SB5496 • 2026

Home buying by entities

Preserving homeownership options by limiting excessive home buying by certain entities.

Budget Housing

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Senator Alvarado, Senator Orwall, Senator Bateman, Senator Conway, Senator Frame, Senator Hasegawa, Senator Lovelett, Senator Nobles, Senator Saldaña, Senator Stanford, Senator Trudeau, Senator Valdez, Senator Wellman, Senator C. Wilson
Last action: 2026-02-13
Official status: S subst for
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Home buying by entities

What This Bill Does

Home buying by entities

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

5496-S2.E AMH APP H3763.1

0 • Appropriations

NOT CONSIDERED

Plain English: 5496-S2.E AMH APP H3763.1 E2SSB 5496 - H COMM AMD By Committee on Appropriations NOT CONSIDERED 03/12/2026 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.

5496-S2.E AMH APP H3763.1 E2SSB 5496 - H COMM AMD By Committee on Appropriations NOT CONSIDERED 03/12/2026 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.
Sec.
1.
The legislature finds that Washington 3 state is in a housing crisis, with few homes on the market that are 4 affordable to families of moderate incomes.

5496-S2.E AMH DUFA MORI 401

2399 • Dufault

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH DUFA MORI 401 1 - Official Print By Representative Dufault EFFECT: States that legislative privilege does not apply to internal deliberations concerning the act.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH DUFA MORI 401 1 - Official Print By Representative Dufault EFFECT: States that legislative privilege does not apply to internal deliberations concerning the act.
5496-S2.E AMH DUFA MORI 401 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2399 NOT CONSIDERED 03/12/2026 On page 4, line 26 of the striking amendment, after "RCW." insert the following: "NEW SECTION.
Sec.
5.

5496-S2.E AMH JACO MORI 391

2421 • Jacobsen

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH JACO MORI 391 1 - Official Print By Representative Jacobsen EFFECT: Exempts from the act acquiring an ownership interest in a single-family residential property that has been publicly listed for sale for more than 60 consecutive days and is not subject to a legally enforceable executed purchase and sale agreement.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH JACO MORI 391 1 - Official Print By Representative Jacobsen EFFECT: Exempts from the act acquiring an ownership interest in a single-family residential property that has been publicly listed for sale for more than 60 consecutive days and is not subject to a legally enforceable executed purchase and sale agreement.
5496-S2.E AMH JACO MORI 391 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2421 NOT CONSIDERED 03/12/2026 On page 2, line 38 of the striking amendment, after "properties;" strike "or" On page 3, line 3 of the striking amendment, after "property" insert "; or (f) Acquiring an ownership interest in a single-family residential property that has been publicly listed for sale for more than 60 consecutive days and is not subject to a legally enforceable executed purchase and sale agreement" --- END

5496-S2.E AMH LOW MORI 381

2422 • Low

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH LOW MORI 381 1 - Official Print By Representative Low EFFECT: Removes the prohibition against investment entities purchasing, acquiring, or otherwise obtaining an interest in a 5496-S2.E AMH LOW MORI 381 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2422 NOT CONSIDERED 03/12/2026 On page 1, line 18 of the striking amendment, after "large" strike "investment and" On page 1, line 21 of the striking amendment, after "(1)" strike "(a)" On page 1, beginning on line 25 of the striking amendment, strike all of subsection (b) On page 2, beginning on line 1 of the striking amendment, after "affiliates" strike all material through "means" on line 3 and insert ", including" On page 2, at the beginning of line 8 of the striking amendment, strike "(c)" and insert "(b)" Reletter the remaining subsections consecutively and correct any internal references accordingly.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH LOW MORI 381 1 - Official Print By Representative Low EFFECT: Removes the prohibition against investment entities purchasing, acquiring, or otherwise obtaining an interest in a 5496-S2.E AMH LOW MORI 381 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2422 NOT CONSIDERED 03/12/2026 On page 1, line 18 of the striking amendment, after "large" strike "investment and" On page 1, line 21 of the striking amendment, after "(1)" strike "(a)" On page 1, beginning on line 25 of the striking amendment, strike all of subsection (b) On page 2, beginning on line 1 of the striking amendment, after "affiliates" strike all material through "means" on line 3 and insert ", including" On page 2, at the beginning of line 8 of the striking amendment, strike "(c)" and insert "(b)" Reletter the remaining subsections consecutively and correct any internal references accordingly.
On page 2, at the beginning of line 13 of the striking amendment, strike "and "investment entity" do" and insert "does" On page 2, line 26 of the striking amendment, after "business" strike "or investment" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 5496-S2.E AMH LOW MORI 381 2 - Official Print single-family residential property.
Consolidates the definition of "investment entity" into the definition of "business entity." --- END

5496-S2.E AMH DUFA SERE 255

2423 • Dufault

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH DUFA SERE 255 1 - Official Print By Representative Dufault EFFECT: Removes enforcement and penalties under the Consumer Protection Act for violations of the ownership limits for single- family residential properties.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH DUFA SERE 255 1 - Official Print By Representative Dufault EFFECT: Removes enforcement and penalties under the Consumer Protection Act for violations of the ownership limits for single- family residential properties.
5496-S2.E AMH DUFA SERE 255 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2423 NOT CONSIDERED 03/12/2026 On page 3, beginning on line 4 of the striking amendment, strike all of subsection (4) Renumber the remaining subsections consecutively and correct any internal references accordingly.
On page 3, beginning on line 22 of the striking amendment, strike all of section 3 Renumber the remaining sections consecutively and correct any internal references accordingly.
END

5496-S2.E AMH MANJ SERE 260

2424 • Manjarrez

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH MANJ SERE 260 1 - Official Print By Representative Manjarrez EFFECT: Eliminates the requirement that a single-family residential property acquired in violation of the ownership limits must be sold within one year of a judgment.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH MANJ SERE 260 1 - Official Print By Representative Manjarrez EFFECT: Eliminates the requirement that a single-family residential property acquired in violation of the ownership limits must be sold within one year of a judgment.
5496-S2.E AMH MANJ SERE 260 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2424 NOT CONSIDERED 03/12/2026 On page 3, beginning on line 39 of the striking amendment, after "violation" strike all material through "judgment" on page 4, line 2 --- END

5496-S2.E AMH MANJ SERE 250

2429 • Manjarrez

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH MANJ SERE 250 1 - Official Print By Representative Manjarrez EFFECT: Exempts from the ownership limits any purchases of single-family residential properties with binding purchase agreements executed prior to the effective date of the ownership limits.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH MANJ SERE 250 1 - Official Print By Representative Manjarrez EFFECT: Exempts from the ownership limits any purchases of single-family residential properties with binding purchase agreements executed prior to the effective date of the ownership limits.
5496-S2.E AMH MANJ SERE 250 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2429 NOT CONSIDERED 03/12/2026 On page 3, after line 21 of the striking amendment, insert the following: "(8) The provisions of subsection (1) of this section do not apply to purchases of single-family residential properties with binding purchase agreements executed prior to the effective date of this section." --- END

5496-S2.E AMH JACO MORI 390

2430 • Jacobsen

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH JACO MORI 390 1 - Official Print By Representative Jacobsen EFFECT: Exempts from the act acquiring an ownership interest in a single-family residential property that has been publicly listed for sale for more than 21 consecutive days and is not subject to a legally enforceable executed purchase and sale agreement.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH JACO MORI 390 1 - Official Print By Representative Jacobsen EFFECT: Exempts from the act acquiring an ownership interest in a single-family residential property that has been publicly listed for sale for more than 21 consecutive days and is not subject to a legally enforceable executed purchase and sale agreement.
5496-S2.E AMH JACO MORI 390 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2430 NOT CONSIDERED 03/12/2026 On page 2, line 38 of the striking amendment, after "properties;" strike "or" On page 3, line 3 of the striking amendment, after "property" insert "; or (f) Acquiring an ownership interest in a single-family residential property that has been publicly listed for sale for more than 21 consecutive days and is not subject to a legally enforceable executed purchase and sale agreement" --- END

5496-S2.E AMH BARK MORI 380

2431 • Barkis

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH BARK MORI 380 1 - Official Print By Representative Barkis 5496-S2.E AMH BARK MORI 380 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2431 NOT CONSIDERED 03/12/2026 On page 1 of the striking amendment, strike all material after line 2 and insert the following: "NEW SECTION.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH BARK MORI 380 1 - Official Print By Representative Barkis 5496-S2.E AMH BARK MORI 380 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2431 NOT CONSIDERED 03/12/2026 On page 1 of the striking amendment, strike all material after line 2 and insert the following: "NEW SECTION.
Sec.
1.
(1) The legislature finds that: (a) Washington’s persistent housing crisis requires targeted, effective policy to put affordable housing and homeownership in reach of more Washingtonians and their families.

5496-S2.E AMH JACO MORI 387

2445 • Jacobsen

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH JACO MORI 387 1 - Official Print By Representative Jacobsen EFFECT: Exempts from the act the acquisition of an ownership interest in a single-family residential property that has been leased for rental occupancy under the Residential Landlord-Tenant Act in the 12 months prior to acquisition.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH JACO MORI 387 1 - Official Print By Representative Jacobsen EFFECT: Exempts from the act the acquisition of an ownership interest in a single-family residential property that has been leased for rental occupancy under the Residential Landlord-Tenant Act in the 12 months prior to acquisition.
5496-S2.E AMH JACO MORI 387 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2445 NOT CONSIDERED 03/12/2026 On page 2, line 38 of the striking amendment, after "properties;" strike "or" On page 3, line 3 of the striking amendment, after "property" insert "; or (f) Acquiring an ownership interest in a single-family residential property that has been leased for rental occupancy under chapter 59.18 RCW in the 12 months prior to acquisition" --- END

5496-S2.E AMH BARK SERE 261

2446 • Barkis

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH BARK SERE 261 1 - Official Print By Representative Barkis 5496-S2.E AMH BARK SERE 261 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2446 NOT CONSIDERED 03/12/2026 On page 4, line 26 of the striking amendment, after "RCW." insert the following: "NEW SECTION.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH BARK SERE 261 1 - Official Print By Representative Barkis 5496-S2.E AMH BARK SERE 261 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2446 NOT CONSIDERED 03/12/2026 On page 4, line 26 of the striking amendment, after "RCW." insert the following: "NEW SECTION.
Sec.
5.
(1) This act takes effect on the later of the following dates: (a) Thirty days after the office of financial management has determined that each county planning under RCW 36.70A.040 has met or exceeded its housing production goals for three consecutive calendar years; or (b) Thirty days after the office of financial management has determined that the state has added, in aggregate, one million net new housing units above the total housing supply existing in calendar year 2025.

5496-S2.E AMH ENGE MORI 388

2447 • Engell

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH ENGE MORI 388 1 - Official Print By Representative Engell EFFECT: Exempts from the act leasing a single-family residential property with an option to purchase, commonly known as a rent-to-own or lease-option agreement.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH ENGE MORI 388 1 - Official Print By Representative Engell EFFECT: Exempts from the act leasing a single-family residential property with an option to purchase, commonly known as a rent-to-own or lease-option agreement.
5496-S2.E AMH ENGE MORI 388 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2447 NOT CONSIDERED 03/12/2026 On page 2, line 38 of the striking amendment, after "properties;" strike "or" On page 3, line 3 of the striking amendment, after "property" insert "; or (f) Leasing a single-family residential property with an option to purchase, commonly known as a rent-to-own or lease-option agreement" --- END

5496-S2.E AMH BARK SERE 253

2448 • Barkis

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH BARK SERE 253 1 - Official Print By Representative Barkis EFFECT: Delays the effective date of the bill from 90 days after final adjournment of the legislative session in which it is enacted to July 1, 2028.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2.E AMH BARK SERE 253 1 - Official Print By Representative Barkis EFFECT: Delays the effective date of the bill from 90 days after final adjournment of the legislative session in which it is enacted to July 1, 2028.
5496-S2.E AMH BARK SERE 253 E2SSB 5496 - H AMD TO APP COMM AMD (H-3763.1/26) 2448 NOT CONSIDERED 03/12/2026 On page 4, line 26 of the striking amendment, after "RCW." insert the following: "NEW SECTION.
Sec.
5.

5496-S2 AMS ALVA S2216.1

154 • Alvarado

NOT CONSIDERED

Plain English: 5496-S2 AMS ALVA S2216.1 2SSB 5496 - S AMD 154 By Senator Alvarado NOT CONSIDERED 04/27/2025 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.

5496-S2 AMS ALVA S2216.1 2SSB 5496 - S AMD 154 By Senator Alvarado NOT CONSIDERED 04/27/2025 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.
Sec.
1.
The legislature finds that Washington 3 state is in a housing crisis, with few homes on the market that are 4 affordable to families of moderate incomes.

5496-S2 AMS FORT S2224.1

172 • Fortunato

NOT CONSIDERED

Plain English: 5496-S2 AMS FORT S2224.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 172 By Senator Fortunato NOT CONSIDERED 04/27/2025 On page 2, line 38, after "properties;" strike "or"1 On page 3, line 3, after "property" insert "; or2 (f) Purchasing single-family residential property to sell to 3 first-time homebuyers" 4 EFFECT: Exempts from the act a business entity that purchases single-family residential property to sell to first-time homebuyers.

5496-S2 AMS FORT S2224.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 172 By Senator Fortunato NOT CONSIDERED 04/27/2025 On page 2, line 38, after "properties;" strike "or"1 On page 3, line 3, after "property" insert "; or2 (f) Purchasing single-family residential property to sell to 3 first-time homebuyers" 4 EFFECT: Exempts from the act a business entity that purchases single-family residential property to sell to first-time homebuyers.
END --- Code Rev/AF:eab 1 S-2224.1/25

5496-S2 AMS FORT S2225.1

173 • Fortunato

NOT CONSIDERED

Plain English: 5496-S2 AMS FORT S2225.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 173 By Senator Fortunato NOT CONSIDERED 04/27/2025 On page 3, line 39, after " than" strike " $100,000" and insert 1 "$1" 2 On page 4, line 1, after " within" strike " one year " and insert 3 "50 years" 4 EFFECT: Changes the civil penalty to $1 and the time for the entity to sell the property to 50 years.

5496-S2 AMS FORT S2225.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 173 By Senator Fortunato NOT CONSIDERED 04/27/2025 On page 3, line 39, after " than" strike " $100,000" and insert 1 "$1" 2 On page 4, line 1, after " within" strike " one year " and insert 3 "50 years" 4 EFFECT: Changes the civil penalty to $1 and the time for the entity to sell the property to 50 years.
END --- Code Rev/AF:eab 1 S-2225.1/25

5496-S2 AMS CHRI RICS 216

174 • Christian

NOT CONSIDERED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2 AMS ....

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5496-S2 AMS ....
RICS 216 1 - Official Print EFFECT: 5496-S2 AMS CHRI RICS 216 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 174 By Senator Christian NOT CONSIDERED 04/27/2025 On page 3, line 39, after "than", strike "$100,000", and insert $1000.
END

5496-S2 AMS HARR S2222.1

175 • Harris

NOT CONSIDERED

Plain English: 5496-S2 AMS HARR S2222.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 175 By Senator Harris NOT CONSIDERED 04/27/2025 On page 2, at the beginning of line 28, strike " (a) A nonprofit 1 corporation or other nonprofit legal entity;" 2 Reletter the remaining subsections consecutively and correct any 3 internal references accordingly.

5496-S2 AMS HARR S2222.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 175 By Senator Harris NOT CONSIDERED 04/27/2025 On page 2, at the beginning of line 28, strike " (a) A nonprofit 1 corporation or other nonprofit legal entity;" 2 Reletter the remaining subsections consecutively and correct any 3 internal references accordingly.
4 EFFECT: Removes the exemption for nonprofit corporations or other nonprofit legal entities.
END --- Code Rev/AF:eab 1 S-2222.1/25

5496-S2 AMS SHOR S2219.1

176 • Short

NOT CONSIDERED

Plain English: 5496-S2 AMS SHOR S2219.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 176 By Senator Short NOT CONSIDERED 04/27/2025 Beginning on page 3, line 39, after " violation" strike " and sell 1 the property in violation to an independent third party within one 2 year of the date that the court enters the judgment"3 EFFECT: Removes the requirement that the entity must sell the property in violation of the act.

5496-S2 AMS SHOR S2219.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 176 By Senator Short NOT CONSIDERED 04/27/2025 Beginning on page 3, line 39, after " violation" strike " and sell 1 the property in violation to an independent third party within one 2 year of the date that the court enters the judgment"3 EFFECT: Removes the requirement that the entity must sell the property in violation of the act.
END --- Code Rev/AF:ajr 1 S-2219.1/25

5496-S2 AMS GOEH S2218.1

177 • Goehner

NOT CONSIDERED

Plain English: 5496-S2 AMS GOEH S2218.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 177 By Senator Goehner NOT CONSIDERED 04/27/2025 On page 4, after line 26, insert the following:1 "NEW SECTION.

5496-S2 AMS GOEH S2218.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 177 By Senator Goehner NOT CONSIDERED 04/27/2025 On page 4, after line 26, insert the following:1 "NEW SECTION.
Sec.
5.
This act takes effect January 1, 2026."2 On page 4, beginning on line 29, after "section;" strike "and 3 prescribing penalties" and insert "prescribing penalties; and 4 providing an effective date" 5 EFFECT: The effective date of the act is January 1, 2026.

5496-S2 AMS GOEH S2221.1

178 • Goehner

NOT CONSIDERED

Plain English: 5496-S2 AMS GOEH S2221.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 178 By Senator Goehner NOT CONSIDERED 04/27/2025 On page 4, after line 26, insert the following:1 "NEW SECTION.

5496-S2 AMS GOEH S2221.1 2SSB 5496 - S AMD TO S AMD (S-2216.1/25) 178 By Senator Goehner NOT CONSIDERED 04/27/2025 On page 4, after line 26, insert the following:1 "NEW SECTION.
Sec.
5.
(1) The joint legislative audit and 2 review committee must evaluate the effects of this act on the 3 purchase and sale of single-family residential properties by business 4 entities, investment entities, and members of the public.5 (2) The review must be provided to the appropriate committees of 6 the legislature by September 1, 2027.

5496-S2 AMS ALVA S5023.1

596 • Alvarado

ADOPTED

Plain English: 5496-S2 AMS ALVA S5023.1 2SSB 5496 - S AMD 596 By Senator Alvarado ADOPTED 02/13/2026 On page 1, at the beginning of line 12, strike all material 1 through "wealth" on line 18 and insert "median home price in 2 Washington rise 74 percent between 2018 to 2024, where in 2024, large 3 institutional investors holding portfolios of more than 100 single-4 family homes increased their holdings in the Seattle metropolitan 5 region by approximately 31 percent.

5496-S2 AMS ALVA S5023.1 2SSB 5496 - S AMD 596 By Senator Alvarado ADOPTED 02/13/2026 On page 1, at the beginning of line 12, strike all material 1 through "wealth" on line 18 and insert "median home price in 2 Washington rise 74 percent between 2018 to 2024, where in 2024, large 3 institutional investors holding portfolios of more than 100 single-4 family homes increased their holdings in the Seattle metropolitan 5 region by approximately 31 percent.
The legislature further finds 6 that the concentration of single-family homes in large institutional 7 investor portfolios reduces opportunities for Washington residents 8 and families to purchase homes and build intergenerational wealth, 9 particularly in the state's highest demand housing markets"10 On page 2, line 2, after "than" strike "50" and insert "100"11 On page 3, after line 27, insert the following:12 "(7) Title insurers licensed under chapter 48.29 RCW are not 13 liable in any civil, administrative, or other proceeding for the 14 failure of any seller, buyer, or other property owner to comply with 15 the requirements of this section." 16 EFFECT: (1) Revises legislative findings.
(2) Increases the limit, from 50 to 100, of interests in single- family residential properties that a business entity may have.
(3) Provides immunity to title insurers for the failure of any seller, buyer, or other property owner to comply with the restriction imposed under the act.

5496-S2 AMS GOEH S5013.1

674 • Goehner

NOT ADOPTED

Plain English: 5496-S2 AMS GOEH S5013.1 2SSB 5496 - S AMD 674 By Senator Goehner NOT ADOPTED 02/13/2026 On page 4, after line 32, insert the following:1 "NEW SECTION.

5496-S2 AMS GOEH S5013.1 2SSB 5496 - S AMD 674 By Senator Goehner NOT ADOPTED 02/13/2026 On page 4, after line 32, insert the following:1 "NEW SECTION.
Sec.
5.
(1) The joint legislative audit and 2 review committee must evaluate the effects of this act on the 3 purchase and sale of single-family residential properties by business 4 entities, investment entities, and members of the public.5 (2) The review must be provided to the appropriate committees of6 the legislature by September 1, 2028.

5496-S2 AMS MACE S5188.1

675 • MacEwen

NOT ADOPTED

Plain English: 5496-S2 AMS MACE S5188.1 2SSB 5496 - S AMD 675 By Senator MacEwen NOT ADOPTED 02/13/2026 On page 2, beginning on line 13, after "means" strike all 1 material through "An" on line 16 and insert "an" 2 EFFECT: Removes real estate investment trusts from the definition of an investment entity.

5496-S2 AMS MACE S5188.1 2SSB 5496 - S AMD 675 By Senator MacEwen NOT ADOPTED 02/13/2026 On page 2, beginning on line 13, after "means" strike all 1 material through "An" on line 16 and insert "an" 2 EFFECT: Removes real estate investment trusts from the definition of an investment entity.
END --- Code Rev/AF:ajr 1 S-5188.1/26

5496-S2 AMS GOEH S5189.1

676 • Goehner

NOT ADOPTED

Plain English: 5496-S2 AMS GOEH S5189.1 2SSB 5496 - S AMD 676 By Senator Goehner NOT ADOPTED 02/13/2026 On page 4, after line 32, insert the following:1 "NEW SECTION.

5496-S2 AMS GOEH S5189.1 2SSB 5496 - S AMD 676 By Senator Goehner NOT ADOPTED 02/13/2026 On page 4, after line 32, insert the following:1 "NEW SECTION.
Sec.
5.
This act takes effect July 1, 2027."2 2SSB 5496 - S AMD 676 By Senator Goehner NOT ADOPTED 02/13/2026 On page 1, beginning on line 3 of the title, after "section;" 3 strike all material through "penalties" on line 4 and insert 4 "prescribing penalties; and providing an effective date"5 EFFECT: Changes the effective date of the act to July 1, 2027.

Bill History

2026-02-13 Senate
2nd substitute bill substituted.

Official Summary Text

Home buying by entities

Current Bill Text

Read the full stored bill text

AN ACT Relating to preserving homeownership options by limiting 1
excessive home buying by certain entities; amending RCW 19.86.140; 2
adding a new chapter to Title 19 RCW; creating a new section; and 3
prescribing penalties. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. The legislature finds that Washington 6
state is in a housing crisis, with few homes on the market that are 7
affordable to families of moderate incomes. The legislature has taken 8
steps in recent years to boost the state's housing supply through 9
grants and incentive programs, permitting reform, and increasing 10
density in certain land use zones. However, the state has seen the 11
average home price in Washington rise 55 percent between 2018 to 12
2021. During roughly the same time period, the change in share of 13
homes purchased by medium, large, and mega investors increased by 46 14
percent. These types of investors currently own just over seven 15
percent of the housing supply in Washington, locking out families 16
from real estate ownership opportunities and the ability to develop 17
intergenerational wealth. Therefore, the legislature intends to 18
prohibit large investment and business entities from purchasing more 19
of the state's existing stock of homes so that the affordable housing 20
supply is available for purchase by residents and families.21
S-0837.1
SENATE BILL 5496
State of Washington 69th Legislature 2025 Regular Session
By Senators Alvarado, Orwall, Bateman, Conway, Frame, Hasegawa,
Lovelett, Nobles, Saldaña, Stanford, Trudeau, Valdez, Wellman, and C.
Wilson
Read first time 01/27/25. Referred to Committee on Housing.
p. 1 SB 5496
NEW SECTION. Sec. 2. (1)(a) A business entity that has an 1
interest in more than 25 single-family residential properties may not 2
purchase, acquire, or otherwise obtain an interest in another single-3
family residential property.4
(b) An investment entity may not purchase, acquire, or otherwise 5
obtain an interest in a single-family residential property.6
(2) For the purposes of this section: 7
(a) "Business entity" means any association, company, firm, 8
partnership, corporation, limited liability company, limited 9
liability partnership, or other legal entity, and that entity's 10
successors, assignees, or affiliates. "Business entity" does not 11
include an investment entity. 12
(b) "Investment entity" means: 13
(i) A real estate investment trust as defined by any state or 14
federal statute; or 15
(ii) An entity that manages funds pooled from investors and owes 16
a fiduciary to those investors. 17
(c) "Single-family residential property" means a residential 18
structure that is: 19
(i) A fully detached or semidetached building, which may include 20
one or more accessory dwelling units located within or attached to 21
the building; or 22
(ii) A row home or townhome that is separated from any adjacent 23
unit by a ground-to-roof wall, does not share heating or air 24
conditioning systems or utilities, and does not have units located 25
above or below. 26
(3) A business or investment entity is not subject to the 27
prohibitions in subsection (1) of this section if the entity is:28
(a) A nonprofit corporation or other nonprofit legal entity;29
(b) Purchasing an existing single-family residential property and 30
making modifications to the property that are necessary to achieve 31
substantial compliance with existing building codes;32
(c) Purchasing an existing single-family residential property to 33
increase the number of residential units on the property, which may 34
include single-family or multifamily units, only if the entity does 35
not hold a single-family residential structure longer than five years 36
without applying for building permits for the property; or37
(d) Acquiring an ownership interest in single-family residential 38
property through the construction of new properties.39
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(4) The legislature finds that the practices covered by this 1
section are matters vitally affecting the public interest for the 2
purpose of applying the consumer protection act, chapter 19.86 RCW. A 3
violation of this section is not reasonable in relation to the 4
development and preservation of business and is an unfair or 5
deceptive act in trade or commerce and an unfair method of 6
competition for the purpose of applying the consumer protection act, 7
chapter 19.86 RCW. 8
(5) A seller of a single-family residential property is not 9
liable for any violation of this section. 10
(6) By June 30, 2026, the department of commerce shall submit a 11
report to the appropriate committees of the legislature with 12
recommendations to disincentivize business and investment entities 13
from maintaining ownership of single-family residential properties.14
Sec. 3. RCW 19.86.140 and 2024 c 256 s 2 are each amended to 15
read as follows: 16
Every person who shall violate the terms of any injunction issued 17
as in this chapter provided, shall forfeit and pay a civil penalty of 18
not more than $125,000. 19
Every person who violates RCW 19.86.030 or 19.86.040 shall pay a 20
civil penalty of up to three times the unlawful gains or loss avoided 21
as a result of each violation. 22
Every person who violates RCW 19.86.020 shall forfeit and pay a 23
civil penalty of not more than $7,500 for each violation: PROVIDED, 24
That nothing in this paragraph shall apply to any radio or television 25
broadcasting station which broadcasts, or to any publisher, printer 26
or distributor of any newspaper, magazine, billboard or other 27
advertising medium who publishes, prints or distributes, advertising 28
in good faith without knowledge of its false, deceptive or misleading 29
character. 30
Every person who violates section 2 of this act shall pay a civil 31
penalty of not more than $100,000 for each violation and sell the 32
property in violation to an independent third party within one year 33
of the date that the court enters the judgment.34
For unlawful acts or practices that target or impact specific 35
individuals or communities based on demographic characteristics 36
including, but not limited to, age, race, national origin, 37
citizenship or immigration status, sex, sexual orientation, presence 38
of any sensory, mental, or physical disability, religion, veteran 39
p. 3 SB 5496
status, or status as a member of the armed forces, as that term is 1
defined in 10 U.S.C. Sec. 101, an enhanced penalty of $5,000 shall 2
apply. 3
For the purpose of this section the superior court issuing any 4
injunction shall retain jurisdiction, and the cause shall be 5
continued, and in such cases the attorney general acting in the name 6
of the state may petition for the recovery of civil penalties.7
With respect to violations of RCW 19.86.030 and 19.86.040, the 8
attorney general, acting in the name of the state, may seek recovery 9
of such penalties in a civil action. 10
By December 1, 2022, and every five years thereafter, the office 11
of the attorney general shall evaluate the efficacy of the maximum 12
civil penalty amounts established in this section in deterring 13
violations of the consumer protection act and the difference, if any, 14
between the current penalty amounts and the penalty amounts adjusted 15
for inflation, and provide the legislature with a report of its 16
findings and any recommendations in compliance with RCW 43.01.036.17
NEW SECTION. Sec. 4. Section 2 of this act constitutes a new 18
chapter in Title 19 RCW.19
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