| 1 | 1 | | By: Hughes S.B. No. 47 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to an annual study by the Texas A&M University Texas Real |
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| 7 | 7 | | Estate Research Center of the purchase and sale of single-family |
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| 8 | 8 | | homes by certain institutional buyers. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter C, Chapter 86, Education Code, is |
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| 11 | 11 | | amended by adding Section 86.531 to read as follows: |
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| 12 | 12 | | Sec. 86.531. ANNUAL STUDY AND REPORT ON SINGLE-FAMILY HOME |
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| 13 | 13 | | PURCHASES AND SALES BY CERTAIN INSTITUTIONAL BUYERS. (a) In this |
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| 14 | 14 | | section, "institutional buyer" means a corporation, limited or |
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| 15 | 15 | | general partnership, limited liability company, business trust, |
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| 16 | 16 | | investment asset manager, real estate investment trust, joint |
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| 17 | 17 | | venture, joint stock company, or bank that purchases or acquires |
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| 18 | 18 | | for consideration 10 or more single-family homes in this state in a |
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| 19 | 19 | | calendar year. |
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| 20 | 20 | | (b) Using existing available data and deed records, the |
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| 21 | 21 | | center shall annually compile information related to institutional |
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| 22 | 22 | | buyers' purchases and sales of single-family homes in this state |
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| 23 | 23 | | for the calendar year. The information must include: |
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| 24 | 24 | | (1) the number of single-family homes purchased by |
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| 25 | 25 | | each institutional buyer in the calendar year; |
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| 26 | 26 | | (2) of the single-family homes described by |
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| 27 | 27 | | Subdivision (1), the number acquired through foreclosure; |
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| 28 | 28 | | (3) of the single-family homes described by |
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| 29 | 29 | | Subdivision (1), the number sold by each institutional buyer during |
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| 30 | 30 | | the same year; |
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| 31 | 31 | | (4) of the single-family homes described by |
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| 32 | 32 | | Subdivision (1), the number used as rental properties during the |
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| 33 | 33 | | same year; |
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| 34 | 34 | | (5) the city and county where each single-family home |
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| 35 | 35 | | described by Subdivision (1) is located and the number of homes |
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| 36 | 36 | | purchased in each city or county; and |
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| 37 | 37 | | (6) the appraised value of each single-family home |
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| 38 | 38 | | described by Subdivision (1). |
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| 39 | 39 | | (c) In addition to the information required by Subsection |
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| 40 | 40 | | (b), the center may compile additional information: |
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| 41 | 41 | | (1) at the recommendation of the legislature; or |
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| 42 | 42 | | (2) that the center determines is relevant based on |
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| 43 | 43 | | market trends. |
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| 44 | 44 | | (d) Not later than June 1 of each year, the center shall |
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| 45 | 45 | | submit a report to the lieutenant governor, the speaker of the house |
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| 46 | 46 | | of representatives, and each member of the legislature. The report |
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| 47 | 47 | | must contain: |
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| 48 | 48 | | (1) a summary of the information compiled under |
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| 49 | 49 | | Subsection (b) for the preceding calendar year; |
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| 50 | 50 | | (2) an assessment of any trends or patterns relating |
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| 51 | 51 | | to the relative number of purchases by institutional buyers, |
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| 52 | 52 | | including whether the institutional buyers fall into any readily |
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| 53 | 53 | | observable groups based on number of purchases or other appropriate |
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| 54 | 54 | | criteria; and |
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| 55 | 55 | | (3) an analysis of: |
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| 56 | 56 | | (A) the impact of institutional buyers on the |
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| 57 | 57 | | cost of housing; and |
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| 58 | 58 | | (B) the advantages, if any, that institutional |
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| 59 | 59 | | buyers have over individual buyers in the real estate market. |
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| 60 | 60 | | (e) After completing the initial report under this section, |
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| 61 | 61 | | the center may compile information from any calendar years |
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| 62 | 62 | | preceding 2023 to create and submit reports for those years that |
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| 63 | 63 | | include the information listed in Subsections (b) and (d). |
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| 64 | 64 | | SECTION 2. As soon as practicable after the effective date |
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| 65 | 65 | | of this Act, the Texas A&M University Texas Real Estate Research |
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| 66 | 66 | | Center shall take any actions necessary to prepare to implement |
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| 67 | 67 | | Section 86.531, Education Code, as added by this Act. |
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| 68 | 68 | | Notwithstanding Section 86.531(d), Education Code, as added by this |
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| 69 | 69 | | Act, the center is not required to submit the initial report |
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| 70 | 70 | | required by that subsection before the 273rd day after the |
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| 71 | 71 | | effective date of this Act. |
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| 72 | 72 | | SECTION 3. This Act takes effect on the 91st day after the |
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| 73 | 73 | | last day of the legislative session. |
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