Wednesday, 3/21/2023
SB 594 (Durazo)
LLC Owner Transparency
LLC Owner Transparency
Beneficial Owner transparency= knowing the name of the human being who owns the business
Secretary of State, Statement of Information
Banks already collect this information…
Transparency is necessary for good
governance
● The use of anonymous LLCs hides the extent to which CA housing stock is increasingly concentrated in the hands of large corporations.
● These anonymous LLCs, aggressively outbid families and true small landlords, crowding out first-time homebuyers.
How many investor purchases were made in
the city of East Palo Alto?
● According to Redfin, in 2021 investors accounted for 67 out of 369 total home sales which is 18% of all purchases.
● Based on 2022 data, the number increases to 26% or 35 investor purchases out of 135 sales.
● Without LLC transparency, we do not know who these investors are. ● Here is a map of other areas in the Bay Area and the investor purchases:
https://datawrapper.dwcdn.net/ECNXv/17/
How can you all support?
● Talk to Senator Becker and tell them that we need this. ● Passing a resolution in support of the bill will go a long way illustrating how important this issue to communities in California. ○ Here is a link to some resolution language that you all can adopt:
https://californiareinvestmentcoalitio.box.com/s/ru69nusuzf7tl3kfnlwm2 nxqu44fhyqb
If you have any additional questions or
concerns please reach out to Aliyah
([email protected])