Bill > SB880

This bill, if a prospective federal law called the 21st Century ROAD to Housing Act is enacted, would authorize state officials to coordinate with federal housing and finance agencies on its implementation, particularly concerning tenants in properties owned by institutional investors. It also introduces new requirements for "institutional investors," defined as entities that directly or indirectly own or control residential properties (excluding natural persons), when selling residential real property containing one to four units. These requirements include providing tenants with at least 90 days' notice before advertising a property for sale, informing them of their right to remain until the lease ends, and offering resources for potential homeownership. Crucially, during the first 30 days a property is listed, institutional investors must prioritize offers from "prospective owner-occupants," which are individuals intending to live in the property, and require an affidavit to confirm this intent. The bill also prohibits bundled sales of residential properties by institutional investors and mandates a certification of compliance be recorded at the time of sale, with failure to comply resulting in civil penalties. Enforcement can be pursued by the Attorney General, district attorneys, city attorneys, or tenants, who can seek injunctive relief and significant civil penalties. Additionally, the bill expands an existing prohibition on excessive fees for document handling during property transfers to all residential properties, not just single-family homes.