Restricting Corporate Acquisition of Single-Family Homes to Preserve Community Housing

Economy
1

Purpose: This bill will aim to address the increasing trend of large corporations buying single-family homes, which drives up housing costs and reduces affordable housing options for individual families and first-time homebuyers.

• Problem: Corporate purchases of single-family homes are making it harder for individuals to buy homes, leading to inflated housing prices and limited availability in many communities.

Key Provisions of the Bill:

  1. Definition of “Corporate Buyers”:

• Defines who qualifies as a corporate buyer (e.g., corporations, LLCs, institutional investors with assets over a specified threshold).

  1. Limitation on Purchases:

• Cap on Ownership: Corporations cannot own more than a specified percentage of single-family homes within any given community.

• Restrictions on Purchase Frequency: Limits the number of single-family homes a corporation can buy within a calendar year.

  1. Incentives for Individual Buyers:

• Tax Credits: Provides tax incentives for sellers who choose individual buyers over corporations.

• First-Time Buyer Protections: Adds protections or priority purchasing rights for first-time homebuyers on homes currently corporate-owned.

  1. Penalties for Non-Compliance:

• Increased Property Tax Rates: Corporations that exceed ownership limits face a higher tax rate on additional properties.

• Fines: Imposes financial penalties on corporations that violate purchase limits or engage in predatory buying practices.

  1. Exemptions and Special Cases:

• Affordable Housing Initiatives: Exemptions for non-profits or organizations focused on affordable housing development.

• Small Business Exemption: Provides exemptions for small, locally-owned businesses under a certain asset threshold.

Implementation Plan:

• Phase-in Period: Introduces a gradual implementation timeline to allow for adjustments.

• Review and Adjustments: Calls for regular reviews to assess the impact on housing prices and availability, allowing adjustments based on effectiveness.

Conclusion:

This bill is designed to keep housing affordable and accessible for individuals and families, especially in rapidly growing communities. By limiting corporate influence on the housing market, we can help ensure that homes remain available for those who need them most.

2 Likes