California 2019-2020 Regular Session Status: Passed Assembly

AB 1703 — Residential real property: sale of rental properties: right of first offer.

Last action — From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property. This bill would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential property except as specified, to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. The bill would exempt certain transfers of a residential real property from its provisions, including, among others, a transfer between spouses, domestic partners, parent and child, siblings, grandparent and grandchild, a transfer pursuant to a court order, and a transfer by eminent domain. This bill would require the owner of the residential real property to notify each tenant and each qualified organization, as defined, of the owner's intent to sell the residential real property. The bill would provide each qualified organization with 10 days to notify the property owner of their interest in purchasing the property and further provide a qualified organization with either 60 days or 40 days, depending on the number of units of the property, to submit an offer to purchase the residential real property. The bill would provide that a property owner may sell the property to any party if the property owner does not receive any interest to purchase the property from a qualified organization or receive an offer from a qualified organization within these timeframes. The bill would allow a property owner to reject any offer received from a qualified organization and sell to a party that is not a qualified organization, but would provide a qualified organization that submits a rejected offer with 10 days to invoke a right of first refusal to accept a subsequent offer accepted by the property owner, as specified. This bill would require a qualified organization that purchases a residential real property pursuant to these provisions to retain all existing tenancies and to restrict the units of the property to rents affordable to persons and families of low and moderate income, with the maximum average income of the tenants not to exceed 80% of the area median income, as specified. The bill would provide that these affordability requirements shall be recorded, as specified, and that the affordability requirements are enforceable, as specified. The bill would require the qualified organization to commit to providing the tenants of a single-family residential real property or a current or future resident organization in a multifamily residential real property with 18 months to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, after the qualified organization takes title of the property. This bill would require the Department of Housing and Community Development to develop a process for qualified organizations, including, among others, a local public entity, eligible nonprofit corporation, limited equity housing cooperative, and resident organizations formed for the purpose of acquiring a multifamily residential real property, to notify the department of their interest in purchasing residential real property. The bill would require the department to maintain a list of those organizations that have submitted this notice on its internet website. The bill would require each owner that sells a residential real property to record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, as specified, and would make failure to file the certificate an infraction punishable as specified. By expanding existing crimes, the bill would impose a state-mandated local program. Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law, with respect to residential real property containing up to 4 dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale. This bill would additionally require a mortgagee, trustee, beneficiary, or authorized agent to, upon filing a notice of default, provide to the mortgagor or trustor a list of qualified organizations located within the county of the residential real property, as defined. The bill would also require the mortgagee, trustee, beneficiary, or authorized agent to notify the tenant of the residential real property of the filing of a notice of default. This bill would apply its provisions until January 1, 2023. 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.

Bill Text

Action History

  1. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

  2. Re-referred to Com. on JUD.

  3. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on RLS.

  4. Re-referred to Com. on RLS.

  5. Withdrawn from committee.

  6. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on ED.

  7. In committee: Set, first hearing. Hearing canceled at the request of author.

  8. Referred to Com. on ED.

  9. In Senate. Read first time. To Com. on RLS. for assignment.

  10. Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 2120.)

  11. Read second time. Ordered to third reading.

  12. From committee: Do pass. (Ayes 18. Noes 0.) (May 16).

  13. Coauthors revised.

  14. In committee: Set, first hearing. Referred to APPR. suspense file.

  15. Re-referred to Com. on APPR.

  16. From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended.

  17. From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (April 23). Re-referred to Com. on APPR.

  18. Re-referred to Com. on HIGHER ED.

  19. From committee chair, with author's amendments: Amend, and re-refer to Com. on HIGHER ED. Read second time and amended.

  20. Re-referred to Com. on HIGHER ED.

  21. From committee chair, with author's amendments: Amend, and re-refer to Com. on HIGHER ED. Read second time and amended.

  22. Referred to Com. on HIGHER ED.

  23. Read first time.

  24. From printer. May be heard in committee March 25.

  25. Introduced. To print.

Sponsors

  • Bloom · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Bloom

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 1703 Bloom Assembly Third Reading

Passed 78 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 50002
Republican 6000
Democratic 22000
Total 78002
% of votes cast 98%0%0%3%
How each member voted (80)
Member Party Vote
Gray — Yea
Maienschein — Yea
Mullin — Yea
Kamlager-Dove — Yea
Medina — Yea
Chu — Yea
Ting — Yea
McCarty — Yea
O'Donnell — Yea
Waldron — Yea
Salas — Yea
Brough — Yea
Gloria — Yea
Obernolte — Yea
Holden — Yea
Daly — Yea
Jones-Sawyer — Yea
Friedman — Yea
Nazarian — Yea
Weber — Yea
Fong — Yea
Kiley — Yea
Mayes — Yea
Frazier — Yea
Bigelow — Yea
Santiago — Yea
Eggman — Yea
Levine — Yea
Wood — Yea
Melendez — Yea
Cooley — Not Voting
Mathis — Yea
Diep — Yea
Chau — Yea
Quirk — Yea
Low — Yea
Burke — Yea
Cooper — Yea
Rendon — Yea
Smith — Yea
Cunningham — Yea
Gonzalez — Yea
Bloom — Yea
Voepel — Yea
Rodriguez — Yea
Chiu — Yea
Cristina Garcia — Yea
Eduardo Garcia — Not Voting
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass.

Passed 18 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 7000
Unaffiliated 11000
Total 18000
% of votes cast 100%0%0%0%
How each member voted (18)
Member Party Vote
Bloom — Yea
Brough — Yea
Obernolte — Yea
Maienschein — Yea
Bigelow — Yea
Quirk — Yea
Eggman — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Rivas, Robert Democratic Yea

Official roll call →

Do pass and be re-referred to the Committee on [Appropriations]

Passed 11 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 8000
Republican 1001
Democratic 2000
Total 11001
% of votes cast 92%0%0%8%
How each member voted (12)
Member Party Vote
Bloom — Yea
Santiago — Yea
Kiley — Yea
Medina — Yea
Levine — Yea
Weber — Yea
Quirk — Yea
Low — Yea
Gabriel, Jesse Democratic Yea
Irwin, Jacqui Democratic Yea
Choi, Steven S. Republican Yea
Patterson, Joe Republican Not Voting

Official roll call →

Subjects

housing
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 1703 do?
Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property. This bill would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential property except as specified, to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. The bill would exempt certain transfers of a residential real property from its provisions, including, among others, a transfer between spouses, domestic partners, parent and child, siblings, grandparent and grandchild, a transfer pursuant to a court order, and a transfer by eminent domain. This bill would require the owner of the residential real property to notify each tenant and each qualified organization, as defined, of the owner's intent to sell the residential real property. The bill would provide each qualified organization with 10 days to notify the property owner of their interest in purchasing the property and further provide a qualified organization with either 60 days or 40 days, depending on the number of units of the property, to submit an offer to purchase the residential real property. The bill would provide that a property owner may sell the property to any party if the property owner does not receive any interest to purchase the property from a qualified organization or receive an offer from a qualified organization within these timeframes. The bill would allow a property owner to reject any offer received from a qualified organization and sell to a party that is not a qualified organization, but would provide a qualified organization that submits a rejected offer with 10 days to invoke a right of first refusal to accept a subsequent offer accepted by the property owner, as specified. This bill would require a qualified organization that purchases a residential real property pursuant to these provisions to retain all existing tenancies and to restrict the units of the property to rents affordable to persons and families of low and moderate income, with the maximum average income of the tenants not to exceed 80% of the area median income, as specified. The bill would provide that these affordability requirements shall be recorded, as specified, and that the affordability requirements are enforceable, as specified. The bill would require the qualified organization to commit to providing the tenants of a single-family residential real property or a current or future resident organization in a multifamily residential real property with 18 months to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, after the qualified organization takes title of the property. This bill would require the Department of Housing and Community Development to develop a process for qualified organizations, including, among others, a local public entity, eligible nonprofit corporation, limited equity housing cooperative, and resident organizations formed for the purpose of acquiring a multifamily residential real property, to notify the department of their interest in purchasing residential real property. The bill would require the department to maintain a list of those organizations that have submitted this notice on its internet website. The bill would require each owner that sells a residential real property to record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, as specified, and would make failure to file the certificate an infraction punishable as specified. By expanding existing crimes, the bill would impose a state-mandated local program. Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law, with respect to residential real property containing up to 4 dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale. This bill would additionally require a mortgagee, trustee, beneficiary, or authorized agent to, upon filing a notice of default, provide to the mortgagor or trustor a list of qualified organizations located within the county of the residential real property, as defined. The bill would also require the mortgagee, trustee, beneficiary, or authorized agent to notify the tenant of the residential real property of the filing of a notice of default. This bill would apply its provisions until January 1, 2023. 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.
Who sponsors AB 1703?
AB 1703 is sponsored by Bloom.
What is the current status of AB 1703?
This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 1703?
Track AB 1703 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on AB 1703

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of AB 1703

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →