89R1624 ATP-F     By: Hinojosa H.B. No. 2910       A BILL TO BE ENTITLED   AN ACT   relating to single-family homes held by corporate owners for rental   purposes; providing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Chapter 86, Education Code, is   amended by adding Sections 86.531 and 86.532 to read as follows:          Sec. 86.531.  ANNUAL STUDY AND REPORT ON SINGLE-FAMILY HOME   PURCHASES, RENTALS, AND SALES BY CERTAIN CORPORATE OWNERS. (a) In   this section, "corporate owner," "rental property," and   "single-family home" have the meanings assigned by Section 5.251,   Property Code.          (b)  Using existing available data and deed records, the   center shall compile information related to corporate owners'   purchases, rentals, and sales of single-family homes in this state   for each calendar year. The information must include:                (1)  the number of single-family homes each corporate   owner had an interest in during the calendar year;                (2)  the number of single-family homes purchased by   each corporate owner during the calendar year and the total number   purchased in each county and municipality;                (3)  the number of single-family homes described by   Subdivisions (1) and (2) acquired through foreclosure;                (4)  the number of single-family homes described by   Subdivisions (1) and (2) sold by each corporate owner during the   calendar year;                (5)  the number of single-family homes described by   Subdivisions (1) and (2) used as a rental property during the   calendar year;                (6)  the municipality and county in which each   single-family home described by Subdivisions (1) and (2) is   located;                (7)  the appraised value of each single-family home   described by Subdivisions (1) and (2);                (8)  the name, assumed name, business association type,   registered office address, telephone number, and registered agent   of each corporate owner of a single-family home; and                (9)  the name, address, and contact information for the   landlord or third-party lessor, sublessor, management company, or   managing agent of each single-family home described by Subdivision   (5).          (c)  In addition to the information required by Subsection   (b), the center may compile additional information at the   recommendation of the legislature or 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;                (2)  an assessment of any trends or patterns relating   to the relative number of purchases by corporate owners, including   whether the corporate owners fall into any readily observable   groups based on the number of purchases or other appropriate   criteria; and                (3)  an analysis of:                      (A)  the impact of corporate owners on the cost of   housing; and                      (B)  the advantages and disadvantages, if any,   that corporate owners have over individual buyers in the real   estate market.          (e)  After completing the initial report under this section,   the center may compile information from any calendar years   preceding 2025 to create and submit reports for those years that   include the information listed in Subsections (b) and (d).          Sec. 86.532.  DATABASE OF CORPORATE OWNERS. (a) The center   shall create and maintain a statewide database that retains and   shows the cumulative information from each category described by   Section 86.531(b). The center shall make the database available in   a searchable format on its Internet website in a conspicuous   location.          (b)  The center shall update information in the database each   month. The center shall enter into the database for access by the   public the updated information described by Section 86.531(b) not   later than the 30th business day after the date the center finds or   obtains the information.          (c)  The center may consult with the appropriate agent of, or   other person representing, each corporate owner to obtain the   information necessary to operate and update the database.          (d)  The center may consult with a state agency or political   subdivision to obtain assistance with collecting, aggregating, and   updating the data required by this section.          (e)  The center may not charge a fee to the public to access   the database.          SECTION 2.  Chapter 5, Property Code, is amended by adding   Subchapter H to read as follows:   SUBCHAPTER H. CORPORATE OWNERSHIP AND RENTAL OF SINGLE-FAMILY   HOMES          Sec. 5.251.  DEFINITIONS. In this section:                (1)  "Corporate owner" 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 holds an interest in   multiple single-family homes in this state that are offered or used   as a rental property to produce income directly or indirectly from a   residential tenant. The term includes an entity engaged in the   business of investing the pooled capital of investors in financial   securities.                (2)  "Rental property" means real property used or   intended to be used:                      (A)  as a primary residence for 30 or more   consecutive days by a residential tenant under an oral or written   lease or rental agreement; or                      (B)  for occupancy for tourist or transient   accommodations for fewer than 30 consecutive days, where the   property does not serve as a residential tenant's primary   residence.                (3)  "Residential tenant" means any person who does not   own but is authorized to use a single-family home in exchange for   consideration paid to a corporate owner or to a third-party lessor,   sublessor, management company, managing agent, or operator of a   hosting platform that derives revenues, including booking fees or   advertising revenues, from providing or maintaining a marketplace   that is used to facilitate the rental of a single-family home.                (4)  "Single-family home" means a residential   structure with a yard or public way on not less than two sides that   is separated from any adjacent housing unit by a ground-to-roof   wall, does not share a heating, air-conditioning, or utility system   or a backyard, and does not have a housing unit located above or   below. The term does not include a mobile home or manufactured   home.          Sec. 5.252.  LIMITATION ON PURCHASE AND RENTAL OF   SINGLE-FAMILY HOMES. (a) A corporate owner may not own or hold an   interest in more than 10 single-family homes in this state that are   used or offered for use as a rental property at any time.          (b)  A corporate owner may not enter into an executory   contract to purchase, acquire, or otherwise obtain an interest in a   single-family home if, at the time the contract is entered into, the   corporate owner has an interest in 10 or more single-family homes   that have a residential tenant, are available as rental properties,   or have been offered as rental properties within the preceding 12   months.          (c)  A contract entered into in violation of Subsection (b)   is voidable by the seller at any time before the contract is fully   executed.          (d)  This section does not apply to:                (1)  ownership and rental of single-family homes by:                      (A)  an agency of this state, a political   subdivision of this state, or the United States;                      (B)  a nonprofit organization exempt from federal   income taxation under Section 501(a), Internal Revenue Code of   1986, as a charitable organization under Section 501(c)(3) of that   code; or                      (C)  a person licensed to own and operate group   homes for people with disabilities and special health care needs;   or                (2)  a single-family home rented by:                      (A)  an employer who rents the single-family home   to an employee;                      (B)  a person primarily engaged in development of   housing available for purchase by owner-occupants, with respect to   single-family homes that have not been held by the person longer   than five years without applying for building permits for the   property; or                      (C)  a holder of a security interest that owns the   single-family home as a result of foreclosure of the security   interest.          Sec. 5.253.  ENFORCEMENT. (a) The attorney general, a   county or district attorney, independently or on behalf of an   affected municipality or county, or an appropriate agency of an   affected municipality or county may investigate an alleged   violation if there is reason to believe that a corporate owner has   violated Section 5.252 or has taken substantial steps to purchase a   single-family home with the intent to offer or use that   single-family home in violation of Section 5.252.          (b)  A corporate owner who violates Section 5.252 is liable   for a civil penalty of $100,000 for each single-family home offered   or used as rental property in excess of the amount allowed under   Section 5.252.          (c)  A county attorney, a district attorney, or the attorney   general may bring an action to collect a civil penalty under this   section in the district court in which any single-family home   related to the violation is located and may recover reasonable   expenses, including court costs, attorney's fees, investigative   costs, witness fees, and deposition expenses, incurred in relation   to the action. A county or district attorney may bring the action   in the name of the state or on behalf of an affected municipality or   county.          (d)  Except as provided by this subsection, a civil penalty   recovered in an action brought under this section shall be   deposited in the state treasury to the credit of the general revenue   fund. A civil penalty recovered by a county or district attorney in   an action brought on behalf of a municipality or county under this   section shall be divided equally between the state and the   municipality or county, with 50 percent of the recovery to be paid   to the general revenue fund and the other 50 percent to be paid to   the municipality or county on whose behalf the suit was brought.          (e)  The parties in an action under this section may agree to   a settlement that allows the corporate owner to achieve compliance   with Section 5.252(a) by selling any rental property owned by the   corporate owner, regardless of whether the corporate owner was in   violation of Section 5.252 when the property was purchased.          SECTION 3.  (a) As soon as practicable after the effective   date of this Act, the Texas Real Estate Research Center at Texas A&M   University shall take any actions necessary to implement Sections   86.531 and 86.532, 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, 2026.          (b)  The Texas Real Estate Research Center at Texas A&M   University shall establish and make available the database required   by Section 86.532, Education Code, as added by this Act, not later   than the seventh day after the date the initial report under Section   86.531 is completed.          SECTION 4.  (a) A corporate owner, as defined by Section   5.251, Property Code, as added by this Act, is not required to   comply with Section 5.252(a), Property Code, as added by this Act,   before September 1, 2027.          (b)  Section 5.252(b), Property Code, as added by this Act,   applies only to an executory contract entered into on or after the   effective date of this Act.          SECTION 5.  This Act takes effect September 1, 2025.