AB 1333: Single-family dwelling units: bundled sales.

Session Year: 2023-2024
House: Assembly

Current Status:

Failed

(2024-07-02: In committee: Set, first hearing. Hearing canceled at the request of author.)

Introduced

First Committee Review

First Chamber

Second Committee Review

Second Chamber

Enacted

Version:

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, 2031, for purposes of the exercise of a power of sale, prohibits a trustee from bundling properties for the purpose of sale, instead requiring each property to be bid on separately, unless the deed of trust or mortgage provides otherwise. Existing law also prohibits specified institutions that, during their immediately preceding annual reporting period, as established with their primary regulator, foreclosed on 175 or more residential real properties, containing no more than 4 dwelling units, from conducting a sale of 2 or more parcels of real property containing one to 4 residential dwelling units, inclusive, at least 2 of which have been acquired through foreclosure under a mortgage or deed of trust.

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 prohibit a developer homebuilder of residential one to 4 dwelling units, inclusive, a new single-family dwelling unit, as defined, from conducting a bundled sale of 2 or more parcels of real property containing one to 4 residential single-family dwelling units, inclusive, under a single assessors parcel number, in a single transaction to an institutional investor, as defined, if the certificate of occupancy permit was issued for a single-family dwelling unit within the bundled sale and the contract of sale was entered into on or after January 1, 2025. The bill would exempt a homebuilder from this prohibition if the homebuilder obtains an affidavit signed under penalty of perjury from the buyer that the buyer is not an institutional investor, among other things. By expanding the crime of perjury, the bill would impose a state-mandated local program.

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.

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.

Discussed in Hearing