By: Hughes, et al. S.B. No. 1979
A BILL TO BE ENTITLED
AN ACT
relating to an annual study by the Texas A&M University Texas Real
Estate Research Center of the purchase and sale of single-family
homes by certain institutional buyers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 86, Education Code, is
amended by adding Section 86.531 to read as follows:
Sec. 86.531. ANNUAL STUDY AND REPORT ON SINGLE-FAMILY HOME
PURCHASES AND SALES BY CERTAIN INSTITUTIONAL BUYERS. (a) In this
section, "institutional buyer" means a corporation, limited or
general partnership, limited liability company, business trust,
investment asset manager, real estate investment trust, joint
venture, joint stock company, or bank that purchases or acquires
for consideration 10 or more single-family homes in this state in a
calendar year.
(b) Using existing available data and deed records, the
center shall annually compile information related to institutional
buyers' purchases and sales of single-family homes in this state
for the calendar year. The information must include:
(1) the number of single-family homes purchased by
each institutional buyer in the calendar year;
(2) of the single-family homes described by
Subdivision (1), the number acquired through foreclosure;
(3) of the single-family homes described by
Subdivision (1), the number sold by each institutional buyer during
the same year;
(4) of the single-family homes described by
Subdivision (1), the number used as rental properties during the
same year;
(5) the city and county where each single-family home
described by Subdivision (1) is located and the number of homes
purchased in each city or county; and
(6) the appraised value of each single-family home
described by Subdivision (1).
(c) In addition to the information required by Subsection
(b), the center may compile additional information:
(1) at the recommendation of the legislature; or
(2) that the center determines is relevant based on
market trends.
(d) Not later than June 1 of each year, the center shall
submit a report to the lieutenant governor, the speaker of the house
of representatives, and each member of the legislature. The report
must contain:
(1) a summary of the information compiled under
Subsection (b) for the preceding calendar year; and
(2) an assessment of any trends or patterns relating
to the relative number of purchases by institutional buyers,
including whether the institutional buyers fall into any readily
observable groups based on number of purchases or other appropriate
criteria.
(e) After completing the initial report under this section,
the center may compile information from any calendar years
preceding 2023 to create and submit reports for those years that
include the information listed in Subsections (b) and (d).
SECTION 2. As soon as practicable after the effective date
of this Act, the Texas A&M University Texas Real Estate Research
Center shall take any actions necessary to prepare to implement
Section 86.531, Education Code, as added by this Act, and submit the
initial report required under Section 86.531(d), Education Code, as
added by this Act, not later than June 1, 2024.
SECTION 3. This Act takes effect September 1, 2023.