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HB2706 - 572R - I Ver
REFERENCE TITLE:
single-family residences; corporate buyer restrictions
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2706
Introduced by
Representative
De Los Santos
AN
ACT
amending title 44, Arizona Revised
Statutes, by adding chapter 14; amending title 44, chapter 15.1, article 1,
arizona revised statutes, by adding section 44-5102; relating to REAL
ESTATE.
(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 14, to read:
CHAPTER 14
SINGLE-FAMILY RESIDENCE PURCHASES
ARTICLE 1. GENERAL PROVISIONS
START_STATUTE
44-4001.
Definitions
In this chapter, unless the context otherwise
requires:
1. "Commission" means the
corporation commission.
2. "Corporation":
(
a
) means a corporation that is organized pursuant to title
10.
(
b
) Does not
include a housing authority as defined in section 36-1401.
3. "Limited liability
company" means a limited liability company that is organized by filing
articles of organization with the commission pursuant to title 29.
4. "Single-family
residence":
(
a
) Means a
structure that is maintained and used as a single detached dwelling unit.
(
b
) Does not
include a dwelling unit that shares one or more walls with another dwelling
unit.
END_STATUTE
START_STATUTE
44-4002.
Corporations; limited liability companies; affiliates; single-family
residence purchases; registration; limits; exceptions; civil penalty; rules;
fees; attorney general
A. a corporation or a limited
liability company or an affiliate of a corporation or a LIMITED liability
company shall register with the Securities Division of the commission before
purchasing a single-family residence, condominium or townhome located in
this State. the registration must include the name under which the
corporation or limited liability company or the AFFILIATE of the corporation or
LIMITED liability company conducts business.
B. The commission may charge a fee
for the registration in an amount to be determined by the commission.
C. The commission shall issue a
certificate of registration to each corporation or each limited liability
company or an affiliate of a corporation or a limited liability company that
registers pursuant to this section.
D. The registration requirement does
not apply to any of the following:
1. A corporation or a limited
liability company or an affiliate of a corporation or a limited liability
company that owns fewer than ten single-family residences, condominiums
or townhomes located in this State.
2. A gOVERNMENTAL
entity. For the purposes of this paragraph, "governmental
entity" means this state or any county, city, town or other political
subdivision of this state.
3. Any nonprofit group that is
RECOGNIZED by the United States internal revenue service under section 501(
c
)(3) of the internal revenue code.
4. A
lAND TRUST.
5. A gROUP HOME.� For the purposes of
this paragraph, "Group home" means a home that is certified pursuant
to title 36, chapter 7.1, article 4.
6. An eMPLOYER that rents single-family
residences, condominiums or townhomes to EMPLOYEES.
E. The Securities Division of the
commission shall establish and maintain a registry of corporations and limited
liability companies and affiliates of the corporations and the limited
liability companies that purchase or own single-family residences,
condominiums or townhomes located in this State. The Securities
Division of the commission shall make the registry available on the
commission's website.
f. A corporation or a limited
liability company or an affiliate of a CORPORATION or a limited liability
company that does not register with the securities division in compliance with
this section or that intentionally provides misleading information on the
application is in violation of this section, and the commission shall provide
notice and an opportunity for a formal hearing. If a corporation or
a limited liability company or an affiliate of a corporation or a limited
liability company is found to be in violation of this section after a formal
hearing, the commission shall impose a civil penalty of not more than $20,000
for each violation.� The commission shall deposit, pursuant to sections 35-146
and 35-147, penalties collected pursuant to this section in the housing
trust fund established by section 41-3955.� a VIOLATION OF THIS SECTION
DOES NOT APPLY TO EXCUSABLE NEGLECT.
G. The commission shall adopt rules
necessary to carry out this section.� The commission may establish a fee in
rule.
H. tHE ATTORNEY GENERAL MAY ENFORCE
THIS SECTION PURSUANT TO TITLE 44, CHAPTER 10, ARTICLE 7.
END_STATUTE
START_STATUTE
44-4003.
Annual report
On or before January
31, 2027 and each year THEREAFTER, the commission shall submit a report to the
governor, the president of the senate, the speaker of the house of
representatives, the minority leader of the senate and the minority leader of
the house of representatives and shall provide a copy to the secretary of
state.� The report must contain all of the following:
1. The identification of any
corporation or any limited liability company or any affiliate of a corporation
or a limited liability company that:
(
a
) Purchased a
single-family residence, condominium or townhome in the previous year.�
The report must include the zip code of each purchase.
(
b
) Sold a
single-family residence, condominium or townhome in the previous
year. The report must include the zip code of each sale.
2. Any other information that the
commission deems necessary.
END_STATUTE
Sec. 2. Title 44, chapter 15.1, article 1,
Arizona Revised Statutes, is amended by adding section 44-5102, to read:
START_STATUTE
44-5102.
Corporations; single-family residence; purchase
restrictions
A corporation may not purchase a single-family
residence, condominium or townhome unless the single-family residence,
condominium or townhome has been on the market for more than ninety days or
there is a change in the asking price.
END_STATUTE