the development and preservation of affordable rental or homeownership housing in California.(C) A limited partnership based in California in which the managing general partner is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(D) A limited liability company based in California in which the managing member is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(E) A community land trust based in California, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(F) A limited-equity housing cooperative, as defined in Section 817. 817, that is based in California.(3)Federal government-sponsored enterprise means: (A)A government-sponsored enterprise, as defined in Section 622 of Title 2 of the United States Code that is regulated by the Federal Housing Finance Authority. (B)An affiliated entity of a federal government-sponsored enterprise.(C)A mortgage servicer, as defined by Section 2920.5, who is acting as an agent for a federal government-sponsored enterprise.(4)Investor purchaser means any of the following:(A)A real estate investment trust, as defined in Section 856 of Title 26 of the United States Code.(B)An S Corporation, as described in Chapter 4.5 (commencing with Section 23800) of Part 11 of Division 2 of the Revenue and Tax Code.(C)A C corporation or limited liability company in which at least one member is a corporation, as described in the Corporations Code. (D)Any entity which is publicly traded on a United States stock exchange.(5)Multiple listing service means a multiple listing service, as defined in Section 1087.(3) Institution means any of the following, if that person or entity, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or fewer residential real properties, containing no more than 4 dwelling units:(A) A depository institution chartered under state or federal law.(B) A person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code.(C) A person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code.(6)(4) Prospective owner-occupant means a natural person who presents to the trustee an affidavit that whose affidavit or declaration under paragraph (2) of subdivision (c) states all of the following:(A) They will occupy the property as their primary residence within 60 days of the trustees deed being recorded.(B) They will maintain their occupancy for at least one year.(C) They are not the any of the following:(i) The mortgagor or trustor, or the or trustor.(ii) The child, spouse, or parent of the mortgagor or trustor.(iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded.(iv) An employee, officer, or member of the mortgagor or trustor.(v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company.(D) They are not acting as the agent of any other person or entity in purchasing the real property. (c) All of the following shall apply to sales of real property containing one to four residential dwelling units, inclusive, that is acquired by a federal government-sponsored enterprise through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale: sale by an institution:(1) (A)During the first 30 days in which after the property is listed for sale in the multiple listing service, pursuant to guidelines of a federal government-sponsored enterprise, a federal government-sponsored enterprise shall consider only purchase offers from prospective owner-occupants and eligible bidders, consistent with the federal First Look program of federal government-sponsored enterprise. sale, the institution shall only accept offers from eligible bidders in this time period and shall respond, in writing, to all offers received from eligible bidders.(B)The federal government sponsored enterprise shall provide written acknowledgment of all offers received pursuant to subparagraph (A) during the 30-day period to owner-occupants, eligible bidders, and their respective agents before accepting or considering offers made pursuant to paragraph (2).(2)Investor purchasers may submit offers to purchase after the 30-day period, but the offers shall not be considered by the federal government sponsored enterprise until the 30-day described in paragraph (1) has expired.(2) An eligible bidder shall submit with their offer to the institution an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that states they are either of the following:(A) An eligible bidder pursuant to subparagraphs (B) through (F) of paragraph (2) of subdivision (b).(B) A prospective owner-occupant purchasing the property as a primary residence pursuant to this subdivision.(3) Pursuant to the guidelines of a federal government-sponsored enterprise, a prospective owner-occupant shall sign and submit an affidavit affirming that they intend to occupy the property as their primary residence, and any Any fraudulent statements may be subject to criminal or civil liability.(4)Eligible bidders, pursuant to requirements of the guidelines of a federal government-sponsored enterprise, shall do all of the following:(A)Be engaged in a neighborhood stabilization program.(B)Provide an affidavit affirming their nonprofit or governmental status.(C)Provide evidence of their neighborhood stabilization mission.(4) Notwithstanding any other law, an institution shall not conduct a bundled sale.(d) Notwithstanding any other law, a federal government-sponsored enterprise regulated by the Federal Housing Finance Agency shall not be authorized to conduct a bundled sale. The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Amended IN Assembly April 18, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2170Introduced by Assembly Member Grayson(Coauthors: Assembly Members Cunningham, Flora, Gray, Lackey, Mayes, Petrie-Norris, Quirk-Silva, Valladares, Villapudua, and Waldron)(Coauthors: Senators Hurtado and Newman)February 15, 2022 An act to add Section 2924p to the Civil Code, relating to foreclosure. LEGISLATIVE COUNSEL'S DIGESTAB 2170, as amended, Grayson. Residential real property: foreclosure 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, 2026, prescribes a process in connection with a trustees sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to 4 residential units, inclusive, that provides specified bidding priorities to certain parties, including prospective owner-occupants. This bill would prescribe requirements that would apply to sales of real property containing one to 4 residential dwelling units, inclusive, that a federal government-sponsored enterprise, as defined, acquires by is acquired through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale. sale by an institution, as defined. The bill would require the enterprise, institution, during the first 30 days that after a property is listed, as specified, to consider only purchase only accept offers from prospective owner-occupants and eligible bidders, as defined, consistent with the federal First Look program of the enterprise. The bill would require the enterprise to provide written acknowledgment of offers to owner-occupants and eligible bidders, and their respective agents, during the 30-day period before accepting or considering offers. The bill would authorize investor purchasers, as defined, to submit offers to purchase, as specified, but would prohibit consideration of the offers until the 30-day period has expired. and to respond, in writing, to all offers received from eligible bidders.This bill would require, pursuant to the guidelines of a federal government-sponsored enterprise, than a prospective owner-occupant sign and submit an affidavit affirming their intent to occupy the property as their primary residence. The bill would require an eligible bidder to be engaged in a neighborhood stabilization program, to provide an affidavit affirming their nonprofit or governmental status, and to provide evidence of their neighborhood stabilization mission. require an eligible bidder to submit an affidavit or declaration, as specified, with their offer to an institution. By expanding the crime of perjury, this bill would impose a state-mandated local program.This bill would also prohibit a federal government-sponsored enterprise that is regulated by the Federal Housing Finance Agency an institution from conducting a bundled sale, as defined.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: YES Local Program: YES
Amended IN Assembly April 18, 2022
Amended IN Assembly April 18, 2022
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 2170
Introduced by Assembly Member Grayson(Coauthors: Assembly Members Cunningham, Flora, Gray, Lackey, Mayes, Petrie-Norris, Quirk-Silva, Valladares, Villapudua, and Waldron)(Coauthors: Senators Hurtado and Newman)February 15, 2022
Introduced by Assembly Member Grayson(Coauthors: Assembly Members Cunningham, Flora, Gray, Lackey, Mayes, Petrie-Norris, Quirk-Silva, Valladares, Villapudua, and Waldron)(Coauthors: Senators Hurtado and Newman)
February 15, 2022
An act to add Section 2924p to the Civil Code, relating to foreclosure.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2170, as amended, Grayson. Residential real property: foreclosure 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, 2026, prescribes a process in connection with a trustees sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to 4 residential units, inclusive, that provides specified bidding priorities to certain parties, including prospective owner-occupants. This bill would prescribe requirements that would apply to sales of real property containing one to 4 residential dwelling units, inclusive, that a federal government-sponsored enterprise, as defined, acquires by is acquired through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale. sale by an institution, as defined. The bill would require the enterprise, institution, during the first 30 days that after a property is listed, as specified, to consider only purchase only accept offers from prospective owner-occupants and eligible bidders, as defined, consistent with the federal First Look program of the enterprise. The bill would require the enterprise to provide written acknowledgment of offers to owner-occupants and eligible bidders, and their respective agents, during the 30-day period before accepting or considering offers. The bill would authorize investor purchasers, as defined, to submit offers to purchase, as specified, but would prohibit consideration of the offers until the 30-day period has expired. and to respond, in writing, to all offers received from eligible bidders.This bill would require, pursuant to the guidelines of a federal government-sponsored enterprise, than a prospective owner-occupant sign and submit an affidavit affirming their intent to occupy the property as their primary residence. The bill would require an eligible bidder to be engaged in a neighborhood stabilization program, to provide an affidavit affirming their nonprofit or governmental status, and to provide evidence of their neighborhood stabilization mission. require an eligible bidder to submit an affidavit or declaration, as specified, with their offer to an institution. By expanding the crime of perjury, this bill would impose a state-mandated local program.This bill would also prohibit a federal government-sponsored enterprise that is regulated by the Federal Housing Finance Agency an institution from conducting a bundled sale, as defined.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.
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, 2026, prescribes a process in connection with a trustees sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to 4 residential units, inclusive, that provides specified bidding priorities to certain parties, including prospective owner-occupants.
This bill would prescribe requirements that would apply to sales of real property containing one to 4 residential dwelling units, inclusive, that a federal government-sponsored enterprise, as defined, acquires by is acquired through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale. sale by an institution, as defined. The bill would require the enterprise, institution, during the first 30 days that after a property is listed, as specified, to consider only purchase only accept offers from prospective owner-occupants and eligible bidders, as defined, consistent with the federal First Look program of the enterprise. The bill would require the enterprise to provide written acknowledgment of offers to owner-occupants and eligible bidders, and their respective agents, during the 30-day period before accepting or considering offers. The bill would authorize investor purchasers, as defined, to submit offers to purchase, as specified, but would prohibit consideration of the offers until the 30-day period has expired. and to respond, in writing, to all offers received from eligible bidders.
This bill would require, pursuant to the guidelines of a federal government-sponsored enterprise, than a prospective owner-occupant sign and submit an affidavit affirming their intent to occupy the property as their primary residence. The bill would require an eligible bidder to be engaged in a neighborhood stabilization program, to provide an affidavit affirming their nonprofit or governmental status, and to provide evidence of their neighborhood stabilization mission. require an eligible bidder to submit an affidavit or declaration, as specified, with their offer to an institution. By expanding the crime of perjury, this bill would impose a state-mandated local program.
This bill would also prohibit a federal government-sponsored enterprise that is regulated by the Federal Housing Finance Agency an institution from conducting a bundled sale, as defined.
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
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 2924p is added to the Civil Code, to read:2924p. (a) For purposes of this section, it is the intent of the Legislature to do all of the following:(1) Allow for prospective owner-occupants and eligible bidders to have the first opportunity to purchase properties which that have been acquired through the foreclosure process by federal government-sponsored enterprises. by an entity that annually forecloses on 175 or more residential real properties in California.(2)Model in California law the federal First Look program that the Federal Housing Finance Administration instituted during the national foreclosure crisis.(3)(2) Promote owner occupancy and to provide owner-occupants and public entities an advantage in submitting offers on foreclosed properties owned by federal government sponsored enterprises without competition from investors. by enacting legislation consistent with the provisions of the federal First Look program that provides owner-occupants and affordable housing providers an opportunity for their offers to be considered on foreclosed properties prior to other offers.(4)(3) Ensure that the requirements of this section are consistent with the original stated goals of the federal First Look program, which were to expand home ownership opportunities, strengthen neighborhoods and communities, while also providing that sellers are required to respond to offers received during the first look period before accepting or considering investor offers to purchase single family single-family homes.(b) For purpose of this section:(1) Bundled sale means the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust or purchased at a foreclosure sale by a federal government-sponsored enterprise. trust.(2) Eligible bidder means any of the following:(A) A prospective owner-occupant.(B) A nonprofit corporation, which has the primary activity to develop and preserve affordable housing. corporation that meets all of the following requirements:(i) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.(ii) The nonprofit corporation is based in California.(iii) All of the board members of the nonprofit corporation have their primary residence in California.(iv) The primary activity of the nonprofit corporation is the development and preservation of affordable rental or homeownership housing in California.(C) A limited partnership based in California in which the managing general partner is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(D) A limited liability company based in California in which the managing member is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(E) A community land trust based in California, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(F) A limited-equity housing cooperative, as defined in Section 817. 817, that is based in California.(3)Federal government-sponsored enterprise means: (A)A government-sponsored enterprise, as defined in Section 622 of Title 2 of the United States Code that is regulated by the Federal Housing Finance Authority. (B)An affiliated entity of a federal government-sponsored enterprise.(C)A mortgage servicer, as defined by Section 2920.5, who is acting as an agent for a federal government-sponsored enterprise.(4)Investor purchaser means any of the following:(A)A real estate investment trust, as defined in Section 856 of Title 26 of the United States Code.(B)An S Corporation, as described in Chapter 4.5 (commencing with Section 23800) of Part 11 of Division 2 of the Revenue and Tax Code.(C)A C corporation or limited liability company in which at least one member is a corporation, as described in the Corporations Code. (D)Any entity which is publicly traded on a United States stock exchange.(5)Multiple listing service means a multiple listing service, as defined in Section 1087.(3) Institution means any of the following, if that person or entity, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or fewer residential real properties, containing no more than 4 dwelling units:(A) A depository institution chartered under state or federal law.(B) A person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code.(C) A person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code.(6)(4) Prospective owner-occupant means a natural person who presents to the trustee an affidavit that whose affidavit or declaration under paragraph (2) of subdivision (c) states all of the following:(A) They will occupy the property as their primary residence within 60 days of the trustees deed being recorded.(B) They will maintain their occupancy for at least one year.(C) They are not the any of the following:(i) The mortgagor or trustor, or the or trustor.(ii) The child, spouse, or parent of the mortgagor or trustor.(iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded.(iv) An employee, officer, or member of the mortgagor or trustor.(v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company.(D) They are not acting as the agent of any other person or entity in purchasing the real property. (c) All of the following shall apply to sales of real property containing one to four residential dwelling units, inclusive, that is acquired by a federal government-sponsored enterprise through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale: sale by an institution:(1) (A)During the first 30 days in which after the property is listed for sale in the multiple listing service, pursuant to guidelines of a federal government-sponsored enterprise, a federal government-sponsored enterprise shall consider only purchase offers from prospective owner-occupants and eligible bidders, consistent with the federal First Look program of federal government-sponsored enterprise. sale, the institution shall only accept offers from eligible bidders in this time period and shall respond, in writing, to all offers received from eligible bidders.(B)The federal government sponsored enterprise shall provide written acknowledgment of all offers received pursuant to subparagraph (A) during the 30-day period to owner-occupants, eligible bidders, and their respective agents before accepting or considering offers made pursuant to paragraph (2).(2)Investor purchasers may submit offers to purchase after the 30-day period, but the offers shall not be considered by the federal government sponsored enterprise until the 30-day described in paragraph (1) has expired.(2) An eligible bidder shall submit with their offer to the institution an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that states they are either of the following:(A) An eligible bidder pursuant to subparagraphs (B) through (F) of paragraph (2) of subdivision (b).(B) A prospective owner-occupant purchasing the property as a primary residence pursuant to this subdivision.(3) Pursuant to the guidelines of a federal government-sponsored enterprise, a prospective owner-occupant shall sign and submit an affidavit affirming that they intend to occupy the property as their primary residence, and any Any fraudulent statements may be subject to criminal or civil liability.(4)Eligible bidders, pursuant to requirements of the guidelines of a federal government-sponsored enterprise, shall do all of the following:(A)Be engaged in a neighborhood stabilization program.(B)Provide an affidavit affirming their nonprofit or governmental status.(C)Provide evidence of their neighborhood stabilization mission.(4) Notwithstanding any other law, an institution shall not conduct a bundled sale.(d) Notwithstanding any other law, a federal government-sponsored enterprise regulated by the Federal Housing Finance Agency shall not be authorized to conduct a bundled sale. The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 2924p is added to the Civil Code, to read:2924p. (a) For purposes of this section, it is the intent of the Legislature to do all of the following:(1) Allow for prospective owner-occupants and eligible bidders to have the first opportunity to purchase properties which that have been acquired through the foreclosure process by federal government-sponsored enterprises. by an entity that annually forecloses on 175 or more residential real properties in California.(2)Model in California law the federal First Look program that the Federal Housing Finance Administration instituted during the national foreclosure crisis.(3)(2) Promote owner occupancy and to provide owner-occupants and public entities an advantage in submitting offers on foreclosed properties owned by federal government sponsored enterprises without competition from investors. by enacting legislation consistent with the provisions of the federal First Look program that provides owner-occupants and affordable housing providers an opportunity for their offers to be considered on foreclosed properties prior to other offers.(4)(3) Ensure that the requirements of this section are consistent with the original stated goals of the federal First Look program, which were to expand home ownership opportunities, strengthen neighborhoods and communities, while also providing that sellers are required to respond to offers received during the first look period before accepting or considering investor offers to purchase single family single-family homes.(b) For purpose of this section:(1) Bundled sale means the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust or purchased at a foreclosure sale by a federal government-sponsored enterprise. trust.(2) Eligible bidder means any of the following:(A) A prospective owner-occupant.(B) A nonprofit corporation, which has the primary activity to develop and preserve affordable housing. corporation that meets all of the following requirements:(i) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.(ii) The nonprofit corporation is based in California.(iii) All of the board members of the nonprofit corporation have their primary residence in California.(iv) The primary activity of the nonprofit corporation is the development and preservation of affordable rental or homeownership housing in California.(C) A limited partnership based in California in which the managing general partner is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(D) A limited liability company based in California in which the managing member is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(E) A community land trust based in California, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(F) A limited-equity housing cooperative, as defined in Section 817. 817, that is based in California.(3)Federal government-sponsored enterprise means: (A)A government-sponsored enterprise, as defined in Section 622 of Title 2 of the United States Code that is regulated by the Federal Housing Finance Authority. (B)An affiliated entity of a federal government-sponsored enterprise.(C)A mortgage servicer, as defined by Section 2920.5, who is acting as an agent for a federal government-sponsored enterprise.(4)Investor purchaser means any of the following:(A)A real estate investment trust, as defined in Section 856 of Title 26 of the United States Code.(B)An S Corporation, as described in Chapter 4.5 (commencing with Section 23800) of Part 11 of Division 2 of the Revenue and Tax Code.(C)A C corporation or limited liability company in which at least one member is a corporation, as described in the Corporations Code. (D)Any entity which is publicly traded on a United States stock exchange.(5)Multiple listing service means a multiple listing service, as defined in Section 1087.(3) Institution means any of the following, if that person or entity, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or fewer residential real properties, containing no more than 4 dwelling units:(A) A depository institution chartered under state or federal law.(B) A person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code.(C) A person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code.(6)(4) Prospective owner-occupant means a natural person who presents to the trustee an affidavit that whose affidavit or declaration under paragraph (2) of subdivision (c) states all of the following:(A) They will occupy the property as their primary residence within 60 days of the trustees deed being recorded.(B) They will maintain their occupancy for at least one year.(C) They are not the any of the following:(i) The mortgagor or trustor, or the or trustor.(ii) The child, spouse, or parent of the mortgagor or trustor.(iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded.(iv) An employee, officer, or member of the mortgagor or trustor.(v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company.(D) They are not acting as the agent of any other person or entity in purchasing the real property. (c) All of the following shall apply to sales of real property containing one to four residential dwelling units, inclusive, that is acquired by a federal government-sponsored enterprise through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale: sale by an institution:(1) (A)During the first 30 days in which after the property is listed for sale in the multiple listing service, pursuant to guidelines of a federal government-sponsored enterprise, a federal government-sponsored enterprise shall consider only purchase offers from prospective owner-occupants and eligible bidders, consistent with the federal First Look program of federal government-sponsored enterprise. sale, the institution shall only accept offers from eligible bidders in this time period and shall respond, in writing, to all offers received from eligible bidders.(B)The federal government sponsored enterprise shall provide written acknowledgment of all offers received pursuant to subparagraph (A) during the 30-day period to owner-occupants, eligible bidders, and their respective agents before accepting or considering offers made pursuant to paragraph (2).(2)Investor purchasers may submit offers to purchase after the 30-day period, but the offers shall not be considered by the federal government sponsored enterprise until the 30-day described in paragraph (1) has expired.(2) An eligible bidder shall submit with their offer to the institution an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that states they are either of the following:(A) An eligible bidder pursuant to subparagraphs (B) through (F) of paragraph (2) of subdivision (b).(B) A prospective owner-occupant purchasing the property as a primary residence pursuant to this subdivision.(3) Pursuant to the guidelines of a federal government-sponsored enterprise, a prospective owner-occupant shall sign and submit an affidavit affirming that they intend to occupy the property as their primary residence, and any Any fraudulent statements may be subject to criminal or civil liability.(4)Eligible bidders, pursuant to requirements of the guidelines of a federal government-sponsored enterprise, shall do all of the following:(A)Be engaged in a neighborhood stabilization program.(B)Provide an affidavit affirming their nonprofit or governmental status.(C)Provide evidence of their neighborhood stabilization mission.(4) Notwithstanding any other law, an institution shall not conduct a bundled sale.(d) Notwithstanding any other law, a federal government-sponsored enterprise regulated by the Federal Housing Finance Agency shall not be authorized to conduct a bundled sale. The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SECTION 1. Section 2924p is added to the Civil Code, to read:
### SECTION 1.
2924p. (a) For purposes of this section, it is the intent of the Legislature to do all of the following:(1) Allow for prospective owner-occupants and eligible bidders to have the first opportunity to purchase properties which that have been acquired through the foreclosure process by federal government-sponsored enterprises. by an entity that annually forecloses on 175 or more residential real properties in California.(2)Model in California law the federal First Look program that the Federal Housing Finance Administration instituted during the national foreclosure crisis.(3)(2) Promote owner occupancy and to provide owner-occupants and public entities an advantage in submitting offers on foreclosed properties owned by federal government sponsored enterprises without competition from investors. by enacting legislation consistent with the provisions of the federal First Look program that provides owner-occupants and affordable housing providers an opportunity for their offers to be considered on foreclosed properties prior to other offers.(4)(3) Ensure that the requirements of this section are consistent with the original stated goals of the federal First Look program, which were to expand home ownership opportunities, strengthen neighborhoods and communities, while also providing that sellers are required to respond to offers received during the first look period before accepting or considering investor offers to purchase single family single-family homes.(b) For purpose of this section:(1) Bundled sale means the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust or purchased at a foreclosure sale by a federal government-sponsored enterprise. trust.(2) Eligible bidder means any of the following:(A) A prospective owner-occupant.(B) A nonprofit corporation, which has the primary activity to develop and preserve affordable housing. corporation that meets all of the following requirements:(i) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.(ii) The nonprofit corporation is based in California.(iii) All of the board members of the nonprofit corporation have their primary residence in California.(iv) The primary activity of the nonprofit corporation is the development and preservation of affordable rental or homeownership housing in California.(C) A limited partnership based in California in which the managing general partner is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(D) A limited liability company based in California in which the managing member is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(E) A community land trust based in California, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(F) A limited-equity housing cooperative, as defined in Section 817. 817, that is based in California.(3)Federal government-sponsored enterprise means: (A)A government-sponsored enterprise, as defined in Section 622 of Title 2 of the United States Code that is regulated by the Federal Housing Finance Authority. (B)An affiliated entity of a federal government-sponsored enterprise.(C)A mortgage servicer, as defined by Section 2920.5, who is acting as an agent for a federal government-sponsored enterprise.(4)Investor purchaser means any of the following:(A)A real estate investment trust, as defined in Section 856 of Title 26 of the United States Code.(B)An S Corporation, as described in Chapter 4.5 (commencing with Section 23800) of Part 11 of Division 2 of the Revenue and Tax Code.(C)A C corporation or limited liability company in which at least one member is a corporation, as described in the Corporations Code. (D)Any entity which is publicly traded on a United States stock exchange.(5)Multiple listing service means a multiple listing service, as defined in Section 1087.(3) Institution means any of the following, if that person or entity, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or fewer residential real properties, containing no more than 4 dwelling units:(A) A depository institution chartered under state or federal law.(B) A person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code.(C) A person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code.(6)(4) Prospective owner-occupant means a natural person who presents to the trustee an affidavit that whose affidavit or declaration under paragraph (2) of subdivision (c) states all of the following:(A) They will occupy the property as their primary residence within 60 days of the trustees deed being recorded.(B) They will maintain their occupancy for at least one year.(C) They are not the any of the following:(i) The mortgagor or trustor, or the or trustor.(ii) The child, spouse, or parent of the mortgagor or trustor.(iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded.(iv) An employee, officer, or member of the mortgagor or trustor.(v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company.(D) They are not acting as the agent of any other person or entity in purchasing the real property. (c) All of the following shall apply to sales of real property containing one to four residential dwelling units, inclusive, that is acquired by a federal government-sponsored enterprise through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale: sale by an institution:(1) (A)During the first 30 days in which after the property is listed for sale in the multiple listing service, pursuant to guidelines of a federal government-sponsored enterprise, a federal government-sponsored enterprise shall consider only purchase offers from prospective owner-occupants and eligible bidders, consistent with the federal First Look program of federal government-sponsored enterprise. sale, the institution shall only accept offers from eligible bidders in this time period and shall respond, in writing, to all offers received from eligible bidders.(B)The federal government sponsored enterprise shall provide written acknowledgment of all offers received pursuant to subparagraph (A) during the 30-day period to owner-occupants, eligible bidders, and their respective agents before accepting or considering offers made pursuant to paragraph (2).(2)Investor purchasers may submit offers to purchase after the 30-day period, but the offers shall not be considered by the federal government sponsored enterprise until the 30-day described in paragraph (1) has expired.(2) An eligible bidder shall submit with their offer to the institution an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that states they are either of the following:(A) An eligible bidder pursuant to subparagraphs (B) through (F) of paragraph (2) of subdivision (b).(B) A prospective owner-occupant purchasing the property as a primary residence pursuant to this subdivision.(3) Pursuant to the guidelines of a federal government-sponsored enterprise, a prospective owner-occupant shall sign and submit an affidavit affirming that they intend to occupy the property as their primary residence, and any Any fraudulent statements may be subject to criminal or civil liability.(4)Eligible bidders, pursuant to requirements of the guidelines of a federal government-sponsored enterprise, shall do all of the following:(A)Be engaged in a neighborhood stabilization program.(B)Provide an affidavit affirming their nonprofit or governmental status.(C)Provide evidence of their neighborhood stabilization mission.(4) Notwithstanding any other law, an institution shall not conduct a bundled sale.(d) Notwithstanding any other law, a federal government-sponsored enterprise regulated by the Federal Housing Finance Agency shall not be authorized to conduct a bundled sale. The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
2924p. (a) For purposes of this section, it is the intent of the Legislature to do all of the following:(1) Allow for prospective owner-occupants and eligible bidders to have the first opportunity to purchase properties which that have been acquired through the foreclosure process by federal government-sponsored enterprises. by an entity that annually forecloses on 175 or more residential real properties in California.(2)Model in California law the federal First Look program that the Federal Housing Finance Administration instituted during the national foreclosure crisis.(3)(2) Promote owner occupancy and to provide owner-occupants and public entities an advantage in submitting offers on foreclosed properties owned by federal government sponsored enterprises without competition from investors. by enacting legislation consistent with the provisions of the federal First Look program that provides owner-occupants and affordable housing providers an opportunity for their offers to be considered on foreclosed properties prior to other offers.(4)(3) Ensure that the requirements of this section are consistent with the original stated goals of the federal First Look program, which were to expand home ownership opportunities, strengthen neighborhoods and communities, while also providing that sellers are required to respond to offers received during the first look period before accepting or considering investor offers to purchase single family single-family homes.(b) For purpose of this section:(1) Bundled sale means the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust or purchased at a foreclosure sale by a federal government-sponsored enterprise. trust.(2) Eligible bidder means any of the following:(A) A prospective owner-occupant.(B) A nonprofit corporation, which has the primary activity to develop and preserve affordable housing. corporation that meets all of the following requirements:(i) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.(ii) The nonprofit corporation is based in California.(iii) All of the board members of the nonprofit corporation have their primary residence in California.(iv) The primary activity of the nonprofit corporation is the development and preservation of affordable rental or homeownership housing in California.(C) A limited partnership based in California in which the managing general partner is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(D) A limited liability company based in California in which the managing member is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(E) A community land trust based in California, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(F) A limited-equity housing cooperative, as defined in Section 817. 817, that is based in California.(3)Federal government-sponsored enterprise means: (A)A government-sponsored enterprise, as defined in Section 622 of Title 2 of the United States Code that is regulated by the Federal Housing Finance Authority. (B)An affiliated entity of a federal government-sponsored enterprise.(C)A mortgage servicer, as defined by Section 2920.5, who is acting as an agent for a federal government-sponsored enterprise.(4)Investor purchaser means any of the following:(A)A real estate investment trust, as defined in Section 856 of Title 26 of the United States Code.(B)An S Corporation, as described in Chapter 4.5 (commencing with Section 23800) of Part 11 of Division 2 of the Revenue and Tax Code.(C)A C corporation or limited liability company in which at least one member is a corporation, as described in the Corporations Code. (D)Any entity which is publicly traded on a United States stock exchange.(5)Multiple listing service means a multiple listing service, as defined in Section 1087.(3) Institution means any of the following, if that person or entity, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or fewer residential real properties, containing no more than 4 dwelling units:(A) A depository institution chartered under state or federal law.(B) A person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code.(C) A person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code.(6)(4) Prospective owner-occupant means a natural person who presents to the trustee an affidavit that whose affidavit or declaration under paragraph (2) of subdivision (c) states all of the following:(A) They will occupy the property as their primary residence within 60 days of the trustees deed being recorded.(B) They will maintain their occupancy for at least one year.(C) They are not the any of the following:(i) The mortgagor or trustor, or the or trustor.(ii) The child, spouse, or parent of the mortgagor or trustor.(iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded.(iv) An employee, officer, or member of the mortgagor or trustor.(v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company.(D) They are not acting as the agent of any other person or entity in purchasing the real property. (c) All of the following shall apply to sales of real property containing one to four residential dwelling units, inclusive, that is acquired by a federal government-sponsored enterprise through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale: sale by an institution:(1) (A)During the first 30 days in which after the property is listed for sale in the multiple listing service, pursuant to guidelines of a federal government-sponsored enterprise, a federal government-sponsored enterprise shall consider only purchase offers from prospective owner-occupants and eligible bidders, consistent with the federal First Look program of federal government-sponsored enterprise. sale, the institution shall only accept offers from eligible bidders in this time period and shall respond, in writing, to all offers received from eligible bidders.(B)The federal government sponsored enterprise shall provide written acknowledgment of all offers received pursuant to subparagraph (A) during the 30-day period to owner-occupants, eligible bidders, and their respective agents before accepting or considering offers made pursuant to paragraph (2).(2)Investor purchasers may submit offers to purchase after the 30-day period, but the offers shall not be considered by the federal government sponsored enterprise until the 30-day described in paragraph (1) has expired.(2) An eligible bidder shall submit with their offer to the institution an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that states they are either of the following:(A) An eligible bidder pursuant to subparagraphs (B) through (F) of paragraph (2) of subdivision (b).(B) A prospective owner-occupant purchasing the property as a primary residence pursuant to this subdivision.(3) Pursuant to the guidelines of a federal government-sponsored enterprise, a prospective owner-occupant shall sign and submit an affidavit affirming that they intend to occupy the property as their primary residence, and any Any fraudulent statements may be subject to criminal or civil liability.(4)Eligible bidders, pursuant to requirements of the guidelines of a federal government-sponsored enterprise, shall do all of the following:(A)Be engaged in a neighborhood stabilization program.(B)Provide an affidavit affirming their nonprofit or governmental status.(C)Provide evidence of their neighborhood stabilization mission.(4) Notwithstanding any other law, an institution shall not conduct a bundled sale.(d) Notwithstanding any other law, a federal government-sponsored enterprise regulated by the Federal Housing Finance Agency shall not be authorized to conduct a bundled sale. The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
2924p. (a) For purposes of this section, it is the intent of the Legislature to do all of the following:(1) Allow for prospective owner-occupants and eligible bidders to have the first opportunity to purchase properties which that have been acquired through the foreclosure process by federal government-sponsored enterprises. by an entity that annually forecloses on 175 or more residential real properties in California.(2)Model in California law the federal First Look program that the Federal Housing Finance Administration instituted during the national foreclosure crisis.(3)(2) Promote owner occupancy and to provide owner-occupants and public entities an advantage in submitting offers on foreclosed properties owned by federal government sponsored enterprises without competition from investors. by enacting legislation consistent with the provisions of the federal First Look program that provides owner-occupants and affordable housing providers an opportunity for their offers to be considered on foreclosed properties prior to other offers.(4)(3) Ensure that the requirements of this section are consistent with the original stated goals of the federal First Look program, which were to expand home ownership opportunities, strengthen neighborhoods and communities, while also providing that sellers are required to respond to offers received during the first look period before accepting or considering investor offers to purchase single family single-family homes.(b) For purpose of this section:(1) Bundled sale means the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust or purchased at a foreclosure sale by a federal government-sponsored enterprise. trust.(2) Eligible bidder means any of the following:(A) A prospective owner-occupant.(B) A nonprofit corporation, which has the primary activity to develop and preserve affordable housing. corporation that meets all of the following requirements:(i) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.(ii) The nonprofit corporation is based in California.(iii) All of the board members of the nonprofit corporation have their primary residence in California.(iv) The primary activity of the nonprofit corporation is the development and preservation of affordable rental or homeownership housing in California.(C) A limited partnership based in California in which the managing general partner is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(D) A limited liability company based in California in which the managing member is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.(E) A community land trust based in California, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(F) A limited-equity housing cooperative, as defined in Section 817. 817, that is based in California.(3)Federal government-sponsored enterprise means: (A)A government-sponsored enterprise, as defined in Section 622 of Title 2 of the United States Code that is regulated by the Federal Housing Finance Authority. (B)An affiliated entity of a federal government-sponsored enterprise.(C)A mortgage servicer, as defined by Section 2920.5, who is acting as an agent for a federal government-sponsored enterprise.(4)Investor purchaser means any of the following:(A)A real estate investment trust, as defined in Section 856 of Title 26 of the United States Code.(B)An S Corporation, as described in Chapter 4.5 (commencing with Section 23800) of Part 11 of Division 2 of the Revenue and Tax Code.(C)A C corporation or limited liability company in which at least one member is a corporation, as described in the Corporations Code. (D)Any entity which is publicly traded on a United States stock exchange.(5)Multiple listing service means a multiple listing service, as defined in Section 1087.(3) Institution means any of the following, if that person or entity, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or fewer residential real properties, containing no more than 4 dwelling units:(A) A depository institution chartered under state or federal law.(B) A person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code.(C) A person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code.(6)(4) Prospective owner-occupant means a natural person who presents to the trustee an affidavit that whose affidavit or declaration under paragraph (2) of subdivision (c) states all of the following:(A) They will occupy the property as their primary residence within 60 days of the trustees deed being recorded.(B) They will maintain their occupancy for at least one year.(C) They are not the any of the following:(i) The mortgagor or trustor, or the or trustor.(ii) The child, spouse, or parent of the mortgagor or trustor.(iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded.(iv) An employee, officer, or member of the mortgagor or trustor.(v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company.(D) They are not acting as the agent of any other person or entity in purchasing the real property. (c) All of the following shall apply to sales of real property containing one to four residential dwelling units, inclusive, that is acquired by a federal government-sponsored enterprise through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale: sale by an institution:(1) (A)During the first 30 days in which after the property is listed for sale in the multiple listing service, pursuant to guidelines of a federal government-sponsored enterprise, a federal government-sponsored enterprise shall consider only purchase offers from prospective owner-occupants and eligible bidders, consistent with the federal First Look program of federal government-sponsored enterprise. sale, the institution shall only accept offers from eligible bidders in this time period and shall respond, in writing, to all offers received from eligible bidders.(B)The federal government sponsored enterprise shall provide written acknowledgment of all offers received pursuant to subparagraph (A) during the 30-day period to owner-occupants, eligible bidders, and their respective agents before accepting or considering offers made pursuant to paragraph (2).(2)Investor purchasers may submit offers to purchase after the 30-day period, but the offers shall not be considered by the federal government sponsored enterprise until the 30-day described in paragraph (1) has expired.(2) An eligible bidder shall submit with their offer to the institution an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that states they are either of the following:(A) An eligible bidder pursuant to subparagraphs (B) through (F) of paragraph (2) of subdivision (b).(B) A prospective owner-occupant purchasing the property as a primary residence pursuant to this subdivision.(3) Pursuant to the guidelines of a federal government-sponsored enterprise, a prospective owner-occupant shall sign and submit an affidavit affirming that they intend to occupy the property as their primary residence, and any Any fraudulent statements may be subject to criminal or civil liability.(4)Eligible bidders, pursuant to requirements of the guidelines of a federal government-sponsored enterprise, shall do all of the following:(A)Be engaged in a neighborhood stabilization program.(B)Provide an affidavit affirming their nonprofit or governmental status.(C)Provide evidence of their neighborhood stabilization mission.(4) Notwithstanding any other law, an institution shall not conduct a bundled sale.(d) Notwithstanding any other law, a federal government-sponsored enterprise regulated by the Federal Housing Finance Agency shall not be authorized to conduct a bundled sale. The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
2924p. (a) For purposes of this section, it is the intent of the Legislature to do all of the following:
(1) Allow for prospective owner-occupants and eligible bidders to have the first opportunity to purchase properties which that have been acquired through the foreclosure process by federal government-sponsored enterprises. by an entity that annually forecloses on 175 or more residential real properties in California.
(2)Model in California law the federal First Look program that the Federal Housing Finance Administration instituted during the national foreclosure crisis.
(3)
(2) Promote owner occupancy and to provide owner-occupants and public entities an advantage in submitting offers on foreclosed properties owned by federal government sponsored enterprises without competition from investors. by enacting legislation consistent with the provisions of the federal First Look program that provides owner-occupants and affordable housing providers an opportunity for their offers to be considered on foreclosed properties prior to other offers.
(4)
(3) Ensure that the requirements of this section are consistent with the original stated goals of the federal First Look program, which were to expand home ownership opportunities, strengthen neighborhoods and communities, while also providing that sellers are required to respond to offers received during the first look period before accepting or considering investor offers to purchase single family single-family homes.
(b) For purpose of this section:
(1) Bundled sale means the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust or purchased at a foreclosure sale by a federal government-sponsored enterprise. trust.
(2) Eligible bidder means any of the following:
(A) A prospective owner-occupant.
(B) A nonprofit corporation, which has the primary activity to develop and preserve affordable housing. corporation that meets all of the following requirements:
(i) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.
(ii) The nonprofit corporation is based in California.
(iii) All of the board members of the nonprofit corporation have their primary residence in California.
(iv) The primary activity of the nonprofit corporation is the development and preservation of affordable rental or homeownership housing in California.
(C) A limited partnership based in California in which the managing general partner is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.
(D) A limited liability company based in California in which the managing member is a nonprofit corporation, corporation based in California, and their primary activity is to develop and preserve affordable housing.
(E) A community land trust based in California, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.
(F) A limited-equity housing cooperative, as defined in Section 817. 817, that is based in California.
(3)Federal government-sponsored enterprise means:
(A)A government-sponsored enterprise, as defined in Section 622 of Title 2 of the United States Code that is regulated by the Federal Housing Finance Authority.
(B)An affiliated entity of a federal government-sponsored enterprise.
(C)A mortgage servicer, as defined by Section 2920.5, who is acting as an agent for a federal government-sponsored enterprise.
(4)Investor purchaser means any of the following:
(A)A real estate investment trust, as defined in Section 856 of Title 26 of the United States Code.
(B)An S Corporation, as described in Chapter 4.5 (commencing with Section 23800) of Part 11 of Division 2 of the Revenue and Tax Code.
(C)A C corporation or limited liability company in which at least one member is a corporation, as described in the Corporations Code.
(D)Any entity which is publicly traded on a United States stock exchange.
(5)Multiple listing service means a multiple listing service, as defined in Section 1087.
(3) Institution means any of the following, if that person or entity, during its immediately preceding annual reporting period, as established with its primary regulator, foreclosed on 175 or fewer residential real properties, containing no more than 4 dwelling units:
(A) A depository institution chartered under state or federal law.
(B) A person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code.
(C) A person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code.
(6)
(4) Prospective owner-occupant means a natural person who presents to the trustee an affidavit that whose affidavit or declaration under paragraph (2) of subdivision (c) states all of the following:
(A) They will occupy the property as their primary residence within 60 days of the trustees deed being recorded.
(B) They will maintain their occupancy for at least one year.
(C) They are not the any of the following:
(i) The mortgagor or trustor, or the or trustor.
(ii) The child, spouse, or parent of the mortgagor or trustor.
(iii) The grantor of a living trust that was named in the title to the property when the notice of default was recorded.
(iv) An employee, officer, or member of the mortgagor or trustor.
(v) A person with an ownership interest in the mortgagor, unless the mortgagor is a publicly traded company.
(D) They are not acting as the agent of any other person or entity in purchasing the real property.
(c) All of the following shall apply to sales of real property containing one to four residential dwelling units, inclusive, that is acquired by a federal government-sponsored enterprise through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale: sale by an institution:
(1) (A)During the first 30 days in which after the property is listed for sale in the multiple listing service, pursuant to guidelines of a federal government-sponsored enterprise, a federal government-sponsored enterprise shall consider only purchase offers from prospective owner-occupants and eligible bidders, consistent with the federal First Look program of federal government-sponsored enterprise. sale, the institution shall only accept offers from eligible bidders in this time period and shall respond, in writing, to all offers received from eligible bidders.
(B)The federal government sponsored enterprise shall provide written acknowledgment of all offers received pursuant to subparagraph (A) during the 30-day period to owner-occupants, eligible bidders, and their respective agents before accepting or considering offers made pursuant to paragraph (2).
(2)Investor purchasers may submit offers to purchase after the 30-day period, but the offers shall not be considered by the federal government sponsored enterprise until the 30-day described in paragraph (1) has expired.
(2) An eligible bidder shall submit with their offer to the institution an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that states they are either of the following:
(A) An eligible bidder pursuant to subparagraphs (B) through (F) of paragraph (2) of subdivision (b).
(B) A prospective owner-occupant purchasing the property as a primary residence pursuant to this subdivision.
(3) Pursuant to the guidelines of a federal government-sponsored enterprise, a prospective owner-occupant shall sign and submit an affidavit affirming that they intend to occupy the property as their primary residence, and any Any fraudulent statements may be subject to criminal or civil liability.
(4)Eligible bidders, pursuant to requirements of the guidelines of a federal government-sponsored enterprise, shall do all of the following:
(A)Be engaged in a neighborhood stabilization program.
(B)Provide an affidavit affirming their nonprofit or governmental status.
(C)Provide evidence of their neighborhood stabilization mission.
(4) Notwithstanding any other law, an institution shall not conduct a bundled sale.
(d) Notwithstanding any other law, a federal government-sponsored enterprise regulated by the Federal Housing Finance Agency shall not be authorized to conduct a bundled sale. The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
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