Notice2025-01657
Agency Information Collection Activities; Proposed Collection; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 24, 2025
Issuing agencies
Federal Trade Commission
Abstract
The FTC is soliciting public comments on proposed information requests to large-scale Single-Family Rental (SFR) owner operators, known as mega investors. Mega SFR investors are those entities that own over 1,000 single-family rental properties. These comments will be considered before the FTC submits a request for Office of Management and Budget (OMB) review of the compulsory process orders described in this notice under the Paperwork Reduction Act (PRA). The compulsory process orders will seek information from those firms concerning their corporate structure, current and historical housing inventory information, as well as strategic business plans and other investor information regarding growth plans, competition, prices, and expenses.
Full Text
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<title>Federal Register, Volume 90 Issue 15 (Friday, January 24, 2025)</title>
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[Federal Register Volume 90, Number 15 (Friday, January 24, 2025)]
[Notices]
[Pages 8133-8138]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-01657]
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FEDERAL TRADE COMMISSION
[File No. P251200]
Agency Information Collection Activities; Proposed Collection;
Comment Request
AGENCY: Federal Trade Commission (FTC).
ACTION: Notice; request for public comment.
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SUMMARY: The FTC is soliciting public comments on proposed information
requests to large-scale Single-Family Rental (SFR) owner operators,
known as mega investors. Mega SFR investors are those entities that own
over 1,000 single-family rental properties. These comments will be
considered before the FTC submits a request for Office of Management
and Budget (OMB) review of the compulsory process orders described in
this notice under the Paperwork Reduction Act (PRA). The compulsory
process orders will seek information from those firms concerning their
corporate structure, current and historical housing inventory
information, as well as strategic business plans and other investor
information regarding growth plans, competition, prices, and expenses.
DATES: Comments must be received on or before March 25, 2025.
ADDRESSES: Interested parties may file a comment online by following
the instructions in the Request for Comment part of the SUPPLEMENTARY
INFORMATION section below. File your comment online at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Requests for additional information
should be addressed to Katherine Ambrogi, Office of Policy Planning,
Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC
20580; (202) 326-2205; <a href="/cdn-cgi/l/email-protection#b6ddd7dbd4c4d9d1dff6d0c2d598d1d9c0"><span class="__cf_email__" data-cfemail="1c777d717e6e737b755c7a687f327b736a">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Historically, individuals and other small
businesses owned and operated single-family rental properties. However,
following the 2007-2008 financial crisis, this market structure changed
with the rise of large-scale investors, also known as mega SFR
investors, that own large regional SFR inventories.\1\ In response to
regulatory incentives and other market conditions, large-scale
investors--those entities that own more than 1,000 SFR properties--
began channeling their investment capital into the single-family rental
housing market.\2\ Since this time, the volume of properties purchased
by mega SFR investors has grown considerably. By 2017, the five largest
entities in the SFR industry--Invitation Homes, Starwood Property
Trust, Colony American Homes, Waypoint Residential Trust, and American
Homes 4 Rent--had consolidated into two firms.\3\ Researchers estimate
that mega SFR investors collectively own and operate 446,000 homes
nationwide.\4\
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\1\ See U.S. Gov't Accountability Off., GAO-24-106643, Rental
Housing: Information on Institutional Investment in Single-Family
Homes (2024), <a href="https://www.gao.gov/assets/gao-24-106643.pdf">https://www.gao.gov/assets/gao-24-106643.pdf</a>.
\2\ Id. at 9-10.
\3\ Brett Christophers, ``How and Why U.S. Single-Family Housing
Became an Investor Asset Class'', 49 J. Urb. Hist. 430, 434-35
(2023).
\4\ Laurie Goodman et al., Urban. Inst. A Profile of
Institutional Investor-Owned Single-Family Rental Properties 2 (Apr.
25, 2023).
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The FTC is aware that the growth of mega SFR investors in markets
may affect competition and consumers. Local,\5\ State,\6\ and Federal
\7\ policymakers have expressed concerns about the growth of mega SFR
investors in local markets. In an FTC listening session for renters in
Atlanta, Georgia, participants expressed concerns about the effects of
mega SFR investor expansion. In response to a recent FTC and U.S.
Department of Justice request for information to identify industries
impacted by serial acquisitions,\8\ members of the public submitted
numerous comments specifically identifying SFR investors as responsible
for buying up inventories of single-family residential properties in
local markets across the United States. Members of the Senate and U.S.
House of Representatives have also sent the FTC letters urging the
Commission to use its existing authority to require reporting of
residential real estate
[[Page 8134]]
transactions under the Hart-Scott-Rodino Act.\9\
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\5\ See, e.g., Brett Pulley & Michael Sasso, Atlanta's Mayor
Calls For Limits on Investors Buying Up Homes, Bloomberg (June 15,
2022), <a href="https://www.bloomberg.com/news/articles/2022-06-15/atlanta-s-mayor-calls-for-limits-on-investors-buying-up-homes">https://www.bloomberg.com/news/articles/2022-06-15/atlanta-s-mayor-calls-for-limits-on-investors-buying-up-homes</a>.
\6\ See, e.g., Joshua Fechter, ``Gov. Greg Abbott Wants the
Texas Legislature to Rein in Investors Behind Large-Scale Home
Purchases'', Tx. Tribune (Mar. 15, 2024), <a href="https://www.texastribune.org/2024/03/15/texas-greg-abbott-institutional-homebuyers/">https://www.texastribune.org/2024/03/15/texas-greg-abbott-institutional-homebuyers/</a>.
\7\ See, e.g., Press Release, U.S. Senate Comm. on Banking,
Hous., & Urb. Affairs, Brown, Colleagues Introduce Bill to Crack
Down on Big Corporate Investors that Buy Up Local Homes, Drive Up
Housing Prices (July 11, 2023), <a href="https://www.banking.senate.gov/newsroom/majority/brown-colleagues-introduce-bill-crack-down-big-corporate-investors-buy-up-local-homes-drive-housing-prices">https://www.banking.senate.gov/newsroom/majority/brown-colleagues-introduce-bill-crack-down-big-corporate-investors-buy-up-local-homes-drive-housing-prices</a>.
\8\ Press Release, Fed. Trade Comm'n, FTC and DOJ Seek Info on
Serial Acquisitions, Roll-Up Strategies Across U.S. Economy (May 23,
2024), <a href="https://www.ftc.gov/news-events/news/press-releases/2024/05/ftc-doj-seek-info-serial-acquisitions-roll-strategies-across-us-economy">https://www.ftc.gov/news-events/news/press-releases/2024/05/ftc-doj-seek-info-serial-acquisitions-roll-strategies-across-us-economy</a>.
\9\ Letter from Amy Klobuchar, Sen., U.S. Senate, to Lina M.
Khan, Chair, Fed. Trade Comm'n (May 10, 2024), https://
www.klobuchar.senate.gov/public/_cache/files/6/b/6b97e21b-3594-4b82-
81fb-b1a5dd54989f/8962AAFE6786417298506ACF44ABDE47.2024.5.10_-
letter-to-ftc-re-housing-and-hsr.pdf; Press Release, Pat Ryan,
Member, U.S. House of Representatives, Congressman Pat Ryan Demands
Investigation into Price Gouging By Wall Street Private Equity Firms
Driving Up Housing Costs (Aug. 12, 2024), <a href="https://patryan.house.gov/media/press-releases/congressman-pat-ryan-demands-investigation-price-gouging-wall-street-private">https://patryan.house.gov/media/press-releases/congressman-pat-ryan-demands-investigation-price-gouging-wall-street-private</a> (quoting Congressman Ryan's letter
to Chair Khan). For various reasons, residential real estate
transactions do not undergo mandatory premerger review by the
Federal antitrust agencies.
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Responding to these concerns and recognizing its role in conducting
research to support potential changes in competition policy, the
Commission proposes a section 6(b) study of mega SFR investors. This
study will provide a better understanding of mega SFR investors: where
they do business, their business models, their strategic plans, their
growth plans, and the competitive effects of the rise of mega SFR
investors in local markets. The FTC proposes to send information
requests to mega SFR investors in the United States, which the
Commission expects to be approximately 32 mega SFR investors.\10\ The
Commission invites comment on market participants that may qualify as
mega SFR investors.
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\10\ Goodman et al., supra note 4, at 2. Goodman et al. state
that there are 32 mega investors in the United States, where mega
investor is defined as an investor that owns more than 1,000 SFR
properties in at least three MSAs. As proposed, the Commission's
definition of mega investor encompasses those investors that own
1,000 or more SFR properties regardless of the number of MSAs where
those properties are located.. Given the Commission's broader
definition of mega investor, consolidation among SFR mega investors,
and the possibility of new market entrants, 32 is an approximation
of the number of respondents that will receive a special order.
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From the information obtained, the FTC plans to publish, consistent
with its obligations under section 6(f) of the FTC Act, comprehensive
property lists that improve the transparency of SFR markets. The
property lists will, to the maximum extent possible, match individual
SFR properties to their affiliated owner entities. Although this
information is already publicly available at the State and county
level, its disaggregated nature and indirect ownership structures
involving opaquely named shell companies complicates the ability to
fully assess the scale and scope of mega SFR investors' property
holdings. Numerous researchers and other policy stakeholders have
called for greater transparency to better understand where, and to what
extent, these SFR investors operate.\11\ The FTC plans to publish this
information publicly on a current and historical basis to the maximum
extent possible. The Commission invites comments on the benefits and
risks of making the property lists publicly available, including any
privacy considerations. Separately, the FTC will collect non-public
data and documents to better understand this growing industry, and it
may publish studies or research papers to share insights with the
public and policymakers, consistent with its obligations under section
6(f) of the FTC Act.
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\11\ See, e.g., Eleanor Noble, Yipeng Su & Yonah Freemark, Urb.
Inst., ``How We Used Open Data to Identify Investor-Owned Single-
Family Rental Properties'' (July 1, 2021), <a href="https://urban-institute.medium.com/how-we-used-open-data-to-identify-investor-owned-single-family-rental-properties-lessons-learned-6b452a950ad3">https://urban-institute.medium.com/how-we-used-open-data-to-identify-investor-owned-single-family-rental-properties-lessons-learned-6b452a950ad3</a>;
Testimony of Dr. Elora Lee Raymond, Ass't Prof., GA Inst. Of Tech.,
Hearing of the Financial Services Committee of the U.S. House of
Representatives, ``Where Have All the Houses Gone? Private Equity,
Single Family Rentals, and America's Neighborhoods'' (June 28,
2022), <a href="https://www.congress.gov/117/meeting/house/114969/witnesses/HHRG-117-BA09-Wstate-RaymondE-20220628.pdf">https://www.congress.gov/117/meeting/house/114969/witnesses/HHRG-117-BA09-Wstate-RaymondE-20220628.pdf</a>; Testimony of Jenny
Schuetz, Senior Fellow, Brookings Institute, Hearing of the
Financial Services Committee of the U.S. House of Representatives,
``Where Have All the Houses Gone? Private Equity, Single Family
Rentals, and America's Neighborhoods'' (June 28, 2022), <a href="https://www.congress.gov/117/meeting/house/114969/witnesses/HHRG-117-BA09-Wstate-SchuetzJ-20220628.pdf">https://www.congress.gov/117/meeting/house/114969/witnesses/HHRG-117-BA09-Wstate-SchuetzJ-20220628.pdf</a>; Amalie Zinn, Urb. Inst., What
Policymakers Should Know About Institutional Investors' Role in the
Housing Market (Oct. 4, 2023), <a href="https://housingmatters.urban.org/articles/what-policymakers-should-know-about-institutional-investors-role-housing-market">https://housingmatters.urban.org/articles/what-policymakers-should-know-about-institutional-investors-role-housing-market</a>; Ben Horowitz & Libby Starling, ``Rise
in Investor-Owned Single-Family Rentals Prompts Policy Responses'',
Minneapolis Fed. Rsrv. (Mar. 24, 2024), <a href="https://www.minneapolisfed.org/article/2024/rise-in-investor-owned-single-family-rentals-prompts-policy-responses">https://www.minneapolisfed.org/article/2024/rise-in-investor-owned-single-family-rentals-prompts-policy-responses</a>.
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The information obtained in this section 6(b) study can help the
FTC understand how the entry of mega investors into local markets has
affected house prices and rents, as well as the effects of ongoing
consolidation in the industry. This information may also inform future
Commission priorities.
I. Description of the Collection of Information and Proposed Use
The proposed study will add significantly to existing literature by
providing a more complete picture and better understanding of mega SFR
investors' presence and behavior. There is no public repository of all
the SFR properties owned in the United States by mega SFR investors.
The Commission, however, has unique authority under section 6(b) to
collect this information that will enhance the competition policy
debate around consolidation of SFR investors and their property
holdings.
Because the Commission believes this study will enhance the
Commission's and the public's understanding of issues surrounding mega
SFR investors, it proposes to issue information requests generally
directed to the following areas of inquiry:
<bullet> What are the types of corporate structures and
organizational forms held by mega SFR investors?
<bullet> What are the specific locations where mega SFR investors
currently own or manage properties?
<bullet> What are the specific locations where mega SFR investors
have historically owned or managed properties?
<bullet> Has the level of concentration of mega SFR investor
operations in certain geographies changed over time, and if so, how?
<bullet> What are the general strategic and growth plans of mega
SFR investors? How do mega SFR investors set prices? What are mega SFR
investors' principal expenses?
<bullet> How has the entry into, and subsequent consolidation of,
mega investors affected competitive dynamics in SFR housing? What are
the effects on consumers?
The draft special order specifications and definitions contain the
specific information requests contemplated by the Commission. The
Commission welcomes comments on whether and how to refine these
information requests to best obtain insights into these areas of
inquiry.
Specifications
1. Identify all [COMPANY] entities including all predecessors,
parents, partners, subsidiaries, managers, unincorporated divisions,
joint ventures, operations under assumed names, trusts including
real estate investment trusts, investment funds and portfolios, and
affiliates; and describe and provide a chart visually depicting the
legal relationship between each such entity. For each entity:
a. State the entity's full legal name and all other names under
which the entity has done business (e.g., d/b/a names);
b. State the mailing address, street address, and telephone
number of the entity's principal place of business;
c. State the entity's date and State of incorporation;
d. Describe the entity's function or business purpose;
e. Describe the nature of the entity's relationship to the
Company;
f. Identify the entity's respective officers, directors,
members, principals, and owners;
g. Identify all shareholders with at least five percent
ownership in the entity (stating each shareholder's percentage of
ownership).
2. For each entity listed in Specification 1, provide a list of
every U.S. State in which the entity is registered to do business.
For each
[[Page 8135]]
State in which an entity is registered to do business include:
a. The start and end dates (if applicable) of when the entity
has done business in each State;
b. The name of the entity as registered in that State and all
names under which the entity has done business in each State (e.g.,
d/b/a names);
c. The entity's Business Entity Number;
d. Whether the entity is classified as domestic or foreign
within that State (0=Domestic, 1=Foreign);
e. The Registered Agent;
f. The Registered Agent Address.
3. Identify each electronic database used or maintained by You
in connection with any Single-Family Residential Property that
contains information concerning Your products or services;
facilities; production; shipments; bids or sales proposals; sales;
prices; margins; costs, including but not limited to production
costs, distribution costs, standard costs, expected costs, and
opportunity costs; patents or other intellectual property; research
or development projects; or customers. For each database provided in
response, provide a data dictionary that includes:
a. a list of field names and a definition for each field
contained in the data set;
b. the meaning of each code that appears as a field value in the
data set; and
c. the primary key in the data set or table that defines a
unique observation.
4. In a comma- or tab-delimited file, for each Single-Family
Residential Property that You own as of 12/31/2024, provide the
following information:
a. Unique Property Identifier;
b. Street Address;
c. City;
d. State;
e. Zip Code (9-digit);
f. Property Type (e.g., detached home, townhouse, duplex,
triplex, quadruplex);
g. Assessor Parcel ID Number;
h. Tax Account ID Number;
i. Tax Record Owner (as of 12/31/2024);
j. Tax Record Owner Address;
k. Property Record Owner (as of 12/31/2024);
l. Property Record Owner Address;
m. Property Manager;
n. Acquisition Date;
o. Acquisition Channel;
p. Acquisition Price;
q. Previous Owner;
r. Whether, before Your acquisition the Single-Family
Residential Property was owner occupied or operated as a rental
property (0=Owner Occupied, 1=Rental);
s. Whether the Single-Family Residential Property is part of
Your Core Portfolio (0=No, 1=Yes).
5. In a comma- or tab-delimited file, for each Single-Family
Residential Property that You owned at any time between 01/01/2010
and 12/31/2024, but no longer own, provide the following
information:
a. Unique Property Identifier;
b. Street Address;
c. City;
d. State;
e. Zip Code (9-digit);
f. Property Type (e.g., detached home, townhouse, duplex,
triplex, quadruplex);
g. Assessor Parcel ID Number;
h. Tax Account ID Number;
i. Tax Record Owner (immediately prior to the Disposition Date);
j. Tax Record Owner Address;
k. Property Record Owner (immediately prior to the Disposition
Date);
l. Property Record Owner Address;
m. Property Manager;
n. Acquisition Date;
o. Acquisition Channel;
p. Acquisition Price;
q. Previous Owner;
r. Whether, before Your acquisition the Single-Family
Residential Property was owner occupied or operated as a rental
property (0=Owner Occupied, 1=Rental);
s. Disposition Date;
t. Disposition Channel;
u. Disposition Price;
v. Buyer;
w. Whether, after Your disposition the Single-Family Residential
Property was owner occupied or operated as a rental property
(0=Owner Occupied, 1=Rental).
6. In a comma- or tab-delimited file, for every Single-Family
Residential Property that You manage as a Third Party Property
Manager as of 12/31/2024, provide:
a. Unique Property Identifier;
b. Street Address;
c. City;
d. State;
e. Zip Code (9-digit);
f. Property Type (e.g., detached home, townhouse, duplex,
triplex, quadruplex);
g. Assessor Parcel ID Number;
h. Tax Account ID Number;
i. Tax Record Owner (as of 12/31/2024);
j. Tax Record Owner Address;
k. Property Record Owner (as of 12/31/2024);
l. Property Record Owner Address;
m. Property Manager;
n. Date when Third Party Property Management commenced.
7. In a comma- or tab-delimited file, for each Single-Family
Residential Property listed in Specifications 4, 5, or 6 above, and
for each month that you owned the property, provide the following
information:
a. Unique Property Identifier;
b. Street Address;
c. City;
d. State;
e. Zip Code (9-digit);
f. Assessor Parcel ID Number;
g. Tax Account ID Number;
h. Property Manager;
i. Rental Revenue;
j. Other Property Income.
8. For each Single-Family Residential Property listed in
Specifications 4, 5, or 6 above, describe how You determine Rental
Revenue and Other Property Income, including each pricing tool You
use to help set Rental Revenue and Other Property Income, including
but not limited to:
a. The name of each pricing tool and when You purchased,
licensed, developed, or otherwise began using it;
b. Whether each pricing tool was developed in-house, and if so,
the Identity of all Persons who developed the tool;
c. All inputs into each pricing tool, how each tool uses these
inputs to generate a rental price, and any other modifications or
adjustments made to the generated rental price;
d. All features, geographic or otherwise, used to determine
which inputs are included in or excluded from each pricing tool;
e. The Identity of all Persons who manage and operate each tool.
9. All Documents, as of 01/01/2021, including but not limited to
strategic plans provided to management committees, executive
committees, investment committees, or boards of directors, that
discuss, analyze, or report:
a. Your past, current, and intended future presence in markets;
b. Market shares, competition, and competitors;
c. Prices, margins, and expenses, including but not limited to
guidelines or proposed guidelines for negotiating new rentals or
renewals.
10. To the extent not provided in response to previous
Specifications, provide a written description of all mergers and
acquisitions (regardless of their organizational structure and the
structure of the transaction) that relate to Your Single-Family
Rental operations that you have conducted since 01/01/2010. The
description should include:
a. The legal name of the acquired entity and the legal name of
the entity acquiring the target;
b. The date on which the transaction was finalized;
c. A description of the structure of the transaction (e.g.,
stock purchase, asset purchase, merger, or other);
d. A description of the assets, operations, or business units
acquired;
e. The geographic regions or markets impacted by the
transaction;
f. The total amount of consideration paid or agreed upon,
including details of cash, stock, or other forms of payment;
g. A description of the transaction's strategic objectives as it
relates to Your Single-Family Rental operations.
Definitions
For the purposes of this Order, the following Definitions apply:
D1. The terms ``You,'' ``Your,'' and ``the Company'' mean
[COMPANY] together with its parents (including, but not limited to
any private fund with an ownership stake greater than five percent
in the Company), successors, predecessors, divisions, partially
(five percent or more) or wholly owned subsidiaries, domestic or
foreign parents, affiliates, partnerships, and joint ventures
(including but not limited to [COMPANY] entities); and all
directors, officers, employees, agents, and representatives of the
foregoing.
D2. The term ``Acquisition Channel'' means the type of
transaction through which You acquired a Single-Family Residential
Property from a Previous Owner. These include but are not limited to
mergers, joint ventures, bulk purchases (asset acquisition or
corporate acquisition), MLS and market listings, sale-leasebacks,
and foreclosure auction.
D3. The term ``Acquisition Date'' means the date You acquired
ownership of a Single-
[[Page 8136]]
Family Residential Property from a Third Party.
D4. The term ``Acquisition Price'' refers to the amount You paid
a Previous Owner to purchase a Single-Family Residential Property,
net of associated transactions costs (e.g., closing costs, taxes,
and fees). If a Single-Family Residential Property was purchased
from a Previous Owner as part of a larger transaction wherein
multiple properties were acquired, the ``Acquisition Price'' is the
total amount paid for the entire portfolio divided by the number of
properties in the portfolio.
D5. The term ``affiliate'' means an entity, five percent or more
of whose outstanding voting securities are directly or indirectly
owned, controlled, or held with the power to vote, by an entity
associated with [COMPANY].
D6. The term ``Assessor Parcel ID Number'' means the publicly
available identification number assigned to a Single-Family
Residential Property by a county Assessor or Register.
D7. The term ``Business Entity Number'' means the unique
identification number assigned to each entity incorporated, formed,
qualified, or registered within a State. Other names for the
Business Entity Number include but are not limited to Entity ID and
Control Number.
D8. The term ``Buyer'' means the full legal name of a Third
Party to whom You sold a Single-Family Residential Property.
D9. The term ``Core Portfolio'' means those properties that You
intend to keep in your portfolio for at least one year.
D10. The term ``Disposition Channel'' means the type of
transaction through which You disposed of a Single-Family
Residential Property to a Buyer. These include but are not limited
to mergers, joint ventures, bulk purchases (asset acquisition or
corporate acquisition), MLS and market listings, sale-leasebacks,
and foreclosure auction.
D11. The term ``Disposition Date'' means the date You
transferred ownership of a Single-Family Residential Property to a
Buyer.
D12. The term ``Disposition Price'' refers to the amount a Buyer
paid You to purchase a Single-Family Residential Property, net of
associated transactions costs (e.g., closing costs, taxes, and
fees). If a Buyer purchased a Single-Family Residential Property as
part of a larger transaction wherein multiple single-family
residential properties were acquired, the ``Disposition Price'' is
the total amount paid for the entire portfolio divided by the number
of properties in the portfolio.
D13. The term ``Documents'' means any information, on paper or
in electronic format, including written, recorded, and graphic
materials of every kind, in the possession, custody, or control of
the Company. This includes, without limitation: computer files;
email messages, metadata and other bibliographic or historical data
describing or relating to documents created, revised, or distributed
electronically; and copies of documents the originals of which are
not in the possession, custody, or control of the Company.
D14. The terms ``Identify'' or ``the Identity of'' requires
identification of (a) natural persons by name, title, present
business affiliation, present business address, telephone number,
email address, and username, screen name, handle, or any other
identifiers used in communications; or, if a present business
affiliation or present business address is not known, the last known
business and home addresses; and (b) businesses or other
organizations by name, address, and the identities of Your contact
persons at the business or organizations.
D15. The term ``margin'' means any metric you use to track the
profitability of your business or any part of your business.
D16. The term ``Other Property Income'' means those mandatory
fees not included in Rental Revenue that include, but are not
limited to, reimbursements from residents for utilities; HOA
penalties and other assessments or charge-backs; pet-related income
such as rent or non-refundable deposits; earnings from enhanced
services like smart home systems or landscaping; and, miscellaneous
fees such as penalties for late payments, lease termination fees,
and others.
D17. The term ``Tax Record Owner Address'' means the non-
residential address listed for a Tax Record Owner on publicly
available tax records.
D18. The term ``Tax Record Owner'' means any entity listed as
the Single-Family Residential Property owner on publicly available
tax records.
D19. The term ``Person'' or ``Persons'' means all natural
persons, corporations, partnerships, or other business associations
and all other legal entities, including all members, officers,
predecessors, assigns, divisions, affiliates, and subsidiaries.
D20. The term ``Property Record Owner Address'' means the non-
residential address listed for a Property Record Owner on publicly
available deeds or real property records.
D21. The term ``Property Record Owner'' means any entity listed
as the property owner in publicly available deeds or real property
records.
D22. The term ``Previous Owner'' means the full legal name of
the Third Party from whom You acquired the Single-Family Residential
Property.
D23. The term ``Property Management Services'' means the
professional management of properties. This can include oversight of
day-today operations such as maintenance, revenue and pricing
management, leasing strategy, and tenant relations.
D24. The term ``Property Manager'' means the entity that
provides Property Management Services.
D25. The term ``Registered Agent Address'' means the physical
address (within a State where an entity is registered to do
business) where the Registered Agent can receive documents.
D26. The term ``Registered Agent'' means the agent designated by
an entity to do business in a State. The Registered Agent receives
official communications and legal documents on the entity's behalf.
These documents include service of process or notice.
D27. The term ``relating to'' means in whole or in part
constituting, containing, concerning, discussing, describing,
analyzing, identifying, or stating.
D28. The term ``Rental Revenue'' means rent collected under
lease agreements net of any rental concessions and does not include
Other Property Income. When responding as the Third Party Property
Manager, ``Rental Revenue'' refers to the rents paid to the property
owner, not management fees or other revenue paid to the Third Party
Property Manager.
D29. The terms ``Single-Family Residential Property'' or
``Single-Family Residential Properties'' mean housing structures
designed to accommodate one household per unit. These homes can take
many forms including, but not limited to detached homes, townhomes,
and two- to four-unit properties.
D30. The term ``Tax Account ID Number'' means the publicly
available identification number assigned to the property Owner by
the local property tax and assessment authority.
D31. The term ``Third Party Property Manager'' means an entity
that provides Property Management Services for properties owned by a
Third Party.
D32. The term ``Third Party'' means any entity that is not a
[COMPANY] entity. An ``affiliate'' is not a Third Party.
D33. The term ``Unique Property Identifier'' means an
alphanumeric or other code uniquely associated with a Single-Family
Residential Property used by You internally or externally for
record-keeping, tracking, or other purposes.
D34. The terms ``and'' and ``or'' have both conjunctive and
disjunctive meanings.
D35. The terms ``each,'' ``any,'' and ``all'' mean ``each and
every.''
II. Estimated Burden Hours
Staff will ask respondents to submit information and documents for
several written questions. Because the responses will necessarily vary
depending on the respondent, we have provided a range of estimated
response times from 150 to 600 hours. The total estimated burden of
providing the information and documents per respondent is based on the
following.
Organize retrieval of information and documents: 15-60 hours
Identify requested information and documents: 25-100 hours
Retrieve responsive information and documents: 50-200 hours
Review responsive information and documents: 40-160 hours
Prepare response: 20-80 hours
The total aggregate hours burden across all respondents to produce
information and documents to prepare the response sought will be
between 4,800 (150 hours x 32 entities \12\) to
[[Page 8137]]
19,200 (600 hours x 32 companies). The number of hours required may be
significantly lower depending on the format in which mega investors
currently store the requested information.
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\12\ Note that 32 refers to the total number of mega investor
recipients of the special order. The actual number of ``persons'' as
defined by the Office of Management and Budget for Paperwork
Reduction Act purposes may exceed 32 if it includes various
separately incorporated companies that are subsidiaries and
affiliates of any of the 32 parent companies. See ``Burden and the
Paperwork Reduction Act: An Overview'', Cong. Res. Serv. (May 22,
2024) (for definition of ``person''), <a href="https://crsreports.congress.gov/product/pdf/IF/IF12673">https://crsreports.congress.gov/product/pdf/IF/IF12673</a>.
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III. Estimated Cost Burden
It is not possible to calculate labor costs associated with
producing the information and documents requested with precision, as
each respondent will have various levels of management and/or support
staff among many different companies. Individuals among some or all of
those labor categories may be involved in the information collection
process. Nonetheless, we have assumed that general and operations
managers, data scientists, and outside legal counsel will handle the
vast majority of the tasks involved in gathering and producing the
responsive information. Using mean hourly wage estimates from the
Bureau of Labor (BLS) statistics, we assume an hourly wage of $62.18
for the labor of general and operations managers, $57.23 for the labor
of data scientists, and $84.84 for the labor of outside legal
counsel.\13\ To account for non-salary benefits and other indirect
costs, we double BLS mean wage estimates, to arrive at fully loaded
hourly wages of $124.36, $114.46, and $169.68 for general and
operations managers, data scientists, and outside legal counsel,
respectively. We combine these wage estimates with our estimates of how
many hours each type of employee will spend on each task to arrive at
total labor costs. See Table 1 below for a detailed breakdown of this
calculation.
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\13\ These wage estimates are based on the ``Bureau of Labor
Statistics, Economic News Release,'' Apr. 3, 2024, Table 1,
``National employment and wage data from the Occupational Employment
Statistics survey by occupation, May 2023,'' available at <a href="http://www.bls.gov/news.release/ocwage.t01.htm">http://www.bls.gov/news.release/ocwage.t01.htm</a>.
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Based on our estimates, the labor costs per entity should range
between $21,274 and $85,094, for a total cost of between $680,753 and
$2,723,013 across all 32 respondents. Costs may be significantly lower
depending on the format in which mega investors currently store the
requested information. Commission staff will endeavor to work with
respondents to minimize compliance costs where possible.
Table 1--Detailed Estimated per Firm Burden Calculations \14\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Data Outside
Managers scientists counsel Total hours Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rate ($/hour).................................................. $124.36 $114.46 $169.68 .............. .......................
Organize retrieval of information and documents................ [5, 20] [5, 20] [5, 20] [15, 60] [$2,043, $8,170]
Identify requested information and documents................... [1, 4] [12, 48] [12, 48] [25, 100] [$3,534, $14,136]
Retrieve responsive information and documents.................. [0, 0] [30, 120] [20, 80] [50, 200] [$6,827, $27,310]
Review responsive information and documents.................... [5, 20] [15, 60] [20, 80] [40, 160] [$5,732, $22,929]
Prepare response............................................... [2, 8] [3, 12] [15, 60] [20, 80] [$3,137, $12,549]
----------------------------------------------------------------------------------------
Total per Firm............................................. [13, 52] [65, 260] [72, 288] [150, 600] [$21,274, $85,094]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Staff anticipates that the capital or other non-labor costs
associated with the information requests will be minimal. Although the
information requests may require the respondent to store copies of the
requested information provided to the Commission, industry members
should already have in place the means to store information of the
volume requested.
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\14\ Estimated lower and upper bounds for task completion times
and costs are indicated in brackets: [estimated lower bound,
estimated upper bound].
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IV. Request for Comment
Under the PRA, 44 U.S.C. 3501-3521, Federal agencies must obtain
approval from OMB for each collection of information they conduct or
sponsor. ``Collection of information'' means agency requests or
requirements that members of the public submit reports, keep records,
or provide information to a third party. 44 U.S.C. 3502(3); 5 CFR
1320.3(c). As required by section 3506(c)(2) of the PRA, 44 U.S.C.
3506(c)(2), the FTC is providing this opportunity for public comment
before requesting that OMB approve the study. Specifically, the FTC
invites comments on: (1) whether the proposed collection of information
is necessary for the proper performance of the functions of the FTC,
including whether the information will have practical utility; (2) the
accuracy of the FTC's estimate of the burden of the proposed collection
of information; (3) ways to enhance the quality, utility, and clarity
of the information to be collected; and (4) ways to minimize the burden
of collecting information. The FTC encourages recipients of prior
compulsory process orders to offer suggestions on how the burden of the
proposed collection may be reduced. All comments should be filed as
prescribed below, and must be received on or before March 25, 2025.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before March 25, 2025.
Write ``SFR Housing Study, P251200'' on your comment. Your comment--
including your name and State--will be placed on the public record of
this proceeding, including, to the extent practicable, on the <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> website.
Because of the agency's security screening, postal mail addressed
to the Commission will be subject to delay. We strongly encourage you
to submit your comment online through <a href="https://www.regulations/gov/">https://www.regulations/gov/</a>. To
ensure the Commission considers your online comment, please follow the
instructions on the web-based form.
If you file your comment on paper, write ``SFR Housing Study,
P251200'' on your comment and on the envelope, and mail your comment to
the following address: Federal Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610, (Annex H),
Washington, DC 20580. If possible, please submit your paper comment to
the Commission by overnight service.
Because your comment will be placed on the publicly accessible
website, <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>, you are solely responsible for
making sure that your comment does not include any sensitive or
confidential information. In particular, your comment should not
contain sensitive personal information, such as your or anyone else's
Social
[[Page 8138]]
Security number; date of birth; driver's license number or other State
identification number or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
responsible for making sure your comment does not include any sensitive
health information, such as medical records or other individually
identifiable health information. In addition, your comment should not
include any ``trade secret or any commercial or financial information
which . . . is privileged or confidential''--as provided in section
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR
4.10(a)(2)--including, in particular, competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c), 16 CFR 4.9(c).
The written request for confidential treatment that accompanies the
comment must include the factual and legal bases for the request and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(b). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and public interest. Once your comment has been
posted publicly at <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>--as legally required by
FTC Rule 4.9(b), 16 CFR 4.9(b)--we cannot redact or remove your
comment, unless you submit a confidentiality request that meets the
requirements for such treatment under FTC Rule 4.9(c), 16 CFR 4.9(c),
and the General Counsel grants that request.
Visit the Commission's website, <a href="http://www.ftc.gov">www.ftc.gov</a>, to read this document
and the news release describing it. The FTC Act and other laws that the
Commission administers permit the collection of public comments to
consider and use in this proceeding as appropriate. The Commission will
consider all timely and responsive comments. For information on the
Commission's privacy policy, including routine uses permitted by the
Privacy Act, see <a href="https://www.ftc.gov/site-information/privacy-policy">https://www.ftc.gov/site-information/privacy-policy</a>.
By direction of the Commission.
April J. Tabor,
Secretary.
Statement of Commissioner Andrew N. Ferguson Joined by Commissioner
Melissa Holyoak
Today the Commission takes the first in a series of required
procedural steps toward launching a new study pursuant to section
6(b) of the Federal Trade Commission Act.\1\ That section 6(b) study
would examine the effects that large single-family rental (SFR)
housing operators are having on competition in the housing market,
including on housing prices. Divorced from context, this study is a
good idea. The effects of large SFRs on housing prices have been the
subject of bipartisan concern,\2\ and of substantial public
outcry.\3\ Many Americans are justly concerned that their rent is
too damn high.\4\ The Commission has an obligation to Congress and
the American people to determine whether rising housing prices are
the result of weak competition in relevant housing markets. This
study thus makes sense in the abstract.
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\1\ 15 U.S.C. 46(b).
\2\ See, e.g., Gov. Greg Abbott Wants the Texas Legislature to
Rein in Investors Behind Large-Scale Home Purchases, Tx. Tribune
(Mar. 15, 2024), <a href="https://www.texastribune.org/2024/03/15/texas-greg-abbott-institutional-homebuyers/">https://www.texastribune.org/2024/03/15/texas-greg-abbott-institutional-homebuyers/</a>; New York Governor Wants to Limit
Hedge Funds From Buying Up Homes, The Intelligencer (Jan. 9, 2025),
<a href="https://www.theintelligencer.com/business/article/new-york-governor-wants-to-limit-hedge-funds-from-20025292.php">https://www.theintelligencer.com/business/article/new-york-governor-wants-to-limit-hedge-funds-from-20025292.php</a>; Atlanta's Mayor Calls
for Limits on Investors Buying Up Homes, Bloomberg (June 14, 2022),
<a href="https://www.bloomberg.com/news/articles/2022-06-15/atlanta-s-mayor-calls-for-limits-on-investors-buying-up-homes">https://www.bloomberg.com/news/articles/2022-06-15/atlanta-s-mayor-calls-for-limits-on-investors-buying-up-homes</a>; Wall Street Has Spent
Billions Buying Homes, A Crackdown Is Looming, Fox Business (Apr.
29, 2024), <a href="https://www.foxbusiness.com/markets/wall-street-spent-billions-buying-homes-a-crackdown-is-looming">https://www.foxbusiness.com/markets/wall-street-spent-billions-buying-homes-a-crackdown-is-looming</a> (``Democrats in the
U.S. Senate and House have sponsored legislation that would force
large owners of single-family homes to sell houses to family buyers.
A Republican's bill in the Ohio state legislature aims to drive out
institutional owners through heavy taxation. Lawmakers in Nebraska,
California, New York, Minnesota and North Carolina are among those
proposing similar laws.'').
\3\ See, e.g., People Are Organizing to Fight the Private Equity
Firms Who Own Their Homes, Vice (May 16, 2023), <a href="https://www.vice.com/en/article/people-are-organizing-to-fight-the-private-equity-firms-who-own-their-homes/">https://www.vice.com/en/article/people-are-organizing-to-fight-the-private-equity-firms-who-own-their-homes/</a>.
\4\ See Concurring and Dissenting Statement of Comm'r Andrew N.
Ferguson, ``In re Invitation Homes, Inc.'', Matter No. 203170, at 1
(Sept. 24, 2024).
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But this study is not taking place in the abstract. The Biden-
Harris Commission proposes to initiate this study merely six days
before President Trump returns to office, on the heels of an
election in which the American people decisively rejected the Biden-
Harris Administration's economic program. Since that election, I
have vigorously objected to the Commission doing anything other than
routine law enforcement, and have dissented over and over from new
rules, regulations, guidance, and novel law-enforcement theories.\5\
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\5\ See, e.g., Dissenting Statement of Comm'r Andrew N.
Ferguson, Joined by Comm'r Melissa Holyoak, Regarding the
Enforcement Policy Statement on Exemption of Protected Labor
Activity by Workers from Antitrust Liability, Matter No. P251201
(Jan. 14, 2025); Dissenting Statement of Comm'r Andrew N. Ferguson,
Joined by Comm'r Melissa Holyoak, Regarding the Business Opportunity
and Earnings Claim Rulemaking Notices, Matter Nos. R111003 & R511993
(Jan. 13, 2025); Dissenting Statement of Comm'r Andrew N. Ferguson,
Regarding the Unfair or Deceptive Fees Rulemaking, Matter No.
R207011 (Dec. 17, 2024); Dissenting Statement of Comm'r Andrew N.
Ferguson, Regarding the Withdrawal of the Antitrust Guidelines for
Collaborations Among Competitors, Matter No. V250000 (Dec. 11,
2024); Dissenting Statement of Commissioner Andrew N. Ferguson,
Regarding the Telemarketing Sales Rule, Matter No. R411001 (Nov. 27,
2024).
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I concur in today's order, however, because it is a horse of a
different color. Today's vote is purely procedural. Unlike the
rules, regulations, guidance, and enforcement matters from which I
have dissented, the Trump Administration will control every
important substantive aspect of this study--including the decision
to launch it at all.
Here is what I mean. In order to study the markets
comprehensively, the Commission will have to issue orders to more
than nine entities. Congress has provided in the Paperwork Reduction
Act \6\ that any time a Federal agency wants to issue orders to
collect information from more than nine entities in a twelve-month
period, it must first publish its proposed collection orders to the
public for comment.\7\ At the conclusion of the sixty-day comment
period, the Commission must then review the comments and submit the
proposed collection orders (including any revisions to those orders
after reviewing the comments), comments, and responses to those
comments to the Office of Information and Regulatory Affairs within
the Office of Management and Budget (``OMB'') for its review and
approval.\8\ Thus, after the close of the comment period, this study
will begin only if (1) the Commission chooses to submit the proposed
orders to OMB for its review, and (2) OMB reviews and approves the
orders.
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\6\ 44 U.S.C. 3501, et seq.
\7\ Id. 3502(3), 3506(c)(2); U.S. Gen. Servs. Administration and
the Office of Management and Budget, PRA Guide, Do I Need
Clearance?, <a href="https://pra.digital.gov/do-i-need-clearance/">https://pra.digital.gov/do-i-need-clearance/</a>.
\8\ See 44 U.S.C. 3503, 3507(a).
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Both of those critical decisions will belong to the Trump
Administration. I therefore concur in the Commission's decision to
publish the proposed section 6(b) orders for public comment because
I agree that SFRs are worthy of study, and because the decision to
launch the section 6(b) study will belong entirely to the Trump FTC
and OMB. I look forward to reviewing the comments submitted by the
public before making any subsequent determination about whether to
seek the Trump OMB's approval to commence the study.
[FR Doc. 2025-01657 Filed 1-23-25; 8:45 am]
BILLING CODE 6750-01-P
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