Bill > SB5496

This bill aims to preserve homeownership options for residents by limiting excessive home buying by certain entities, particularly in response to a housing crisis where large institutional investors are increasing their holdings of single-family homes. Specifically, it prohibits any "business entity" (defined broadly to include companies, partnerships, and other legal entities, but excluding investment entities and certain financial institutions) that already owns over 100 single-family residential properties from acquiring any more. It also prohibits "investment entities," such as real estate investment trusts or entities managing pooled investor funds, from purchasing any single-family residential properties. A "single-family residential property" is defined as a detached or semi-detached building, or a row home or townhome with specific separation requirements. There are exceptions for non-profit organizations, entities making substantial modifications to properties to meet building codes, those acquiring properties to increase the number of residential units (with a five-year limit without permits), those building new properties, or those acquiring a property through foreclosure where they were already servicing the loan. Violations of this new law will result in a civil penalty of up to $100,000 per violation, and the property must be sold to an independent third party within one year of a court judgment. This bill also amends existing law to include these violations under the Consumer Protection Act and specifies penalties.

Budget and Finance, Housing and Urban Affairs

https://app.leg.wa.gov/billsummary?BillNumber=5496&Year=2025&Initiative=false