Bill > SB5496

This bill addresses Washington state's housing crisis by restricting large investment entities and businesses from purchasing single-family residential properties. Specifically, the legislation prohibits business entities with interests in more than 50 single-family homes and investment entities (such as real estate investment trusts or entities managing pooled investor funds) from acquiring additional single-family residential properties. The bill defines single-family residential properties as detached or semi-detached buildings, including those with accessory dwelling units, and row homes or townhomes that are structurally independent. There are exceptions for nonprofits, entities purchasing properties to modify or increase housing units, those constructing new properties, and businesses acquiring properties through foreclosure. The legislature found that investors currently own over seven percent of the housing supply, which limits homeownership opportunities for families. Violations of this prohibition will result in civil penalties up to $100,000 per violation, with the violator required to sell the property to an independent third party within one year of a court judgment. The bill is part of a broader effort to preserve affordable housing options and enable residents to develop intergenerational wealth through home ownership.

Budget and Finance, Housing and Urban Affairs

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