California 2023-2024 Regular Session

California Assembly Bill AB2584

Introduced
2/14/24  
Introduced
2/14/24  
Refer
3/4/24  
Refer
3/4/24  
Report Pass
4/9/24  
Refer
4/11/24  
Refer
4/11/24  
Refer
4/24/24  
Refer
4/24/24  
Report Pass
5/16/24  
Report Pass
5/16/24  
Engrossed
5/21/24  
Engrossed
5/21/24  
Refer
5/22/24  
Refer
5/29/24  
Report Pass
6/20/24  

Caption

Single-family residential real property: corporate entity: ownership.

Impact

If enacted, AB 2584 will introduce significant changes to the real estate landscape in California. The bill empowers the Attorney General to take legal action against businesses that violate this statute, imposing civil penalties of $100,000 per violation. Furthermore, it mandates that offending entities sell the properties in question to independent third parties within a year of a court ruling. This creates a mechanism for enforcement that is designed to hold large operators accountable while aiming to enhance the availability of homes for local residents amid a challenging housing market.

Summary

Assembly Bill 2584, introduced by Assembly Member Lee, seeks to regulate the ownership of single-family residential properties by business entities in California. The bill prohibits any business entity that owns more than 1,000 single-family homes from acquiring additional properties for the purpose of leasing them. This measure stems from concerns about large corporations dominating the housing market, potentially driving up prices and limiting access to affordable housing for individuals and families. The bill's intention is to preserve opportunities for personal home ownership and ensure that local residents can access housing without excessive competition from corporate entities.

Sentiment

The sentiment surrounding AB 2584 appears to be a blend of cautious optimism and concern. Proponents argue that this bill is a necessary step to combat corporate influence in the housing market and protect the interests of everyday Californians seeking affordable homes. However, opponents express fears that such regulations may inadvertently hinder housing development and exacerbate the existing housing crisis. The debate reflects broader tensions between maintaining housing accessibility and encouraging market growth.

Contention

Key points of contention include the definition of 'business entity' within the bill, as it affects various sizes of companies, including real estate investment trusts and partnerships. Critics also question whether such restrictions could lead to unintended consequences, such as a decrease in rental housing availability or stifling housing construction efforts by companies exempt from the bill due to their construction focus. Balancing regulations that protect consumers with those that promote construction and investment in housing will be crucial as discussions about the bill continue.

Companion Bills

No companion bills found.

Previously Filed As

CA AB1240

Single-family residential real property: corporate entity: ownership.

CA H1593

Ownership of Single-family Residential Property by Business Entities

CA SF3173

Ownership of single-family homes restriction for corporate entities

CA SB722

Transfer of real property: single-family homes, townhomes, and condominiums.

CA AB968

Single-family residential property: disclosures.

CA AB919

Residential real property: sale of rental properties: right of first offer.

CA SB382

Single-family residential property: disclosures.

CA AB2710

Residential real property: sale of rental properties: right of first offer.

CA SB592

Property tax: change in ownership: residential rental property.

CA S4356

Imposes annual State tax on investment ownership of single family residences in this State by certain entities for purposes other than single family ownership, providing revenue for down payment assistance for family ownership.

Similar Bills

CA AB1240

Single-family residential real property: corporate entity: ownership.

FL H1593

Ownership of Single-family Residential Property by Business Entities

CA AB1529

Housing omnibus.

CA AB474

Housing discrimination: nonprofit home-sharing program: eligibility for public social services.

CA SB479

Termination of tenancy: no-fault just cause: natural person.

CA AB919

Residential real property: sale of rental properties: right of first offer.

TX HB4211

Relating to certain residential property interests controlled by certain entities.

CA SB522

Housing: tenant protections.