A bill seeking to crack down on large investors that buy up housing stock to rent out in California failed a critical committee in the State Capitol on Monday. The bill would have ended a tax break for large corporations that own over 50 units.
Democratic Assemblymember Matt Haney of San Francisco introduced the bill. He says these corporations that buy up homes make it harder for first time home buyers.
“California is underwriting those Wall Street corporations, helping them, facilitating, giving them a tax break to be able to outbid California families.”
Opponents, mainly realtors and landlords, argue corporate ownership of single family homes isn’t a widespread issue in California. They also say ending the tax break would have made investors more likely to hold onto their properties instead of selling to tenants or first time buyers.
