single-family residence purchases; limitations.

SB1441 - 572R - I Ver

REFERENCE TITLE:
single-family residence purchases; limitations.

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1441

Introduced by

Senators
Ortiz: Alston, Bravo, Diaz, Epstein, Fernandez, Gabald�n, Kuby, Miranda,
Sears, Sundareshan

AN
ACT

amending
title 33, chapter 4, article 1, Arizona Revised Statutes, by adding section 33-401.o1;
amending section 41-3955, Arizona Revised Statutes; amending title 44,
Arizona Revised Statutes, by adding chapter 14; 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 33, chapter 4, article 1,
Arizona Revised Statutes, is amended by adding section 33-401.01, to read:

START_STATUTE
33-401.01.

Single-family residence purchases; corporate buyer; county
recorder; deed; requirements; exception; definitions

A. If a corporation or a limited
liability company or an affiliate of a corporation or a limited liability
company purchases a single-family residence:

1. The county recorder may not record
the deed unless both of the following occur:

(
a
) The deed
that contains the information about the ownership of the corporation or the
limited liability company or the affiliate of the corporation or the limited
liability company is registered pursuant to section 44-4003.

(
b
) The
corporation or the limited liability company or the affiliate of the
corporation or the limited liability company submits to the county recorder a
copy of the certificate of registration issued by the corporation commission
pursuant to section 44-4003 and the name of the corporation or the
limited liability company or the affiliate of the corporation or the limited
liability company on the deed matches the name on the certificate of
registration accompanying the deed.

2. The deed must clearly state that
the single-family residence is not the primary residence of the owner.

B. The county recorder shall submit
monthly reports to the corporation commission that name each corporation or
limited liability company that purchased a single-family residence in the
preceding month and the number of single-family residences purchased by
each corporation and limited liability company.

C. Subsection A of this section does
not apply to 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 located in this State.

D. For the purposes of this section:

1. "Corporation" has the
same meaning prescribed in section 44-4001.

2. "Limited liability
company" has the same meaning prescribed in section 44-4001.

3. "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

Sec. 2. Section 41-3955, Arizona Revised Statutes, is amended to read:

START_STATUTE
41-3955.

Housing trust fund; purpose; annual report

A. The housing trust fund
is established, and the director shall administer the fund. The fund
consists of monies from unclaimed property deposited in the fund pursuant to
section 44-313,
monies deposited in the fund pursuant to
section 44-4003,
monies transferred pursuant to section 35-751 and
investment earnings.

B. On notice from the
department, the state treasurer shall invest and divest monies in the fund as
provided by section 35-313, and monies earned from investment shall be
credited to the fund.

C. Except as provided in
subsection D of this section, fund monies shall be spent on approval of the
department for developing projects and programs connected with providing
housing opportunities for low and moderate income households and for housing
affordability programs. A portion of fund monies shall be used
exclusively for housing in rural areas.

D. Fund monies may be
spent on constructing or renovating facilities and on housing assistance,
including support services. Fund monies shall be awarded in the
following order of priority for the first four months of each fiscal year:

1. Constructing or
renovating emergency shelter facilities or for any operational expenses for
emergency shelter services.

2. Constructing or
renovating transitional housing units.

3. Constructing or renovating other types of shelter
or housing as determined by the department to best serve the needs of
individuals who have been determined to be seriously mentally ill and
chronically resistant to treatment.

E. For the purposes of
subsection C of this section, in approving the expenditure of monies, the
director shall give priority to funding projects that provide for operating,
constructing or renovating facilities for housing for low-income families
and that provide housing and shelter to families that have children.

F. After the four-month
period prescribed in subsection D of this section, fund monies that have not
been awarded or encumbered pursuant to the priority list prescribed in
subsection D of this section may be spent based on stakeholder feedback.

G. The department shall
submit for review by the joint legislative budget committee all programs
established by the department and funded by the housing trust fund pursuant to
this section.

H. The director shall
report annually to the legislature on the status of the housing trust fund.�
The report shall include a summary of facilities for which funding was provided
during the preceding fiscal year and shall show the cost and geographic
location of each facility and the number of individuals benefiting from the
operation, construction or renovation of the facility.� The report shall also
include the number of individuals who benefit from housing assistance pursuant
to subsection D of this section.� The report shall be submitted to the
president of the senate and the speaker of the house of representatives, and a
copy provided to the secretary of state, not later than September 1 of each
year.

I. Monies in the housing
trust fund are exempt from the provisions of section 35-190 relating to
lapsing of appropriations.

J. An amount not to exceed
ten percent of the housing trust fund monies may be appropriated annually by
the legislature to the department for administrative costs in providing
services relating to the housing trust fund.

K. For any construction
project financed by the department pursuant to this section, the department
shall notify a city, town, county or tribal government that a project is
planned for its jurisdiction and, before proceeding, shall seek comment from
the governing body of the city, town, county or tribal government or an
official authorized by the governing body of the city, town, county or tribal
government. The department shall not interfere with or attempt to
override the local jurisdiction's planning, zoning or land use regulations.
END_STATUTE

Sec.
3. 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; limits; rules; exceptions; attorney general

A. Except
as provided in subsection D of this section:

1. The total number of single-family
residences located in this state that may be purchased by a corporation or a
limited liability company or an affiliate of a corporation or a limited
liability company in any census tract may not exceed five percent of the total
number of single-family residences in that census tract.

2. The total number of single-family
residences that may be purchased in this state by a corporation or a limited
liability company is fifty units per calendar year.

b. A corporation or limited liability
company may not own more than two thousand single-family residences in
this state.

C. The commission shall adopt rules
necessary to carry out this section.

D. Subsection A of this section does
not apply to the sale or transfer of single-family residences within a
corporation or a limited liability company.

E. The attorney general may enforce
this section pursuant to title 44, chapter 10, article 7.

END_STATUTE

START_STATUTE
44-4003.

Corporations; limited liability companies; affiliates; single-family
residence purchases; registration; limits; exceptions; civil penalty; rules;
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 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 and any beneficial owners of the corporation or
limited liability company or affiliate of the corporation or limited liability
company.� An entity that is required to register pursuant to this subsection
shall file an annual report with the securities division of the commission that
provides any change in the entity's registration information and that confirms
that the information is accurate and complete.

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 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 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 located
in this state. The securities division of the commission shall make
the registry available on the commission's website and shall provide the
registration information to the attorney general.

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.

H. The attorney general may enforce
this section pursuant to title 44, chapter 10, article 7.

END_STATUTE

START_STATUTE
44-4004.

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 in the previous year.� The report must include
the zip code of each purchase.

(
b
) Sold a
single-family residence 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