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HB2325 - 572R - I Ver
REFERENCE TITLE:
single-family homes; institutional investors
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2325
Introduced by
Representative
Kupper
AN
ACT
amending title 44, Arizona Revised
Statutes, by adding chapter 42; relating to real property purchases.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, Arizona Revised Statutes,
is amended by adding chapter 42, to read:
CHAPTER 42
Institutional Investor SINGLE-FAMILY
home PURCHASES
ARTICLE 1. GENERAL PROVISIONS
START_STATUTE
44-8041.
Definitions
In this chapter, unless the context otherwise
requires:
1. "Bulk Purchase" means
the acquisition of two or more single-family homes in a single
transaction or in multiple transactions within a rolling twelve-month
period by the same entity.
2. "Homebuilder" means an
entity whose primary business is the construction of new single-family homes
that are offered for sale to individual buyers and are not for long-term rental
purposes.
3. "Institutional Investor"
means any corporation, limited liability company, partnership, limited
partnership, real estate investment trust, trust or other similar entity that
owns or manages ten or more single-family homes in this state, without
regard to whether the institutional investor is established, registered,
incorporated or located outside of this state.
4. "Single-Family
Home" means a residential structure that is intended for occupancy by one
family, such as a detached house.
END_STATUTE
START_STATUTE
44-8042.
Single-family homes; institutional investors; compliance;
exemptions
A. An Institutional Investor may not:
1. Own more than fifty single-family
homes in this state.
2. submit a bid or otherwise offer to
purchase a single-family home within the first sixty days after the
single-family home is listed or otherwise publicly offered for sale.
3. Acquire any single-family
homes in a bulk purchase.
B. An institutional investor that
exceeds the limits PRESCRIBED by this section on the effective date of this
section shall not make new single-family home acquisitions and may
voluntarily sell holdings until the INSTITUTIONAL investor comes into
compliance with this section.
C. This chapter does not apply to:
1. A NONPROFIT ORGANIZATION that is
focused on providing affordable housing.
2. A government HOUSING agency.
3. A community land trust.
4. A person or entity that owns fewer
than fifty single-family homes in this state.
5. A pension fund or other fiduciary
entity with assets of less than $5,000,000.
6. A homebuilder.
END_STATUTE
START_STATUTE
44-8043.
Reporting requirements; Arizona department of housing;
confidentiality
A. On or before March 15 of each
year, each institutional investor shall file with the Arizona department of
housing a DISCLOSURE that identifies for the preceding calendar year:
1. All single-family homes the
institutional investor owned during the year.
2. All single-family homes the
institutional investor purchased and sold during the year.
3. the institutional investor's
compliance with title 33, chapter 10.
B. All reports filed pursuant to this
section are confidential, except that the Arizona department of housing may be
aggregated for use for policy purposes.
END_STATUTE
START_STATUTE
44-8044.
Enforcement; attorney general; county attorney; city attorney;
notice; affirmative defense
A. The attorney general shall enforce
this chapter, except that if the attorney general declines to enforce this
chapter in any particular matter, the county attorney and city or town attorney
for the county and city or town in which the single-FAMILY home is
located may enforce this chapter.� Enforcement may include any of the
following:
1. INVESTIGATING potential violations
of this chapter.
2. APPLYING for injunctive relief
when appropriate.
3. enforcing any other provisions of
law.
B. Before taking any enforcement
action under subsection A, paragraph 2 or 3 of this section, the attorney
general, county attorney or city or town attorney, as appropriate, shall
provide the institutional investor with notice and an opportunity for a
hearing.
c. good faith compliance is a defense
to an alleged violation of this chapter.
END_STATUTE
Sec. 2.
Applicability
Title 44, chapter 42, Arizona Revised
Statutes, as added by this act, applies to real estate transactions of
institutional investors that occur after the effective date of this act.
Sec. 3.
Severability
If a provision of this act or its
application to any person or circumstance is held invalid, the invalidity does
not affect other provisions or applications of the act that can be given effect
without the invalid provision or application, and to this end the provisions of
this act are severable.
Sec. 4.
Short title
Title 44, chapter 42, Arizona Revised
Statutes, as added by this act, may be cited as the "Own Something and Be
Happy Act".