, known as Homes for Homeowners, Not Corporations, was authored by Senator Nancy Skinner, D-Berkeley. It passed through the California Legislature in late August and was signed into law by Governor Gavin Newsom the following month.<\/span><\/p>\nUnder the new law, if an investor wins a foreclosure auction for a residential property with one to four units, owner-occupants, tenants, local governments and housing nonprofits will have 45 days to make a competing offer.<\/p>\n
Current tenants would need to match the offer, while other non-corporate entities would have to outbid it. To make this information publicly available, the auctioneer would be required to maintain a website and a telephone number advertising the property in question and its bid price. Bundled auction sales, in which multiple properties are sold to a single buyer, would also be prohibited.<\/p>\n
Additionally, SB 1079 permits local governments to impose higher fines on investment properties that are poorly maintained or vacant in an effort to increase housing supply and encourage upkeep.<\/p>\n
Between 2006 and 2012, owner-occupied single-family homes in California decreased by 320,000 as renter-occupied single-family homes increased by over 720,000. Corporate landlords profited tremendously from the 2008 housing crisis, purchasing properties en masse at deeply discounted prices.<\/p>\n
Homes for Homeowners, Not Corporations was introduced several months into the COVID-19 pandemic as foreclosure fears intensified across the country. The law is intended to give would-be owner-occupants the upper hand in the foreclosure auction process, although there are certain risks involved with purchasing these types of properties.<\/p>\n
It can be difficult for individuals to secure financing, conduct an inspection or estimate repair costs on a foreclosed home, while investors often pay all cash and have reserve funds to draw from in emergency situations.<\/p>\n
SB 1079 will expire on January 1, 2026, unless state lawmakers vote to expunge or extend it beyond that date.<\/p>\n
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