Institutional Home Buyer Bill Studies Them Yearly, Limits Nothing

The text as introduced · 546 words

89R725 SHH-F

By: Harris Davila
H.B. No. 287

A BILL TO BE ENTITLED

AN ACT

relating to an annual study by the Texas A&M University Texas Real

Estate Research Center of the purchase and sale of single-family

homes by certain institutional buyers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 86, Education Code, is

amended by adding Section 86.531 to read as follows:

Sec. 86.531. ANNUAL STUDY AND REPORT ON SINGLE-FAMILY HOME

PURCHASES AND SALES BY CERTAIN INSTITUTIONAL BUYERS. (a) In this

section, "institutional buyer" 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 purchases or acquires

for consideration 10 or more single-family homes in this state in a

calendar year.

(b) Using existing available data and deed records, the

center shall annually compile information related to institutional

buyers' purchases and sales of single-family homes in this state

for the calendar year. The information must include:

(1) the number of single-family homes purchased by

each institutional buyer in the calendar year;

(2) of the single-family homes described by

Subdivision (1), the number acquired through foreclosure;

(3) of the single-family homes described by

Subdivision (1), the number sold by each institutional buyer during

the same year;

(4) of the single-family homes described by

Subdivision (1), the number used as rental properties during the

same year;

(5) the city and county where each single-family home

described by Subdivision (1) is located and the number of homes

purchased in each city or county; and

(6) the appraised value of each single-family home

described by Subdivision (1).

(c) In addition to the information required by Subsection

(b), the center may compile additional information:

(1) at the recommendation of the legislature; or

(2) 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 institutional buyers,

including whether the institutional buyers fall into any readily

observable groups based on number of purchases or other appropriate

criteria; and

(3) an analysis of:

(A) the impact of institutional buyers on the

cost of housing; and

(B) the advantages, if any, that institutional

buyers 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).

SECTION 2. As soon as practicable after the effective date

of this Act, the Texas A&M University Texas Real Estate Research

Center shall take any actions necessary to prepare to implement

Section 86.531, Education Code, as added by this Act, and submit

the initial report required by Section 86.531(d), Education Code,

as added by this Act, not later than June 1, 2026.

SECTION 3. This Act takes effect September 1, 2025.