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VA SB1424
VA SB1424Single-family homes; prohibited acquisition and ownership, restrictions, civil penalty.
summary
Introduced
01/16/2025
01/16/2025
In Committee
01/29/2025
01/29/2025
Crossed Over
Passed
Dead
02/22/2025
02/22/2025
Introduced Session
2025 Regular Session
Bill Summary
Prohibited acquisition and ownership of single-family homes; restrictions; civil penalty. Restricts any partnership, corporation, or real estate investment trust that manages funds pooled from investors and has $50 million or more in net value or assets under management on any day during a taxable year from acquiring any interest in single-family homes, as defined in the bill, in the Commonwealth and requires registration with the Secretary of the Commonwealth by September 1, 2026, for any such business that acquired such interest prior to July 1, 2026. The bill also requires any such business to divest at least 10 percent of such interest per year over a course of 10 years whereby no such business shall own any interest in single-family homes on and after July 1, 2036. The bill requires the Secretary of the Commonwealth to report annually by December 1 on the registrations and any penalties assessed for failure to register or divest ownership interests and to submit such report to the Governor and the General Assembly. The bill also requires all real property tax bills to contain notice of such prohibited business ownership restrictions and registration requirements. The bill has a delayed effective date of July 1, 2026.
AI Summary
This bill prohibits certain large businesses, defined as "prohibited businesses" with over $50 million in net value or assets under management, from acquiring single-family homes in Virginia starting July 1, 2025. Specifically, any prohibited business that owned single-family homes before this date must register with the Secretary of the Commonwealth by September 1, 2025, and then gradually divest their holdings over a 10-year period, reducing their ownership by 10% each year until they own no single-family homes by July 1, 2036. The bill defines a single-family home broadly to include properties with manufactured home parks or residential homes split into multiple dwellings, but excludes condominiums, townhouses, and multifamily communities. Businesses that violate these restrictions can be subject to a $50,000 per day civil penalty, and local circuit court clerks are required to report potential violations to the Secretary of the Commonwealth. Additionally, the bill mandates that all real property tax bills include a notice about these prohibited business ownership restrictions. The overall aim of the legislation is to protect the housing market by preventing large investment entities from accumulating significant single-family home portfolios.
Committee Categories
Budget and Finance, Justice
Sponsors (2)
Last Action
Left in Finance and Appropriations (on 02/05/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20251/SB1424 |
| BillText | https://lis.virginia.gov/bill-details/20251/SB1424/text/SB1424S1 |
| BillText | https://lis.virginia.gov/bill-details/20251/SB1424/text/SB1424SC1 |
| Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (SB1424) | https://lis.blob.core.windows.net/files/1030688.PDF |
| BillText | https://lis.virginia.gov/bill-details/20251/SB1424/text/SB1424 |
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