Read the full stored bill text
SECOND REGULAR SESSION
SENATE BILL NO. 920
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR NICOLA.
3371S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 442, RSMo, by adding thereto one new section relating to the acquisition of real
property by certain business entities.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 442, RSMo, is amended by adding thereto 1
one new section, to be known as section 442.700, to read as 2
follows:3
442.700. 1. For the purposes of this section, the 1
following terms mean: 2
(1) "Business entity", any for-profit association, 3
company, firm, partnership, corporation, limited liability 4
partnership or other legal entity including private equity 5
firms or hedge funds, and that entity's corporate affiliates 6
or subsidiaries or any related entity that shares common 7
management or common ownership. The term "business entity" 8
does not include businesses regulated under state or federal 9
banking or finance laws operating as commercial banks, bank 10
holding companies, savings banks, trust companies, savings 11
and loan associations, credit unions, mortgage lenders, 12
mortgage servicers or the subsidiaries or corporate 13
affiliates of any of the foregoing, excluding private equity 14
firms; 15
(2) (a) "Investment entity", any of the following: 16
SB 920 2
a. A real estate investment trust as defined by any 17
state or federal statute; 18
b. An entity that manages funds pooled from investors 19
and owes a fiduciary duty to those investors. Two or more 20
investment entities under common management shall be 21
aggregated and treated as one for purposes of this section; 22
and 23
c. The corporate affiliates or subsidiaries or any 24
related entity that shares common management or common 25
ownership with an entity listed in paragraphs (a) and (b) of 26
this subdivision. 27
(b) The term "investment entity" does not include 28
businesses regulated under state or federal banking or 29
finance laws operating as commercial banks, bank holding 30
companies, savings banks, trust companies, savings and loan 31
associations, credit unions, mortgage lenders, mortgage 32
servicers or the subsidiaries or corporate affiliates of any 33
of the foregoing, excluding private equity firms; 34
(3) "Residential property", includes any improved 35
property that is primarily intended to be used for human 36
habitation and includes existing structures containing 37
single-family homes and buildings with at least two but not 38
more than four units where each unit is primarily intended 39
to be used for human habitation by an individual or family 40
which are not intended to be demolished as part of a new 41
residential development; 42
(4) "Ownership interest", does not include: 43
a. Any security interest, including under a deed of 44
trust or mortgage; or 45
b. Ownership or any other interest obtained through 46
foreclosure of a security interest. 47
SB 920 3
2. A business entity or investment entity that has an 48
ownership interest in more than fifty single-family 49
residential properties or more than one hundred residential 50
units in this state may not purchase, acquire, or otherwise 51
obtain an interest in another or additional residential 52
properties in this state. 53
3. A business or investment entity is not subject to 54
the prohibitions in this section if the entity is: 55
(1) The purchaser of an existing residential property 56
that has failed and is in violation of a building code or 57
occupancy permit inspection and the purchasers are making 58
modifications to the property that are necessary to achieve 59
substantial compliance with existing building or occupancy 60
codes; or 61
(2) A person acquiring an ownership interest in 62
residential property through the construction of new 63
properties. 64
4. A seller of a residential property shall not be 65
liable for any violation of this section. 66
5. (1) The attorney general may bring a cause of 67
action in any circuit court with proper jurisdiction if the 68
attorney general has reason to believe that a business 69
entity or investment entity or any affiliate or subsidiary 70
thereof has acquired, directly or indirectly, any 71
residential real estate in this state on or after August 28, 72
2026. If the court finds that residential real estate has 73
been acquired in violation of this section, the court shall 74
order the sale of the residential real estate not later than 75
ninety days after the order. 76
(2) The Missouri housing development commission or non- 77
profit corporation established by the commission may advise 78
or report to the attorney general regarding any 79
SB 920 4
circumstances where the availability and supply of low and 80
moderate residential housing has been adversely affected by 81
the activities of a business entity or investment entity 82
described in this section. 83
6. Every person who violates the terms of any 84
injunction issued regarding enforcement of this section 85
shall forfeit and pay a civil penalty to the state of 86
Missouri of not more than two hundred fifty thousand dollars 87
plus costs incurred by the attorney general enforcing this 88
section or injunction issued under this section. 89
7. For the purpose of this section the circuit court 90
issuing an injunction shall retain jurisdiction, and the 91
cause shall be continued, and in such cases the attorney 92
general acting in the name of the state may petition for the 93
recovery of civil penalties. 94
8. By December 31, 2030, and every five years 95
thereafter, the office of the attorney general shall 96
evaluate the efficacy of the maximum civil penalty amount 97
established in this section in deterring violations of this 98
section and the difference, if any, between the current 99
penalty amount and the penalty amounts adjusted for 100
inflation and provide the general assembly with a report of 101
its finding and any recommendations. 102
9. This section shall not apply to residential 103
property developers or home builders who acquire real estate 104
for the development and construction of new residential 105
homes including, but not limited to, condominiums, town 106
homes, single-family or multi-family homes. 107
✓