Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 722Introduced by Senator WahabFebruary 21, 2025 An act to amend Section 50675 of the Health and Safety Code, relating to housing. An act to add Title 8 (commencing with Section 945.20) to Part 2 of Division 2 of the Civil Code, relating to real property.LEGISLATIVE COUNSEL'S DIGESTSB 722, as amended, Wahab. Multifamily Housing Program. Transfer of real property: single-family homes, townhomes, and condominiums.Existing law regulates the transfer of property. Existing law generally permits any kind of property to be transferred, subject to specified exceptions.This bill would require a developer, beginning on January 1, 2026, and until January 1, 2031, to only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person, and would prohibit a business entity, as defined, from purchasing those properties during that time period. The bill would also prohibit, beginning on January 1, 2026, and until January 1, 2031, a natural person from transferring more than 4 single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner, as defined. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the bill would require the business entity to disclose the names of all the beneficial owners of the business entity in the real property transfer documents.This bill would authorize the Attorney General or a district attorney, county counsel, or city attorney to bring a civil action to enforce these provisions. If the Attorney General or a district attorney, county counsel, or city attorney prevails in the civil action, the bill would authorize a court to order the payment of a civil penalty, as specified, and reasonable attorneys fees and costs.Existing law, the Multifamily Housing Program, is administered by the Department of Housing and Community Development to address renter housing needs through an omnibus multifamily housing program. The program includes related legislative findings and declarations.This bill would make nonsubstantive changes to those findings and declarations.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Title 8 (commencing with Section 945.20) is added to Part 2 of Division 2 of the Civil Code, to read:TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) Beneficial owner means a natural person for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, either of the following applies with respect to a business entity:(1) The person exercises substantial control over the business entity. For the purposes of this paragraph, substantial control has the same meaning as set forth in Section 1010.380 of Title 31 of the Code of Federal Regulations, as published in the Federal Register, Volume 87, Number 189, on September 30, 2022.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) Business entity means any association, company, firm, partnership, corporation, limited liability company, limited liability partnership, real estate investment trust, or other legal entity, and that entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) Interest means any estate, remainder, or reversion enumerated in Chapter 1 (commencing with Section 761) of Title 2 of Part 2, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to housing to be transferred.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a developer shall only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person.(b) Beginning on January 1, 2026, and until January 1, 2031, a business entity shall not purchase a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026.945.22. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the business entity shall disclose the names of all the beneficial owners of the business entity in the real property transfer documents.945.23. Beginning on January 1, 2026, and until January 1, 2031, a natural person shall not transfer more than four single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner.945.24. (a) The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this title. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.SECTION 1.Section 50675 of the Health and Safety Code is amended to read:50675.The Legislature finds and declares all of the following:(a)Large numbers of Californias renters face excessive housing costs and live in overcrowded or substandard units. Many of these renters also have special housing needs arising from their employment status, age, or disability, and live in communities suffering from a lack of investment.(b)In previous years, the state has attempted to address the needs of California renters through a series of small programs operated by the Department of Housing and Community Development, each offering financing targeted at a specific population or building type. These programs were typically highly successful in addressing local housing and community development needs. However, because each individual program came with a unique set of rules, the programs were often costly and time consuming to administer, for both the state and program users.(c)A more efficient method to address renter housing needs would be to operate one omnibus multifamily housing program modeled upon an existing successful program. This omnibus program would provide a standardized set of program rules and features applicable to all housing types. As particular needs are identified, the omnibus program may be easily and quickly customized to meet those needs.(d)It is the intent of the Legislature that the Multifamily Housing Program created by this chapter constitute this omnibus multifamily housing program, and that the omnibus program be based on the departments existing California Housing Rehabilitation Program as established and described in Subchapter 8 (commencing with Section 7670) of Chapter 7 of Division 1 of Title 25 of the California Code of Regulations.(e)The Multifamily Housing Program is intended to take the place of the following department programs:(1)The Deferred-Payment Rehabilitation Loan Program established by Chapter 6.5 (commencing with Section 50660).(2)The Rental Housing Construction Program established by Chapter 9 (commencing with Section 50735).(3)The Family Housing Demonstration Program established by Section 5 of Chapter 30 of the Statutes of 1988.Repeal of the statutes establishing these programs would be administratively problematic because the department still administers a portfolio of loans from these programs. Therefore, in lieu of repeal, it is the Legislatures intent that no further allocation of funds be made to these programs and that any and all future funds that would have been appropriated to these programs shall be appropriated instead to the Multifamily Housing Program.
Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 722Introduced by Senator WahabFebruary 21, 2025 An act to amend Section 50675 of the Health and Safety Code, relating to housing. An act to add Title 8 (commencing with Section 945.20) to Part 2 of Division 2 of the Civil Code, relating to real property.LEGISLATIVE COUNSEL'S DIGESTSB 722, as amended, Wahab. Multifamily Housing Program. Transfer of real property: single-family homes, townhomes, and condominiums.Existing law regulates the transfer of property. Existing law generally permits any kind of property to be transferred, subject to specified exceptions.This bill would require a developer, beginning on January 1, 2026, and until January 1, 2031, to only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person, and would prohibit a business entity, as defined, from purchasing those properties during that time period. The bill would also prohibit, beginning on January 1, 2026, and until January 1, 2031, a natural person from transferring more than 4 single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner, as defined. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the bill would require the business entity to disclose the names of all the beneficial owners of the business entity in the real property transfer documents.This bill would authorize the Attorney General or a district attorney, county counsel, or city attorney to bring a civil action to enforce these provisions. If the Attorney General or a district attorney, county counsel, or city attorney prevails in the civil action, the bill would authorize a court to order the payment of a civil penalty, as specified, and reasonable attorneys fees and costs.Existing law, the Multifamily Housing Program, is administered by the Department of Housing and Community Development to address renter housing needs through an omnibus multifamily housing program. The program includes related legislative findings and declarations.This bill would make nonsubstantive changes to those findings and declarations.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Senate March 26, 2025
Amended IN Senate March 26, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 722
Introduced by Senator WahabFebruary 21, 2025
Introduced by Senator Wahab
February 21, 2025
An act to amend Section 50675 of the Health and Safety Code, relating to housing. An act to add Title 8 (commencing with Section 945.20) to Part 2 of Division 2 of the Civil Code, relating to real property.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 722, as amended, Wahab. Multifamily Housing Program. Transfer of real property: single-family homes, townhomes, and condominiums.
Existing law regulates the transfer of property. Existing law generally permits any kind of property to be transferred, subject to specified exceptions.This bill would require a developer, beginning on January 1, 2026, and until January 1, 2031, to only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person, and would prohibit a business entity, as defined, from purchasing those properties during that time period. The bill would also prohibit, beginning on January 1, 2026, and until January 1, 2031, a natural person from transferring more than 4 single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner, as defined. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the bill would require the business entity to disclose the names of all the beneficial owners of the business entity in the real property transfer documents.This bill would authorize the Attorney General or a district attorney, county counsel, or city attorney to bring a civil action to enforce these provisions. If the Attorney General or a district attorney, county counsel, or city attorney prevails in the civil action, the bill would authorize a court to order the payment of a civil penalty, as specified, and reasonable attorneys fees and costs.Existing law, the Multifamily Housing Program, is administered by the Department of Housing and Community Development to address renter housing needs through an omnibus multifamily housing program. The program includes related legislative findings and declarations.This bill would make nonsubstantive changes to those findings and declarations.
Existing law regulates the transfer of property. Existing law generally permits any kind of property to be transferred, subject to specified exceptions.
This bill would require a developer, beginning on January 1, 2026, and until January 1, 2031, to only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person, and would prohibit a business entity, as defined, from purchasing those properties during that time period. The bill would also prohibit, beginning on January 1, 2026, and until January 1, 2031, a natural person from transferring more than 4 single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner, as defined. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the bill would require the business entity to disclose the names of all the beneficial owners of the business entity in the real property transfer documents.
This bill would authorize the Attorney General or a district attorney, county counsel, or city attorney to bring a civil action to enforce these provisions. If the Attorney General or a district attorney, county counsel, or city attorney prevails in the civil action, the bill would authorize a court to order the payment of a civil penalty, as specified, and reasonable attorneys fees and costs.
Existing law, the Multifamily Housing Program, is administered by the Department of Housing and Community Development to address renter housing needs through an omnibus multifamily housing program. The program includes related legislative findings and declarations.
This bill would make nonsubstantive changes to those findings and declarations.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Title 8 (commencing with Section 945.20) is added to Part 2 of Division 2 of the Civil Code, to read:TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) Beneficial owner means a natural person for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, either of the following applies with respect to a business entity:(1) The person exercises substantial control over the business entity. For the purposes of this paragraph, substantial control has the same meaning as set forth in Section 1010.380 of Title 31 of the Code of Federal Regulations, as published in the Federal Register, Volume 87, Number 189, on September 30, 2022.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) Business entity means any association, company, firm, partnership, corporation, limited liability company, limited liability partnership, real estate investment trust, or other legal entity, and that entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) Interest means any estate, remainder, or reversion enumerated in Chapter 1 (commencing with Section 761) of Title 2 of Part 2, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to housing to be transferred.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a developer shall only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person.(b) Beginning on January 1, 2026, and until January 1, 2031, a business entity shall not purchase a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026.945.22. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the business entity shall disclose the names of all the beneficial owners of the business entity in the real property transfer documents.945.23. Beginning on January 1, 2026, and until January 1, 2031, a natural person shall not transfer more than four single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner.945.24. (a) The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this title. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.SECTION 1.Section 50675 of the Health and Safety Code is amended to read:50675.The Legislature finds and declares all of the following:(a)Large numbers of Californias renters face excessive housing costs and live in overcrowded or substandard units. Many of these renters also have special housing needs arising from their employment status, age, or disability, and live in communities suffering from a lack of investment.(b)In previous years, the state has attempted to address the needs of California renters through a series of small programs operated by the Department of Housing and Community Development, each offering financing targeted at a specific population or building type. These programs were typically highly successful in addressing local housing and community development needs. However, because each individual program came with a unique set of rules, the programs were often costly and time consuming to administer, for both the state and program users.(c)A more efficient method to address renter housing needs would be to operate one omnibus multifamily housing program modeled upon an existing successful program. This omnibus program would provide a standardized set of program rules and features applicable to all housing types. As particular needs are identified, the omnibus program may be easily and quickly customized to meet those needs.(d)It is the intent of the Legislature that the Multifamily Housing Program created by this chapter constitute this omnibus multifamily housing program, and that the omnibus program be based on the departments existing California Housing Rehabilitation Program as established and described in Subchapter 8 (commencing with Section 7670) of Chapter 7 of Division 1 of Title 25 of the California Code of Regulations.(e)The Multifamily Housing Program is intended to take the place of the following department programs:(1)The Deferred-Payment Rehabilitation Loan Program established by Chapter 6.5 (commencing with Section 50660).(2)The Rental Housing Construction Program established by Chapter 9 (commencing with Section 50735).(3)The Family Housing Demonstration Program established by Section 5 of Chapter 30 of the Statutes of 1988.Repeal of the statutes establishing these programs would be administratively problematic because the department still administers a portfolio of loans from these programs. Therefore, in lieu of repeal, it is the Legislatures intent that no further allocation of funds be made to these programs and that any and all future funds that would have been appropriated to these programs shall be appropriated instead to the Multifamily Housing Program.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Title 8 (commencing with Section 945.20) is added to Part 2 of Division 2 of the Civil Code, to read:TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) Beneficial owner means a natural person for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, either of the following applies with respect to a business entity:(1) The person exercises substantial control over the business entity. For the purposes of this paragraph, substantial control has the same meaning as set forth in Section 1010.380 of Title 31 of the Code of Federal Regulations, as published in the Federal Register, Volume 87, Number 189, on September 30, 2022.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) Business entity means any association, company, firm, partnership, corporation, limited liability company, limited liability partnership, real estate investment trust, or other legal entity, and that entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) Interest means any estate, remainder, or reversion enumerated in Chapter 1 (commencing with Section 761) of Title 2 of Part 2, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to housing to be transferred.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a developer shall only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person.(b) Beginning on January 1, 2026, and until January 1, 2031, a business entity shall not purchase a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026.945.22. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the business entity shall disclose the names of all the beneficial owners of the business entity in the real property transfer documents.945.23. Beginning on January 1, 2026, and until January 1, 2031, a natural person shall not transfer more than four single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner.945.24. (a) The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this title. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.
SECTION 1. Title 8 (commencing with Section 945.20) is added to Part 2 of Division 2 of the Civil Code, to read:
### SECTION 1.
TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) Beneficial owner means a natural person for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, either of the following applies with respect to a business entity:(1) The person exercises substantial control over the business entity. For the purposes of this paragraph, substantial control has the same meaning as set forth in Section 1010.380 of Title 31 of the Code of Federal Regulations, as published in the Federal Register, Volume 87, Number 189, on September 30, 2022.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) Business entity means any association, company, firm, partnership, corporation, limited liability company, limited liability partnership, real estate investment trust, or other legal entity, and that entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) Interest means any estate, remainder, or reversion enumerated in Chapter 1 (commencing with Section 761) of Title 2 of Part 2, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to housing to be transferred.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a developer shall only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person.(b) Beginning on January 1, 2026, and until January 1, 2031, a business entity shall not purchase a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026.945.22. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the business entity shall disclose the names of all the beneficial owners of the business entity in the real property transfer documents.945.23. Beginning on January 1, 2026, and until January 1, 2031, a natural person shall not transfer more than four single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner.945.24. (a) The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this title. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.
TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) Beneficial owner means a natural person for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, either of the following applies with respect to a business entity:(1) The person exercises substantial control over the business entity. For the purposes of this paragraph, substantial control has the same meaning as set forth in Section 1010.380 of Title 31 of the Code of Federal Regulations, as published in the Federal Register, Volume 87, Number 189, on September 30, 2022.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) Business entity means any association, company, firm, partnership, corporation, limited liability company, limited liability partnership, real estate investment trust, or other legal entity, and that entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) Interest means any estate, remainder, or reversion enumerated in Chapter 1 (commencing with Section 761) of Title 2 of Part 2, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to housing to be transferred.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a developer shall only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person.(b) Beginning on January 1, 2026, and until January 1, 2031, a business entity shall not purchase a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026.945.22. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the business entity shall disclose the names of all the beneficial owners of the business entity in the real property transfer documents.945.23. Beginning on January 1, 2026, and until January 1, 2031, a natural person shall not transfer more than four single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner.945.24. (a) The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this title. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.
TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums
TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums
945.20. For purposes of this title, the following definitions apply:(a) Beneficial owner means a natural person for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, either of the following applies with respect to a business entity:(1) The person exercises substantial control over the business entity. For the purposes of this paragraph, substantial control has the same meaning as set forth in Section 1010.380 of Title 31 of the Code of Federal Regulations, as published in the Federal Register, Volume 87, Number 189, on September 30, 2022.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) Business entity means any association, company, firm, partnership, corporation, limited liability company, limited liability partnership, real estate investment trust, or other legal entity, and that entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) Interest means any estate, remainder, or reversion enumerated in Chapter 1 (commencing with Section 761) of Title 2 of Part 2, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to housing to be transferred.
945.20. For purposes of this title, the following definitions apply:
(a) Beneficial owner means a natural person for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, either of the following applies with respect to a business entity:
(1) The person exercises substantial control over the business entity. For the purposes of this paragraph, substantial control has the same meaning as set forth in Section 1010.380 of Title 31 of the Code of Federal Regulations, as published in the Federal Register, Volume 87, Number 189, on September 30, 2022.
(2) The person owns 25 percent or more of the equity interest of the business entity.
(b) Business entity means any association, company, firm, partnership, corporation, limited liability company, limited liability partnership, real estate investment trust, or other legal entity, and that entitys successors, assignees, or affiliates, but does not include either of the following:
(1) A nonprofit corporation or other nonprofit legal entity.
(2) A person or entity primarily engaged in the construction of new housing.
(c) Interest means any estate, remainder, or reversion enumerated in Chapter 1 (commencing with Section 761) of Title 2 of Part 2, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to housing to be transferred.
945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a developer shall only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person.(b) Beginning on January 1, 2026, and until January 1, 2031, a business entity shall not purchase a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026.
945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a developer shall only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person.
(b) Beginning on January 1, 2026, and until January 1, 2031, a business entity shall not purchase a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026.
945.22. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the business entity shall disclose the names of all the beneficial owners of the business entity in the real property transfer documents.
945.22. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the business entity shall disclose the names of all the beneficial owners of the business entity in the real property transfer documents.
945.23. Beginning on January 1, 2026, and until January 1, 2031, a natural person shall not transfer more than four single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner.
945.23. Beginning on January 1, 2026, and until January 1, 2031, a natural person shall not transfer more than four single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner.
945.24. (a) The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this title. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.
945.24. (a) The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this title. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:
(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.
(2) Reasonable attorneys fees and costs.
(b) This section is the exclusive means for enforcing this title.
The Legislature finds and declares all of the following:
(a)Large numbers of Californias renters face excessive housing costs and live in overcrowded or substandard units. Many of these renters also have special housing needs arising from their employment status, age, or disability, and live in communities suffering from a lack of investment.
(b)In previous years, the state has attempted to address the needs of California renters through a series of small programs operated by the Department of Housing and Community Development, each offering financing targeted at a specific population or building type. These programs were typically highly successful in addressing local housing and community development needs. However, because each individual program came with a unique set of rules, the programs were often costly and time consuming to administer, for both the state and program users.
(c)A more efficient method to address renter housing needs would be to operate one omnibus multifamily housing program modeled upon an existing successful program. This omnibus program would provide a standardized set of program rules and features applicable to all housing types. As particular needs are identified, the omnibus program may be easily and quickly customized to meet those needs.
(d)It is the intent of the Legislature that the Multifamily Housing Program created by this chapter constitute this omnibus multifamily housing program, and that the omnibus program be based on the departments existing California Housing Rehabilitation Program as established and described in Subchapter 8 (commencing with Section 7670) of Chapter 7 of Division 1 of Title 25 of the California Code of Regulations.
(e)The Multifamily Housing Program is intended to take the place of the following department programs:
(1)The Deferred-Payment Rehabilitation Loan Program established by Chapter 6.5 (commencing with Section 50660).
(2)The Rental Housing Construction Program established by Chapter 9 (commencing with Section 50735).
(3)The Family Housing Demonstration Program established by Section 5 of Chapter 30 of the Statutes of 1988.
Repeal of the statutes establishing these programs would be administratively problematic because the department still administers a portfolio of loans from these programs. Therefore, in lieu of repeal, it is the Legislatures intent that no further allocation of funds be made to these programs and that any and all future funds that would have been appropriated to these programs shall be appropriated instead to the Multifamily Housing Program.