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SECOND REGULAR SESSION
HOUSE BILL NO. 3191
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE HAUSMAN.
6881H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 135, RSMo, by adding thereto one new section relating to ownership of
single-family residential property , with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 135, RSMo, is amended by adding thereto one new section, to be
2 known as section 135.1675, to read as follows:
135.1675. 1. As used in this section, the following terms mean:
2 (1) "Affiliate entity", any entity dir ectly or indirectl y contr olling, controlled by ,
3 or under common control with another entity including thr ough beneficial ownership or
4 contractual contr ol;
5 (2) "Contr ol", ownership of ten per cent or mor e of voting interes ts, pr ofit
6 inter ests, or the power to dir ect management or policies of an entity;
7 (3) "Covered institutional investor":
8 (a) A hedge fund;
9 (b) A private equity fund;
10 (c) A rea l estate investment trust (REIT); or
11 (d) An investment vehicle, partnership, trust, or corporation that:
12 a. Pools capital fr om investors;
13 b. Is managed by an investment advisor or sponsor; and
14 c. Acquires r esidential r eal estate primarily for r ental income or asset
15 appr eciation;
16 (4) "Department", the department of revenu e;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
17 (5) "Single-family res idential real estate pr operty", a detached re sidential
18 structur e designed for occupancy by one household, including a condominium or
19 townhome classified as a single-family dwelling but excluding duplexes, triplexes,
20 apartment buildings, and other multifamily res idential pro perty .
21 2. (1) A covered institutional investor shall be pr ohibited fr om purch asing or
22 acquiring any interes t in single-family res idential real estate located in this state on or
23 after January 1, 2027. Such pr ohibition applies to pur chases made dir ectly or indirect ly
24 including throu gh subsidiaries or affiliates, special-purpose entities, nominee
2 5 pur chasers, or any structur e cr eated to evade the pro hibition on pur chasing single-
26 family res idential rea l estate.
27 (2) The attorney general, on behalf of the state of Missouri, may void any
28 transaction enter ed into by a covered institutional investor in violation of this
29 subsection.
30 3. Cover ed institutional investors that lawfully own single-family res idential r eal
31 estate in Missouri prior to January 1, 2027:
32 (1) May continue to own and manage such pro perty , subject to the penalty
33 pr ovisions in subsection 4 of this section; and
34 (2) Shall not be r equir ed to divest their inter est in the prop erty .
35 4. (1) Beginning January 1, 2027, any cover ed institutional investor that owns
36 one or mor e single-family r esidential real estate pr operties in Missouri shall be subject
37 to an annual civil penalty assessed against each pr operty by the department, as follows:
38 (a) For ownership of one to fifty single-family res idential real estate pr operties,
39 two thousand five hundr ed dollars per home;
40 (b) For ownership of fifty-one to one hundred single-family res idential r eal
41 estate pro perties, thr ee thousand seven hundr ed fifty dollars per home; and
42 (c) For ownership of one hundred one or mor e single-family res idential r eal
43 estate pro perties, five thousand dollars per home.
44 (2) Cover ed institutional investors may r educe or eliminate futur e penalty
45 assessments thr ough divestment of single-family res idential real estate pr operties.
46 (3) Existing owners shall not expand their Missouri single-family r esidential r eal
47 estate pro perty portfolio on or after January 1, 2027.
48 5. The department of rev enue is her eby authorized to assess the annual penalties
49 under subsection 4 of this section which are payable by the cover ed institutional
50 investors regard less of whether the pr operty subject to the assessment is occupied,
51 r ented, or vacant.
52 6. The pr ovisions of this section shall not apply to:
53 (1) Individuals pur chasing a primary res idence;
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54 (2) Family-owned businesses wher e Missouri r esidents have a majority-
55 ownership interes t;
56 (3) Nonpr ofit housing organizations;
57 (4) Entities engaged solely in construction of new single-family res idential r eal
58 estate pro perties intended for sale to owner -occupants;
59 (5) T ransfers of single-family r esidential real estate pro perty acquir ed by
60 inheritance; or
61 (6) T ransfers of single-family re sidential r eal estate pr operty based upon
62 for eclosur e or deed in lieu of for eclosure.
63 7. Each covered institutional investor that owns single-family res idential r eal
64 estate prop erty in Missouri shall file an annual r eport certified under penalty of perjury
65 with the department before January fifteenth of each year , in the manner and format
66 determined by the department thr ough rule. The repor t shall include, but not be
67 limited to:
68 (1) The number and location of the single-family res idential real estate
69 pr operties owned;
70 (2) Ownership of the single-family res idential real estate pr operties by a cover ed
71 institutional investor or affiliate entity;
72 (3) Identification of the ownership by beneficial owners who have majority
73 contr ol; and
74 (4) Any other information that the department in coordination with the attorney
75 general determines is necessary for inclusion in the rep ort.
76 8. The department and the attorney general's office are vested with concurr ent
77 authority to enfor ce this section.
78 9. The attorney general is authorized to bring a civil action in a court of
79 competent jurisdiction in the county where all or part of the real estate prop erty that is
80 the subject of the violation is located. The attorney general has discret ionary authority
81 to aggreg ate transactions acro ss affiliated entities for enforcem ent purposes.
82 10. Any permanent injunction, judgment, or order of the court shall be prima
83 facie evidence in an action bro ught under this section that the defendant used or
84 engaged in an action or practice that is contrary to the pro visions of this section.
85 1 1. An institutional investor or affiliated entity that a court determines in an
86 action bro ught under subsection 9 of this section to have violated the provi sions of this
87 section, is subject to:
88 (1) A civil penalty or fine of fifty thousand dollars per pr ohibited transaction
89 r elating to ownership of single-family res idential r eal estate; and
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90 (2) Disgorgement of profit s derived fr om the acquisition of single-family
91 r esidential real estate pur chased on or after January 1, 2027, in violation of this section.
92 12. The department shall pr omulgate all necessary rules and regu lations for the
93 administration of this section. Any rule or portion of a rule, as that term is defined in
94 section 536.010, that is crea ted under the authority delegated in this section shall
95 become effective only if it complies with and is subject to all of the provi sions of chapter
96 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable
97 and if any of the powers vested with the general assembly pursuant to chapter 536 to
98 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently
99 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed or
100 adopted after August 28, 2026, shall be invalid and void.
101 13. This section shall become effective on January 1, 2027.
✔
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