AN ACT CONCERNING THE PURCHASE OF RESIDENTIAL PROPERTY BY PRIVATE EQUITY ENTITIES.

Senate
sSB256 / File No. 706 1

General Assembly File No. 706
February Session, 2026 Substitute Senate Bill No. 256

Senate, April 21, 2026

The Committee on Judiciary reported through SEN. WINFIELD
of the 10th Dist., Chairperson of the Committee on the part of
the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING THE PURCHASE OF RESIDENTIAL
PROPERTY BY PRIVATE EQUITY ENTITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective October 1, 2026) (a) For the purposes of this 1
section: 2
(1) (A) "Private equity entity" means an institutional real estate 3
investor or an entity that receives funding from an institutional real 4
estate investor for the purchase of a single -family residence or two -5
family residence. A loan provided in exchange for a mortgage of the 6
residence that is being purchased is not considered funding for the 7
purposes of this subdivision, provided such mortgage is of a type for 8
which members of the general public may apply. 9
(B) "Private equity entity" does not include: (i) An organization which 10
is described in Section 501(c)(3) of the Internal Revenue Code of 1986, or 11
any subsequent corresponding internal revenue code of the United 12
States, as amended from time to time, and exempt from tax under 13
sSB256 File No. 706

sSB256 / File No. 706 2

Section 501(a) of said Internal Revenue Code, or (ii) a housing land trust 14
program described in sections 8-214b to 8-214e, inclusive, of the general 15
statutes. 16
(2) "Institutional real estate investor" means an entity or combined 17
group that: (A) Owns ten or more single -family residences or two -18
family residences; (B) manages or receives funds pooled from investors 19
and acts as a fiduciary with respect to one or more investors; and (C) has 20
fifty million dollars or more in net value or assets under its management 21
on any day during the taxable year. An entity is considered to own a 22
single-family residence or two -family residence if it directly owns the 23
single-family residence or two -family residence or indirectly owns ten 24
per cent or more of the single-family residence or two-family residence. 25
(3) "Single-family residence" does not include: (A) Any single-family 26
residence that is to be used as the principal residence of any person who 27
has an ownership interest in the private equity entity that seeks to 28
purchase the single-family residence; or (B) any single-family residence 29
constructed, acquired or operated with federal, state or municipal 30
appropriated funds. 31
(4) "Two -family residence" does not include: (A) Any two -family 32
residence in which one of the dwelling units is to be used as the principal 33
residence of any person who has an ownership interest in the private 34
equity entity that seeks to purchase the two-family residence; or (B) any 35
two-family residence constructed, acquired or operated with federal, 36
state or municipal appropriated funds. 37
(b) (1) No private equity entity may purchase, acquire or offer to 38
purchase or acquire any interest in a single -family residence or two -39
family residence unless the single -family residence or two -family 40
residence has been listed for sale to the general public for at least ninety 41
days. 42
(2) The ninety-day waiting period set forth in subdivision (1) of this 43
subsection shall restart if the seller changes the asking price for the 44
single-family residence or two -family residence, and a private equity 45
sSB256 File No. 706

sSB256 / File No. 706 3

entity shall be prohibited from purchasing, acquiring or offering to 46
purchase or acquire any interest in the single -family residence or two -47
family residence until it has been listed for sale to the general public at 48
the new asking price for at least an additional ninety days. 49
(3) A private equity entity seeking to purchase a single-family or two-50
family residence shall be required to submit to the seller, or anyone 51
acting as an agent for such seller, prior to the finalizing of such purchase, 52
a written notice signed by the purchaser stating the following: (A) The 53
purchaser is a private equity entity; (B) private equity entities are 54
required to wait until a single-family residence or two-family residence 55
has been listed for sale for the general public to purchase for at least 56
ninety days before purchasing, acquiring or offering to purchase or 57
acquire any interest in the single -family residence or two -family 58
residence; and (C) such private equity entity has complied with the 59
provisions of this section. 60
(c) Any private equity entity that violates the provisions of this 61
section may be subject to civil damages and penalties in an amount not 62
exceeding two hundred fifty thousand dollars. 63
(d) The Attorney General may bring a civil action on behalf of the 64
state seeking injunctive relief, declaratory relief, civil damages and civil 65
penalties against any private equity entity that violates the provisions 66
of this section. 67
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 New section

JUD Joint Favorable Subst.

sSB256 File No. 706

sSB256 / File No. 706 4

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Resources of the General Fund GF - Potential
Revenue Gain
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill limits private equity companies' ability to purchase or
acquire certain residences and subjects' violators to civil damages and
penalties of up to $250,000 resulting in a potential revenue gain to the
state to the extent violations occur.
The bill also allows the Office of the Attorney General (OAG) to bring
a civil action on behalf of the state resulting in no fiscal impact as the
OAG has the expertise and resources to meet the requirements of the
bill.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number of violations.

sSB256 File No. 706

sSB256 / File No. 706 5

OLR Bill Analysis
sSB 256

AN ACT CONCERNING THE PURCHASE OF RESIDENTIAL
PROPERTY BY PRIVATE EQUITY ENTITIES.

SUMMARY
This bill prohibits private equity entit ies from purchasing or
acquiring (or offering to do so) any interest in a single - or two-family
residence, with certain exceptions, unless it has first been listed for sale
to the general public for at least 90 days. The 90 -day waiting period
restarts if a seller changes the residence’s asking price.
Under the bill, a “private equity entity” is an (1) institutional real
estate investor meeting certain criteria (such as owning at least 10 single-
or two-family residences and managing at least $50 million in assets) or
(2) entity that receives funding from one for purchasing a single- or two-
family residence, excluding a residential mortgage loan of the type for
which members of the public can apply. But the term does not include
a 501(c)(3) nonprofit organization or an entity operating under the
state’s housing land bank and land trust program.
The bill’s waiting period requirement does not apply to a single - or
two-family residence that (1) will be used as the principal residence of a
person with an ownership interest in the private equity entity seeking
to buy it or (2) is built, acquired, or o perated with federal, state, or
municipal appropriated funds. (For a two -family residence, one of the
units must be used as a principal residence.)
Before finalizing the purchase of a single - or two-family residence,
the bill requires a private equity entity to give the seller or seller’s agent
a signed written notice stating that the purchaser is a private equity
entity subject to the 90 -day waiting period described above and has
complied with this requirement.
sSB256 File No. 706

sSB256 / File No. 706 6

The bill authorizes the attorney general to bring a civil action on the
state’s behalf seeking injunctive and declaratory relief and civil damages
and penalties against a private equity entity that violates the bill’s
provisions. Violators may be subject t o civil damages and penalties of
up to $250,000.
EFFECTIVE DATE: October 1, 2026
INSTITUTIONAL REAL ESTATE INVESTORS
Under the bill, an “institutional real estate investor” is an entity or
combined group that:
1. owns at least 10 single - or two-family residences (either directly
or by owning at least 10% of a residence),
2. manages or receives pooled investor funds and acts as a fiduciary
to at least one investor, and
3. manages at least $ 50 million in net value or assets on any day
during the taxable year.
BACKGROUND
January 2026 Executive Order
On January 20, 2026, the president issued an executive order that,
among other things, directed certain federal agencies to issue guidance:
1. generally preventing agencies and government -sponsored
entities from taking certain actions that facilitate large
institutional investors’ acquisition of single-family homes and
2. promoting sales to owner -occupants, including through anti -
circumvention provisions, first -look policies, and disclosure
requirements.
H.R. 6644: 21st Century ROAD to Housing Act
On March 12, 2026, the U.S. Senate passed H.R. 6644, which, among
other things, (1) prohibits large institutional investors, with certain
exceptions, from purchasing (or entering into a contract to directly or
sSB256 File No. 706

sSB256 / File No. 706 7

indirectly purchase) any single-family home and (2) establishes various
requirements related to divestment. The legislation will return to the
U.S. House of Representatives for further consideration.
Legislative History
The Senate referred the bill (File 203) to the Judiciary Committee,
which reported out a substitute that increased, from $30 million to $50
million, the amount of net value or assets an entity or combined group
must manage to be considered an “institutional real estate investor.”
COMMITTEE ACTION
Housing Committee
Joint Favorable Substitute
Yea 13 Nay 6 (03/10/2026)

Judiciary Committee
Joint Favorable Substitute
Yea 34 Nay 6 (04/10/2026)