Single-family residential real property: corporate entity: ownership.

Plain English Breakdown

The bill summary does not provide details on enforcement mechanisms beyond what is explicitly stated.

Limiting Corporate Ownership of Single-Family Homes

This law stops business entities that own more than 1,000 single-family homes from buying or leasing additional ones and requires the Attorney General to enforce this rule.

What This Bill Does

• Prohibits a business entity owning over 1,000 single-family residential properties from purchasing, acquiring, or obtaining an ownership interest in another such property and subsequently leasing it.
• Authorizes the Attorney General to bring civil actions for violations of these provisions.
• Requires courts to order violators to pay a $100,000 civil penalty for each violation and sell the property within one year.

Who It Names or Affects

• Business entities owning more than 1,000 single-family residential properties
• The Attorney General

Terms To Know

business entity

A company or organization that is legally separate from its owners.

civil penalty

Money a court orders someone to pay as punishment for breaking the law.

Limits and Unknowns

• The bill does not specify what happens if a company owns exactly 1,000 homes and buys one more.
• It is unclear how this will affect smaller companies that own fewer than 1,000 single-family homes.

Official Summary Text

AB 1240, as amended, Lee.
Single-family residential real property: corporate entity: ownership.
Existing law provides that real property within the state is governed by the law of this state, except where title is in the United States. Existing law generally regulates the obligations of owners with respect to real property.
This bill would prohibit a business entity, as defined, that has an interest in more than 1,000 single-family residential properties from purchasing, acquiring, or otherwise obtaining an ownership interest in another single-family residential property and subsequently leasing the property, as specified. The bill would authorize the Attorney General to bring a civil action for a violation of these provisions, and would require a court in a civil action in which the Attorney General prevails to order specified relief, including that the business entity pay a civil penalty of $100,000 for each violation and that the
business entity sell the property to an independent third party within one year of the date that the court enters judgment. The bill would require that these provisions be the exclusive means of enforcement of these provisions. The bill would define various terms for these purposes.

Current Bill Text

Download Bill PDF